powerful relationships that influence, inspire and endure dual immersion in edit and ads extraordinary engagement positive ad receptivity

Transcription

1 powerful relationships that influence, inspire and endure dual immersion in edit and ads extraordinary engagement positive ad receptivity

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3 Welcome to the 2013/2014 MPA Magazine Media Factbook. As publishers continue to innovate and experiment across print and digital, I am excited and optimistic about the future of our industry. This year s Factbook shows that magazine media brands satisfy readers when, where and how they choose and our expanded digital section helps prove it. I am confident you ll find our annual overview of magazine media facts, figures and trends both useful and enlightening and I invite you to contact me with any questions, observations or good news. As I ve said before, there s never been a better time to be in the magazine media industry! Mary G. Berner President and Chief Executive Officer, MPA The Association of Magazine Media

4 MAGAZINE MEDIA USP Magazine media deliver powerful relationships that influence, inspire and endure. The magazine media brand experience is based on trusted editorial, complemented by relevant advertising. This dual immersion in edit and ads satisfies the interests and passions of millions of readers when, where and how they choose. The reader s commitment to this unique brand experience results in superior levels of ad receptivity, online search, purchase intent and extraordinary engagement in and sharing of both edit and ads. powerful relationships 91% of all adults, 94% of adults under 35 and 96% of adults under 25 read print or digital magazines. page 7 The top 25 print magazines reach far more adults and teens than the top 25 regularly scheduled primetime TV shows. page 12 90% of college students read magazine media in the past month. page 22 Magazine readers are more likely than nonreaders to make online purchases. page 23 Magazine media apps are top sellers in key ipad categories. page 61 The digital-only magazine media audience grew 84% from spring 2012 to spring page 62 Since starting to read digital magazines, more than 25% say they have increased their reading time spent with magazine media. page 69 influence, inspire and endure Magazines and magazine readers influence purchase decisions. pages 14-15, 21-22, 26-30, Across 60 product categories, magazines rank #1 or #2 among super influentials more than any other medium. page 32 More than half of digital magazine consumers read or reread back issues. page 78 Magazine media readers are extremely active social media users. pages More than 150 print magazine titles have thrived for more than 50 years; only 9 TV programs can say the same. page 84 2

5 dual immersion/superior ad receptivity Magazines outperform most other media in: fit with content, credibility, delivering valuable information and influencing purchase decisions. pages 14 and 17 Print magazines are the most preferred place to look at advertising and rank #1 in commanding consumer attention and advertising acceptance. page 16 Both print and digital readers take action as a result of magazine media ads. page 72 superior purchase intent/online search extraordinary engagement in and sharing of edit and ads Print magazines are #1 in triggering QR code response. page 24 Digital readers want to buy directly from magazine media ads (67%) and articles (62%). page 72 Consumers are thoroughly engaged with magazine media across social networking platforms. pages Magazine readers spend time and money online. page 23 Magazine media advertising outperforms TV and online for critical purchase drivers. Viewing ad campaigns multiple times pushes awareness metrics even higher. pages Magazine advertising increases sales across key categories. pages Magazines deliver influential consumers who take action and influence purchases of friends and family. pages 32-35, 37,

6 Magazine Media Factbook 2013/2014 TABLE OF CONTENTS Readership 7 Readership is high across age groups 8 Readership is consistent across generations 9 Young adults read more magazines than adults Readership is diverse 11 Magazine media accumulate reach quickly 12 Magazines outreach primetime TV Engagement 13 Magazines are #1 in reader engagement 14 Magazines are influential 15 Magazine ads motivate readers to take action 16 Consumers and marketers value magazines 17 Consumers value magazine advertising 18 September issue fashion advertising 19 Magazine ads attract affluent consumers 20 Magazine readers are early adopters 21 Magazine readers are trusted influencers 22 Readership is high among college students 23 Magazine readers spend more time and money online 24 Magazines trigger QR code response 25 Magazine readers are cell phone savvy 26 Magazines impact critical purchase drivers 27 Ad frequency improves brand metrics 28 Magazine ads increase sales 30 Magazines are critical to food purchases Influence and Accountability 32 Magazine readers are super influencers 33 Affluent: Luxury goods buyers read magazines 34 Auto: Magazines drive automotive growth 35 Auto: Magazines reach purchasers and influencers 36 Auto: Magazine media ads motivate purchase 37 Retail: Magazines make an impact in every shopping segment 38 Finance: Affluent investors read magazines 39 Food: Super influencers consume magazines 40 Going green: Environmental influencers read magazines 41 Healthcare: Magazines reach super influencers 42 Healthcare: Magazine readers take action 43 Healthcare: Magazine readers are #1 healthcare influencers 44 Entertainment: Enthusiasts are magazine readers 45 Technology: Magazine readers are super influencers 46 Home: Magazines reach purchasers and super influencers 47 Home: Magazines inspire remodeling and renovations 48 Travel: Magazines reach travelers 49 Retail: Super influencers read magazines 50 Marketing mix modeling Digital Devices 52 Profile: Digital edition readers 53 Profile: Tablet owner demographics 54 U.S. tablet penetration 55 Tablet usage/market share (OEM) 4

