APRIL 29, 2013

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Advertising
Clutter Has Little Impact on Ad Effectiveness in Digital Editions
A recent Starch digital advertising analysis by GfK revealed that the number of ads packed into a digital edition, otherwise known as ad clutter, appears to have very little impact on Noted and Action Taken scores for those ads. The only exception was that very lightly packed magazines (digital editions with nine ads or fewer) scored slightly better than denser issues on key metrics. When Starch scores were analyzed by magazine genre (Business, Fashion, Men’s and Women’s service), there was little variance by clutter level. Ad-heavy holiday issues also performed similarly to non-holiday issues suggesting that clutter does not negatively affect consumers’ noting of the ads or post-ad actions. When comparing tablet editions of the ad-packed, September fashion issues to their print counterparts, the Noted, Associated, and Read Any scores were on par; however, the tablet editions' average Action Taken score was 17% higher than the print editions' -- not surprising considering the interactivity tablets offer.
So what? The results of the different analyses suggest that the “clutter” created by many ads does not detract from the magazine experience. As Condé Nast continues to sign more advertisers on to activate within digital editions, those advertisers should feel confident that the ads in the digital experience are just as likely to resonate with readers as they are in print.
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Economy
An Uneven Recovery: The Rich Get Richer
In a report that is sure to infuriate organizers of the Occupy Wall Street movement, the Pew Research Center found that the country's 8 million most affluent households saw their average net worth increase by 28% between 2009 and 2011, while the rest of the country's declined by 4%. The wealthiest 7% of Americans now have an average net worth of nearly $3.2 million, while the lower 93% are worth an average of $133,817. Between 2009 and 2011, Americans' aggregate net worth rose by $5 trillion; however that represented $5.6 trillion in growth for the affluent offset by a decline of $0.6 trillion among those who are not. Those affluent now own 63% of all wealth in the United States versus 56% just two years ago. The affluent have been beneficiaries of improving financial markets as their overall wealth is comprised mostly of financial assets rather than homes, cars, businesses and properties which dropped in value for both the affluent and non-affluent between 2009 and 2011.
So what? There are passionate arguments on both sides as to why this may or may not be a good trend for the country, however the data does suggest that the wealthy are in a far more comfortable place than they were just a couple of years ago. This bodes well for advertisers that target the very affluent -- they might find their key customers have loosened their purse strings as they have achieved greater wealth.
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Media
What Content People Share, and What Content They Click On
Social sharing and content discovery platform 33Across released a study that examines what motivates people to share web content with others. The study found that across 24 content categories, consumers shared science-related articles at the highest rate, while articles on shopping and men’s health and relationships were the least shared. Interestingly, there isn’t a direct correlation between the articles that are most frequently shared and those that are most frequently read. For example, although a small percentage of readers proactively share entertainment and celebrity content, these articles get many clicks from recipients. News and politics enjoy the highest levels of clickback rates. Based on the patterns it observed, 33Across identifies three types of sharing behaviors: • Ego Sharing – Sharing content that identifies the person with specific topics for the purpose of “personal branding,” regardless of whether recipients are interested in them. Highly shared content with low clickback rates (e.g. science) falls into this category. • Water-Cooler Sharing – Sharing content that is popular and trending in the media, such as news and celebrity gossip. • Practical Sharing – Sharing content that has utility to the recipient. Content with moderate share rates and moderate clickback rates (e.g. parenting and consumer technology) tend to belong to this category.
So what? Shares are becoming an important metric for the social traction a piece of content is gaining, but we must remember they are only one part of the equation. It is important to also consider the rate at which people are clicking on those shared links to understand how the content resonates with the audience. Condé Nast’s social media managers can take advantage of water-cooler sharing by posting links to content that can draw many clicks, but might not always be widely shared already.
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Technology
Teen Usage of Mobile Internet Soars in the US
95% of American teens are online - the same as in 2006 - yet the way they access the internet has changed dramatically, from the home desktop to an always-on mobile connection. According to a survey conducted by the Pew Research Center, one in four teens are now “cell-mostly” internet users, who usually go online using their phone – far higher than the 15% of adults who are cell-mostly. Nearly two out of five teens own a smartphone, and of those, half are cell-mostly. Although teen girls and boys are equally likely to own a smartphone and use mobile internet, girls are significantly more likely (29%) to be cell-mostly than boys (20%). Older teen girls, ages 14-17, are leading the cell-mostly group – 34% prefer to access the internet mostly from their phone. These trends hold true across social groups – teens are equally likely to use their phones as the primary access point to the internet, regardless of their parents' income, education or ethnicity.
So what? Teens, and adults, are increasingly abandoning desktops in favor of mobile. This is reflected in the growing volumes of Condé Nast digital content that is consumed via mobile phones. As this trend will continue to gain momentum, it is important to ensure that our websites – especially those that over-index on teens – provide a superior user experience for mobile visitors.
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Quick Takes
Netflix's Streaming Business Continues to Grow -- Company Now Boasts More Domestic Subscribers than HBO
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The Ford Focus was the World's Most Purchased Car in 2012
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Display and Search Still Own Biggest Pieces of Digital Ad Pie, but Video and Exchanges Have Shown Most Growth Over Last Year
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Hawaii Tops the List of Least Stressed States; West Virginians are Most Stressed
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According to LinkedIn, Condé Nast is New York's Second Most In Demand Employer
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Condé Nast
Feedback, questions, ideas for future issues? Please contact:

Phil Paparella
Condé Nast Research & Insights | Associate Director
1166 6th Avenue, 14th fl. | NY, NY 10036 | office 212.790.6044 | philip_paparella@condenast.com

Contributors:
Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights