SEPTEMBER 16, 2013

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Lifestyle/Luxury
In-Store Experience Still Very Important to Affluent Luxury Buyers
The in-store experience remains an important factor for affluent consumers seeking to purchase luxury goods, states a new global study by Google and Ipsos. While three in four affluents conduct online research prior to making a luxury purchase decision, two in three also said that they want to touch and feel a product before making a purchase. Digital research has proven to be a step on the path to luxury purchases, but these purchases still primarily occur in stores. Purchasing in-store differs by market. 72% of consumers in mature markets (e.g. US, UK, France, Germany, and Italy) reported purchasing luxury goods in stores in their home country compared to 61% of consumers in emerging markets (e.g. China, Brazil, and Russia) who purchased in their country. In-store shopping while traveling is a consistent purchase habit for those in emerging markets: 20% report buying luxury goods in stores while traveling abroad. Online purchasing is also more prevalent in the developing markets (18%) than in mature markets (13%). When asked about their favorite digital ad formats for luxury goods, wealthy shoppers prefer seeing immersive ads for luxury products, including video, full screen ads, and newsletter/emails.
So what? The in-store experience remains the deciding element for many affluent consumers. The luxury category is unlike many others where value and convenience have grown to play more important roles. Condé Nast and its advertisers should be keenly aware of this and continue to communicate to consumers as if their purchase funnel will most likely end in a retail location. And, given the importance of online and offline research, provide shoppers with a seamless online to offline experience where applicable.
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Video
Video on Demand Continues to Gain Reach
In its second quarter cross-platform report, Nielsen focused on the statistics around video on demand. VOD is now available in 60% of U.S. television households as content distributors gain comfort with the technology and find ways to measure and monetize it. The demographics of VOD users fit a profile appealing to many advertisers. VOD users are significantly more likely to be 18-34, have a household income greater than $100,000 and have children in their family. And while VOD integration and consumption continues to advance, its presence has not negatively impacted traditional television viewership. The average American watched 4 hours and 19 minutes of live television daily during the second quarter -- that was one minute more than they watched during the same period last year and a mere four minutes less than four years ago.
So what? The list of media for which content creators can publish on can be overwhelming, but VOD has proven deserving of consideration. VOD is an opt-in experience for viewers, which comes with the assumption that they will be more engaged with both its content and advertisements. It also draws in a highly sought-after audience.
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How the Top 100 Global Brands Use YouTube for Marketing
Global brands embrace YouTube as a marketing tool, according to a new report from Pixability, a video marketing company. Analyzing the Top 100 Global Brands (as defined by Intrabrand), Pixability found that 99 of them have YouTube videos channels that have generated over 258,000 videos and 9.5 billion total views to date. Videos can be incredibly valuable for brands, as they can achieve high levels of user engagement and have a relatively long shelf life – 30% of views for an average YouTube video come between 12 and 52 weeks of initial publishing. However, not all videos are created equal – more than half of videos published to YouTube by these brands received less than 1,000 views, and just 0.6% hit the 1 million views mark. Analyzing the best performers, Pixability identified seven best practices that help brands succeed on YouTube, which can be summarized as follows: methodically produce a steady flow of branded videos that are tailored to the needs of the audience, optimize for search engines, and tightly integrate with social media efforts.
So what? As the driver of 17% of all internet traffic and the second largest search engine behind Google, YouTube has become an important ingredient in today’s digital marketing mix. Condé Nast’s brands have a strong presence on YouTube and they already follow many of the best practices outlined in this report. As the YouTube playing field becomes increasingly competitive, it is important to continue fine-tuning our video strategy to yield the best results.
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Fashion/Beauty
U.S. Tweens and Teens Use of Beauty and Personal Care Products
You'll often hear that "kids are growing up faster nowadays." Well, according to recent health reports, that's actually true. Pre-teens and teens are entering puberty earlier than their predecessors, potentially due to higher rates of childhood obesity and environmental factors like steroid use in meat production. And with that, these 25 million 6-11 year olds and 25 million 12-17 year olds are using personal care products earlier, according to Mintel. The early onset of puberty means children are going through hormonal changes at younger ages and experiencing body odor, oily skin, and acne, similar to older adolescents. More than half of tweens 9-11 report using deodorant/antiperspirant (60% among girls 9-11, 53% among boys 9-11). Girls are also much more likely to use fragrances, as 64% of girls 9-11 use them compared to 38% of boys 9-11. Nearly a quarter of girls 9-11 also reported using medicated skincare products, compared to 12% of boys the same age. The majority of teen and tween girls 9-17 are also using beauty products to augment their looks. Nail product usage is almost universal, with 92% using nail products. Lip makeup, facial cleaners, body spray, and eye makeup are all top products with over or about 70% usage rates. Among boys 9-17, the top personal care products are: facial cleaners, body spray, acne treatments, and hair gel. Boosting confidence is the main reason cited for using beauty or personal care products, followed by functional reasons, including, to prevent acne, to create different looks, and to cover body odor.
So what? As children grow up faster and enter puberty earlier, they are also seeking personal health care and beauty products that help them deal with their bodily changes and psychological awakening. Guiding teens, tweens, and parents through the transition into adulthood is one way that both magazine and consumer brands can forge long-lasting connections with this audience.
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Quick Takes
Propelled by American Automakers, More Cars Were Sold In August Than In Any Month During the Previous Six Years
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Comcast, AT&T and Time Warner Are the Largest Broadband Providers in the U.S.
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Retail Category Continues to be Largest Digital Ad Spender by Wide Margin
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The Average U.S. Smartphone User Has Nearly 33 Apps -- Almost 7 More Than Global Average
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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