MARCH 30, 2015

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Millennials Do Consume News, But in Strikingly Different Ways Than Previous Generations

There is a common perception that millennials (ages 18-34) are uninterested in news, but in fact 69% of them are consuming news on a daily basis, according to a new report by the American Press Institute and AP. The news this generation consumes is a mix of hard news, lifestyle news and practical how-to news, which they get not by going directly to news providers but rather as part of their connected life in general. Older millennials tend to actively seek news, while younger millennials let news find them, but both groups employ a blend of both methods. Social networks play a significant role in millennials’ news acquisition, followed by online search, news aggregators and news sites. Traditional media sources like TV and newspapers are much less likely to be used. However they first discovered it, when millennials want to learn more about a topic they most often turn to search. Contrary to the stereotype, millennials accept that not all online content should be free, and 93% of them had some kind of subscription in the past year. However, more often they pay for subscription to entertainment services like Netflix than for information and news – 40% of millennials reported paying for services like a digital news app, a digital magazine or a digital subscription to a newspaper. Another 13% had access to a news subscription paid for by someone else.

So what?

One of the important takeaways from the study is that millennials are interested in and hungry for news. The challenge for content creators is to bring their news to milllennials, because members of this generation expect to find the news where they are rather than actively seek it out. Condé Nast’s growing focus on content distribution strategy will help us to continue to engage millennials with our coverage of topics they seek news on.

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Nielsen: Multicultural Audience Grows in Size, Spending Power and Influence

A new report from Nielsen on Multicultural Americans boldly describes the segment as the emerging consumer force in the U.S. today and the growth engine of the future. Multicultural Americans (Hispanics, African-Americans and Asian-Americans) are currently 120 million strong and comprise 38% of the U.S. population. With growth fueled by higher immigration and birth rates, the Multicultural American population is adding 2.3 million people each year. According to Census projections the tipping point will come in 2044 when Multicultural Americans will make up the majority of the U.S. population. Population growth translates nicely into buying power. U.S. Multicultural buying power is up 415% from $661 billion in 1990 to $3.4 trillion in 2014 – that out indexes the 204% increase in total U.S. buying power during the same time by more than double. Multicultural consumers are said to be transforming the U.S. mainstream and are reshaping how marketers and advertisers use culture to connect with diverse customers. Trend setters and tastemakers across categories ranging from food/beverage to beauty products, they also influence non-multiculturals. They are avid users of technology and social media using both to explore and showcase their evolving identities.

So what?

Combine the buying power of $3.4 trillion with a median age of 30.5 and you have an incredibly desirable segment for many marketers for decades to come. Condé Nast brands already resonate with Multicultural audiences. According to MRI (as of year-end 2014), Condé Nast’s penetration is 41% among Asian-Americans, 35% among African-Americans and 26% among Hispanics. Individual brands with the highest composition of Multicultural Americans include Teen Vogue, Brides, GQ, Vogue, Glamour and Allure.

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Ads Teasing New Products Help Drive Word of Mouth & Interest

A paper recently published in the Journal of Advertising Research revealed that pre-announcements of new products significantly increase both interest and word of mouth around the product. The paper reported on two experiments that measured the effects of promoting products in advance of their release versus promotion coinciding with the period when the product was new to the market and available. In the first experiment, 40,000 e-mail subscribers were evenly split among two groups receiving different promotional messages for the same product. The one difference between the two groups was in the verbiage of the promotional message. One mentioned that the product would be released in the future; the other said the product was presently available. Those exposed to the future release verbiage were significantly more likely to click through and share the link (a measure of word of mouth) than those who received messaging that the product was currently available. A similar study was conducted among an online panel and revealed similar results. Those exposed to ads that read "Coming Soon" rather than "Out Now" were more likely to have favorable thoughts about the product and intended to talk to about it.

So what?

Many brands already recognize the value of teaser advertisements to build awareness and buzz before a product is actually available to consumers. Marketers at these companies have long relied on Condé Nast brands to help in this process, just as Apple did when it ran a 12 page spread in the March issue of Vogue to promote Apple Watch. This research proves that strong teaser campaigns are a necessary step to build awareness and favorability for new products.

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Quick Takes
eMarketer Projects Mobile Ad Spending to Surpass Desktop Next Year

Source: eMarketer
Social, but Not Socializing -- College Freshmen Spending Less Time Socializing with Friends

Source: CIRP Freshman Survey
Music Industry: Streaming Continues to Gain Revenue Share From Downloads and CD Sales Revenue

Source: RIAA, 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 |

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights