JUNE 04, 2012

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Condé Nast Exclusive
Young People Still Read Print Magazines
Conventional wisdom leads many to believe that young people have abandoned printed magazines and the only way they can be reached is through digital media. However, a recent analysis of 20 years of Gfk/MRI data by CN Research & Insights uncovered that belief to be false. Millennials read more print magazines in a number of key categories than their twentysomething counterparts from 10 and 20 years ago. Adults 18-34 read more fashion/beauty, men's, celebrity, health and epicurean/travel/lifestyle magazines in 2011 than they did in 1991 or 2011.
So what? These findings can be an important talking point in any conversation about changing media consumption. It reinforces the fact that printed magazines have maintained their importance across all ages and the types of magazines that Condé Nast publishes have actually gained popularity over the past 20 years. This fact holds increased importance right now as many people in the advertising community might be confused by Gfk/MRI's methodology change. The change in the way Gfk/MRI asks survey respondents about magazine readership precludes us from continuing to benchmark magazine readership against past years, and forces us to report a new set of trend data starting in 2012.
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The Opportunity Among Asian-Americans
Last week's CNtelligence reported that minority births surpassed non-Hispanic white births for the first time in US history during the past year. Part of that growth in the minority population can be attributed to Asian-Americans. Between 2000 and 2010, the Asian-American population increased by 46%, compared to 10% growth among the entire US population. The Asian-American population already controls $718 billion in spending power -- which is larger than the GDP of all but seventeen countries. The attached paper from The Futures Company provides some thoughts on how to grow business within the Asian-American community.
So what? Because of their population's smaller size relative to Hispanics and African-Americans, Asian-Americans are often a second or third priority for marketers with a multicultural plan. However, as the community grows, so will their spending power and influence. Many Condé Nast magazines and advertisers already hold a desirable position within the Asian-American community, and we should leverage those efficiencies when possible. For instance: according to MRI, Asian-Americans are twice as likely than the average adult population to read GQ, and 64% more likely to have spent $5K+ on vacations in the past 12 months.
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Industry Viewpoints
Driving Word of Mouth
A new paper from the Marketing Science Institute explores the mechanics of what drives both online and offline Word of Mouth for brands. Over 700 brands were included in the study from 16 different categories including food, beauty, technology and more. The drivers are broken down into three basic categories: functional, social and emotional. The key take-away from the study is that variables that drive online WOM are quite different from those that drive offline WOM. For example, brands that are newer and more complex (functional drivers) generate offline WOM but not online WOM. Conversely, brands that are highly differentiated (social driver) generate more online WOM than offline. However, quality, relevance, excitement and satisfaction (variables across all driver categories) are proven to drive both online and offline WOM.
So what? While no one doubts the importance WOM, there has been little research into how a brand manager can create it. This paper provides a useful framework for approaching this topic and highlights the key metrics that can predict success both offline and online.
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Purchase-Based Targeting Drives ROI
A new report by Nielsen Catalina Solutions shows that purchased-based digital ad targeting is an effective way to generate ROI for CPG advertising. The Nielsen Catalina model captures in-store purchase data and ties the data back to an online cookie. Advertisers can then target based on consumer product purchase habits such as heavy category purchase, competitive brand purchase and more. The average ROI for purchased-based targeting using the NCS system is $2.79; meaning an advertiser can expect $2.79 in product sales for every one dollar spent in media.
So what? While CPG advertising is not core to Condé Nast, the concept of purchase-based targeting is attractive to advertisers. Condé Nast’s large first party (PSN) and third party (Lotame, Bizo) datasets can be used to develop this offering.
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Quick Takes
Twitter Continues to Gain Users
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Millennials and Gen-Xers Responsible for 70% of Mobile Payments
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News Coverage of the 2012 Presidential Campaign Down 33% Versus 2008
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Amazon's Growth Continues to Outpace Average E-Commerce Growth
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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