APRIL 21, 2014

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Advertising
2013 Marked the First Year That Internet Ad Revenues Beat Broadcast Television

Revenue from interactive advertising in the United States hit $42.8 billion in 2013, good enough to claim a 17% gain over the record revenue of 2012 and surpass the amount spent to advertise on broadcast television ($40.1 billion).   A new report released by the Interactive Advertising Bureau (IAB) in partnership with PwC breaks down where and how the record haul was spent.  Once again, Search claimed the largest share of the digital ad spend comprising of 43% of dollars spent, followed by Display (30%).  While both formats grew in actual dollars over 2012 they lost some share to Mobile which nearly doubled its piece of the pie in just one year from 9% to 17%.  The only other digital ad format to gain share was Digital Video Commercials (6% to 7%).

As they have done in the past, digital advertisers spent more money in the second part of the year than the first.

Pwc_iab

So what?

In just the past two years, the amount advertisers have spent to promote on mobile and in digital videos has nearly tripled.  And there's no indication that the trend will slow down anytime soon, as advertisers have shown to be bullish on both formats.  

> Click here for full report
Affluents
Ipsos: Affluent Market Remains Important Segment

America's affluent population is more than carrying it weight for expenditures according to a recent update from Ipsos MediaCT.  Individuals with a household income of $100K+ represent just 19% of the population, but 37% of all consumer expenditures.  Affluents are the driving force in a number of important categories, including:

  • Fashion, apparel and accessories - men’s suits (62% of money spent on men's suits is by Affluents), women’s suits (57%), and jewelry (52%)
  • Travel - ship fares (65%), lodging on trips (54%), and airlines fares (52%)
  • Dining - wine (54%) and dinner (41%) at full service restaurants
  • Streamed and downloaded video (47%)
  • New cars (42%)
So what?

Affluent consumers have long been a key segment for luxury brands, and it is increasingly clear that marketers in all categories can benefit from targeting them. When it comes to digital video and magazine subscriptions, affluents are spending more on these products than the average consumer, which means they both offer a valuable channel to reach affluent consumers.

> Click here for full report
Digital
Apps Dominate Time Spent On Mobile

According to Flurry Analytics, U.S. consumers are spending nearly three hours each day on a mobile device and the overwhelming majority of that time is spent with apps rather than browsers.  Of the 2 hours and 42 minutes spent on mobile each day, 86% of it is spent on apps.  And this year's number reflects the continuing trend of consumers using less of their mobile time with browsers (20% in 2013 versus 14% in 2014).  One of three minutes spent with mobile web is on games -- once again proving that mobile devices are often entertainment devices as much as anything else.  The Facebook app (17% of time spent with mobile) and other social messaging tool apps (10%) were the next most time-consuming types of apps.

Apps_time_spent_-_flurry

So what?

We are now at a point where 60% of mobile time is spent with games, social media or social messaging in apps.  Publishers need to continue find ways to creatively intertwine content into those app formats in order to stay relevant on mobile.  

> Click here for full report
Demographics
How Are Teens Spending Their Money?

After a period of contraction in teen spending over the past few years, teens spent only 1% less in Spring 2014 compared to Fall 2013, according to Piper Jaffray’s semi-annual research project on teen buying habits. The money teens are spending is mostly their parents’, who contribute 65% of the spend, also up from 2013 levels. On average, teens spend $56.50 per shopping trip, which they do 29 times a year. Three of four female teens prefer to shop in a brick-and-mortar store compared to only 50% of male teens. Teens’ spending priorities are shifting, and for the first time in the project’s 13-year history, food (20.8%) exceeded clothing (20.7%) as a percentage of the teen wallet. Electronics (8%) also gained in share, while accessories and personal care (10%) experienced a sharp decline. When they shop for fashion, there is a growing demand for athletic brands such as Nike and Lululemon. When they buy food, they prefer quick-service restaurants, led by Starbucks, McDonald’s, and Chipotle.

So what?

Teens are not only an important audience for some of Condé Nast’s brands but also our future consumers. As teens gradually shift their consumption preferences from belongings (clothes, accessories) to experiences (food, events), the content we create for them, as well as the advertising targeted at them, will also need to change.

> Read more and comment
Quick Takes
Between 2040 and 2050, America Will Become Majority-Minority; Whites to Comprise Less than Half of Population
Pew-race-chart

Source: Census Bureau, Pew Research Center
eMarketer: Outpacing U.S. GDP Growth, Retail Sales Grew 4.2% Last Year
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Source: eMarketer
LVMH's Revenue Stream Moves Slightly More Towards Developing Asia, Away from Europe & Japan
Statistic_id245869_revenue-share-of-the-lvmh-group-worldwide-by-geographic-region-2012-2013__1_

Source: LVMH, Statista
America's Latest Downsize? Man's Best Friend; Small Dog Population Increases, While Ownership of Big and Medium Dogs Decrease
Us-pet-dog-population-small-dogs-medium-dogs-big-dogs_chartbuilder__2_

Source: Euromonitor, Quartz
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