MAY 13, 2013

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Media
comScore: More than Half of Americans Viewed a Video Ad in March
comScore reports that 182.5 million Americans watched more than 39 billion videos in March 2013. Google (driven by YouTube) continues to be the preeminent force in online video. Google reached 84% of all online video viewers in March and one out of three of all videos viewed on the internet were on its portfolio of sites. More than half of Americans watched a video advertisement in March and an all-time high of 13.2 billion ads were viewed. Google was responsible for the most ad views (2.3 billion views), but the BrightRoll Platform (an ad network) was able to garner the broadest reach -- 50% of the total US population. Compared to other media, the advertising load in online video is still relatively light -- ads represent just 2% of all time spent viewing video online.
So what? Online video continues to grab share of the public's media consumption. With that, ad platforms are becoming more robust and viewers are growing more accustomed to being exposed to ads, as evidenced by the all-time high in ad views in March. As people grow more reliant on online video, advertisers will continue to flock to the medium and an ad load more consistent with other media is likely to follow. That should well position Condé Nast Entertainment to grow its advertising business through the variety of its content offerings.
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Facebook Growth Slows, While Other Social Networks Are on the Rise
Research company Frank N. Magid Associates recently visited Condé Nast to present its Social Media Study, a comprehensive survey of US social media users. The study found that while Facebook use is ubiquitous across all user groups, its user growth has peaked. Unlike Facebook, Instagram, Google+ and Pinterest all experienced major growth in 2012 and are expected to continue growing in 2013. The different social networks serve different user needs – Facebook is used to keep updates about other people and to share personal content, Twitter is used to stay in the know about current events and non-personal contacts, Google+ is used to find quick information and watch videos, and Pinterest is used to gain inspiration and find interesting products. Magid also found that magazine content resonated with users of all major networks – 14% of Twitter users follow magazines, 17% of Pinterest users regularly look at pins from magazines, and 14% of those who like brands on Facebook (87% of all users) have liked a magazine.
So what? Facebook and Twitter remain the largest networks, and often are the easiest way to reach social consumers. However, other social networks are gaining popularity - from the visual Instagram and Tumblr to teen-favorite Snapchat. It is important to keep a finger on the pulse of the social sphere to ensure that Condé Nast's brands reach fans wherever they are.
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Industry Viewpoints
What is the Payoff of Dollars Spent on Different Marketing Channels
Online marketers spend significant resources on multiple marketing channels, attempting to drive large volumes of traffic and achieve a high ROI. To understand the impact of their efforts, marketers often use a last-click attribution model – giving the credit for a visit or a conversion to the last marketing touch-point. Researchers from the University of Maryland analyzed the behavior of visitors to a travel and hospitality website and found that widely-used models like last-click attribution tend to be misleading, as they ignore the impact of prior exposure to the brands. The researchers found that preceding interactions with the brand (website visits, exposure through marketing channels) had carryover and spillover effects on the following visits. For example, emails and display ads triggered visits through other channels, such as search. The study suggests that some touch points do not result in direct conversions but have a positive impact on them. These touch points provide customers with information and inspiration that later result in a conversion, and thus should get due credit in the attribution model and factor into the marketing decision process.
So what? The study is valuable for Condé Nast both as a marketer and as a partner to advertisers. As marketers, CN brands can better measure their success in drawing audience from different marketing channels (search, social, newsletters, etc.) and better allocate resources. As a content and advertising platform, Condé Nast plays an important role in the inspirational stage and deserves credit for its impact on purchase decisions, even when it is not the final touch point in the consumer journey.
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Lifestyle/Luxury
For Affluent Travelers It's About The Journey, Not The Destination
When Ralph Waldo Emerson said, “Life is a journey, not a destination,” he was not referring to affluent travelers in 2013, but his sentiment captures the group's changing perspective well. That is because just as attitudes about luxury goods shift from “having” to “being,” affluent consumers’ preferences around luxury travel are moving from “stuff” to “story.” Affluent consumers’ pursuit of bucket list or once-in-a-lifetime experiences is on the rise, with one in three reporting they engaged in a once-in-a-lifetime activity on vacation in 2012, compared to one in four of affluent vacationers who reported the same in 2010, according to a report by Resonance Consultancy. Looking to create shared family memories and build a family story, 57% of affluents plan to take a family vacation in the next two years, which is a significant increase from 43% in 2008. After family vacations, international travel, weekends with friends, road trips, and romantic couple getaways were top vacation plans.
So what? Companies in the high-end travel category should be encouraged by the trends among affluents -- not only are they more willing to go on vacation than they were just a couple of years back, but they are also spending money once allocated for possessions on experiences. Given this broad cultural shift, Condé Nast should continue to inspire consumers, while serving advertisers as an effective place to promote high-end travel.
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Quick Takes
Spirits Have Grabbed Market Share from Beer in the Past Decade
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iPhones Now Represent Nearly Two out of Every Five US Smartphones
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Half of Tablet Owners Play Video Games
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Mobile Devices Now Account for 14% of Web Traffic Globally; Mobile Access Skews Higher in Asia & Africa
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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