JULY 02, 2012

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The Impact of Digital and Social on Travel Brands
For the first time in history, over one billion people are expected to travel in 2012. While the number of trip takers continues to grow, the proliferation of sales and review channels available to consumers has made promoting travel brands more difficult for a number of companies. The Boston Consulting Group reports that 80% of U.S. travelers seek information online; 50% of consumers have checked online travel reviews and 25% say it has influenced their decisions. The BCG has found that these online reviews have a real effect on the bottom line for travel companies. Research conducted by the firm found that a small deviation on a review site such as TripAdvisor correlated with lower occupancy rates and revenue per average room for hotels.
So what? It has become very difficult for travel brands to control their message in a category rife with consumer reviews. While a satisfactory customer experience is price of entry for any travel provider, a strong brand presence also fills an important role for any company that carries a luxury premium.
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Industry Viewpoints
IBM Study Shows Marketers Still Struggling with Digital
A recent study of more than 350 marketing professionals conducted by IBM uncovered a number of challenges that marketers are facing within their organizations. Nearly three out of five marketers surveyed said their ability to measure effectiveness was a significant challenge. A large segment of marketers -- 35% are not even analyzing and reporting their online visitor data, and less than one in five use one-to-one targeting. Marketers are finding themselves a bit behind the curve on mobile as well -- less than half currently have mobile versions of their site; only 25% use mobile ads.
So what? This report is a broad look at some of the things marketers think they are doing well and some things they're not as confident about. It's a useful read for anyone who works with advertisers on a regular basis to better understand their challenges and where Condé Nast might be able to address them.
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Best Practices for Managing Online Communities
Online communities are an effective way to generate consumer insights quickly and efficiently for either CN brands or advertisers. However, poorly run communities can be expensive and fail to yield useful information. Forrester has a new report that offers some pointers on how to engage the community in order to maximize the insight that can come from it. Top recommendations include: • Log in every day and make your presence known • Speak their language and let them have fun • Incentivize in a relevant way • Field research on a consistent schedule
So what? Condé Nast’s Style Society is an excellent example of a well-run community. Babette Lazarus from CNMG commented, "It has emerged as a key asset for the Media Group, helping us to create insights-driven programs and give advertisers a real-time window into the leading edge of the women's market. Recently, Style Society was the centerpiece of a custom advertising program for Shiseido, featuring members in ads that ran in May issues of Allure, Self, Lucky and Vogue." CN Marketing Managers who are looking to build or engage with communities can use the Forrester report and CNMG’s experience to develop and maintain best practices.
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The Facial Skincare Market
The Facial Skincare Market was worth $5.3 billion in the US in 2011 and is expected to grow another 20% by 2016. According to Mintel, the growth is being driven by Hispanic women and by sales of anti-aging products to Boomer women. Johnson and Johnson, P&G and L’Oreal are the market leaders with a collective share of 65% of the total sales. These leaders’ face two challenges: growth in private label and convincing women to switch from soap to a dedicated facial skincare products.
So what? This advertising category is critical for several Condé Nast brands. Mintel's report can help gain a better understanding of category dynamics and opportunities.
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Quick Takes
2012 Summer Olympic Games Estimated to Cost London $40 Billion
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Obesity Now Affects 36% of Americans
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Safety Most Important to Women Reading Labels on Beauty & Personal Care Products
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Compared to 30 Years Ago, Americans Spending More of their Budget on Wine; Less on Hard Liquor
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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