SEPTEMBER 23, 2013

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Mobile/Tablets
Mobile Showrooming Can Encourage In-Store Purchases
A new study from Columbia Business School and loyalty management firm Aimia sets to debunk the myth that mobile showrooming will kill the brick-and-mortar retail store. The study found that 21% of all consumers are M-Shoppers – using mobile devices while in retail stores to assist in their shopping decisions. Mobile phones are most commonly used for price checking, searches for product info and reviews, and getting advice from family and friends. The higher the price of the product, the more likely people are to conduct mobile research on it. Product category also factors into the frequency of mobile usage, with the most researched category being electronics and appliances. While 70% of M-Shoppers made the decision to buy online after showrooming at least once, only 6% go to the store with a premeditated plan to make an online purchase. If they eventually decide to purchase the product online, the reasons are usually lower prices and free shipping. When they decide to buy the product in the store, the decision is typically driven by timing and convenience. Retailers can use the mobile shopping behavior for their benefit a number of ways: by offering price-matching, serving a mobile coupon, supporting added convenience options (free home delivery, mobile payment, etc.), engaging with the shoppers via social networks, loyalty programs and review sites, and providing the right information in-store via the retailers’ mobile sites, QR codes, etc.
So what? According to the study, over 50% of M-Shoppers are more likely to purchase a product in-store, when their mobile device helps them get online information, reviews, or trusted advice. Condé Nast’s mobile sites offer just that and give retail brands an opportunity to capture shoppers’ attention when they choosing between purchasing in-store or online.
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Two in Three Online Adults are Now Cross-Platform Consumers
63% of online adults are now using both a PC and a mobile device, and another 7% are only using a mobile device. According to research from comScore and mobile ad company Jumptap, half of all time spent online (for both mobile browsing and apps) is now on mobile devices. Time spent with smartphones is highest among young adults ages 18-24 and women ages 25-49, while time on tablets is highest among adults ages 50+. Not all content categories generate the same levels of cross-screen behavior. Smartphones are the preferred device for categories such as music streaming, technology, social media, and weather, while the PC is preferred for automotive, business/finance, TV, news, and sports. Cross-screen behavior also varies widely by the time of day. PCs dominate working hours, tablets are popular at night, and smartphones serve as a constant companion. These trends are also affected by the contact category. For example, food content peaks on PC at lunchtime, while tablet and smartphone both peak in the early evening and are used for dinner prep and planning.
So what? As device fragmentation continues to expand, understanding the subtleties of device usage patterns is becoming increasingly important. Knowing how different consumer segments engage with content across platforms throughout the day can help both publishers and advertisers optimize their efforts and ensure that they are reaching their audiences most effectively.
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Economy
The Automotive Category in 2020: Growth to Come With Change
McKinsey recently published a report on the changes it expects in the next few years for the global automotive industry. The firm projects significant growth for the sector and forecasts that carmakers' profits will rise by nearly 50% by 2020. The growth is expected to be especially strong in emerging markets, as their share of all sales is forecasted to go from 50% to 60%. Growth will accompany a more dynamic marketplace for carmakers. In the near future, they have to respond to different and complex market needs and preferences by producing additional body types and features. The auto industry will also face tightening government regulations to reduce emissions in China, Europe, Japan and the U.S., which will mean further investment in electric and battery-based technologies. The internet will also play a role in new car development. Like the ubiquity of smartphones and growing popularity of smart TVs, one of the next digital frontiers is internet-connected cars. While approximately 1 in 20 cars are currently connected to the web, more than 1 in 5 are expected to have internet capabilities in 2020.
So what? The automotive industry has emerged from the recession as one of the stronger categories. Not only are carmakers having more success in the showroom (nearly 1 million more cars have been sold in the U.S. this year-to-date versus last year), but Detroit has found ways to further control labor costs and make their businesses more sustainable. Given that traditionally advertisers have heavily advertised new brands and models through all media channels, it is expected that a healthy auto industry will also mean increased ads in Condé Nast publications and on Condé Nast sites.
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Demographics
Changing Values of the Middle Class
A recent presentation by Mintel described the changing values of America’s middle class. Defined by Mintel as households with an annual income of $25,000-$75,000, the middle class compromises 43% of current American households. Following the turbulent economic times, middle class consumers’ values have shifted from a desire for owning things, and they are increasingly looking inward, placing value on their home, family and friends, and personal health. With more emphasis on relationships, middle class consumers are spending more time with their family (43%). They are also spending more on their homes. Home remodeling spend has recovered from the recession and regained pre-recession rates. They are also cooking more for their family, and see cooking as a source of pride and a way to show affection. Among middle income consumers who say they cook at least occasionally, 39% reported cooking/baking more often from scratch and 48% feel cooking is a great way to express affection for family and friends. Consumers are also being more proactive about their health: 35% say they lead a healthier lifestyle, 29% have visited a health-related website in the last month, and 20% report spending more on healthcare products this year.
So what? The increased value that middle class families place on the home, cooking, and personal health paired with their limited discretionary budget means they are looking for media content that inspires and helps them to reinvent and manage these aspects of their lives on their own without hiring a professional. Condé Nast brands and advertisers are in a great position to be the go-to outlet to motivate and educate consumers for their home improvement projects, meal plans, and health programs.
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Quick Takes
The Top Ten U.S. Advertisers Spent An Additional $551 Million In Second Quarter Versus Last Year
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Three in Four Smartphone Users Have Facebook App
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Half of the U.S. Population is Exposed to Online Video Ads Each Month; The Number of Ads Served to Each Viewer Continues to Grow
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Paypal Most Trusted for Mobile Digital Wallet, Even More Trusted Than Bank/Credit Card
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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