JULY 14, 2014

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Advertising
GfK Starch: Ad Recall in Tablet Editions Matches Print

A new analysis from GfK found that tablet magazine advertising matches the effectiveness of print in key metrics. In 2013, the average tablet ad was recalled by 52% of readers -- matching the average ad recall score for print magazines. The highest performing ads in digital editions were recalled by over 80% of readers -- also in line with the highest performing print ads. Digital editions also continue to be a way to reach even more desirable segments within the magazine audience. GfK measured 44 tablet editions and found that nearly half of digital edition readers have a household income of at least $75,000. The majority of digital edition readers are often sought-after Millennials.

So what?

This is certainly good news for the magazine industry. It means that digital edition readers are mirroring the ad involvement behavior long-observed among print readers. The saliency and opt-in nature of print ads are part of what makes them special. Advertisers should feel confident that their digital edition buys come with those same desirable attributes long associated with print.

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Despite Multitasking, Americans Still Pay Attention to Ads

More than four of five American adults (over 18) go online while watching TV and 43% of them do so regularly, says the IAB in a new study. Other activities also distract people from the TV screen, including reading magazines (52%). Media multitaskers tend to be young and single, and they are heavier users of all media compared to the general population. Many advertisers express the concern that multitasking habits get in the way of advertising, but this study suggests that despite doing several activities simultaneously, multitaskers are still influenced by both TV commercials and digital advertising. Media multitaskers are just as likely as the general population to watch TV commercials, and are even more likely to do so regularly. Media multitaskers report that TV and digital ads inspire them to do an online search for the advertised products, more so than the general population. Internet advertising is also more likely to influence their purchase decisions in all categories, and especially for electronics and fashion.

So what?

In light of the prevalence of media multitasking, advertisers need to understand how to break through to consumers. The findings of this study point to digital advertising as an important way to reach them, since this is where they tend to take action on the ads they are exposed to. Advertisers could focus on digital, or created integrated campaigns where digital complements the message in a TV commercial.

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Culture
Millennials: Heavy Media Consumers / Light Spenders

According to a new analysis from Experian, Millennials consume 67 hours of media each week. That is more than Gen X (66 hours) and Baby Boomers (60 Hours). Millennials are also the only generation to spend more of their time with digital rather than traditional forms of media. Part of this can be attributed to the fact that they are the most connected generation -- more than three-quarters of Millennials own a smartphone (77%). Smartphone penetration is lower among Gen X (70%) and Baby Boomers (48%). They use their smartphones fairly consistently throughout the day, with a slight bump between 4-6pm when 69% of them are using their devices. While the media consumption of Millennials might appeal to advertisers, their current financial situation may bring some pause. According to Experian, Millennials are more than twice as likely as those 35+ to be temporarily unemployed. When it comes to spending on non-essentials, in aggregate Millennials spend $80 billion less than Gen X and $315 billion less than Baby Boomers each year on non-essentials.

Experian_millennials

So what?

This report captures the conflict that many marketers have. Millennials are an engaged audience, but have limited spending power. That means many brands (especially those with products that would be classified as non-essential or luxury) might be in the very early stages of their customer relationship with the group, and may not see a return on investment for quite a while. It is important for a brand (or publisher) to understand this nuance and engage Millennials in a way that does not alienate the segments of its customer base/audience that are spending the most.

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Multicultural
Spanish Language Ads Resonate Best with Hispanic Bilingual Millennials

More Hispanics are bilingual today than a decade ago. Two in five Latino Millennials aged 18-29 speak both English and Spanish. While studying the role of language in advertising effectiveness, Nielsen, Univision, and Starcom MediaVest found that the language of an ad was a key component to the ad’s ability to connect and resonate with Hispanic bilingual Millennial consumers. Using still nascent neuroscience technology to uncover Hispanic Millennials’ language preferences for TV commercials, Nielsen found that the Spanish language versions of the ads consistently performed the same or better than the English language versions. Spanish language ads that featured emotional content, ads that featured social interactions, and ads that featured brand sequences were all more emotionally engaging and memorable to bilingual Millennials than the same ad featuring English.

So what?

Given Latino Millennials' ever growing size, influence, and spending power, it is important that marketers understand the most effective language to use to connect with bilingual consumers. For Hispanic bilingual Millennials, this research suggests that advertising that uses Spanish will be more successful at eliciting emotional engagement and memory activation.

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Quick Takes
Cars On the Road Have Never Been Older
Ihs_automotive_polk_car_age

Source: IHS Automotive
Photo & Entertainment App Usage Growing at Fastest Pace
Mobile-app-usage-3

Source: Nielsen
U.S. Population About to Get A Lot Older
Bn-dm313_senior_g_20140630160406

Source: Census, Wall Street Journal
Streaming Music Business Gains Means Losses for Album & Track Sales

Bucking the trend, sales for vinyl up 40% over last year.

Chartoftheday_2432_us_music_market_2014_n

Source: Nielsen SoundScan, Nielsen BDS, Statista
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