7 Magazine Media Factbook 2013/2014 TABLE OF CONTENTS 56 Tablet owner profile 57 Tablets drive reader engagement 58 Tablet owners are magazine readers 59 Smartphone growth/market share (OEM) 60 Smartphone owner profile Digital Editions and Apps 61 Magazine apps are top sellers 62 Magazine apps are increasing 63 Magazine issue downloads are up 64 Magazine downloads by category 65 Paid digital content overview 66 Digital newsstand user profile 67 Satisfaction with digital subscriptions 68 Digital magazine shopping behavior 69 Time spent with digital editions 70 Where print/digital editions are read Digital Readers 71 Digital magazines drive online action 72 Digital magazine ad engagement 73 Digital magazine ads lead to results 74 Tablets boost brand awareness 75 U.S. mobile shopping trends Digital Metrics 76 Digital Edition Standardization Initiative (DESI) 77 Tablet metrics 78 Readership of enhanced ads Social Media 79 Avid readers are socially savvy 80 Readers are social media enthusiasts 81 Activity on social networks Audience and Distribution 83 Magazine launches by category 84 Magazine titles endure 85 Number of magazines Audience/subscription/single-copy sales 87 Print and digital distribution 88 Retail: Behavior and sales Editorial and Advertising 89 Top ad categories by revenue 90 Ad pages and rate card ad revenue 91 Magazines in the advertising mix 92 Top brands by magazine ad spending 93 Editorial to advertising ratio 94 Impact of ad unit size and position and readership by month and quarter 95 Pages by editorial category 96 MPA Information Center and contacts 5

8 Get the FREE MPA Factbook NOW! GET THE APP! Download the free MPA Factbook app from the App Store or Google Play store. Quick link to download the app ScanNow.mobi/MPA. SCAN With the app launched, hold your smartphone above any page in the printed Factbook and tap your phone to scan it. GET MORE! See the pages of the Factbook come to life! Get up-to-date content and information, share stats with colleagues and experience interactive print first-hand. Provided by Nellymoser in collaboration with MPA. 6

9 91% of Americans read magazine media Magazines read in the last six months (print and digital editions) 91% of adults 94% of those under 35 96% of those under 25 Base: U.S. adults 18+ Source: GfK MRI, Spring 2013 readership 7

10 Print magazine readership is more consistent across generations than other media Median age by media usage U.S. population internet radio magazines tv newspapers Boomers GenXers Millennials (index) born born born magazines internet tv radio Base: Percent of coverage among adults 18+, HHI $50K+ Note: Heavy media usage = top quintile of usage for each medium (ranking excludes newspaper) Source: GfK MRI, Fall 2012 Note: Magazine and newspaper numbers represent print only Source: GfK MRI, Fall 2012 readership 8

11 Adults under 35 read more magazines per month than adults 35+ Print readership by age total under 25 under issues read in past month (median) index heavy magazine readers top quintile index Base: U.S. adults 18+ Source: GfK MRI, Spring 2013 readership 9

12 Magazine readership is diverse 91% of African American adults are print magazine readers. They read an average of 14.6 issues per month, compared to 10.0 issues per month for all U.S. adults. 87% of Asian American adults read print magazines. They read an average of 9.5 issues a month, close to the average number of issues for all U.S. adults. 86% of Hispanic American adults read print magazines. They read an average of 10.2 issues per month, slightly higher than the U.S. average. Source: GfK MRI, Fall 2012 readership 10

13 Readership starts strong and keeps growing across platforms 100 Weekly/Biweekly audience accumulation by week 100 Monthly audience accumulation by week print digital print digital Note: Print magazine reach begins accumulating audience before the actual on-sale date. The on-sale date is the actual date the magazine will appear on the newsstand or is likely to arrive in subscriber households. For weeklies, it is generally one week earlier than the cover date of the magazine. For monthlies, the on-sale date is generally weeks ahead of the cover date. Source (print): GfK MRI, Fall GfK MRI variable used cume % GRPs Source (digital): Time Inc. Digital Magazine Ad Reporting, Findings reported based on data for all Time Inc. titles readership 11

