DECEMBER 02, 2013

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Advertisers That Spend More in Magazines Show Sales Growth
Advertising Age publishes a list of the United States' 100 heaviest ad spenders each year. In 2012, 45 of those 100 advertisers spent more in magazines than they did in the previous year. Among the 44 advertisers that report sales figures (the U.S. Government is the one advertiser that does not), 89% saw an uptick in sales in the corresponding year. Some companies that made the list of heavier print buyers include: - L'Oreal, which spent nearly $93 million more in magazines in 2012 in the United States and reported a North American Sales increase of $555 million. - Volkswagen spent an additional 14% in magazines in 2012 (+$5.5 million) and North American sales grew by 32% (+$7.7 billion). - Even digitally-focused businesses showed an increased commitment to magazines. Apple spent more than $37 million in magazines in 2012 - an increase of 39% over the previous year. The tech giant's U.S. sales increased by $19 billion between 2011 and 2012.
So what? The companies that comprise the list of those that spent more in magazines and had sales increase come from a range of categories. Financial firms, spirits businesses, and retailers all made the list in addition to the categories represented by the companies featured above. We know that these findings are correlational rather than causal, but it is certainly a good thing when a CMO can point to a sales increase in the same year he or she spent more in magazines.
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The Power of Print: Understanding the Value of Print Magazines
This new deck from Condé Nast’s Research & Insights team demonstrates the value of magazine media and advertising in today’s highly competitive media landscape. Highlights within this report can be disseminated and take on new life in presentations and sales decks. The report covers four key themes that are all backed by supporting data: - Magazines Have a Compelling Audience Magazine readers represent highly desirable and valuable groups, chief among them Affluents and Millennials. - Magazines Offer Consumers Value Not Present in Other Media Consumers value magazines because they offer a chance to unplug, are tactile, and provide inspiration during the consumer journey. - Print Advertising is Effective Magazine ads are more effective than ads in other media because more trust is given to print advertising. Studies have also shown that print ads are preferred over digital ones and print provides for superior cognitive engagement. -Creative Activations Resonate with Consumers Print offers creative content that other media cannot provide. Unique to print are offerings like the September issue and fragrance strips; both of which have shown to resonate well among consumers.
So what? Magazines offer value to their readers and advertisers in a multitude of ways: their editorial and ad content can be held, touched, smelled, and offer consumers the chance to unplug from the “always on” world. Magazines often represent a deeper connection point with consumers than other forms of intrusive media and remain an efficient method for advertisers to reach desirable audiences.
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The Journey to Purchase for Consumer Electronics
According to eMarketer, no category has higher e-commerce sales than consumer electronics and appliances, so it is no surprise that path to purchase for the category is digitally focused. A new report from Forrester traces this path to electronics purchase for U.S. consumers and identifies four key stages: 1) Discovery – The top three channels via which consumers first learn about the product are online search (36%), online reviews (15%) and offline ads (13%). 2) Exploration – The main sources consumers use to research the product are all online - search engines (33%), retailer websites (31%) and manufacturer or brand websites (26%). Three of four consumers researched using a PC and 18% used a mobile device. 3) Purchase – The purchase itself was split between online and offline. 46% purchased on the internet, while 40% purchased in a traditional store. 4) Engagement – 46% of consumers reconnected with the store or company after they made the purchase, mainly by going to the physical location (22%), but also via a visit to the store or brand website, a phone call, or by viewing an online video about the product (9% each).
So what? Condé Nast can be an important companion to consumers during the discovery, exploration and engagement stages of their purchase journey. With technologies like Mastercard Shop This!, which is now offered on WIRED and allows users to shop directly from the tablet edition, we now can play an even larger role in stimulating purchase.
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What Leads to Customer Loyalty
Offering the right price is the most effective way to motivate customers to switch their loyalty between brands, according to the Nielsen's global survey of loyalty sentiment. The survey found that customers worldwide were most loyal to their mobile phone brand/service provider and their financial institution, and least loyal to food and beverage brands. Of consumers that said they were not completely loyal to a brand, 41% said that getting a better price would encourage them to switch. Price was an even stronger incentive for North Americans (61%) and Europeans (54%). Better quality was the second most influential factor, encouraging 26% of worldwide consumers to switch. A better service agreement is more influential in Asia-Pacific and Latin America, and a better selection tends to be more impactful in Asia-Pacific. As retailers are investing more in loyalty programs that provide them with valuable insights into their consumers, Nielsen advises to give discounts and freebies to their loyal customers – 75% of global consumers said that those are the benefits of loyalty programs that mattered most to them.
So what? Free gifts have proven to be a great incentive for new subscriptions. Nielsen's findings suggest that they can also support Condé Nast's ongoing relationship with subscribers. By providing our subscribers with occasional gifts we can make them feel rewarded and drive renewals.
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Quick Takes
Washington D.C. Commuters Spend the Most Time Stuck in Traffic
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Reddit Users Most Likely to Use Social Platform as News Source
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Mortgage Debt Makes Up 70% of U.S. Household Debt; Student Debt Now Over $1 Trillion
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Primetime Television Viewers Still Let Program Schedule Dictate their Habits for the Most Part
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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 |

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