FEBRUARY 27, 2012

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Culture
Brand Loyalty Becomes Harder to Come By
The Futures Company recently published a paper on the challenges that brands face to keep consumers loyal. Because of the economic downturn, nearly two out of three consumers indicate they have switched from the brand they usually buy to a lower cost offering, and less than half of consumers say they always or almost always choose a brand because it offers the “highest quality.” Finally, the paper points to a recent global study by Accenture which found there are now just as many people who characterize themselves as "not loyal at all" to brands as those who describe themselves as "brand loyal.”
So what? The proliferation of retail channels mixed with economic challenges has created an environment in which loyalty is harder for brands to maintain. Many marketers compounded that problem by choosing to adjust prices and increase in-store promotion, rather than investing in traditional brand advertising. The pages of Condé Nast magazines continue to stand as a tested and efficient way to speak directly to consumers and help preserve the loyalty that many premium brands need to flourish.
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Technology
Connected Devices and Convergence
Consumers can watch video through a TV, Blu-ray player, DVR, tablet, smartphone, PC or a gaming console. They can read magazines via a hard copy, tablet, eReader, PC or smartphone. While certain devices have a better ‘fit’ with certain content, technology improvements are limiting the differences. A new report from eMarketer shows that device convergence has already begun; the Kindle Fire has begun to blur the line between tablet and eReader and the new Samsung Galaxy Note (a smart phone with a 5.3 inch screen) lies somewhere between a tablet and smart phone. The report highlights some of the challenges this will create for the industry around both advertising and content creation.
So what? While the industry talks a lot about devices these days, convergence of devices will shift that conversation to operating systems. Condé Nast must continue to serve the market place by distributing content across multiple operating systems in order to reach the best audience possible.
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Business
The Power of Consumer Data
The New York Times ran a story that explains how Target uses data and insight to drive revenue growth. One day, an upset father storms into Target and begins shouting at the manager because his teenage daughter began receiving offers from Target for pregnancy/baby related items. The puzzled manager looked into the problem and found out that Target was in fact sending the daughter offers for pregnancy/baby related items. It turns out that Target knew of the pregnancy before the girl’s father did. Marketers at Target figured out that pregnancy creates a unique opportunity for retailers as pregnant women change their deeply ingrained shopping habits. The marketers turned to the data analysts and asked them if they can determine when a woman was pregnant. After pouring through reams of data, one analyst built a model to predict how likely a woman is to be pregnant based on her product choices. Women who scored over a certain level were then targeted with unique offers. As suspected, women changed their habits when they were pregnant and then changed them some more based on the targeted offers. Slowly, the women began buying products that they usually bought at locations (groceries, cleaning supplies) other than Target. They also retained this habit after having their children. The insight, the data and the offers were combined in a unique way to drive serious revenue growth for the business.
So what? This article is an excellent case study on the power of insight, big data and marketing. In order for Condé Nast to maintain its competitive edge, we should continue to refine our data collection practices and enhance our analytic capability.
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Media
Young Men Respond Better than Other Groups to Mobile Ads
A study from InsightExpress found males 18-29 were more likely than other population groups to be aware of having seen mobile ads and to have positive feelings toward them. The study found that 69% of young male mobile phone users had seen an advertisement while on mobile Internet or using an application, compared to just 59% of the general population and 46% of females in the same age group. Young men also liked mobile ads more than other groups and were more likely to use their phones to help them shop while in a store during the holiday season.
So what? Mobile ads and content appear to be more impactful among young men, and because of that -- more valuable to advertisers. Brands that have young men within their core audience might look to explore partnership opportunities that leverage mobile content.
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Quick Takes
The Majority of 18-25 Year Olds used Text Messages, Facebook to Socialize with Friends During the Super Bowl
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Ronald Reagan is Adults’ Favorite President since WWII
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Google, Microsoft and Yahoo Had the Most US Unique Visitors in December
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Females 13-34 Point to MAC as Cosmetic Brand They Want To Buy Most
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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