14 Magazines steal the show vs. primetime The top 25 print magazines reach more adults (+48%) and teens (+193%) than the top 25 regularly scheduled primetime TV programs. Gross ratings points (GRPs) of top 25 magazines and primetime TV programs adults magazines 134 primetime tv adults adults men men HHI $75K women women HHI $75K african-americans teens Note: Total GRPs equal the rating of the top 25 vehicles of each medium added together Source: Carat Insight/Nielsen, September 2012-March 2013 (regularly scheduled, primetime programs). Nielsen defines primetime as Monday to Saturday 8pm to 11pm and Sunday 7pm to 11pm; GfK MRI, Fall 2012; GfK MRI Twelveplus, 2012; TV ratings based on Live+7 data readership 12

15 Magazines are #1 in reader engagement The average reader spends 40 minutes reading each print issue. Source: GfK MRI, Fall #1 in ad receptivity (index) ad attention / receptivity inspirational life-enhancing trustworthy social interaction internet + tv Ad-supported programs only Source: Experian Marketing Services, Simmons Multi-Media Engagement Study, Fall 2012 magazines engagement 13

16 People are most influenced and inspired by magazine media ad-supported (index) magazines websites tv networks I pay attention to or notice ads Ads fit well with the content It is a way to learn about new products Inspires me in my own life Gets me to try new things I get valuable info from the ads Ads help me make purchase decisions I am more likely to buy products in ads Inspires me to buy things I trust it to tell the truth It is an escape for me Source: Experian Marketing Services, Simmons Multi-Media Engagement Study, Fall 2012 engagement 14

17 59% of readers took action or plan to take action as a result of exposure to specific print magazine ads. actions include: have a more favorable opinion about the advertiser consider purchasing the advertised product or service gather more information about advertised product or service recommend the product or service visit the advertiser s website purchase product or service clip or save the ad visit or plan to visit dealership Source: GfK MRI Starch, January-December 2012 Advertising effectiveness by position noted action taken first quarter of book 55% 58% second quarter of book third quarter of book fourth quarter of book Note: Includes all ads, size/color and cover positions Source: GfK MRI Starch, January-December 2012 engagement 15

18 Ad wantedness: Magazines are #1 for consumers and marketers Where do you prefer to look at an ad? consumers marketers favorite print magazine 45% 55% favorite tv show favorite website billboard 10 4 window display 6 2 social media 3 2 apps 0 1 Source: Adobe Systems Click Here Study, October 2012 Media that command consumers full attention ads in print 26% tv commercials 18 billboards 16 radio ads 15 online ads 7 ads in mobile apps or games 5 Note: Percent who rated their attention level 4 or 5 on a scale of 1-5 Source: Adobe Systems Click Here Study, October 2012 Advertising acceptance adults stating where ads should be eliminated in the websites visited 43% in the tv programs watched 42 on the radio stations listened to 35 in the magazines read 24 Source: ORC Caravan, February 2013 engagement 16

19 Magazines: Where the ads are welcome Consumer experiences with advertising print age magazines internet tv radio newspapers MORE POSITIVE DRIVERS Ads provide useful % 35% 54% 36% 47% information about new products and services Ads provide information about product use of other consumers FEWER NEGATIVE DRIVERS Ads have no credibility Ads appear at inconvenient moments All ads are alike Ads are repeated too often Statements: Agree strongly or agree somewhat Source: GfK MRI, Fall 2012 engagement 17

20 Passion for fashion: What s a September issue without advertising? Number of print ad units 1/3-page or larger (September issues) 1,582 1,592 1,663 1,681 1, Note: Ad units are not equivalent to ad pages, as an ad unit can number one or more pages Source: GfK MRI Starch, The following 12 women s fashion titles were included in the analysis: Allure, Cosmopolitan, Elle, Glamour, Harper s Bazaar, InStyle, Lucky, Marie Claire, Self, Vanity Fair, Vogue and W engagement 18

21 Magazine media grab the attention of affluent consumers Considerable or some interest in any advertising seen or heard in the past 30 days total adults < HHI $75K+ HHI $100K+ inside airplanes 84% 94% 49% 50% 46% 35% magazines tv smartphones newspapers medical offices tablets airports or airport lounges Facebook and other social media office building lobbies Source: Special tabulations from the Shullman Luxury and Affluence Monthly Pulse, March 2013 engagement 19

22 Magazine readers are early adopters Early adopters and media use (index) print magazines internet* tv radio newspapers electronics leisure super innovators (3+ segments) personal care/health food financial Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 engagement 20

