OCTOBER 14, 2013

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Industry Viewpoints
Interbrand: Apple Now World’s Most Valuable Brand
For the first time in 13 years, Coca-Cola is not the world’s most valuable brand. That title now belongs to Apple according to Interbrand's 2013 list of 100 most valuable brands. While traditional powerhouses Coca-Cola and IBM saw their brand values increase in 2013, the gains were too modest to hold off Apple and Google from grabbing the top two spots they held last year. The Apple brand is now worth $98.3 billion and Google's is valued at $93.9 billion. Interbrand's valuations are based on a company's financials, influence within their category and loyalty of its consumers. In order to be considered, a company must be publicly traded and generate more than 30% of its revenue from outside of its home market (that is why you will not see Walmart on this list). While many firms in the tech category, like Apple and Google, advanced their value, it was also a good year for the automotive category, reflective of the positive sales momentum that's been reported this year. Car companies held more spots -- 14 -- than any other sector on the list of the world's 100 most valuable brands. Ford, Hyundai, Kia, Nissan, Porsche, Toyota, and Volkswagen all grew their brand value by at least 15% over last year.
So what? This list serves as a who's who of major advertisers. While some of the companies gaining brand value come as no surprise, there are also smaller brands that are building good momentum. For instance, luxury brands Burberry, Cartier, Hermes, and Prada all increased their brand valuations by more than 20% in the past year. Interbrand's data serves as a nice reference tool for anyone interested in the brands or categories moving in the right direction versus those that might be in a period of stagnation.
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Social Media
What Facebook Statuses Reveal About Their Writers
The language people use online can be highly indicative of their personal traits, says a research team from the University of Pennsylvania. The researchers analyzed the Facebook status updates of 75,000 volunteers who also completed personality surveys, and found striking differences in language between various groups according to their traits: -Gender: Women use more emotional words (e.g. excited, love) and first person singulars (e.g. I), while men use more object references (e.g. xBox) and swear words. -Age: 13-18 year olds often discuss school topics, 19-22 year olds discuss college, 23-29 year olds discuss work, and 30-65 year olds discuss family. The use of the word “we” increases almost linearly after the age of 22, while “I” decreases across life span. -Personality: Extroverts are more likely to mention social words (e.g. party, chillin’) whereas introverts are more likely to mention words related to solitary activities (e.g. computer, anime). The researchers used their findings to build a predictive model that is able to identify with high level of accuracy what a person’s gender and age are based on the language they use in their status updates.
So what? The power of this study is in its simplicity. While the words associated with each trait seem obvious in retrospect, taken altogether they provide a fascinating glimpse into the psychology and interests of different groups of people, and helps us understand how they want to present themselves to the world in social media.
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Nielsen: Advertisers Should Take A Closer Look at African-Americans
According to a new report from Nielsen, African-Americans are a segment that should be targeted more frequently by advertisers, considering their spending power, consumption patterns, and size of their population. The report from the research firm outlines the opportunities for growth for businesses that promote and cater to Black consumers. African-Americans' spending power is currently about $1 trillion and is expected to rise to $1.3 trillion by 2017. Comprising 13% of the total US population, African-American consumers have unique habits and consumption patterns compared to other races, including being heavier television viewers and mobile users, and more frequent shoppers. While they spend slightly less per shopping trip compared to the total population, they shop more frequently and over-index for consumption of consumer packaged goods, including ethnic hair and beauty aids, women's fragrances, soap/bath needs, feminine hygiene, detergents, frozen seafood, and refrigerated juices/drinks. Demographically, African-Americans are also one of the youngest and fastest growing segments. The average age of Blacks is 35, which is three years younger than the average of the general population. Additionally, more than half of African-Americans are under 35. Blacks' influence is also noted by their non-Black peers as the majority of Whites (73%) and Hispanics (67%) said that Blacks are key influencers and a driving force of pop culture.
So what? There lies an opportunity in the gap between African-Americans' spending power and how much advertisers spend on Black-friendly media. Businesses that do not advertise in media outlets with heavy Black consumption are missing this opportunity. Condé Nast brands Allure, Brides, Lucky, GQ, Teen Vogue, and Vogue all over-index for African-American readership and are great sources for advertisers to efficiently promote to African-Americans and influence their spending.
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Gen Xers Spend The Most On Groceries
A new report by Acosta Mosaic Group analyzed the grocery shopping habits of four generations to better understand how marketers can reach consumers in supermarket aisles. With growing children in the house, Gen Xers are the largest spenders on groceries, spending an average of $323.10 each month on groceries. Boomers spend the second most ($295.50), followed by Silents -- 65+ ($263.70), and lastly Millennials ($252.60). -Millennials are a multicultural generation that is starting to move into heavy spending years, as they start to have their own families and purchase homes. As they are highly social and tech-minded, peer reviews and recommendations play an important role in their product consumption. The least brand loyal, Millennials are also more likely to shop stores' perimeters. -Gen Xers are in the busiest time of their lives and are in their peak spending years. With families of their own, they are time-starved and stretching their paychecks. Gen Xers are more likely to do stock-up trips than other generations: 44% make stock-up shopping trips. Gen Xers like to research and plan each shopping trip, and strive to be knowledgeable and make the best decision for their family. -Brand loyal Boomers have the second largest shopping basket and are most likely to make fill-in shopping trips (41%). Boomers prefer to shop at grocery stores and club channels for their food, and over-index in the following categories: tobacco and accessories, beer, tea, pet care, and pet food. -Silents are the groups most likely to make last minute shopping trips (36%) and are the most brand loyal of any generation. While Millennials and Gen Xers spending over-indexes for baby needs and food, Silents over-index on books and magazines, floral and gardening products, vitamins, wine, nuts, and medication/remedies/health aids.
So what? As magazines and brands in some important advertising categories, such as personal care and beauty, heavily rely on supermarkets as part of sales efforts, this is a useful snapshot of behavior within stores by age groups. It is important to understand how consumers' decisions are influenced before walking through the doors and how they are shopping the aisles once inside.
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Quick Takes
Apple Makes A Modest Gain on Android Operated Phones' Market Share in the U.S.

ABC, CBS and NBC All Had Audiences with a Median Age Over 50 During First Week of New TV Season

Americans Spent $125 Million on Pumpkin Pie Filling and $33 Million on Pumpkin Coffee in 2012; The Total Pumpkin Food and Drink Category Worth $290 Million

More Than Three-Fourths of Twitter's Users are From Outside the U.S.

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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

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights