JANUARY 09, 2012

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Business
Marketers That Upped Their Magazine Spend in 2010 Thrived
David Sorrano, of Vanity Fair, called our attention to an interesting finding from Ad Age’s Annual Media Spending report. He uncovered that the seven of the 10 US largest marketers spent more on US magazine advertising in 2010, and all of them had higher sales than 2009. Ad Age reports that American Express, AT&T, General Motors, L’Oreal, Pfizer, Procter & Gamble, and Time Warner all spent more on magazine advertising than in the previous year. These marketers all saw increases in their US sales. The three remaining companies (of the 10 largest marketers) that did not increase their magazine spend -- Johnson & Johnson, Verizon, and Walmart -- all reported sales that were relatively flat or down for the year.
So what? Although we all know correlation is not causation, this is a very effective story on the impact of magazine advertising. These data points indicate a steady and consistent commitment to magazines by the heaviest advertisers, and it certainly bodes well for Condé Nast when marketers invest in magazines and see their sales increase in that year.
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Media
Social Media Update
comScore provided an update on social media penetration and lists 10 things to know for 2012. CNtelligence will provide an update on the key social media metrics. In the 43 countries in which it reports, comScore found that 41 of the countries had a social media penetration of over 85% of the online population. Social media users in Latin America and Europe spend the most time on average with social media; users in Asia were the least engaged. Facebook is still, by far, the most popular social medium as 3 out of every 4 minutes spent on social networking sites is on Facebook. Twitter has also made measurable growth – 59% over the past year, and has become an important communications tool during significant national and worldwide events such as the Arab Spring.
So what? The incredible scope of social media has been covered at length, but this update on its reach and engagement reinforces how important it is to maintain a strong social media presence, especially on Facebook and Twitter.
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The Mobile Display-Ad Marketplace
The Wall Street Journal reported last month on the mobile advertising landscape, and Apple’s place within it. Apple launched its own service, named iAd, to sell ads within mobile apps on iPhones, iPads, and iTouches. Reaction to iAd was initially lukewarm; in turn, Apple has lightened the financial commitment for advertisers, as well as provided additional training to attract more marketers. According to research firm IDC, Google held the largest share of mobile display advertising in 2011. Google owned 24% of the estimated $630 million in revenue; Apple held 15% of revenue.
So what? eMarketer projects mobile display ad spending to more than double over the next three years. As the marketplace becomes larger, it will be interesting to see if additional service providers emerge or if Google and Apple strengthen their positions.
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Did Twitter and Facebook predict the rise of Santorum?
With his near-tie with Mitt Romney, Rick Santorum surprised those following the Iowa caucuses. While only the last minute polls noted his rise, most early polls predicted him to capture about half of the votes he did. However, two social media monitoring services used Twitter and Facebook to predict his rise, prior to the vote. Globalpoint saw Santorum dominate other candidates in positive mentions on Twitter in the days prior to the vote. Social Bakers found Santorum’s Facebook fans grew at a faster rate than any of his contenders. While neither source would have accurately predicted how close the race was, they both uncovered a phenomenon that many experts didn’t anticipate.
So what? While social listening will never replace more statistically rigorous research, marketers will increasingly tap into these data as a starting point for insights. As tools for examining and digesting social data improve so will the ability to reflect the American consciousness.
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Fashion/Beauty
Beauty, Anytime and Anywhere
In a recent trend watch, Iconoculture reports on the growth of beauty tools, products and services that deliver instant gratification to consumers. A number of retailers, including OPI, Guerlain and Sephora have created personal care pop-up shops that do not require an appointment. Consumers who prefer these walk-in services point to their flexibility, convenience and ability to fulfill cravings instantly as reasons why they use them. Furthermore, women are choosing both style and accessibility, and prefer not to compromise either.
So what? Retailers will continue to find ways to creatively provide beauty services and products to consumers quickly. In addition to in-store, companies will provide more immediate delivery to customers. For example, Sephora now offers same day store-to-door service in Manhattan. There might be opportunities for Condé Nast’s brands to be a part of the in-store presence for these retailers or partner with online suppliers.
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Culture
Baby Boomers Rethink Values
At last month’s International Council on Active Ageing conference, research was unveiled that Baby Boomers (born between 1945 and 1964) are becoming more self-aware, self-responsible, and are developing a more pragmatic approach to their lifestyles. The research found that Baby Boomers have shifted their approach from valuing possessions to valuing relationships and experiences. The Boomers are also not worried about getting older, as two-thirds believe their best years are ahead of them. To ensure they enjoy those years, Boomers are looking to be fitter and healthier than any previous generation. They are seeking richer cultural experiences, such as vacations.
So what? While Baby Boomers may be putting less significance on material possessions, they are adding importance to personal experiences. Content providers and advertisers who illustrate culture, fitness, and societal import may find their messages to more effectively resonate with Baby Boomers.
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Quick Takes
Top 10 Grossing Films of 2011
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Forbes’ 20 Most Powerful People on Earth
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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