MAY 23, 2011

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Announcement
What Are You Thinking? REMINDER: NEW SOCIAL CAPABILITIES ON CNTELLIGENCE
Just a friendly reminder that new interactive features are now on CNtelligence: 1) A “Comment Box” where users can publish comments regarding each article. Comments will appear automatically on the newsletter (with the option of anonymity if desired). 2) The ability to provide direct feedback to the Editor (Michael Gratz) via the newsletter, without the need to send a separate email. Want to add insight or an observation? Let us know - we’d love to hear what’s on your mind!
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Technology
Study: The iPad Is Becoming The New PC
A recent study by Business Insider of its iPad owning readers found that respondents spent more of their personal computing time with iPads than laptops or desktops. If “personal computing” is defined as using a connected device to do anything that is not business-related (social networking, surfing the web, playing games, etc), the study found that iPad users reported spending 37% of their “PC” time on iPads, 27% on laptops, and 21% on desktops. The study also found that 60% of iPad users considered the iPad their primary computer. We note that respondents to this study only represent iPad owners who read Business Insider, and not all iPad users. However, the study does represent a data point consistent with a recent Nielsen study covered in CNtelligence (see “Nielsen: Tablets Beginning To Cannibalize Other Connected Devices,” 5/9) suggesting that tablets might steal share from PCs.
So what? As Dell & HP can attest from their Q1 2011 earnings reports: PCs beware.
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Media
Early iPad Magazine Pricing Strategies: Discounting Single Copies And Pricing Up Subs
Since last year, iMonitor has been issuing reports on magazine app activity. Recently (with a little push from Scott McDonald), iMonitor has started tracking how publishers are pricing their apps. Initial findings show that: • 60% of single copy iPad apps are discounted compared to their print single copies • Pricing strategies for apps on the Nook differ in some cases from those on the iPad As of the May release, only 15 titles were selling iPad app subscriptions. 9 out of the 15 were charging more for the iPad app subs than their print subs. It will be interesting to watch this space as more publishers enter the marketplace. Note: This report pre-dates Condé Nast's introduction of iPad subscriptions to the market.
So what? As we bring digital editions and other offerings to the app marketplace, it will be important to keep an eye on competitive pricing strategies.
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Taking “Like” To The Next Level
In December 2010, Facebook reported it was serving more than 2 billion “like” button clicks every day to more than 2 million websites. “Like” has become the de facto currency of Facebook success, and marketers just can’t get enough. In a recent report, eMarketer claims, however, that “like” should not be looked at as the end of the game, but only the kickoff. As noted in previous CNtelligence articles (see “Facebook Taking On Netflix? Social Media As A Commerce Channel,” 3/14 and “The Power Of The 'F-Factor' On Purchase Decisions,” 5/2), the “like” button matters. In this report, eMarketer highlights five case studies that show how a few marketers are taking “like” to the next level, by not only connecting with their customer bases, but also further engaging them, leading to increased loyalty and ultimately transactions.
So what? The “like” button is only the beginning.
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Culture
McKinsey: Unlocking The Full Potential Of Women In The U.S. Economy
Women clearly play an essential role in the sustenance and growth of the U.S. economy. According to a recent report by McKinsey & Company, between 1970 and 2009, women went from holding 37% of all jobs to nearly 48%; that’s nearly 38 million more women. Without them, our economy would be 25% smaller today—an amount equal to the combined GDP of Illinois, California and New York. But the report claims that the full potential of women in the workforce has not yet been tapped. It outlines some of the leading factors inhibiting women’s progress and discusses the crucial role women play in boosting the U.S. economy to stay on top of the global marketplace.
So what? “If the U.S. is to achieve a level of economic growth to sustain or improve living standards, and if U.S.-based corporations are to remain globally competitive, we can no longer simply have good intentions about gender diversity. Now, we need good results.” – McKinsey & Company, April 2011
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Yankelovich: Culture, Not Technology, Drives The Future
A common theme throughout CNtelligence has been technology’s impact on all aspects of how we live and even think. It is not a huge jump of faith to therefore conclude that technology and its advances are shaping the future. The Futures Company (formerly Yankelovich) has written a fascinating POV that challenges this notion. The paper states that throughout history, culture has been the prime driver of change and growth, not technology. Technology plays an important role, but is a tool of culture rather than the other way around. The paper uses the tablet computer as a prime example. The iPad is a hot new technology today, but tablet computers have been around since 1979 (The Apple Graphics Tablet, The Newton, etc). Yankelovich claims that these devices failed because not only were the early hardware and software systems not ready, but neither was the consumer culture. Without tablet-­ready consumers to sustain an ongoing revenue stream, R&D lagged and technology went off in the direction for which consumer culture was ready. In addition, the paper claims that today’s tablets are capable of many things for which they are not used because they are culturally unacceptable, like playing with your apps while in a meeting, or turning up the volume of a video stream you are watching while riding the train. The bottom line is that although breakthrough technologies are undoubtedly transformative, it is the study of cultural trends and lifestyle values that offers the best understanding of the future of consumers.
So what? Whether or not you agree with the POV in this article, Condé Nast is in an enviable position: our brands both drive cultural trends and our technology is leading edge.
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Lifestyle/Luxury
Study: Affluents Under 35 Spend More Time Reading Magazines Than Affluents Over 35
Although it may not be particularly surprising that wealthy Millennials (ages 18-34, HHI $150K+) spend more time consuming digital media than do wealthy Gen Xers or Boomers (ages 35+, HHI $150K+), a recent study came to the more unexpected conclusion that the same was true for magazines. The study by The Luxury Institute examined media usage, technology adoption and values, and found that those wealthy Millennials who do read magazines spent 28 minutes more per week reading them than did their older counterparts. Some other interesting findings of the study were that wealthy Millennials texted almost as much as they talked on the phone, were far more likely than older affluents to own Apple products, and were more likely to say it is very important to “be competitive,” “be a leader,” and “be admired.”
So what? According to MRI, Condé Nast indexes higher than all major publishing/media houses for delivering wealthy Millennials. It is essential for us to know this crucial segment inside and out as they are key to Condé Nast’s success both in the present and future.
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Communication
Social Media’s Impact On How We Approach Health
The appeal of social media is beginning to overcome consumer reticence about discussing health concerns online. A recent study by Pew shows that although doctors, nurses, and other health professionals continue to be the first places people go to when they have health concerns, people are increasingly getting second opinions from peers using online social tools. The report also highlights the growth of other online tools that allow people to track progress in health-related matters, such as: workouts, diet, sleep, drinking, etc. People will often post comments and reviews to share experiences based on what they are tracking online. Pew states that these are not yet mainstream activities, but they are gaining traction. According to the study: 80% of Internet users have looked online for information about specific diseases or treatments, one third (34%) have read someone else's commentary or experience about health or medical issues on an online news group, website or blog, and nearly one out of five (18%) have gone online to find others who might have health concerns similar to theirs. According to Pew, the online conversation about health is being driven forward by two forces: 1) the availability of social tools and 2) the motivation, especially among people living with chronic conditions, to connect with each other.
So what? Studies like this suggest that there could be positive consumer response to enabling more health-related peer-to-peer discussions on Condé Nast’s websites and apps.
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Quick Takes
eMarketer: Magazines To See 9.5% Growth In Online Ad Revenues This Year
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The Demographics Of Social Media
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U.S. Population Growth Driven Exclusively By Minorities From 2000 to 2010
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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