SEPTEMBER 08, 2014

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International
Nielsen Global Survey: Nearly Half of Respondents Will Make an Online Purchase This Year

By the end of the year, worldwide e-commerce sales are expected to reach $1.5 trillion, which is an increase of about 20% over online sales in 2013. According to a new Nielsen global e-commerce survey fielded in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America, nearly half of all respondents will use an internet-connected device to make a purchase during the next six months. Globally, the categories purchased most online are travel and apparel. Air travel is the most popular e-commerce category among consumers as 48% plan to buy tickets and make reservations in the next six months; the clothing, shoes and accessories category is next most popular with 46% planning to make a purchase. Interestingly, more than one in four plan to buy groceries online. Respondents in Latin America and Asia-Pacific browse more in all 22 categories measured than the global average. However, while Latin Americans are mostly browsing, Asia-Pacific respondents are browsing and buying.

Nielsen_globalecomm

So what?

Online and mobile commerce continue to skyrocket, not only in the U.S., but also around the world. Offering browsing and buying options on mobile, and getting the online retail infrastructure right, will only increase in importance as more global consumers own mobile web devices. Besides offering buying options across platforms (e.g. websites, apps, digital magazines, and social), it will be important for brands to understand regional e-commerce preferences and tendencies.

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Retail/Shopping/Commerce
Do Discounts Make Us Enjoy More the Products We Buy?

When it comes to how much people enjoy a product they purchased, buying the product at a discount can be a double-edged sword. On the one hand, the feeling of “getting a good deal” can elevate shoppers’ moods and subsequently increase their enjoyment from the products. On the other hand, the lower price may reduce shoppers’ incentive to use the product and convince themselves that they enjoy it. Researchers from Columbia and University of Toronto suggest that the impact of discounts on enjoyment is a function of the length of time between payment and consumption. In a set of experiments, they sold participants a product (chocolate truffles, juice or iTunes downloads) for full-price or at a discount. Some participants received their product right away, while others had to wait before they could consume it. The researchers asked participants to rate how much they enjoyed the product, and found that when product consumption happens immediately after purchase, price discounts enhance consumers’ enjoyment of the product. In contrast, when there is a delay between payment and consumption, discounts reduce the level of enjoyment. The researchers hypothesize that the impact on mood is quick, leading to a positive experience when there is no delay. When time passes, consumers have time to process the implications of the discount, and then the reduced need to justify the expense by using the product starts taking effect.

So what?

Discounts are an effective way to lure in new consumers, and Condé Nast uses this tactic in its subscription marketing efforts. The findings of the study suggest that we could increase new subscribers’ satisfaction levels by giving them access to the magazine shortly after they complete their subscription process, for example, by providing them with an immediate download of the digital edition.

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Travel
Two of Three Travelers Use Online Travel Video

Google recently published research reporting on Americans' usage and habits around online travel video. The report which includes data captured from YouTube and responses to a custom survey conducted in partnership with Ipsos MediaCT found that consumers are watching more travel-related content than ever and video has become incredibly influential for travelers planning their trips. The survey found that two of three U.S. consumers watch online travel content when thinking about a trip. The data from YouTube demonstrated behavioral support for the trend as views of travel-related content on the site are up 118% over last year-to-date. Searches for travel content on YouTube skew more toward destination names, such as Las Vegas or Hawaii (71% of travel searches) whereas general travel searches on Google are mostly comprised of travel brand names, such as JetBlue or Marriott (58% of travel searches). On YouTube, destinations and attractions comprise the highest percentage of video views (40%), but content around cruises & charters has grown the most over last year (views up 262%).

Percentage_of_travel_views

So what?

While we know reviews from fellow travelers are important to most travelers' decisions, the influence of professionally produced content cannot be discounted. Online video has quickly emerged as a way for both media and travel brands to regain some influence when trying to affect travelers' decisions. 

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Demographics
A Profile of the U.S. Hispanic Online Audience

comScore recently released a study exploring the online behaviors of U.S. Hispanics, who now account for 13% of the U.S. internet audience. While the majority of Hispanics are light internet users, they are more likely than non-Hispanics to be heavy users of family, entertainment and social media websites, in particular Facebook and Twitter. Although they are less likely than non-Hispanics to shop online, those that do shop more often and spend more dollars. Mobile devices play an important role in their online consumption habits, especially among 18-34 year old consumers, who account for 58% of the Hispanic mobile audience. They are especially likely to visit entertainment, social media, games and retail sites more on mobile devices than on a PC.

So what?

Hispanics are the fastest growing demographic group in the U.S., and are big consumers of online content. They have also led the migration to mobile as they are more likely than African-Americans and whites to use their smartphone for internet access. Media companies are increasingly understanding the importance of catering to Hispanics’ needs and interests through offerings like Condé Nast’s Glam Belleza Latina.

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Quick Takes
IDC Projects Phablets to Drive Smartphone Growth Over Next Four Years
Chartoftheday_2660_smartphone_shipment_forecast_n

Source: IDC, Statista
Fewer People Paying for TV
Pay_tv_2014

Source: Leichtman Research Group, MarketingCharts.com
11 Million Vehicles Were Built in the United States in 2013
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Source: WardsAuto, The Wall Street Journal
India Has 45 Million Online News Consumers
Ft_comscore_india

Source: comScore Media Metrix, Pew Research Center
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