23 Magazine readers recommend products and services to others Trusted influencers are heavy print magazine users (index) vacation travel healthcare automotive finance technology food Source: GfK MRI, Fall Top quintile of usage for each medium, indexed to adults 18+. Category influentials recommenders are defined as people who frequently recommend products and services tv internet radio newspapers magazines engagement 21

24 Magazine media: Head of the class among college students 90% read a magazine in the last month. 89% visit websites they see in magazines 84% purchase an item after seeing it in a magazine 84% redeem specials and promotions they see in magazines 63% use coupons from magazines to make purchases ADDITIONAL FINDINGS 84% keep magazines for at least a month, with 25% keeping them longer than a year 70% share magazines with friends and/or borrow them from friends When was the last time you... within within last within within last year 6 months last month last week read a magazine 100% 97% 90% 65% got a fashion idea from a magazine How often do you... monthly (about) every (about) once 6 months every year visit websites you see in magazines 34% 21% 11% take advantage of specials or promotions you see in magazines use coupons from magazines to make a purchase purchase an item after seeing it in a magazine Note: 387 students surveyed Source: Shweiki/Study Breaks College Media, May 2013 engagement 22

25 Print magazine readers spend more time and money online Heavy media usage among consumers with online activity in past 30 days (index) magazines tv radio newspapers obtained information for new or used car purchase obtained child care or parenting information looked up movie listings or showtimes obtained information about real estate Magazine readers vs. nonreaders (in the last 30 days) used the internet magazine readers nonreaders of magazines 64% 83% obtained medical information made personal or business travel plans looked for recipes obtained financial information Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 made a purchase online 26% Source: GfK MRI, Fall % Magazines in top tier for driving online search adults 18+ male female magazine 31% 28% 33% 30% 30% 32% 31% 34% 27% tv/broadcast cable tv newspaper internet advertising radio Note: The sum of the percent totals may be greater than 100 because the respondents can select more than one answer. Source: Prosper Media Behaviors & Influence Survey, December 2012 engagement 23

26 Print magazines are #1 in triggering QR code response 19% of Americans have used a QR code. magazines mail packaging poster websites QR code use among younger U.S. consumers is high age age % % tv 9 12 Base: 2,000 consumers in the U.S. Source: Pitney Bowes, QR Codes Use in the U.S. and Europe, 2012 On average, 9.1% of advertising pages had an action code in Source: Nellymoser Inc., 2012 I have captured QR codes in the following location magazines 15% mail packaging poster 10 websites 8 5 tv 4 Base: 2,000 consumers in the U.S. and 1,000 in France, Germany and the UK, respectively Source: Pitney Bowes, QR Codes Use in the U.S. and Europe, 2012 engagement 24

27 Print magazine readers are cell phone savvy Heavy media usage among consumers who used cell phones in the last 30 days (index) watched a video clip 140 magazines tv 115 radio 54 newspapers used a text message to respond to an ad or make a purchase redeemed a mobile coupon visited any website downloaded an app Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 internet engagement 25

28 Magazines outperform TV and online for critical purchase drivers Average impact by single channel exposure % brand ad awareness online magazines tv brand favorability brand purchase intent Data is Delta. Delta=Control Exposed Number of respondents: magazine n=49,965; online n=119,901; TV n=79,375 Source: InsightExpress, 2013 engagement 26

29 More is better! Magazine media frequency improves brand metrics Viewing a magazine campaign multiple times pushes awareness metrics even higher. Magazine frequency magazine ad awareness brand favorability purchase intent 21% 18% 14% 12% For the important consumer packaged goods (CPG) category, ad awareness improved 23% for 5+ exposures. 9% 7% 11% 1-2 Exposures 3-4 Exposures 5+ Exposures Data is Delta. Number of respondents: 1-2 Exp n=37,963, 3-4 Exp n=7,281, 5+ Exp n=4,784 Source: InsightExpress, % engagement 27

30 Magazine advertising increases sales Households exposed to the print magazine campaign spent significantly more Sales lift per average household Test (exposed) vs. control (unexposed) (+3% to +36%) than those not exposed (test vs. control). FOOD +18% Positive ROI for all brands ranged from $1.69 to $ % incremental for every media dollar spent. Average ROI: $7.81 Campaign period: % +3% +4% +4% +5% +5% +7% +7% +8% +8% baked soup juice lunch kit cookies margarine butter frozen pasta sandwich refrigerated salad goods substitute entree sauce spread chicken dressing Note: Average dollar purchases per panel/year (includes nonbuyers) Source: Meredith Corporation/The Nielsen Company, 2012 engagement 28

