APRIL 20, 2015

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Smartphone Dominance Begins to Set In

By 2018, three in four consumers will own a smartphone, forecasts a new report from Yahoo, Flurry Analytics, and research provider Vital Findings. As smartphone penetration increases, so does the number of consumers who are “smartphone dominant” or "mobile first." Yahoo defines “smartphone dominant” consumers as those who spend more time on smartphones than personal computers and use their phones to replace computers. Two in three smartphone dominant consumers say their smartphone is the primary way they access the internet and 75% of their time is on a mobile device. Currently, 18% of smartphone users are smartphone dominant, but the group is expected to grow to comprise 67% of all smartphone users over time. Which segments are most smartphone dominant right now? 29% of females 18-34 are smartphone dominant compared to 21% of males 18-34. As consumers are spending more time on mobile devices, they are also spending more time in apps. “Lifestyle and shopping” apps are the app category with the most growth in the past year, up 171% from 2014 to 2015, which outperforms the average 76% growth of all apps.


So what?

Smartphone dominance is in its infancy, but the mobile first user will soon become the majority. Due to the increased reliance on mobile and the sheer amount of time consumers spend with their devices, it continues to be even more important for brands to be mobile-centric and have superb offerings and experiences on devices. Given the growth of mobile and, specifically, lifestyle and shopping apps, there should be opportunities for media brands to expand their audiences through app offerings.

> Click here for report
Nielsen Offers Advice to Beauty Advertisers

The Beauty of Creativity, a new report from Nielsen, identifies the U.S. beauty market as a $50 billion mega category. Products falling into the beauty category are both essential and discretionary (hair care, skin care, cosmetics, fragrance, and shaving needs) resulting in an average spend of $257 annually by American households. The biggest outlets for beauty include mass merchandisers (25%), department stores (17%), specialty stores (17%), and drug stores (14%). However, Nielsen identifies some marketing challenges for the beauty category including moderate growth (especially within the mass sector), a cluttered market (900+ products at an average drug store), and poorly received advertising. In fact, Nielsen reports that beauty advertising is 20% less memorable on general recall and 40% less memorable on brand linkage versus other CPG categories. 

So what?

Nielsen is calling out advertisers/agencies on their creative, however beauty ads run with Condé Nast brands have historically produced higher than average recall scores. Advertising with both CN print and digital properties help beauty brands increase the saliency of their messages among a receptive audience.  

> Click here for report
Social Media
Pew Research Center: Teens Immerse Themselves in Social and Tech

According to a new study from the Pew Research Center, one in four teens (13-17 year olds) say they are online almost constantly. Mobile is enabling teens to stay constantly connected as 73% of them have a smartphone. Not surprisingly, they are using their smartphones to use social media. Facebook remains the most used site by teens (71% in this survey reported using it), but Instagram is also now used by the majority of teens (52%). Snapchat is the third most popular social platform among teens -- 41% use it. Nearly three in four teens use multiple social sites. However, not all teens use social media alike. In fact a teenager's household income can predict the platforms they prefer. Teens in a household with an income of $75,000+ are more likely than non-affluent teens to use Instagram and Snapchat. However, teens with a household income under $30,000 are more likely to use Facebook. In regards to gender, teenage girls are more likely than teenage boys to use Instagram, Snapchat, and Pinterest.

So what?

Pew's report quantifies something that anybody who has spent time around teenagers already knows -- they love their smartphones. But this report does provide some new insight on the best ways to reach segments within the teen population through social media. As media brands that over index among affluent households, we should be mindful of the social apps, like Snapchat, that are gaining popularity among the teens within those households.

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Quick Takes
Ad Spending on Social Media Networks Have Grown by $5 Billion in North America Over Past Two Years; Set to Grow by Another $5 Billion by 2017

Source: eMarketer
Netflix Continues Solid Growth

Source: Netflix, Statista
The Majority of Baby Boomers, Gen Xers and Millennials Say Marijuana Should Be Legal

Source: 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

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