NOVEMBER 21, 2011

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Economy
Holiday Spending to Hold Among Higher Income Families
In its 26th Annual Holiday Survey, Deloitte reports that while 63% of people in households earning $100K+ feel that we are still in a recession or heading back into a recession, they still plan to spend more than last year during the holidays. The average consumer with a $100K+ household income plans to spend $2,142 on gifts, socializing, entertaining, furnishings, etc. during this holiday season -- a gain of +3.5% over last year. Conversely, those consumers with a HHI under $100K plan to spend $844 this holiday season, a decline of -12.3% versus last year. Those households are slightly more pessimistic about the economy – 67% feel we are still in a recession or heading back into one.
So what? The bad news is that people are still very skeptical about the economy. But, the good news for Condé Nast and its advertisers is that the more affluent consumers are not letting that sentiment negatively affect their shopping habits this holiday season.
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Technology
Video Consumption More Engaging on Tablets than on Desktops or Laptops
The video hosting platform, Ooyala, reports that videos viewed on tablets averaged +28% more viewing time per play than those viewed on desktops or laptops. Videos viewed on tablets were also twice more likely to be completed in their entirety than videos viewed on desktops or laptops. Tablets are also proving to be appealing for those wishing to watch long form content – 42% of all tablet video viewing was done while watching video that was 10+ minutes, compared to 28% for desktops or laptops.
So what? While it is no surprise that tablets are engaging, the level of video consumption becomes another point of differentiation for the device. It’s an important learning for content providers that longer form videos are better received on the tablet. Where applicable, Condé Nast’s tablet apps might include video content to increase the overall time spent with the brands.
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Retail/Shopping/Commerce
Do Online Campaigns Drive In-Store Purchases?
Meredith and Time have recently begun piloting ROI analyses for their online and offline properties. However, digital publishing companies have been doing this for some time. Last year, Google and Nielsen partnered to determine the ROI of a Quaker Oats campaign that had its own dedicated channel on YouTube. Nielsen identifies joint Homescan/NetView panelists where they can track ad exposure (in this case visitors to the Quaker Oats YouTube channel) and sales against the same households. Within these households, Nielsen saw a +9% lift in sales among households exposed to the online campaign when compared to unexposed households. The exposed group was also -8% less likely to buy a competitive brand.
So what? Publishing companies are increasingly being asked to prove their ability to drive sales for their advertisers. Content companies are increasingly using this ‘closed-loop’ methodology to prove their value. Condé Nast is aligning our initiatives with this practice.
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Media
Risks of Consumer Participation
User-generated content, crowd sourcing, customer relation marketing, ireporting. More and more organizations are asking consumers to participate in their businesses. While listening to consumers is always good policy, there are risks involved with asking consumers to do too much. A recent study by the Marketing Science Institute explores the impact of TV advertising when the viewer believes it is consumer versus professionally created. A key finding was that consumers found ads to be less persuasive when it was disclosed that the ads were consumer generated.
So what? As Condé Nast adopts consumer co-creation strategies, it’s important to consider how the end-user perceives the content. CN editorial teams might consider creating minimum standards for affiliated consumer content such as blogs. It may also be beneficial for the reader to understand at a glance the professional versus consumer content so they can adjust their expectations accordingly.
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Quick Takes
54% of App Users Have Paid for an App; Tablet Users Spend More on Apps than Cell Phone Users
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One in Five Twitter Users Follow Brands
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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