31 ...across multiple categories +36% Sales lift per average household Test (exposed) vs. control (unexposed) +32% OTC PET CARE HH GOODS BEAUTY +16% +13% +6% +8% +3% +4% +5% +4% +5% +9% +10% nasal pet liquid air toilet mouth- body lotion feminine skin bar anti-aging lipstick decongestant care soap freshener paper wash wash care care soap cream Note: Average dollar purchases per panel/year (includes nonbuyers) Source: Meredith Corporation/The Nielsen Company, 2012 engagement 29

32 Magazines put your brand on the menu On average, consumers turn to 4.5 information platforms to inform food purchases. Print magazines are critical in 2 out of 4 stages of influence for food purchase decisions. 1 Demand Creation get ideas discover new foods find new uses 2 Information Processing create meal plans reinforce choices get nutritional info 3 Trip Planning create a shopping list find where to get best price/quality 4 Pre-Retail Preparation get alerts for deals get coupons save time deciding magazines tv word of mouth magazines tv websites websites circulars circulars websites social mobile Source: Time Inc. and Nielsen, Understanding the Food Purchase Path Study, 2012 engagement 30

33 Influence and Accountability 32 Magazine readers are super influencers 33 Affluent: Luxury goods buyers read magazines 34 Auto: Magazines drive automotive growth 35 Auto: Magazines reach purchasers and influencers 36 Auto: Magazine media ads motivate purchase 37 Retail: Magazines make an impact in every shopping segment 38 Finance: Affluent investors read magazines 39 Food: Super influencers consume magazines 40 Going green: Environmental influencers read magazines 41 Healthcare: Magazines reach super influencers 42 Healthcare: Magazine readers take action 43 Healthcare: Magazine readers are #1 healthcare influencers 44 Entertainment: Enthusiasts are magazine readers 45 Technology: Magazine readers are super influencers 46 Home: Magazines reach purchasers and super influencers 47 Home: Magazines inspire remodeling and renovations 48 Travel: Magazines reach travelers 49 Retail: Super influencers read magazines 50 Marketing mix modeling 31

34 Magazine readers are super influencers Number of times medium ranks #1 or #2 among super influential consumers across 60 product categories: print magazines 42 internet 38 radio 30 outdoor 6 tv 4 newspapers 2 Base: Top quintile of usage for each medium among adults with a HHI of $50K+ Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Source: GfK MRI, Fall 2012 Includes internet magazine activity influence and accountability 32

35 Affluent buyers are print magazine readers Heavy media usage among super influential consumers for luxury goods purchases (index) newsmagazines *internet tv radio papers beauty fashion interior decorating Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Affluent luxury goods buyers spending in past year (index) $1,000+ watches tv 144 $1,000+ fine jewelry $3,000+ fine jewelry $10,000+ apparel and accessories $1,000+ day spa $2,000+ skin care/cosmetics/fragrance Heavy media users, indexed to adults 18+, HHI $100,000+ Source: Mendelsohn Affluent Survey, 2012 web radio magazines influence and accountability 33

36 Magazines drive automotive growth among affluent consumers Very likely to buy or lease a new car in the next 12 months Print magazines deliver consumers with the highest auto purchase intent (index to general population) newspapers Note: Reflects heavy users of each medium (1 on 5 point scale) Source: GfK MRI, 2012 tv internet radio magazines Average new vehicle price was a record high $28,586. Median HHI of a new car buyer or lessee was $94,619 60% higher than the median HHI for the total U.S. (2012). Sources: J.D. Power and Associates as reported by Automotive News; GfK MRI, Fall Print magazines and internet index highest for reaching affluent consumers (index to general population) Heavy media usage among those with HHI $100K+ Source: GfK MRI, Fall 2012 Includes internet magazine activity influence and accountability 34

37 Print magazines take the wheel: #1 or #2 in influencing auto buyers Heavy media usage among consumers who intend to purchase a vehicle (index) very/somewhat likely to buy in next 12 months magazines internet* tv radio newspapers hybrid/alt. fuel vehicle door car sport utility vehicle any vehicle Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 Heavy magazine usage among auto super influential consumers (index) tv newspapers magazines radio internet Base: Top quintile of usage for each medium among adults with a HHI of $100K+, indexed to adults with same HHI Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Includes internet magazine activity influence and accountability 35

