MAY 05, 2014

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Movie Ads and Magazines – A Match Made in Heaven?

Magazines and movie advertisements are a match worthy of the big screen, says a recent report by GfK MRI. In 2013, magazines captured less than 1% of movie advertising budgets, but the data suggest that this may be an underutilized opportunity. According to GfK MRI, not only are movie-goers more likely to be magazine subscribers, but movie ads in print are also 13% more likely to be recalled than the average magazine ad. The analysis also tried to identify the tactics that work best for movie advertisements in magazines. The most effective magazine movie ads in 2013 featured celebrity stars and had strong visual imagery in the center of the page. In magazines’ digital editions, movie ads with embedded video proved to be very effective in increasing recall and driving interest in seeing the movie.


So what?

There is an opportunity for Condé Nast brands to capture more movie advertising, because they offer studios the ability to reach an audience that is very interested in movies and their stars, as reflected in their demand for content on those topics.

> Click here for full report
BCG: Millennials Gravitate to Loyalty Programs

In a recent report, the Boston Consulting Group reported on best practices for loyalty rewards programs based on industry research and the firm's own experience working with companies that employed such programs.  According to BCG's research, millennials are more likely than their older counterparts to factor membership programs into their purchase decisions and to go out of their way to shop at stores and websites in which they belong to a frequent-buyer program.  BCG details the three levers that loyalty programs most often use:

  • Earn-and-Burn: Programs in which customers earn rewards after meeting pre-set consumption thresholds.  Examples of programs in this category include frequency programs where a customer buys 10 cups of coffee and gets the next one free or a consumer uses points earned to redeem a free product.
  • Recognition: Customers are eligible for higher tiers of service based on account balance or money spent.  This lever is often used in the travel category where perks can range from branded bag tags to upgraded hotel rooms.  This lever is often used in conjunction with Earn-and-Burn tactics.
  • Customer Relationship Management: These programs use past purchase data or website behavioral history to develop highly tailored communications, content and offers.  Examples include members-only communications or targeted itinerary promotions based on a consumer's past travel records.
So what?

Magazines trying to move away from traditional definitions of a subscription, such as 12 issues for $12, might borrow some ideas from the tiered structure of loyalty programs. This report is useful for anyone who is rethinking what constitutes a magazine subscription.  

> Click here for full report
Mintel: Home Décor Shopping Driven By Consumers Wanting To Update and Indulge

Due to improved consumer confidence and a bounce back in the housing market, the home décor category reached $37 billion in 2013 and is expected to grow nearly 5% this year, according to a new report from Mintel. This trend is expected to remain consistent as forecasts call for the category to reach $46 billion in 2018. About two-thirds of consumers report having bought a home décor item in the past 12 months, proving that the category has a broad reach. The top reason for making a purchase was to update the look and feel of the home. The second most cited reason was consumers saying they wanted to treat themselves.


So what?

As the housing market continues to rebound, homeowners will look to invest in outfitting newly acquired homes or refreshing their existing homes. As spending on home décor continues to grow, consumers’ interest in “treating” themselves or “indulging” are likely to become a few of the drivers for consumption. Magazines offer an effective way to excite and create desire for home décor items through vibrant content and advertisements. 

> Click here for full report
Hispanic Population Shifts to Predominately U.S. Born

According to a new analysis by the Pew Research Center, the U.S. born Hispanic population continues to grow faster than the group's immigrant population. In 2007, 55% of the country's Hispanic adult population was foreign born; in 2012 that number had dropped to just below half of Hispanic adults. Overall, of the 53 million Hispanics of all ages now in the U.S., about two in three are U.S. born, totaling 34 million, and about one in three are foreign-born, totaling 19 million.

Currently about 17% of the total U.S. population, Hispanics are expected to grow to comprise nearly one-third of the population and total 129 million by 2060. Along with changing birthplace, language preferences of Hispanics are shifting. About one in four Hispanics aged five or older speak English at home exclusively; that number is highest among U.S. born people (39%) compared to foreign-born (4%).

So what?

As the Hispanic population, especially the U.S. born segment, grows to become a larger part of the American scene, it will be interesting to watch how mainstream culture changes. Which parts of American culture take on more Hispanic influences and which parts of Hispanic culture take on more American influences?  In the meantime, it is important for marketers to understand the various subsets within the Hispanic population, such as birthplace, region of origin, primary language spoken, to ensure that their message is tailored to their target.

> Click here for full report
Quick Takes
Americans Are Paying Less for Products, but More for Services

Source: Bureau of Labor Statistics, New York Times
Online Shoppers Abandon their Cart 71% of the Time

Source: Business Insider
Led by the Likes of Apple TV and Roku, Consumers Now Do More Streaming to their Television than Using Other Devices

Source: Horowitz Associates
Caloric Intake and Weight Monitor Apps Most Popular in the Health & Fitness Category

Source: Mobiquity
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