OCTOBER 08, 2012

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Technology is Changing Americans' News Consumption
The Pew Research Center recently published a comprehensive report on trends in news consumption during the past 20 years. In 2012, more people said they got their news yesterday from a mobile / online source (39%) than those who got it from radio (33%) and newspapers (29%). That trend is being driven by mobile proliferation, as exactly half of US adults are now connected to the web through a tablet or smartphone. Younger people are leading the news evolution. Among adults under 30, as many said they saw news on a social networking site yesterday as they did on television news. Overall, the number of adults who get their news from social media sites has doubled in just two years since 2010 (9% versus 19%).
So what? While the changing consumption landscape concerns some traditional news outlets, it might represent a phenomenal opportunity for Condé Nast to own a bigger piece America's news market. People, especially younger ones, are becoming less reliant on traditional news outlets to get their news. A strong social and digital presence that allows our editorial staffs to respond to news in real time gives our magazines an opportunity to be in the news business more than ever before.
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Industry Viewpoints
BCG: There's a $10 Trillion Prize in China and India
The Boston Consulting Group has published a book on the opportunity among affluents in China and India. Parts of the book are excerpted in the attached. Along with the estimate that Chinese and Indian consumers will spend $10 trillion on goods and services in 2020, the excerpts also present a number of other compelling statements about growth opportunity in China and India: - Chinese children born today will consume nearly 38 times as much as their grandparents did; Indian children will consume 13 times as much as their grandparents. - Consumer confidence in China dwarfs that in the US and UK. About 40% of Chinese consumers said they plan to spend more in the next 12 months; less than one in 10 in the US and UK say the same. - There will be nearly one billion middle-class consumers, representing 320 million households, in China and India by 2020. - In 2001, China was the home to 1 billionaire, while India had 4. Today, there are 115 billionaires in China and 55 in India.
So what? Managing and developing strategy for growth in the BRIC countries (Brazil, Russia, India and China) is on the agenda for nearly every major global brand. Condé Nast already has a presence in both countries: AD, GQ, Self & Vogue publish in China and AD, CN Traveller, GQ and Vogue are in India. As a company that has embraced a global strategy, advertisers should feel confident that we will be able to help them gain entrance and maintain relevance in the emerging markets.
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Challenges and Opportunities in the Fragrance Market
Fragrance sales have grown by 6% in 2012, and will reach $3.5 billion in US sales by the end of 2012. While the growth story is great for fragrance marketers, Mintel finds that many are struggling with developing a loyal customer base. The heavy category consumers tend to switch between a few brands. In addition, there are increasingly frequent product launches (especially the celebrity lines) which further complicate the category. Mintel suggests that new and unique product offerings (from sample packs to anti-aging fragrances) are key tactics to win over consumers.
So what? As the fragrance category represents a significant advertising revenue stream for CN, this report is a useful guide for the challenges our clients face. Helping solve the loyalty problem for some fragrance makers may open the door to new opportunities for Condé Nast.
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The African American Consumer
Nielsen released a new report detailing the African American consumer segment. There are currently 43 million African Americans representing 13.7% of the total US population. In 2011, marketers spent over $2 billion courting this segment. P&G, L’Oreal and McDonalds are the largest advertisers for the African American segment and cable TV, radio and magazines are the preferred media. Nielsen argues that this may be an underserved segment as the African American ad spend represents just 2% of the total US ad spend. The paper lists out several opportunities for marketers to make deeper connections through messaging and media targeting strategies.
So what? As the Nielsen paper may spur marketers to reconsider the African American audience, Condé Nast should be ready to state our case. We currently reach 7.4 million African Americans through both print and digital channels, and over-index among African American consumers for many of our magazines and websites.
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Quick Takes
Whites and African Americans Have Historically Had Much Higher Voter Turnout than Hispanics & Asians
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Retail Is The Heaviest Digital Ad Category; Financial Services, Telecom and Automotive are Three Next Biggest Spenders
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Men More Likely to Shop on Mobile Overall, but Women Four Times as Likely to Buy Health & Beauty Products on Devices
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A Witch Costume Will be this Halloween's Most Popular Among Adults; Princess and Pumpkin will be Most Popular Among Kids and Pets, Respectively
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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