38 Magazine media ads motivate auto purchase Magazines beat online and TV in the automotive category. Automotive: average impact by single-channel exposure % brand ad awareness 11 5 online 9 brand favorability brand purchase intent magazines Note: Data is Delta: Delta=Control-Exposed. Number of respondents: magazine n=12,139; online n=18,908; TV n=6,188 Source: InsightExpress, 2013 tv Automotive: average impact by channel combinations % brand ad awareness In combination, magazines excel with both online and TV in driving awareness of advertising. brand favorability brand purchase intent magazines magazines + online online + tv Note: Data is Delta: Delta=Control-Exposed. Number of respondents: magazine only n=12,139; magazine + online n=3,423; online + TV n=2,767 Source: InsightExpress, 2013 influence and accountability 36

39 In every shopping segment, print magazines make an impact Heavy media usage among super influential consumer segment (index) beauty household furnishings newspapers fashion (clothes, shoes and other fashion) tv radio magazines internet home electronics Base: Top quintile of usage for each medium among adults with a HHI of $50K+, indexed to adults with same HHI Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Includes internet magazine activity influence and accountability 37

40 On the money: Affluent investors read print magazines 142 used full-service broker in past year (index) magazines 104 web value of financial accounts by HH (liquid assets) $250,000+ tv radio Heavy media users, indexed to adults 18+, HHI $100,000+ Source: Mendelsohn Affluent Survey, 2012 Includes internet magazine activity influence and accountability 38

41 Food influencers consume print magazines Heavy media usage among super influential consumers for food purchases (index) grocery shopping new food items snacks tv newspapers magazines internet radio Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Includes internet magazine activity influence and accountability 39

42 Going green: Print magazines reach environmentally conscious consumers Segmentation by environmental friendliness magazines internet* tv green advocates green at their best ungreen (least green) Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 Media usage among environmentally friendly consumers (index) My family and friends often ask for and trust my advice on environmentally friendly products 121 magazines 97 internet 99 tv 120 radio 93 newspapers I have a great deal of knowledge/experience in environmentally friendly products I have participated in public activities in the past 12 months Super influential consumers for environmentally friendly products Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 Includes internet magazine activity influence and accountability 40

43 Print magazines: Just what the doctor ordered Heavy media usage among super influential consumers for healthcare categories (index) prescription drugs physical fitness healthy lifestyle healthcare tv newspapers radio magazines internet Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Includes internet magazine activity influence and accountability 41

44 Magazine media are the #1 prescription for healthy results vs.all media Magazine readers are far more likely to take action on healthcare ads than users of any other medium. Actions taken in the last 12 months as a result of healthcare advertising (index) magazines internet* tv radio newspapers returned a free sample card switched to a different brand discussed an ad with a friend or relative visited a pharmaceutical company s website consulted a pharmacist asked a doctor for a prescription sample discussed an ad with your doctor asked doctor to prescribe a specific drug purchased a nonprescription product Base: Top two quintiles by medium, indexed to adults 18+ Source: Kantar Media, MARS Consumer Health Study, 2013 influence and accountability 42

45 Magazine readers: #1 in influencing healthcare decisions Consumers who make their own personal healthcare decisions and influence those of their friends and family are most likely to be magazine readers. Consumer attitudes any agreement magazines internet* tv radio newspapers I am more knowledgeable about medicines because of the information provided in pharmaceutical advertising I trust pharmaceutical companies that advertise the medications I take Friends come to me for advice about healthcare and medications I often discuss new prescription medicines with my doctor I am willing to pay extra for prescription drugs not covered by health insurance I research healthcare information so that I am better informed about different healthcare options Base: Top two quintiles by medium, indexed to adults 18+ Source: Kantar Media, MARS Consumer Health Study, 2013 influence and accountability 43

46 Magazines are a hit among entertainment enthusiasts Top media usage for entertainment activities (index) print magazines internet* tv radio newspapers attended movies 2 3 times per month in last 90 days category influential consumers: movies prefer to see a new movie on opening weekend purchased 3+ video games in past 12 months bought 5+ CDs in last 6 months bought a home theater or entertainment system in last 12 months very/somewhat likely to buy portable DVD player in next 12 months Base: Top quintile of usage for each medium, indexed to adults 18+ Note: Heavy newspaper and heavy radio is unstable for bought a home theater or entertainment system Source: GfK MRI, Fall 2012 influence and accountability 44

47 Print magazine readers are tech influencers second only to online Heavy media usage among super influential consumers for technology purchases (index) home electronics mobile phones new technology newspapers tv magazines radio internet Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members Includes internet magazine activity influence and accountability 45

48 Magazines are prime real estate for reaching home influencers Print magazine readers #1 of all media in home spending (index) magazines web* tv radio $1,000+ HH appliances $3,000+ HH appliances $3,000+ furniture $1,000+ decorating services $3,000+ decorating services $5,000+ decorating services $10,000+ remodeling services Heavy media users, indexed to adults 18+, HHI $100,000+ Note: Dollars reflect money spent in last year Source: Mendelsohn Affluent Survey, 2012 Heavy media usage among super influential consumers for home improvement purchases (index) household furnishings interior decorating home remodeling tv radio newspapers magazines internet Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members influence and accountability 46

