JUNE 18, 2012

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Premium Print Ads Prove More Effective
A study published in the Journal of Advertising Research set to find out if print ads that were premium (e.g. raised paper, glossy surface, or special paper quality) did more to influence reader sentiment than those that were not. The researchers tested two ads -- one for a home appliance and one for a luxury watch -- in both premium and non-premium versions. The ads were printed and inserted within magazines to appear legitimate. The respondents perceived the premium ads to be more prestigious, and subsequently felt the same way about the brand being promoted. Respondents who viewed the premium ads were also more likely than those who viewed the non-premium ads to show willingness to buy, engage in positive word-of-mouth, and pay a higher price for it.
So what? Condé Nast is justly famous for high production value within its content and providing readers with a premium experience. This study indicates that ads that match that premium level are more effective and worth the investment for marketers.
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What’s the Value of a ‘Like’?
A new white paper from ComScore and Facebook shows how exposure to brand messaging on Facebook translates into changes in offline behavior. The two companies examined a several campaigns (including Starbucks and top US retailers) and found that both fans and friends of fans who were exposed to brand messaging (via paid or earned) were more likely to visit the outlets and make a purchase. The study suggests that through careful monitoring of fan reach and engagement, marketers can figure out how to maximize amplification of their messages on Facebook. This will in turn help drive ROI of their brands and products.
So what? As reported in the May 14 edition of CNtelligence (Harvard Business School: Brand Building Through Social Influence Has Limits), heavier purchasing may relate to similar preferences rather than influence on social networks. However this study illustrates a possible amplification opportunity for Condé Nast content. The research around the effectivness of social media as a marketing tool remains relatively nascent, and it is important to continue to monitor its development.
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American Wealth Declines
The Federal Reserve released a sobering report last week on wealth among American families declining between 2007-2010. The decline was in conjunction with a period in which US GDP fell more than 5% and unemployment nearly doubled. Between 2007 and 2010, real mean family income before taxes fell 11.1%. The decline cut across a number of demographic groups, with a few exceptions among groups of retirees and other nonworking families. The decline was most significant among more highly educated families. Families also saw their mean net worth drop by 14.7%. The Fed attributes the decline in net worth in large part to unrealized capital gains.
So what? While the data from this report were last collected 18 months ago and some positive economic signs have trickled in since then, this widely picked-up report is a reminder of the economic shock that is still relatively fresh in the minds of many. The recession's effects were nearly universal, and even more pronounced within some affluent groups that Condé Nast relies on. It's important for CN to understand the continued effects of recession on our readers' purchase habits of advertisers' products and newsstand behavior.
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Tablet Sales Growing Faster than Predicted
Forrester has revised their US tablet ownership projections to account for the strong demand for these devices. According to the current 2015 projection, there will be roughly 105 million tablet owners, nearly 20 million higher than the previous estimate. The B&N Nook and the Kindle Fire are proving to be the disruptive forces in the market, as their lower price points are helping to steal share from Apple. Android-based tablets from Samsung, HP and Motorola are continuing to struggle as they have failed to steal market share from Apple and are falling behind the offerings from non-tech companies. While not mentioned in this study, Microsoft announced on Friday (6/16/12) that they will release a tablet next year. This may prove to be a disruptive force in the tablet market.
So what? In the next few years, tablets and smart phones may be the primary way consumers access the internet. As consumers are purchasing tablet devices and adopting tablet behaviors, Condé Nast must continue to develop new tablet experiences and promote existing ones.
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Quick Takes
Owners of the New iPad Are Most Satisfied Tablet Owners
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Consumers Say In-Store Purchases Are Safest and Most Reliable, but Online is Overall Favorite
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The Number of Independents Grow as Democrats, Republicans Shrink
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PWC Forecasts Global Retail Sales Growth at 3-4% A Year in Upcoming Years
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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