FEBRUARY 06, 2012

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Retail/Shopping/Commerce
Tablet Users Spend More During Online Transactions
Throughout 2011, and during the holiday shopping season, consumers on tablets were far more valuable than those using mobile phones and traditional desktop and laptops. Adobe’s Impact on Tablet Visitors on Retail Websites’ study found that the average purchase made while using tablets was 54% higher than the average purchase on smartphones, and 21% higher than the average purchase on desktops or laptops. While the conversion rate on tablets is slightly lower than the conversion rate on laptops and desktops, tablets convert sales at nearly quadruple the rate of smartphones.
So what? This is a terrific finding for content providers and retailers that have made an investment in tablets. We knew that tablet owners are more likely to skew affluent, but their willingness to make purchases on the device and spend more than those using computers and mobile bodes well for retailers that have created sales opportunities within Condé Nast magazine apps.
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Industry Viewpoints
Consumers Rate Brand Experiences ‘OK’ to ‘Poor’
In the latest release of the Forrester ‘Customer Experience Index’, 64% of brands measured received a rating between ‘OK’ and ‘Very Poor’. Only 37% of brands were rated ‘Good’ or ‘Excellent’. Forrester surveyed over 7,600 consumers on hundreds of brands across 13 industries (excluding publishing/media companies). The respondents were asked to score their experience with the companies based on three criteria: “How easy were they to do business with?” “How enjoyable were they to do business with?” “How effective were they at meeting your needs?” The results were then combined into on overall score for each company. USAA (89 points), Kohl’s (87) and Amazon.com (86) took the top spots.
So what? Many of the companies measured are Condé Nast advertisers. CN can use its unique position as an expert in cultural and consumer insight AND as a trusted brand adviser to help educate our clients on how to improve their overall consumer experience, but more pointedly on how they interact with consumers via media. Advertising in CN properties may also be a way for many brands to improve their standing in the marketplace.
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Culture
Valentine’s Day 2012 Will Have Consumers Spending More Than Last Year
This year, 76% of consumers plan to spend money on Valentine’s Day on gifts, dinner or other activities. That’s up from 64% of consumers in 2011, according to the American Express Spending & Saving Tracker. The average spend will be $196, up +8% from last year. 54% of consumers plan to purchase a gift and 46% plan on going out to dinner. The study also found that four million people expect to get engaged while celebrating this Valentine’s Day.
So what? Following a holiday shopping season that saw positive news in a number of areas, it appears that this Valentine’s Day will also be good to retailers and restaurants. Condé Nast’s digital properties might look to take advantage of this uptick in excitement around Valentine’s Day, by providing themed content and activation with advertisers that are heavily promoting around the holiday.
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Measuring Affluence
There are many ways to define affluence, CNTelligence will review how some of the major research providers define affluence, and the number of Americans in each group. Both the Interactive Advertising Bureau and Ipsos Mendelsohn report that there are about 58 million American adults in households with an income of $100K+. More than two out of five of these adults are between the ages of 45-64. Digitas also measures affluence at a HHI of $100K plus, and reports that 81% of all Affluents fall into the $100-199K HHI range; just 2.6% of all Affluents have a household income of $500K+. Another way to measure affluence is by net worth; GfK MRI reports that 16.4 million Americans have a net worth of $1 million+, and nearly half of this group is between the ages of 47-65.
So what? These numbers reinforce just how small the affluent population is in relation to the rest of the country, and how difficult they are to reach. Condé Nast’s brands continue to be an effective way for marketers to promote to affluent consumers. CN readers are 41% more likely than the average US adult population to have a HHI of $100K+ and 57% more likely to live in a household with a net worth of $1million+.
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Quick Takes
Anheuser-Busch Has Been the Heaviest Super Bowl Advertiser in Recent Years
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Satellite and Telco TV Has Grown; Cable Has Shrunk
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Top Search Engines
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Holiday Season Propels Kindle Fire to Dominant Position in Android Tablet Market
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Top Selling Albums of 2011
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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