OCTOBER 22, 2012

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Culture
Meet the Mass Affluent
There are many ways to define affluence. A new report from Nielsen defines a group of Mass Affluent by the value of their income producing assets -- checking accounts, savings products, money market accounts and CDs, investment products, retirement accounts and other asset classes that are relatively easy to liquidate (real estate owned is not included in their assessment). Nielsen's definition of the Mass Affluent is anyone who has assets of the nature listed above that total between $250,000 - $1,000,000. That profile includes 13 million US households (11% of all households) that are most often baby boomers who earned their money rather than inherited it. The mass affluent are two-thirds 55+ and are avid newspaper, trade journals, and travel and home-related magazine readers. They shop less frequently than other groups, but spend more per trip. Some of the Mass Affluent are upwardly mobile and have shifted up to the Affluent group (income producing assets of over $1,000,000). The Mass Affluent has shrunk over the last year, but that trend corresponds with the Affluent group growing by 5% in the US.
So what? This report provides insights on the attitudes and habits of an interesting group of affluent people. These are people who may not have always been affluent, but at a later life stage have accumulated assets to spend. Advertisers can efficiently promote to them through Condé Nast's magazines. According to Nielsen, the Mass Affluent trust information found in magazines more than any other media source. Condé Nast Traveler, Architectural Digest and Golf Digest all significantly over index among the Mass Affluent.
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Pew: Americans Hearing Less Negative Economic News
While most Americans report hearing a mix of good and bad news about the economy -- 62%, the percentage of those hearing mostly bad news dropped from 35% in September to 28% this month. The recent positive jobs report (which demonstrated unemployment falling below 8% for the first time in over three years) likely had an effect as those who reported hearing bad news about jobs dropped 10 percentage points (52% vs. 42%) and those hearing good news climbed five percentage points (12% vs. 17%). And while Republicans are far more pessimistic about the economy (49% of Republicans heard mostly bad news in October versus 13% of Democrats), they too experienced a significant drop in reporting negative tone since September when 60% heard mostly bad news about the economy.
So what? If the jobs picture continues to improve, Americans might grow more confident about the economy and their own futures. A more confident outlook from the public might lead to more spending and greater confidence among advertisers.
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Business
2012 US Digital Advertising Revenue May Hit $34 billion
A new report from the IAB shows that US digital advertising continues to grow at a tremendous rate. Marketers spent $17 billion in the first half of 2012, a 14% increase from 2011. Search and display are the leading ad formats, but mobile showed the largest growth year over year. Retail, financial services and telecom remain the largest spenders, but automotive has shown the greatest growth. While this information is great news for all digital publishers, just 10 companies capture 73% of the revenue. Although the report doesn’t list the top revenue generators, Google, Facebook, Yahoo!, MSN and AOL are some of the likely suspects.
So what? As marketers continue to invest additional dollars into digital advertising, they will increasingly look for unique audiences, content and ad executions. Between the Studio’s digital ads, our developing audience targeting capabilities and our classic content, Condé Nast should be able to meet that demand.
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Media
Smartphone Behavior Among Magazine Readers
The MPA -- Association of Magazine Media conducted a study to determine the behavior of magazine readers 18-34 that access content on their smartphones. They found that 18-34 year old magazine readers that own smartphones are highly engaged with magazine content on their devices -- 83% of respondents accessed or downloaded magazine branded apps on their smartphone. The MPA found that an average of 2.6 magazine apps were downloaded on smartphones of 18-34 year old magazine readers. Digital magazine content is being most accessed inside their homes (86%). Less than half are accessing at work (43%) and during their commute (31%). This engagement has also led to action -- two-thirds reported reading or tapping ads appearing digital magazines.
So what? This report from the MPA is another illustration that magazines continue to expand their reach beyond print. Readers are embracing a multimedia approach and growing increasingly comfortable with the magazine experience on smartphones. This report is a useful reference for editors, publishers and product managers at Condé Nast to better understand the smartphone habits of magazine readers.
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Quick Takes
North America to Account for One-Third of Worldwide Media Spend in 2012; Asia Projects to be the Heaviest Media Spender by 2016
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Lenovo Overtakes HP to Ship the Most PCs in the Third Quarter
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18 Million Fewer People Watched this Year's Vice Presidential Debate Versus 2008
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There were 7.2 Million Tweets During the Second Presidential Debate; Twitter Activity Peaked During Immigration Discussion
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Americans Using Less Oil than Five Years Ago
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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