MAY 21, 2012

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Retail/Shopping/Commerce
E-Commerce Continues to Grow at Rapid Pace
comScore reports that US e-commerce hit $44.3 billion in the first quarter of 2012. E-commerce grew by 17% over the first quarter of 2011, and it was the tenth consecutive quarter of positive year-over-year growth. The past six quarters have all witnessed double-digit growth, with the most recent being the most dramatic. Digital content & subscriptions, computer software, electronics, and jewelry & watches all grew the most over last year.
So what? E-commerce is here to stay. And it can be both a concern and opportunity for many retailers. Many brick-and-mortar stores are searching for ways to maintain their market share by converting offline resources to online. Condé Nast's digital properties are in the sweet spot for many of these businesses, and might be an effective way for them to shorten path to purchase for their consumers.
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Industry Viewpoints
Non-Endemic Ad Dollars
Capturing non-endemic advertising is a key tactic in any media property’s struggle to survive. As magazines often serve more acute interests than TV channels, it is often more difficult for magazines to capture non-endemic ad dollars. A new white paper by Ipsos Mendlesohn explores affluent Americans' media behavior and interests, and the relationship between those interests. The paper suggests correlations between passion points (e.g. skiing and wine) can identify opportunities for non-endemic advertising. However, non-endemic advertising will not be successful in all situations. Marketers and media companies must mine the data carefully to develop insights to find the best fits. One obvious example is the relationship between beer and football. While beer enhances the experience of watching football (and vice versa), the long history of beer advertising surrounding football has also served to create the connection in consumers' minds.
So what? This paper serves as a useful framework for considering how to capture non-endemic dollars. A holistic understanding of a reader or site visitor’s interests around both activities and brands is the best place to start.
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Economy
Global Consumer Confidence Increases
Concerns about Greece and its effect on the global economy have dominated headlines in the past week, but data collected by Nielsen during the first quarter of the year showed increasing consumer confidence worldwide. Global consumer confidence increased by five points over the fourth quarter of 2011, and confidence was higher than the previous quarter in 68% of the 56 countries tracked by Nielsen. Consumer confidence in the United States grew by nine points over the fourth quarter of 2011, and now sits in the mid-tier of all countries ranked by Nielsen for consumer confidence. The countries with the highest consumer confidence right now are India, Saudi Arabia, Indonesia, the Philippines, China and Brazil.
So what? While news on the economy is mixed in some parts of the world, confidence is growing on the whole. That improved confidence led to increased discretionary spending. Condé Nast and advertisers should remain cognizant of consumer outlook and its effect on spending both domestically and abroad.
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Business
Wall Street People ‘Less Honest and Moral’
Popular sentiment remains strongly against Wall Street with 82% of people agreeing that the government should create tougher regulations, according to a new poll by Harris. For some measures, the discontent has grown with 42% of people agreeing that the large financial institutions ‘do more harm than good’, up 3 percentage points from 2009. The most stinging rebuke is that 68% of people feel ‘people on Wall Street are less honest and moral’. However, a strong majority (62%) also feel that large financial institutions are ‘absolutely essential’.
So what? While many large banks and investment banks have spent a lot of marketing money to repair their image over the past few years, the net effect has been little to nothing. Condé Nast may be able to help these institutions turn sentiment around by reaching 'influentials'.
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Quick Takes
Smartphone Users Most Likely to Read Reviews and Scan QR Codes in Electronic Stores; Use Coupons in Grocery and Department Stores
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AOL, Yahoo! Struggle to Maintain Ad Revenue Pace of Other Sites
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US Student Loan Debt Has Surpassed Credit Card, Auto Loan Debt
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Two out of Every Three Internet Searches in April 2012 were Made on Google
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Jacob and Sophia were the Two Most Popular Baby Names 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