49 Magazines build passion for remodeling and renovation Heavy media usage among consumers who intend to make home improvements (index) very/somewhat likely in next 12 months print magazines internet* tv radio newspapers buy second house or vacation home convert room to home office add rooms or exterior additions remodel kitchen Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 Includes internet magazine activity influence and accountability 47

50 Magazines: The #1 destination for travelers Affluent travelers use print magazines most travel activity magazines web* tv radio Europe in past 3 years $5,000+ vacation outside U.S Heavy media users, indexed to adults 18+, HHI $100,000+ Source: Mendelsohn Affluent Survey, Heavy media usage among travelers (index) very/somewhat likely next 12 months: take a cruise (1 day+) very/somewhat likely next 12 months: vacation abroad very/somewhat likely next 12 months: vacation in the U.S. agree completely/somewhat: others ask my advice about vacation travel Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall 2012 tv radio newspapers magazines internet influence and accountability 48

51 Magazines influence every shopping segment Super influential consumers for packaged goods purchases are heavy users of print magazines (index) cleaning products snacks new food items products for babies and children healthcare newspapers internet tv magazines Base: Top quintile of usage for each medium, indexed to adults 18+ Source: GfK MRI, Fall Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members influence and accountability 49 radio

52 New insight strengthens marketing mix story Magazines have traditionally been represented in ROIrelated analyses through average or single issue net audience. Incorporating average page exposure and audience accumulation more accurately represents gross impressions per issue. More granular magazine data increases accuracy of magazine delivery reach for weeklies reach for monthlies APX adjusted gross impressions for weeklies APX adjusted gross impressions for monthlies +571% +337% Source: GfK MRI/ The Martin Agency, 2012 influence and accountability 50

53 Digital Devices 52 Profile: Digital edition readers 53 Profile: Tablet owner demographics 54 U.S. tablet penetration 55 Tablet usage/market share (OEM) 56 Tablet owner profile 57 Tablets drive reader engagement 58 Tablet owners are magazine readers 59 Smartphone growth/market share (OEM) 60 Smartphone owner profile Digital Editions and Apps 61 Magazine apps are top sellers 62 Magazine apps are increasing 63 Magazine issue downloads are up 64 Magazine downloads by category 65 Paid digital content overview 66 Digital newsstand user profile 67 Satisfaction with digital subscriptions 68 Digital magazine shopping behavior 69 Time spent with digital editions 70 Where print/digital editions are read Digital Readers 71 Digital magazines drive online action 72 Digital magazine ad engagement 73 Digital magazine ads lead to results 74 Tablets boost brand awareness 75 U.S. mobile shopping trends Digital Metrics 76 Digital Edition Standardization Initiative (DESI) 77 Tablet metrics 78 Readership of enhanced ads Social Media 79 Avid readers are socially savvy 80 Readers are social media enthusiasts 81 Activity on social networks 51

54 Who reads digital editions? subscribers digital only print only median age male 60% 47% female 40% 53% average income 130.0K 117.4K Source: Condé Nast Digital Subscriber Survey, June 2012 Profile: Tablet magazine readers percent index male female age annual household income less than $25, $25,000-$50, $50,000-$75, $75,000-$100, $100, Note: Magazine readership on tablets (3-month average ending August 2012; percent of total U.S. tablet owners, age 13+) and index to average tablet owner Source: comscore TabLens, October 2012 digital devices 52

55 Tablet owners: Affluent and educated Adults who own a tablet computer all adults (n=2,252) 34% men (n=1,029) 32 women (n=1,223) 35 age (n=243) (n=284) (n=292) (n=377) (n=426) (n=570) 18 race/ethnicity white, non-hispanic (n=1,571) 33 black, non-hispanic (n=252) 32 Hispanic (n=249) 34 annual household income less than $30,000/yr (n=580) 20 $30,000-$49,999 (n=374) 28 $50,000-$74,999 (n=298) 38 $75,000+ (n=582) 56 education level less than high school (n=168) 17 high school graduate (n=630) 26 some college (n=588) 35 college graduate+ (n=834) 49 Source: Pew Research Center s Internet & American Life Project, Tracking Survey, April 17-May 19, N=2,252 adults ages 18+. Interviews were conducted in English and Spanish and on landline and cell phones. Margin of error is +/- 2.3 percentage points digital devices 53

