OCTOBER 10, 2011

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Media
Google Search Trends Accurately Predict Video Game Sales
There has been a lot of speculation on how the massive volume of data being collected on the internet can help understand human behavior. Google has released a new study on this topic that is of interest to both social scientists and marketers. Google uncovered a strong correlation between the volume of search activity around top video games and the number of units sold.
So what? If search activity can prove to be a predictor of video game sales, it may also be an effective testing platform for content ideas or other opportunities.
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Social Network Ad Revenues to Reach $10 Billion Worldwide in 2013
Worldwide social network ad revenues will reach $5.54 billion this year, eMarketer estimates, with just under half that amount, $2.74 billion, coming from the US market. The bulk of these dollars, in the US and around the world, will go to Facebook, while a much smaller share will go to Twitter and other social networks. Gains in social network ad revenues mean these sites will account for a larger share of all digital ad spending. This year, 8.8% of online ad dollars in the US and 6.9% worldwide will go to social networking sites, eMarketer estimates. By 2013, social network ad revenues will make up 11.7% of all online ad spending in the US and 9.4% around the world.
So what? Brand advertising, more than direct response, is driving this growth. As such, social networks will begin to compete with magazines and TV for brand advertising.
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Communication
Geo-Targeting Demonstrates Results
AT&T partnered with eight major marketers to send various messages, offers, rewards or coupons to mobile phones, geared to consumers’ geographic location. The communications, called ShopAlerts, were triggered to be sent to AT&T customers (who had opted-in to receive them), when they were near a particular store or brand. Customers who were polled after being sent the communiqués were overwhelmingly positive about them, and in some cases were prompted to take action after reading the text alerts.
So what? The Condé Nast audience loves to shop. CN would be a logical partner for a marketer looking to reach customers who are out and about -- shopping for food items (Bon App readers), fashion apparel (Lucky, Vogue, etc), and technology products (Wired, GQ). CN should consider location-based advertising for our mobile apps.
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TUMBLR: Fashion’s Preferred Social Tool
The dramatic growth of Tumblr, the social blogging site (up 183% between May 2010 and May 2011), has raised its profile to the point that important fashion and media marketers are increasingly reaching out to its community of bloggers. Some fashion brands which have recently put Tumblr into their marketing mix include DKNY, Kate Spade, Oscar De La Renta, Alexander McQueen, Ann Taylor and Fashion’s Night Out.
So what? Tumblr may be a good avenue for Conde Nast to market its products. Tumblr’s attractive demos (57% under age 34, with a majority of female visitors) make it a good fit for CN’s core audience. Its unique interface, combining elements of traditional blogging and Twitter-style updates, lends itself to posts including graphical elements (photos, videos, etc.), which thus far has been an increasingly appealing space for fashion brands.
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Business
HotelTonight: An App Success Story
HotelTonight launched its app into an overcrowded marketplace, against strong competition, but managed to become the most downloaded app in its category. It achieved this feat by rewarding users who made recommendations through social media. HotelTonight also seeded press-worthy content to major news outlets and was covered on TV, in magazines and on the web. In less than one month after its launch, it was the number one travel app.
So what? Conde Nast faces similar challenges in promoting its online brands and magazine apps. HotelTonight’s success may provide insight into effective tactics.
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Quick Takes
The Rundown: iPad versus Kindle Fire
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Americans Dissatisfied With The Press
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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