JUNE 02, 2014

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Industry Viewpoints
The Most Important Technology Trends of 2014 According to Mary Meeker

Influential industry analyst Mary Meeker of KPCB released her annual internet trends report last week and highlighted several trends she expects to shape the future of the internet across tech, education, healthcare, security and other industries.  One of the most prominent themes in the report is the remarkable growth of mobile, which now accounts for 25% of total web usage.  With 20% of the time spent on media but only 4% of ad dollars going to mobile, Meeker believes that ad spend on mobile will grow considerably in the coming years.  The proliferation of mobile device cloud services will make sharing data easier than ever.  Internet users are already uploading more than 1.8 billion photos each day, and Meeker expects an ever-growing volume of digital information to get shared on findable (e.g. Facebook, EventBrite) and non-findable platforms (e.g. WhatsApp, Snapchat).  Currently, only 1% of this information is being analyzed, but data mining and tools that arrange and structure data will continue to improve, and big data will be used to solve big problems in a variety of industries – from healthcare and government to energy and automotive.

So what?

Mobile proliferation is not foreign to Condé Nast – mobile already accounts for almost 40% of the visits to our sites. The challenge ahead of us is to design a user experience that addresses readers’ needs and behaviors when they are on mobile and find new and innovative ways to monetize this experience.

> Click here for full report
Mobile/Tablets
Global Phablet Penetration to Reach 120 Million by 2018

Only about 2% of smartphones shipped globally last year were phablets, but analysts are predicting significant growth for the device in the next five years according to a new report from the mobile ad platform Opera Mediaworks.  To better understand how an increased phablet penetration might impact future media consumption, Opera analyzed the behavior of current phablet users.  Phablets are defined as smartphones with screens that measure between five and seven inches diagonally -- the most recognizable example of a phablet is the Samsung Galaxy Note.  The analysis uncovered some distinct behaviors of phablet users.  For instance, phablet users are far more likely to use social media on their devices than smartphone or tablet users, but spend less time seeking out news & information content.  Perhaps reflective of the device's utility, ad impressions served to phablets in the United States peak in the morning (9am-12pm).  However, phablet users are more receptive to ads in the evening as click through rates are highest between 8pm-12am.

Phablet7

So what?

Many in the tech industry are guessing that the release of the iPhone 6 might come with a 5+ inch screen model.  That screen size would classify one version of America's favorite smartphone as a phablet.  Penetration for these types of devices is still relatively small and the statistics cited above might be more reflective of the user profile of phablets rather than specific behaviors that the screen size encourages.  However, it is worthwhile to understand how users engage with these devices since there is a strong possibility that they will become more common.

> Click here for full report
Business
Millward Brown: Top Global Brands Have A Transformative Year

Millward Brown’s annual BrandZ Top 100 Global Brands analysis revealed that 2014 has been a transformative year for many brands.  Perhaps marking the end of the recession, the total value of the top global brands grew by 12% from 2013 to be worth $2.9 trillion.  The 12% growth doubles the average annual growth since 2006.  Millward Brown's valuation of top brands is based on brands' financial data from Kantar and Bloomberg, and also brand equity based on consumer sentiment.  The apparel category had the most growth in the past year (29% since 2013).  Luxury, auto, and retail all showed strong growth as well -- each growing about 16% in the past year.  Google was the most valuable brand, claiming the top spot back from Apple.  IBM, Microsoft, McDonald’s, Coca-Cola, Visa, AT&T, Marlboro and Amazon rounded out the top 10.  The top rising companies that exhibited the most value change compared to last year came from a range of categories: Tencent (Chinese tech), Facebook, BT (telecom), Ikea, Uniqlo, Ford, Movistar, Nike, DHL, and CVS.

So what?

The top brands have bounced back from the recession and are more valuable than ever.  Condé Nast has existing relationships with many of the top performing brands and categories in this report.  These brands might have a renewed confidence and may be more willing to increase their ad spends.

> Click here for full report
Demographics
Childless Women: An Influential Group, Growing in Size

A recent study from public relations and social media agency, DeVries, examines behaviors and attitudes of single, adult American women who do not have children. According to the study, 47% of U.S. women of childbearing age are part of the “Otherhood.”  The Otherhood is comprised of non-mom female influencers that do not yet have children or have chosen not to have children.  Opting out of parenthood has steadily increased in the past two decades among women: about 20% of women today will never have a child, compared to 10% two decades ago.  While not exactly living the extravagant Sex and the City lifestyle, childless women do spend more on food and beauty products than moms.  Women without kids spend an average of 35% more on food than moms.  When it comes to beauty, childless women spend nearly twice as much as moms on beauty and hair-related products each month.  Although they do not have children of their own, 80% of childless women reported that children have an active role in their lives, most often nieces and nephews or children of close friends.  Otherhood is only temporary for some, 46% of non-moms want to become mothers eventually, while 36% plan to remain childless, and 18% of women polled are undecided.

So what?

The shift among women highlighted here is reflective of the re-thinking of some traditional life events that are now being put off or avoided altogether (marriage, parenthood, etc.). This highly educated, autonomous, and discerning non-mom segment is a valuable group to marketers, as they spend more on themselves and their partners, influence friends, and have more discretionary income.

> Click here for full report
Quick Takes
Baby Boomers Dethroned -- 22 Now Most Common Age in America
22_age

Source: Census Bureau, New York Times
Apple Generates More Sales per Square Foot Than Any Other Retail Store
173278

Source: eMarketer
Americans Spend Less of their Budgets on Beauty & Apparel than People in Other Large Countries

*Miscellaneous includes medical services.

Mintel_markets

Source: Mintel
Expedia is the Most Clicked Travel Keyword
Top-travel-keywords-by-clicks-jan-april-2014

Source: AdGooroo
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