JULY 16, 2012

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Fashion/Beauty
The World's Favorite Handbags
An analysis of the digital habits in eight markets by the Digital Luxury Group uncovered insights about the world's most popular handbags. Data collected in Brazil, France, Germany, India, Italy, Japan, UK and US found that Coach, Louis Vuitton, Chanel, Gucci and Longchamp were the most searched luxury handbags (a complete list of the top 50 is in the attached report). Shoppers in the UK and USA were most interested in handbags, as they had the most internet searches per user in the measured markets; Brazil and India were the least interested. The Hermès Birkin bag was the most searched bag across all of the markets. However, different countries hold different color preferences -- in the United States, orange was the most searched color for the bag; the most searched colors in the UK and France were tan and black respectively.
So what? The report from the Digital Luxury Group offers a different way to provide perspective on the most popular handbags. It might also some provide some value for web editors looking to optimize searches that land internet users on the pages of Condé Nast sites when searching for handbags.
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Media
Global Ad Spend Continues to Grow
Global advertising expenditures reached $128 billion in Q1 2012, according to the latest Nielsen Global AdView Pulse report. Q1 2012 spending increased by 3.1% over last year, with most of the growth coming from Latin America, the Middle East and Africa. North America saw a modest increase of 2.1% while Europe fell by 1.4%. Advertisers invested 12.1% more in digital channels in Q1 2012 and 1.4% less in magazines. Fast Moving Consumer Goods and Entertainment continue to be the largest global advertising categories.
So what? While the good news is that investments in advertising continue to rebound, the growth areas continue to be in digital media and in the emerging markets. Condé Nast should continue to restate the importance of magazines to advertisers while growing digital offerings in the US and abroad.
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Industry Viewpoints
Measuring Brand Health through Social Listening
Social Listening Platforms promise marketers the ability to obtain feedback directly from consumers in order to help set a brand strategy. However, this is a new discipline and there are many pitfalls when using raw social listening data. A new MSI paper compares brand sentiment as measured through social listening with sentiment measured through traditional survey techniques. The paper found no correlation between the two (-.002). One reason is that social posts about products and brands tend to reflect extreme experiences (positive or negative). Also, there is a bias by channel; micro blogs tend to be more critical and regular blogs more positive. However, the authors found that by filtering out certain types of social comments (product focused and not brand focused) and by weighting the channels (blogs vs micro blogs vs social networks), the social listening data began to reflect the findings of the traditional brand tracking survey (correlation=.604).
So what? This paper proves that social listening data can be used as a valid measure of brand health but it is a complex process. Condé Nast should continue to grow and adapt its social listening skills but balance the output against more traditional measures to get a complete picture of brand health.
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Economy
Global Trend: The Increasing Populations of Cities
In a recent paper, the McKinsey Global Institute reported that we are in the midst of the largest economic transformation in the history of the world. This unprecedented shift is being driven by the continued population expansion of cities around the globe, and the consuming class within them. The GDP of the 600 largest cities in the world is set to grow by $30 trillion in the next 15 years, and represent nearly 65% of global growth. McKinsey reports that 1 billion new consumers will be in emerging cities by 2025. The growth of cities will lead to increased demand for consumer goods and services. And historical data has shown that growth in many categories, such as electronics and apparel, can actually outpace the income growth during the same period.
So what? The world is becoming a more urban place. As the infrastructure and amenities of modern cities become available to more people, Condé Nast is positioned well to expand its reach. Consumption of our magazines and digital properties have always skewed toward metropolitan areas.
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Quick Takes
Americans Spend the Majority of their Leisure Time in Front of the TV
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Samsung Holds Largest Mobile Phone Share in US
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Nearly Two-Thirds of American Hispanics are of Mexican Descent
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Adele's 21 on Pace to Be Top Selling Album for Second Consecutive Year
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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