APRIL 16, 2012

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The Rise of E-Reading
The Pew Research Center recently released an update on consumption and habits around e-books. The firm’s study found that more people are using e-readers, that e-book readers read more than their counterparts who do not read e-books, and that a surprisingly large number of people that have read e-books have done so on their computer. In February 2012, 21% of Americans reported reading an e-book in the past year, up from 17% in December 2011. The average reader of e-books has read 24 books in the past year compared to just 15 for book readers who do not read e-books. Among the entire population of e-book readers, people were just as likely to have read a book on a computer (42%), as an e-reader like a Kindle or Nook (41%), or tablet (23%). The study also found that e-book readers are more likely than their non e-reading counterparts to regularly read magazines and journals. These people reading magazines on e-readers are also more likely to be over 30 and college educated.
So what? This comprehensive update from Pew on continued growth around e-reading is welcome news for those that have made an investment in the medium. The trend in reading continues toward multiple points of access, with e-readers pointing to the platform’s speed and portability as reasons why they prefer it.
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Global Ad Spend Growth Coming From Overseas
Despite a tumultuous year, global ad spend rose by 7.3% in 2011 according to a new report from Nielsen. The growth was driven primarily by increased spending in Asia, Latin America, the Middle East and Africa. Advertisers spent 1.8% more in the US and 0.4% less in Europe in 2011. In contrast, ad spend grew 18% in China and 14% in Brazil. Advertisers continue to invest in internet advertising at a high rate with internet ad dollars increasing by 24%. The TV spend increased by 10% and magazine spend by 2%.
So what? A number of organizations have identified the BRIC (Brazil, Russia, India & China) countries as growth opportunities and money from global advertisers will continue to pour into these areas. Condé Nast US should increase efforts to prove advertising effectiveness to convince marketers to grow investments in both the US and Condé Nast, while building a parallel presence in the quickly developing regions.
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Young Consumers Switch Media at a Feverish Pace
In a recent qualitative study of the media habits of 30 participants, Innerscope Research and Time Inc. found that the average consumer in his or her 20s switched media about 27 times per nonworking hour. Because this group grew up with digital technologies, the researchers called them “Digital Natives” and compared them to a “Digital Immigrant” group that grew up with more traditional media. The study found that the Digital Immigrants switched media just 17 times an hour – 37% less than their younger counterparts.
So what? Although these findings are directional, they may lead to advertiser concerns around whether or not consumers notice their ads. This is good news for Condé Nast because the ad experience for a magazine reader is opt-in in nature, while other media are opt-out – such as a TV viewer turning to his smartphone during commercials. New metrics from the digital editions will help us quantify the value of opt-in advertising even further.
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Retail Category, a Top Online Ad Spender
The retail category is expected to spend 9.5 billion dollars online in 2012, according to a new eMarketer report. While almost 40% of that money will be spent on SEM/SEO, retail advertisers are increasing their investments in video, display and mobile. Here are some insights behind the increased investments: Display: Many retailers find Facebook’s display advertising options attractive because of the vast amount of consumer data that can be used for targeting. Video: Retailers are moving dollars from TV to video to follow the audience and to promote brand awareness in ways that display advertising cannot. Mobile: Retailers are interested in mobile advertising because of its geographic targeting capabilities. As these improve, mobile ad spending will increase dramatically.
So what? As advertisers look to increase their use of consumer data for ad targeting purposes data sets (such as Facebook’s) help attract ad dollars. Condé Nast’s investments into new data services (Lotame, Bizo, Peer 39) have created more sophisticated targeting capabilities and improved our competitive advantage.
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Quick Takes
Apple Sold 15.4 Million iPads in the Fourth Quarter of 2011
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A Size 10 is No Longer Size 10 – Clothing Sizes Correspond to Increasingly Larger Measurements since 1975
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The Purchase Price for Instagram Dwarfs the Amount Paid for Other Photo-Sharing Startups
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Teenage Birth Rate in the US Hits a Historic Low
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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