APRIL 25, 2011

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Yankelovich: Welcome To 2020
The Futures Company (formerly Yankelovich) has written a report that examines the macro changes shaping the global landscape in the years to come and the implications of these changes on the ways in which businesses are managed, and the skills and competencies they need to be able to prosper. The report projects a rather harsh future: the inescapable, hard truth about the next 10 years, and probably beyond, is that it will be harder for businesses to make money than it was in the last two decades. For example, economic growth will be challenged by a growing world population (over 7 billion by the end of 2011), more expensive energy, resource shortages, and pressures on food and water supplies. The report suggests that innovation and technological advances can and will help counter some of these limiting effects, but too late to avoid significant disruptions to business as usual.
So what? In order for companies across most industries to succeed in the future, they will have to prepare for and adapt to significant disruptive global challenges through innovation, imagination, and flexibility.
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eMarketer Ad Spending Outlook: No Candy Coating - TV and Digital Will Dominate Through 2015 Mostly At The Expense Of Print
According to a recent eMarketer report on U.S. ad spending across all media, the ad spending rebound that began in 2010 will continue modestly for the overall market through 2015. However, the landscape has, and will continue to shift considerably. As noted in last week’s CNtelligence, digital ad spending continues to gain momentum. By 2010, digital was already the second biggest medium in terms of total ad dollars spent, after TV. eMarketer predicts that digital will increase its share by 10 percentage points through 2015, while magazines and newspapers will lose over 9 percentage points of market share during the same period. In contrast, TV, radio, and outdoor will hold steady through 2015, with TV continuing to be the dominant medium among all.
So what? Media content providers must fully engage in multi-platform strategies in order to prosper.
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Study: 72% Of Smartphone Users Likely To Recall Ads With QR Codes
As consumer ownership of smartphones in the U.S. increases, so does their use of QR codes. A QR code (short for Quick Response) is a barcode that can link to multiple kinds of data, including URL links, addresses, and text. With your smartphone, you scan a QR code using the camera-phone. From there, the code directs you to a piece of information, usually online, that can consist of anything from coupons or additional product information to links to social media or ecommerce sites. Marketing and communication agency MGH and Vision Critical recently conducted a study to gauge awareness and usage of QR codes among smartphone users. The study found that awareness and usage of these codes are high: 65% have seen one and of those, half have used one. According to the study, most consumers use QR codes to get coupons or access additional information. Additionally, a key finding of the study was that nearly three quarters of smartphone users would be likely to recall an ad with a QR code.
So what? According to the Mendelsohn Affluent Survey, Condé Nast has more readers who own smartphones than any other major media house. We are therefore particularly well suited to incorporate QR codes within both our editorial and advertising programs.
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Study: Most Tablet Owners Are Using Their PCs Less
According to eMarketer, since the iPad first made its way into the hands of millions in 2010, consumers are primarily using them for entertainment, and the availability of media content on the devices is still driving purchase intent. A March 2011 survey from mobile ad network AdMob amplifies those findings further, showing that for many owners tablets are fast becoming a primary source of entertainment. According to the study, over two in five respondents now spend more time each day with their tablet than with a traditional computer or with a smartphone, and a third use tablets more than they watch TV.
So what? Media companies like Condé Nast must stay on the pulse of how consumers are using tablets in order to effectively optimize content for maximum engagement.
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Gartner: Apple To Dominate Tablet Market Through 2015
Apple will remain firmly in control of the tablet market through 2015, according to new research by Gartner. Media tablet sales are growing exponentially, according to Gartner’s figures, with approximately 70 million units to be sold in 2011, about 300% more than in 2010. By 2015, Gartner expects tablet sales to almost hit 300 million. The big winner here is Apple, with a clear hold on the market. Software over hardware is the simple axiom presented by analysts at Gartner. Platform flexibility and an extensive ecosystem of applications will be the key to market share. That is precisely why Apple, with its iPads, has managed to hold 83.9% of the market in 2010 and will still keep 69% of the market while growing its sales more than three-fold to 48 million by the end of 2011. As the market consolidates, Apple will see its share gradually fall to 47% by 2015, selling a total of 139 million units that year. Gartner goes on to predict that Android will grow its market share from about 20% in 2011 to 39% in 2015, and Research in Motion will take its tablet market share to 10% by 2015.
So what? Although other players are entering the tablet market, it is important for media content providers like Condé Nast to know that Apple will remain dominant in the space for the foreseeable future.
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Condé Nast Exclusive
MRI: Condé Nast Mobile Users Spend More Across Categories
As noted in a previous CNtelligence article (see “Condé Nast Readers Are More "App-Happy", 2/14), Condé Nast consumers are more active on mobile devices than those of any other competing media house (ranking #1 for the newly measured “Mobile App-Happy” and “Mobile Ad & App-Happy” targets on MRI). As a follow up to this story, Dan Jennings, Senior Research and Insights Manager, used MRI to discover that Condé Nast mobile users spend more on most consumer items across most categories. For example, Condé Nast “mobile ad & app-happy” readers outrank all other major media houses for spending on: average monthly credit card expenditures, apparel, health and beauty aids, women’s fragrances, personal computers, and many more.
So what? Condé Nast ad sales, consumer marketing, and business development businesses are very well-positioned to leverage the fact that mobile commerce is rapidly gaining traction across the globe.
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Warning To Luxury Retailers: Quality Service Must Adapt to Changing Shopping Behaviors
As noted in previous CNtelligence articles, technology is changing all aspects of our lives, including how we shop. In a recent article, WSL/Strategic Retail takes this concept a step further by exploring how technology affects customer service at retail stores. The in-store shopping process, including at luxury stores, now includes consumers checking their mobile devices for better prices at alternate locations. Instead of being defensive and threatened by this practice, the article suggests that retailers should embrace it and use it as a way to further engage the customer by instilling trust and credibility in the shopping experience. WSL states that consumers are not only concerned with cost when checking their mobiles; they are really looking for value, trust, and assurance that they are making the right decision. These are attributes that any good luxury salesperson should be able to effectively project.
So what? Articles like this remind us that companies catering to affluent consumers must keep a close eye on their changing shopping behaviors and adapt customer touch points accordingly.
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Quick Takes
Ipsos Mendelsohn: Optimism Among U.S. Affluents Is Rising
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American Express: Luxury Consumer Spending to Grow 8% This Year
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Study Forecasts Over 3 billion Web-Connected Devices By 2016
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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

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