JUNE 10, 2013

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Business
Magazine Ad Business Grew in First Quarter
A Kantar study of magazine print and iPad editions found that nearly 8% more ad units ran in the first quarter of 2013 versus the corresponding period last year. The data collected from 58 titles was analyzed by PIB and showed that a total of 16,668 ads ran across print and iPad editions in the first quarter -- 1,160 more than last year. While print held onto its 2012 numbers with a modest gain of 0.2%, the explosive growth came from iPad editions, where the number of ad units grew by 23.6%. The number of brands advertising with magazines also continues to expand. Across print editions, iPad editions and related websites, the 58 magazines measured captured the business of 9,621 brands in the first quarter -- a lift of 15% over last year.
So what? The digital investments that magazine companies have made to build platforms beyond print are beginning to pay dividends. This analysis demonstrates that not only are advertisers exhibiting more trust in iPad editions as an ad medium, but that the array of content offerings that magazines deliver are effectively bringing more advertisers to the table. As magazines continue their transformation into cross-media platforms, more advertisers will find them able to meet a greater variety of goals.
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Culture
Mothers Are the Sole or Primary Provider in Two Out of Five Households with Children
A recent study by the Pew Research Center demonstrated the growth of “Breadwinner Moms” and the changing cultural norms about working mothers during the past 50 years. The country's 13.7 million Breadwinner Moms are comprised of two groups: 63% are single mothers (8.6 million) and 37% are married and have a higher income than their husband (5.1 million). Between 1960 and 2011, the share of families with kids under 18 headed by single mothers has more than tripled from 7% to 25% and there has been nearly a four-fold increase in the share of married moms who out-earn their husbands (4% in 1960 to 15% in 2011). When the mother is the primary breadwinner in a married couple the total family income is higher ($80,000 median family income), than when the father is the breadwinner ($78,000 median income). Perceptions of moms working have also changed. In 2012, 32% of mothers agreed their ideal situation would be to work full-time, which was an increase from 20% in 2007.
So what? Condé Nast and advertisers should be mindful that women’s rising incomes and primary breadwinner status will only increase their already high purchase power. But, while these women have more income, their increased employment rates may mean less time for media. It is important to understand that changing dynamic among women and find new ways to reach them with effective, meaningful and memorable messages.
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Media
Video Growth is Fueled by Digital Pure-Play Networks
Video monetization company FreeWheel analyzed the professional, copyright-protected videos in its network and identified two broad approaches to creating and monetizing premium online video: 1) Linear + Digital: This model relies on generating revenue from linear TV services, which is complemented by offering content in digital environments. Linear + Digital video networks skew towards long-form video, which they seek to monetize through high ad loads. Over the past year, they have been successful in building up long-form ad loads from 7.4 ads per video view in Q1 2012 to 9.5 in Q1 2013. 2) Digital Pure-Play: These video networks operate exclusively online, aggregating third-party premium content and/or developing original premium content. In the past year, Digital Pure-Play networks built significant scale around short-form content, experiencing a 47% increase in video views and a 43% increase in ad views. Much of this growth is driven by video syndication (viewing that occurs outside of owned and operated properties of video publishers), which accounted for 84% of Digital Pure-Play views in Q1 2013. 96% of ad views for Digital Pure-Play networks were pre-rolls in Q1, while for Linear + Digital, mid-rolls accounted for 41% of ad views, up from 36% a year earlier.
So what? As the digital video industry gains scale, it is becoming a more viable competitor to TV and capturing ad dollars from TV-oriented advertisers. The videos produced by Condé Nast Entertainment are Digital Pure-Play, and play a role in the continued growth of this category.
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Technology
Mobile Growth Dominates and Presents Huge Advertising Opportunity
Mobile traffic now comprises 15% of internet traffic compared to 10% in 2012. The share of mobile traffic is forecasted to grow by 150% each year (and perhaps even faster), according to a report on internet trends by Mary Meeker of KPCB. While consumers spend about 12% of their time consuming media on mobile devices, mobile accounts for only 3% of total ad spend. Comparatively, consumers spend about a quarter of their media time on the internet and the ad spend is reflective of that -- 22% of ad spend is online. Total mobile ad spend was about $4 billion and total internet ad spend was $37 billion. KPCB suggests there is an untapped $20 billion opportunity in internet and mobile advertising in the US.
So what? Over the past year, Condé Nast has made tremendous progress mobifying its sites. That strategy should prove beneficial as the mobile ad market is still relatively nascent and shows ample room for growth.
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Economy
Consumer Confidence Hits Five Year High
The Conference Board's Consumer Confidence Index hit its highest mark in over five years in May. The May index of 76.2 was the highest mark since February of 2008. May also marked the second consecutive month in which consumer confidence improved. Consumer sentiment about the state of business conditions and labor prospects are both on the rise.
So what? Consumer confidence has been on the rebound since the early part of the year, when implications of the payroll-tax hike and fiscal cliff dominated the headlines. Although just one measure, the confidence index is reflective of other indicators, such as a better car sales market and declining unemployment, that the economy is becoming stronger.
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Quick Takes
The Retail Industry Will Spend $9.35 Billion on Digital Ads this Year; Will Spend $10.42 Billion Next Year
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iPhone Owners Spend 53% More Time on Their Phones than Android Users
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McDonald's is the Most Visited Quick Service Restaurant in the US
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PwC Forecasts eBook Sales to Surpass Print Book Sales in 2017
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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