FEBRUARY 24, 2014

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Baby Boomers Still Have the Most Spending Power
Baby Boomers outspend all other generations and are credited with $2.3 trillion in annual spending, according to a new report from Mintel. That means that Boomers' spending power accounts for about half of all U.S. consumer expenditures, despite representing just one-quarter of the population. The group, which Mintel defines as 50-68 year olds, spends about $400 billion each year on consumer goods and services. Because of their wide range of ages, Boomers are going through a variety of life stages. While some are retired, most are still working and financially supporting their children (many of whom are now adults themselves). When it comes to their purchasing habits, getting the most value for their money is most important to Boomers followed by having a positive in-store experience and getting a discount. Buying something because it makes them feel good about themselves or the convenience of purchasing online rather than in stores are both less important to Boomers.
So what? Most conversations of late around generational trends start and end with Millennials, which is fair considering their size and potential purchasing power in next half-century. However, that should not lead us to forget about the good old, reliable Baby Boomers. They are a group more than carrying their weight at the cash register because they are spending on themselves, their kids and grandkids. Not only have Baby Boomers had a long and positive relationship with magazine media, but they represent the most important consumer segment for countless products and services.
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GfK: Best Practices for Watch & Jewelry Print Ads
GfK MRI Starch Advertising Research analyzed 3,264 watch and jewelry print ads between January of 2012 and August of 2013. Following the research firm's analysis they were able to identify five themes that were often present in ads that were highly memorable. GfK found those themes to include: 1. Minimalistic Presentation Jewelry and watch ads appear to be at their most effective when the creative is simple. 2. The Use of Contrast Advertisements that have a clear visual distinction between the product and contextual imagery earned stronger noted scores. 3. Enlarged Imagery By presenting a detailed view of the item, readers are able to better inspect the intricacies of the product advertised. 4. Advertising Flow The spatial relationship between the images and text within the creative help maximize the ad's impact. 5. Product Prominence While some product categories need to demonstrate the experience of the product advertised, jewelry and watch ads earn their highest scores when the focus is on the product itself. The analysis also found that women are more likely than men to notice watch and jewelry ads, but men are more likely to take action following the noting of ads, such as visiting a website or looking for more info.
So what? This report is incredibly useful for anyone with sales responsibilities in the watch and jewelry categories. There are learnings here that can help brands craft their advertisements to be more salient and spur response from magazine audiences.
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YouTube Reaches More Millennials Than Any Cable Network
According to a new YouTube Insights study from Google, YouTube reaches more 18-34 year old consumers than any of the cable networks. Among 25-54 year olds, the reach of YouTube trails only TBS and FX. Music and comedy are both very popular genres among men and women for online video. The gender differences on YouTube are most prevalent in fashion & beauty and recipes & cooking, which are more likely to engage women. Conversely, men are more likely to watch gaming, sports and science & technology content. Google also shares data that illustrate an upward swing in channel subscriptions. The top ten YouTube channels now average 13 million subscribers -- a number that grew by 23% between the third and fourth quarter of 2013.
So what? This report is further proof that the video distribution business is no longer limited to the major studios, networks and cable providers. Condé Nast's recognition of this trend by its development of digital video channels through CNE provides new and exciting opportunities to drive both consumer engagement and advertising revenue.
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A Profile of the Always-On Consumer
The phrase “always-on” is has gained a lot of traction recently. Branding consultancy Vivaldi Partners set out to explore the consumption habits of the always-on consumer, which it defines as someone who owns at least three internet-connected devices and goes online multiple times a day from at least three different locations. Always-on consumers are well-educated, have an above-average income and are more active on digital and social platforms than the average American. However, their online habits and attitudes cover a wide range. Vivaldi Partners identified five distinct types of always-on consumers (a group that now accounts for nearly half of all U.S. adults). Segments range from the Social Bumblebee (an extrovert that broadcasts opinions and makes spontaneous online purchases) all the way to the Ad Blocker (who is always on, but does not pay much attention to advertising and branded content unless it’s a message from someone she or he knows personally).
So what? With consumers being always on, brands have an opportunity to communicate 24/7 with this ever-growing audience. Brands that have a greater reliance on recency in their advertising should be especially attentive to how they are communicating with customers across multiple channels in real time.
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Quick Takes
Women Now More Likely to Be More Educated Than Their Husbands
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North Americans Use Significantly More Cellular Data than Users in Other Regions
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Customer Satisfaction with Brick & Mortar Stores Increased in 2013, But Declined For Internet Retailers
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53 Million Cases of Whiskey Sold Last Year in the United States -- Up 6% Over 2012
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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