FEBRUARY 28, 2011

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Technology
Morgan Stanley: Tablet Demand Is Underappreciated - Worldwide Shipments Could Reach 100 Million By 2012
Morgan Stanley recently released a bullish report on tablet penetration and usage based on data from more than 8,000 global consumers and 50 US CIOs. eMarketer recently projected worldwide tablet sales to reach 81 million by 2012. Morgan Stanley’s report states, however, that the tablet market could be bigger and more disruptive than analysts and investors appreciate. In particular, three potential upside surprises highlighted by their research could boost 2012 tablet shipments to their 100 million scenario: first, enterprise adoption could be more widespread than expected; second, international demand could be materially higher than some expect; and third, increasingly, tablets may be viewed as content- creation devices, as well as content- consumption devices.
So what? If Morgan Stanley’s projections pan out, many large industries will be affected sooner than expected. On the positive side: premium content owners (like Condé Nast). On the negative side: PCs and printers. In fact, HP’s recent disappointing earnings report may be partly due to tablet cannibalization of both their PC and printing businesses.
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Media
Recent Industry Report Supports Chris Anderson’s Claim: The Web Is In Fact On Its Death Bed
According to the GlobalWebindex 2011 Annual Report, in five years, most people will be experiencing the Internet not through a browser, but through some form of packaged platform (mobile, mobile apps, TV on demand, gaming consoles, tablets, e-readers, etc). Professional “traditional” style content will thrive and as a result, “traditional” media economics that thrive on barriers to entry for a limited and dictated choice for consumers may return.
So what? Closed networks may make it easier to monetize quality digital content.
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Economy
Consumer Confidence At A Three Year High
The Conference Board Consumer Confidence Index®, a widely used barometer of the health of consumer demand, further improved in February after an increase in January. The Index now stands at 70.4 (1985=100), up from 64.8 in January, it’s highest level since February 2008 (76.4). The Conference Board attributes the increase primarily to growing consumer optimism about the short term future.
So what? A rise in Consumer Confidence has been shown to have a positive effect on newsstand sales for several CN titles, and augurs well for the ongoing advertising recovery.
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Condé Nast Exclusive
Facebook’s Plan To Rule The World
Chet Van Wert, Director of Strategy & Planning for CN’s Consumer Business Development division, recently analyzed 11 Facebook initiatives that may have implications for our business and culture. The provocative piece provides a window into Mark Zuckerberg’s grand scheme: to become the portal to all media and commerce.
So what? According to Chet, "the media business is headed for a 'survival of the socially fittest' experience, which means that we have to pour our creativity and expertise into the challenge of 'socializing' our products, and embrace Facebook as an ally."
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Culture
McKinsey: 10 Things To Know About Today’s Global Consumers
McKinsey compiles snippets of key global consumer insights across a wide variety of categories.
So what? With the global reach of our brands and the cosmopolitanism of our readers, it’s good to keep an eye on the big picture.
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Lifestyle/Luxury
Mobile-Optimized Sites Are Key For Luxury Brands
After a slow start, luxury marketers are now embracing the Internet. However, according to a recent article by Luxury Daily, high-end brands are lacking sophisticated mobile strategies. Companies such as Chanel, Marc Jacobs and Tory Burch have mobile-optimized sites but the majority of luxury brands are absent on the mobile Web. The article suggests that because luxury brands have customers from a wide variety of global geographic locations who are more likely to use multiple media platforms, as well as a limited number of retail locations, a robust mobile presence is crucial.
So what? Without an optimized mobile presence, luxury brands risk losing customers and sales to a poor user experience.
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Quick Takes
An iPad At Every Table
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Top Online Video Brands
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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