OCTOBER 01, 2012

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Brand Building in Emerging Markets
There are significant differences in how to build a brand in a developed market versus an emerging market according to a recent report from McKinsey. The firm found in its research that word of mouth, initial consideration and the location of product on shelves within stores are all disproportionately more important in emerging markets than they are in developed ones. For example, 71% of consumers in China said they had received recommendations on food and beverage products from family and/or friends before purchasing -- compared to 40% who said the same in the US and 29% who said the same in the UK. And the in-store experience is more important to Chinese consumers as well, as they are still developing their brand preferences. Compared to American consumers (24%), nearly twice as many Chinese consumers (45%) responded to suggestions from a salesman and left the store with a different brand or product than they had planned to buy.
So what? This is a great read for our colleagues in the international offices charged with building brands in emerging markets. It might be worth considering ramping up the word of mouth efforts to build awareness and credibility for our magazines. Because shelf/store location plays a much more important role in emerging markets, it may also be useful to further review any opportunities we may have to improve our visibility in stores to drive international newsstand sales.
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Industry Viewpoints
Five Steps to Smarter Targets
The Ehrenberg-bass Institute recently published a paper that was featured in the Journal of Advertising Research on smarter consumer targeting in a growingly complex marketing environment. While the paper emphasizes the value of targeting, the author also stresses the importance of not targeting too much. With that goal in mind, she lists five way to improve targeting efforts: -Form your target markets based on sound evidence. Ask yourself how your brand's target market matches against actual consumers of the product. -Include as many people as possible in the target market. Targets can sometimes seem cliquish. You should strive to be more inclusive rather than exclusive when targeting. -Don't bet too heavily on the heavy buyer. Too often marketers rely on the Pareto Law (the 80:20 rule) and many brands believe their heavy users are responsible for most of their sales volume. More often than not this is not the case for many brands and they should cast a wider net. -Look at the reach rather than the indexes. Many marketers can be persuaded by impressive indices, but what matters more is the total reach within the target. -Don't sacrifice that reach for engagement. Once you've gained that reach, stay away from niche activations that only gain exposure to a small number of consumers in your target.
So what? This is a thought-inspiring paper. It forces marketers to rethink how they have approached their traditional targeting efforts. Condé Nast can be a great resource for marketers that want to balance target and reach. CN provides solutions across a number of platforms and brands that provide a sizable reach within a variety of segments.
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Consumer Expectations For Mobile Browsing
As consumer internet-browsing habits shift from using a PC to using a mobile device, their expectations around design change as well. According to a new Google study, 61% of consumers will quickly move on from a site (when browsing on a mobile device) if they can’t easily find what they are looking for. When sites are not optimized for a mobile device, the user experience will likely be negatively affected by page load times, text size, navigability and a host of other issues. 74% of the survey respondents said they are unlikely to return to a site if it is not optimized, representing a missed opportunity for marketers. However, 67% said they are likely to use the site’s product or service if it is optimized.
So what? Condé Nast has been rapidly rolling out mobile versions of our sites, with about half of sites optimized currently. As additional sites become optimized, the brands might want to market that message to consumers so they can be introduced to the new mobile site experience.
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The Traveler's Trip to Purchase
Google recently released the results of a study of 5,000 travelers, including a segment of affluent leisure and cruise-goers, and compared the results to the same study the company has conducted every year since 2009. Google found leisure travelers place a higher importance on value than they did in 2011, while business travelers are more concerned with convenience. During their research process, both leisure and business travelers are becoming increasingly reliant on online video during the planning process: 28% of leisure travelers and 46% of business travelers watched a travel video online. These travel video viewers are watching videos early on their path to purchase: when they are thinking about taking a trip, when choosing a destination and when looking for ideas of activities at their destination. Video is more impactful among affluent travelers, as 74% said they were prompted to book after watching online video during the planning process, compared to 45% of leisure travelers overall. This is an important step because 70% of affluent travelers began their research online before they had decided where or how to travel.
So what? Last week's CNtelligence included an item on digital's growing influence in path to purchase and this research from Google sheds more light on the topic within travel. Digital is affecting purchase decisions across the board, but travel is one of the most influenced areas. Many of Condé Nast's magazines have compelling travel content that can be used by consumers as they seek information to guide their decisions, including affluent travelers that rely on the internet and videos more often than others.
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Quick Takes
There Were Nearly Six Million Botox Procedures in the US Last Year; Botox, by far, is Most Common Minimally Invasive Plastic Surgery Procedure
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Two out of Every Three Internet Searches in the US in August were Conducted on Google
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Apple Sold One Million More iPhone 5s in its Launch Weekend than on iPhone 4S’ Launch Weekend
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US Digital Ad Spending to Hit $37.3 Billion this 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

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights