OCTOBER 17, 2011

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Loyal Customers- The Untapped Goldmine
2.5% of shoppers bring 80% of a CPG company’s revenue. 25% of customers who claim loyalty to a brand will no longer purchase that brand in a year. These are some findings from Nielsen’s Catalina division. Catalina analyzed 8 years of CPG data and concluded that the large companies are under-valuing their most important consumer segments, the loyalists.
So what? Conde Nast offers advertisers the opportunity to reach high concentrations of brand loyalists. CN has a rich set of customer data through the Preferred Subscriber Network. This data can be used to reinforce the power of CN brands to advertisers.
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Neuromarketing Research, Reading the Consumer’s Mind
While there is substantial proof that advertising works, there are many unanswered questions on how and why it works. Some marketers are turning to neuroscience to deepen their understanding of how consumers receive and process marketing messages at both a conscious and sub-conscious level.
So what? While advertisers (and media companies) would love to know the actual emotional and behavioral responses of all consumers to all of their messages, this type of research can only be done in a lab environment. However, the industry can use insights uncovered through neuroscience to determine the queues that make consumers respond on an emotional level.
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There’s More to Digital Advertising than Clicks
Internet users encounter all forms of online advertisements daily. However, such exposures do not always result in click activity. Not clicking an online ad does not suggest that consumers are not influenced. In fact, according to Crowd Science, more than three-quarters of users between the ages of 25 to 54 have taken alternative actions after viewing an online ad such as performing their own search or visiting a company’s website. Therefore, online advertisers should be mindful to connect their ability to attribute ad-initiated behavior to the origin of the ad itself.
So what? As CN has long argued, CTR is not a true performance metric for digital advertising. At best CTR can be a creative diagnostic and at worst it can steer a digital advertising campaign in the wrong direction. Advertisers continue to move away from clicks and this study provides further support for doing so.
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Kids Spend One Of Every Five Dollars On Digital Content
Purchasing access to digital content is a native concept to the millennial generation. In the 2011 Edition of Kids and Entertainment Content, the NPD Group reports that children (2-14) spend over 20% of every dollar earned on entertainment content in a digital format. This is a pronounced shift from 2009 when 15% was spent on digital content.
So what? Media companies need to keep a close watch on this generation as their behaviors and attitudes are quite different from boomers and gen x. Ultimately, long term digital strategies must be developed to cater to the millenials as they are the first truly digitally native generation.
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Quick Takes
Ad Spend in Top 10 Markets Projected to Grow by $40 Billion from 2010 to 2013
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Display Advertising Bounces Back After Several Years of Decline
Throughout the globe, display advertising is gaining share.
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Scripted Programs Get The Most DVR Playback
Top 10 TV Programs (Viewers) Generating Most 3-Day Over Live Same Day Viewing
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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