SEPTEMBER 30, 2013

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Demographics
Ipsos: Affluent Population Grows in Size and Wealth
The research supplier Ipsos defines Affluents in America as anyone with a household income of $100,000 or higher. According to that definition, there are now 62.5 million affluent adults in the United States, an increase of 6% over last year. Their average household income is now slightly above $200,000 (a 5% increase) and their average net worth is in excess of $1 million, which is a 2% increase over last year. Ipsos also further segments to report on the Ultra Affluent (8.5 million adults with a household income of $250K+) and Wealthy (1.8 million adults with a household income of $500K+). While magazine readership among all Affluents is very high (80% of Affluents read at least one magazine and on average they read seven titles), it skews even higher among the more affluent segments. Ultra Affluents read an average of 8.4 titles and Wealthy adults read an average of 10.0 titles.
So what? A lot of good news here for publishers. The Affluent population has shown measured growth and maintains their strong relationship with magazines. There are few outlets that are as efficient as magazines, and specifically Condé Nast magazines, to promote to the affluent population.
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Mobile/Tablets
Mobile Retail Gaining Traction
A recent comScore study of stores with both an online and physical presence measured consumers' preferences about shopping at them. When trying to determine preferred point of entrance to the stores, comScore found: 56% preferred to buy online using their computer or laptop, 30% preferred to buy in store, 12% preferred using their smartphone or tablet, and 2% preferred catalogs. Among mobile device owners, mobile device usage for shopping more than doubled to 30% (15% preferred using a smartphone and 15% preferred a tablet). Mobile owners are also much less likely to prefer shopping in store, with only 19% of mobile owners preferring stores compared to 30% of the total population. Most online and mobile shopping occurs after work, peaking between 6-9pm. Smartphones were most used for shopping during the day between noon and 6pm, while consumers are at work, and peaked around lunch time (noon to 3pm). Tablets were more used for shopping than smartphones or laptops late-night, 9pm to midnight.
So what? Those with a mobile device see it as a shopping tool, and as mobile penetration spreads so should the trend of mobile shopping. Shopping habits on tablets reflect overall usage patterns on the device. Similar to the readership patterns of magazine digital editions, tablet shopping peaks at night. This presents an opportunity for our digital editions to offer shopping integrations in an environment that feels natural to consumers.
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Advertising
Trust in Advertising Grows Worldwide
In the results of a global study released earlier this month, Nielsen measured consumer trust of different forms of advertisements among 29,000 consumers. The survey found that compared to the last measurement period (2007), trust in advertising overall has grown. While consumers are signifcantly more likely to trust recommendations from people they know than advertisements (as they were in 2007), people in 2013 were more likely to say they trusted traditional forms of advertising such as ads on television or ads in magazines than they were six years ago. The study also measured how likely consumers were to take action after seeing advertisements in a variety of forms. Traditional advertising also performed well in that measure, as consumers said they were more likely to take action after seeing ads on TV or in newspapers or magazines than they were when they saw ads on social networks, during online video or on a mobile display. The trustworthiness of editorial content (such as newspaper articles) was also measured and it ranked near the top. People only trusted recommendations from people they know, branded websites and consumer opinions more than editorial content.
So what? These findings should be encouraging for marketers and publishers alike. While the public's trust in a number of institutions has wavered during the past six years (e.g. banks, government), trust in advertising is surprisingly resilient. Television and magazine brands attract more consumer confidence and their ads remain more trusted than the newer forms of promotion.
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Social Media
Consumers' Social Media Engagement with Luxury Hotels
The ubiquity of smartphones and social media is changing the way consumers communicate, share, and purchase travel. Having the power to instantly share an experience - good or bad - via photos, tweets, and videos has become a right exercised by connected Millennials, Gen Xers, and Boomers. Social media has an important role in consumers’ travel inspiration, planning, and experience. When planning luxury travel, TripAdvisor’s consumer reviews and recommendations are a top source for consumers for luxury hotel information, according to a report by Brand Karma about luxury travel social media. The site boasts the largest number of reviews for luxury hotels, with 53% of all reviews for luxury hotels globally, which outpaces their share of non-luxury hotel reviews (39%). Additionally, TripAdvisor houses 61% of all luxury hotel reviews in the Americas. Other top hotel review sites in the Americas include: Hotels.com, Orbitz, and Expedia. Currently, Chinese booking and review sites Ctrip, Qunar, and Dian Ping have about 15% of all luxury hotel reviews globally. While this share is small compared to the US-based sites, they are growing steadily and will become more influential in the next few years, as China is now the largest outbound tourism market and the world becomes increasingly small through digital connections.
So what? As online life for many consumers, particularly mobile-centric Millennials and affluents, becomes increasingly social, they will continue to seek out others’ travel photos, reviews and recommendations for planning their own vacations. Since travel is a category in which consumers more often look to their peers' advice rather than other information sources, Condé Nast brands and their luxury travel partners might consider strategies that allow them to be a part of those social conversations.
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Quick Takes
Opening Weekend Sales for iPhone 5S, 5C Eclipe Past iPhone Debuts
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Two of Three African-Americans Say They Hold No Preference Between the Terms African-American or Black
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Women More Likely than Men to Use Facebook, Pinterest and Instagram; Men More Likely to Use Twitter and Reddit
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Mobile Transactions More Likely to Be Completed on iPhone than Android; iPhone Skews Even Higher in Northeast, California & Texas
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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