SEPTEMBER 02, 2014

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Digital
comScore: Majority of All Digital Time Spent on Apps

Last year was a big year for mobile as two major digital milestones occurred: Americans using multiple platforms became the majority of all digital consumers and time spent on mobile surpassed time spent on desktop. This June marked another milestone for mobile as 52% of all time spent with digital occurred on mobile apps; 40% of time spent was on desktops and 8% on mobile web. Americans continue to make more time for digital during their days -- time spent with digital is up 24% over last year, and that growth is being propelled by time with mobile apps which is 52% higher than last year. Social media (25%), games (16%) and radio (8%) represent nearly half of all time spent with apps and all skew more to a mobile audience rather than desktop audience. Conversely, search, email, general news and retail all skew towards a desktop audience.

Millennials spend most time with the Facebook and Pandora apps.

Comscore_time_spent

So what?

Explosive growth for mobile and apps show no signs of slowing. To date, mobile growth has been incremental to the overall digital landscape as time spent with desktop has grown as well, albeit at a much slower rate. However that might change in the not so distant future, as desktop has only grown 1% this year to date versus last year. Content providers need to continue to shift to a mobile-first mindset, and where applicable take that approach one step further to be app-first.

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Travel
PwC Survey: Airline CEOs Cautiously Optimistic

PwC surveyed CEOs of 39 airlines and found that 85% of them express caution and remain concerned about the possibility of a slowdown in growth markets or slow/negative growth in developed ones. However, nearly the same number of CEOs (82%) are confident that their industry will see revenue growth during the next 12 months. Airline CEOs are more bullish about their short-term growth than the average CEO surveyed by PwC -- just 68% of all CEOs across a range of sectors foresee revenue growth for their industry during the next 12 months. One of the global trends that airline CEOs point to most to transform their business during the next five years are technological advances, as 77% identified technology as a global trend to transform the industry. PwC anticipates that better use of data analytics by airlines will help bring more personalized pricing and products to the market.

So what?

Airlines have always struggled with efficiency as the industry has one of lowest returns on capital investment in the past 30 to 40 years according to PwC's report. While this survey demonstrates better than average optimism from the category's leaders, it also illustrates an acknowledgement that they need to become savvier when it comes to data. Airlines will likely ask future business partners to deliver technology-led solutions that will help build efficiencies for a sector in desperate need of them.

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Video
Half of Millennials Prefer To Watch Brand Video than Read for Information

Brand video is becoming a preferred way to learn about products, services and brand attributes. According to media software company Levels Beyond, about three in five have watched a brand video when they visited a website that has video content. Instead of reading content on a website, two in five consumers reported watching a video instead to get the same information from a brand. Consumers generally liked receiving shared videos from friends or brands. 61% have watched company-produced videos if it was shared with them by a friend and 42% reported liking it when companies share videos online. When it comes to the types of videos consumers want to watch, the most popular type was how-to/instructional/tutorial videos, which are liked by 67% of consumers. Comedies or spoof videos are second most preferred (42%), followed by product/informational (34%) videos. Unsurprisingly, Millennials are driving video demand: they are about twice as likely as Baby Boomers to watch videos from a company on video aggregator sites, such as YouTube and Vimeo. Millennials also prefer to watch rather than read: 51% of Millennials prefer watching videos over reading content compared to just 30% of Boomers who prefer watching videos to reading.

Videos_prefered

So what?

Consumers are attracted to brand videos and seek them out as a way to get information about brands, products and services. Condé Nast has provided advertisers with marketing solutions to respond to these changing preferences, especially among Millennials, by way of branded video content from Condé Nast Entertainment.   

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Retail/Shopping/Commerce
Tablet Shopping Growth Outpaces All Other Devices

After several quarters of year-over-year growth rates in the mid-20s, mobile commerce experienced explosive growth in the second quarter of 2014, with spending growing by 47% year-over-year. comScore’s analysis reveals that this growth is fueled by tablet shopping, which grew by 75% over Q2 2013. Smartphone shopping grew by 29%. The growth on both devices far outpaces the 10% growth of e-commerce on desktops and the 3% growth of total discretionary retail spending. M-commerce traditionally saw a seasonal dip of approximately 15% in spring months, but this year the quarter-over-quarter decline was minor – a mere 3%. This could be a sign that consumers now feel more comfortable shopping on their mobile devices and are doing so in a more consistent manner throughout the year. It should be noted, however, that despite the impressive growth of m-commerce, it still has not gone entirely mainstream. As of Q2 2014, it accounts for a little over 11% of total online shopping dollars.

So what?

Many of the efforts to drive m-commerce have been geo-contextual to encourage conversions at relevant times and places. However, this research suggests that when it comes to mobile, the ease of using a bigger screen on a tablet may trump the convenience of a smartphone. 

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Quick Takes
18-24 Year Olds Only Age Group to Say All Kids Should Get a Trophy and Not Only Winning Players
Reason-rupe

Source: Reason-Rupe
Americans Spent $5 More Per Day in July of 2014 than Same Month in 2013
Statistic_id205241_average-daily-consumer-spending-in-the-us-2014__1_

Source: Statista, Gallup
Users that Use Push Notifications are Significantly More Engaged with Apps
Push_notifications

Source: Localytics
Tiffany's Second Quarter Sales Grew Everywhere, but Japan
Tiffany-second-quarter-sales-2014-vs-2013-net-sales_chartbuilder

Source: Tiffany Investor Relations, 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