MARCH 10, 2014

If you prefer to read this in a browser, please click here.
Advertising
U.S. Consumers Prefer Mobile Ads That Reward, but Do Not Disrupt
Although consumers are opposed to sharing their personal information with advertisers, they would like to see mobile ads that are relevant and related to their personal interests, according to a survey conducted by PwC. According to PwC's research, mobile consumers are most receptive to coupons and banner ads. Coupons are popular because consumers feel they are receiving something of value in return for the time spent viewing an ad, while banners are preferable because they are small, out of the way, and are perceived as less disruptive. Many consumers, especially those ages 18-24, expressed interest in location-based ads, which they considered a service – something that provides helpful and timely information, and makes the ad more tolerable. It should be noted, however, that others viewed this type of ad as “creepy” and bothersome. Regardless of ad format, consumers said they did not want to be interrupted by ads when they were busy doing other things and preferred seeing ads when they are in a more leisurely mode such as weekends and evenings.
So what? As the number of eyeballs looking at mobile devices continues to grow at a feverish pace, advertisers’ strategic imperative is cracking the code on what makes a winning mobile ad. While behaviors are not always aligned with what users indicate they want in surveys, PwC’s findings still provide an interesting perspective on the perceived value of various types of mobile ads.
> Read more and comment
Retail/Shopping/Commerce
Branded Jewelry Gaining Share of Sales Worldwide
After a down period during and after the economic recession, global consumer interest has returned to the jewelry category and is as strong as ever. McKinsey reports the jewelry industry currently has €148 billion (approximately $205 billion US) in annual sales and is expected to grow by 5-6% each year, reaching €250 billion ($346 billion US) by 2020. Branded jewelry is reaping the rewards of this renaissance as branded watches are 60% of overall watch sales and branded items represent 20% of jewelry sales. By 2020, McKinsey forecasts that branded jewelry will comprise 30-40% of total jewelry sales. Much of branded jewelry’s future sales are expected to come from non-jewelry brands in adjacent categories, like high-end fashion and leather goods, that are extending their reach into jewelry by expanding existing collections or starting new lines.
So what? Branding will play a key role in jewelry industry growth in the future. Whether working with traditional jewelry brands or apparel brands with jewelry lines, Condé Nast brands should recommend strong brand cues to advertising clients in print and digital media. Condé Nast print and digital channels have and will continue to be important stops on the path to purchase for luxury shoppers considering jewelry and watches.
> Read more and comment
BCG: The Changing Dynamics of Convenience Stores
Boston Consulting Group tracks consumers' behaviors and attitudes that affect purchasing decisions at convenience stores. The consulting firm reports a noticeable shift in convenience store behavior in the past half-decade among American shoppers. Firstly, people have grown more reliant on convenience stores. Between 2012 and 2013, convenience stores captured a larger share of the overall retail market -- their gains came at the expense of specialty stores, club stores and quick service restaurants. This is especially good news for the top convenience stores because parallel to that trend, consumers are also tightening their consideration set to focus only on the major players. Compared to 2009, 29% more consumers report shopping at only one or two convenience store brands. BCG found that convenience store retailers can gain consumer satisfaction and share of wallet by delivering cleanliness & safety, speed & ease, friendliness and convenience. Conversely, it is less important for consumers that convenience stores have a selection of foods.
So what? With momentum being gained by convenience stores, how do magazine brands capitalize to drive newsstand sales at stores? This trend might call for a strategy that further expands partnerships with the top stores and scales back with those weaker-performing stores.
> Read more and comment
Fashion/Beauty
Beauty is Constantly On Consumers' Minds; Women Spend Nearly An Hour On Their Appearance Each Day
Beauty is a constant concern for most people. According to research from AOL and Today, on average, adult women spend 55 minutes per day on their appearance, compared to men who spend 39 minutes. According to this study, teen girls are corresponding to the stereotypes set for them as they spend the most time (66 minutes per day) working on their appearance, compared to their teen boy classmates who spend the least time (35 minutes). The time spent fixing or improving one's appearance did not include the additional time consumers spend thinking about appearance; over half of adults report thinking about their appearance several times a day. Women reported worrying about six “problem areas” on average, compared to three among men. Stomach was considered the most problematic area by both men and women, with skin, wrinkles, and hair, being the other top areas of concern among all adults. Social media also compounds consumers’ worries about their appearance. Very selfie-conscious, two in five adult social media users agree that social media makes them feel more self-conscious about their appearance.
So what? Consumers spend a lot of time thinking about and improving their appearance. Brands that help them look better or think more positively about their looks may forge a stronger emotional connection with consumers. Condé Nast brands that feature content related to beauty, fashion or health might have an opportunity to bond with consumers by using confidence-boosting language or giving them how-to tips to quickly touch-up their appearance. Glamour’s Elevator Makeover video series is a great example of how to provide self-conscious consumers with quick, easy fixes to improve appearance.
> Read more and comment
Quick Takes
Only 14% of Americans Used the Internet Two Decades Ago; Now 87% of Adults Are Online
> Read more and comment
Led by Samsung, Android has Gained the Majority of Global Tablet Market Share from Apple
> Read more and comment
Twitter's Audience Growth is Slowing
> Read more and comment
The U.S. Owns the Largest Slice of the Global Luxury Pie by Wide Margin
> Read more and comment
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