AUGUST 12, 2013

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Mobile/Tablets
Global Tablet Sales to Exceed 381 Million in 2017
In a new report analyzing the global tablet market, Forrester forecasts that worldwide sales of tablets will rise from 122 million in 2012 to 381 million in 2017, representing an annual growth rate of 25.6%. This growth is fueled by the adoption of tablets not only by consumers, but also by businesses. While individual consumers will remain the main users of tablets, with an installed base exceeding 905 million, Forrester projects that business-owned tablets will grow to 18% of the market by 2017. As the tablet market grows, competition is increasing and fragmenting the market. Apple’s operating system is expected to maintain its lead, but Android will continue to gain market share and Windows will find a foothold in the tablet market, especially among professionals. Consumers are also diversifying their screen size preferences, and there is a market for both small and large screen sizes. With the expansion and fragmentation of the market comes a fragmentation of use cases as well. Forrester predicts that the variety of places where the tablet is used, in and out of the home, will continue to grow, and that the adoption of tablets in the workplace will catalyze the development of new mobile usage scenarios and applications to complement them.
So what? As the tablet becomes a mainstay device among consumers and businesses, tablet consumption of Condé Nast content will continue to grow. Just last week it was announced that several magazines, including our own New Yorker, saw an increase in their newsstand sales due to digital single-copy sales, at a time when overall consumer magazines are experiencing a downward trend. This success on the digital newsstand, combined with the hyper-growth in tablet adoption, is good news for the magazine industry.
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Demographics
As Latina Population Grows, So Does Spending Power
Latina women drive US Hispanics' $1.2 trillion annual buying power, as 85% of them are primary decision makers in their households. According to the "Latina Power Shift" report by Nielsen, Latinas are not only a force within Hispanic households, but they also represent a quickly growing segment within the overall female population. By 2060, they are projected to be 30% of the US female population. The group is continually becoming more multicultural, mixing Spanish and American cultures seamlessly and identifying with both: 87% of Latinas say they feel equally Latino and American. Besides having pride in their dual identities, Latinas take pride in their appearance; this results in their claiming a higher share of beauty, skin, and hair products consumed compared to non-Hispanics.
So what? Latina women are an important market for Condé Nast. Not only do they continue to grow in size and purchasing power, but their consumption habits are reflective of many of the categories important to CN both editorially and from an advertising perspective. An activation like Glam Bellezza Latina is an example of a creative way to connect with Hispanic women while covering content in which they are interested.
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More Millennials Living At Home With Parents
Millennials are living with their parents for longer than their same-aged counterparts were five years ago. In 2012, 21.6 million Millennials (36% of those aged 18-31) were living in their parents’ home, according to a study by Pew Research. This is the highest share of young adults living at home with their parents in the past four decades, and continues the steady increase from 2007. Prior to the recession in 2007, 32% of young adults lived with their parents and by 2009, 34% were living at home. Economic and cultural factors are contributing to the rise in Millennials staying longer in their parents’ households. Those factors include: -Declining employment rates. In 2007, 70% of those 18-31 had jobs, compared to 63% in 2012. Almost half (45%) of unemployed Millennials live with their parents, while only 29% of employed ones do. -Dropping marriage rates. A larger percentage of 18-31 year olds were married in 2007 compared to 2012 (30% in 2007 versus 25% in 2012). Marriage usually leads to moving out. -Rising college enrollment. Facing a rough job market, some Millennials are opting to go to school (or stay in school) rather than entering the workforce. Four out of ten 18-24 year olds were enrolled in college in 2012, compared to 35% in 2007.
So what? As more Millennials share a mailing address with their parents (and vice versa) and media within the home, it is becoming more of a challenge for marketers to efficiently hit their targets. Advertisers should be mindful of this household trend, and increasingly prioritize individual-based data (and individual-based communications) rather than traditional household-level data.
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Social Media
Nielsen: Twitter Volume Increases Sizes of TV Audiences
In a study that was widely covered by the trades last week, Nielsen claimed for the first time a two-way causal relationship between audience sizes for broadcast programs and the Twitter conversations around them. While Nielsen presented causality without any experimental data, the research firm found that in 29% of the 221 primetime broadcast programs measured, tweets caused a significant change in live TV ratings. Nielsen based their analysis on minute-to-minute ratings and Twitter conversation. Examining the relationship in reverse, Nielsen reported that nearly half of the shows measured (48%) had a meaningful impact on the number of tweets posted about them. Twitter having an impact on program's rating was most common in the competitive reality genre as 44% of programs were able to lift ratings because of Twitter conversation. Comedy programs also had a higher than average percentage of programs impacted by Twitter (37%); drama programs were not as impacted by Twitter as less than one in five had a ratings lift because of Twitter.
So what? Regardless if Nielsen's claim is exaggerated, the reciprocal relationship between social media and television appears to be real. Consumer use of multiple screens when watching television presents an opportunity for magazines to participate in these conversations. Whether it is Glamour tweeting reaction to The Bachelorette or GQ participating in conversation around the NBA Finals and linking back to related stories on GQ.com, social TV gives publishers another way to build engagement with audiences in a creative way.
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Quick Takes
For the First Time, US Adults' Time Spent with Digital has Surpassed Time Spent with Television
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Four of Five 13-44 Year Olds Have Participated in Showrooming
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While Other Smartphone Platforms Maintained Their Market Share, Blackberry Lost 15% of Users in Last Quarter Alone
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Wine Sales Continue to Gain on Spirits
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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