56 Home and away: Half of U.S. adults will own a tablet by % of online U.S. adults now own a tablet. Source: Consumer Electronics Association (CEA) CEA s Consumer Outlook on Tablets: Q Percent of American adults ages 18+ who own a tablet computer 34 U.S. tablet users and penetration tablet users (millions) percent of population +7.8 percent of internet users percent of change Source: Pew Research Center s Internet and American Life Project tracking surveys May Note: Individuals of any age who use a tablet at least once per month Source: emarketer, December digital devices 54

57 Apple: The core of tablet sales Tablet usage share by OEM 3% Other 1% Other Android tablets 1% Barnes & Noble NOOK 2% Google Nexus tablets ipad tops global tablet shipments with 65.7 million in share of (units in millions) Q 1 Q 2 Q 3 Q 4 full year market Apple % Samsung Amazon % Samsung Galaxy tablets 7% Amazon Kindle Fire 82% Apple ipads (all) ASUS Barnes & Noble n/a n/a Other Estimated Source: IDC, 2013 Tablet market share Q vs. Q percent of growth Apple 58.1% 39.6% -31.8% Note: Share of U.S. and Canadian tablet web traffic Source: Chitika, Inc., May 2013 Samsung % Source: IDC Worldwide Tablet Tracker, May 2013 digital devices 55

58 Tablet owner profile Original equipment manufacturer (OEM) Apple Samsung Amazon Barnes & Noble ipad Galaxy Kindle Fire NOOK base male 52% 54% 40% 39% female Tablet owner by gender Base: Adults 18+ Source: Ipsos MediaCT LMX Study, Wave 10, Fall 2012 Tablet owner by age male 49% female 51% 7% 13% 17% 17% 18% 15% 14% HHI <$100K HHI $100K Base: Adults 18+ Note: HHI does not add up to 100% as there is a Prefer Not to Answer selection Source: Ipsos MediaCT LMX Study, Wave 10, Fall 2012 Tablet owner by income 17% 22% 21% 14% 25% <$25K $25K to <$50K $50K to <$75K $75K to <$100K $100K+ Source: comscore TabLens, U.S., 3-month average ending December 2012 digital devices 56

59 Magazines available on both tablets and smartphones see increased engagement Consumers want to read digital magazines wherever they go. When a magazine is available on a tablet and a smartphone, readers access it on both platforms, increasing the number of reading sessions per month and the number of pages read per session. Mobile reading: engagement by device type reads on tablet 75% of the time Reading session usage February % other tablets smartphones reads on smartphone 23% of the time frequency reads per month engagement pages per session Note: Analysis based on million reading sessions to 100 digital magazine apps between January 2012 and February Source: Adobe Systems Incorporated, 2013 digital devices 57

60 Tablet owners = magazine media readers Tablet owners who read magazines almost every day 10% at least once a week 1-3 times a month once a month 13% 17% 40% Base: Total U.S. tablet owners age 13+ Source: comscore TabLens, 3-month average ending August 2012 Traditional media consumption by owners of tablets and e-readers (index) own any tablet own any e-reader own any ipad own any Kindle Source: GfK MRI, Fall 2012 Includes internet magazine activity tv radio newspapers magazines internet digital devices 58

61 Smartphones dominate U.S. mobile market U.S. smartphone growth (millions) U.S. smartphone subscriber market share by OEM January August January May Base: Total U.S. smartphone subscribers age 13+ Source: comscore MobiLens, Smartphone owners with multiple devices 28% also own a tablet 10% e-reader 4% handheld device Note: Share of U.S. smartphone subscribers Source: comscore MobiLens, U.S., 3-month average ending December % Other 7% LG 8% Motorola 9% HTC 23% Samsung 39% Apple Base: Total U.S. smartphone subscribers age 13+ Source: comscore MobiLens, 3-month average ending May 2013 digital devices 59

62 Smartphone owner profile Smartphone owner by gender Base: Adults 18+ Source: Ipsos MediaCT LMX Study, Wave 10, Fall 2012 Smartphone owner by age Smartphone owner by income male 48% female 52% 7% 12% 22% 21% 18% 12% 8% % 17% 20% 17% 36% <$25K $25K to <$50K $50K to <$75K $75K to <$100K $100K+ Source: comscore MobiLens, U.S., 3-month average ending December 2012 Adults within each group who own a smartphone all adults (n=2,252) 56% men (n=1,029) 59 women (n=1,223) 53 age (n=243) (n=284) (n=292) (n=377) (n=426) (n=570) 18 race/ethnicity white, non-hispanic (n=1,571) 53 black, non-hispanic (n=252) 64 Hispanic (n=249) 60 annual household income less than $30,000/yr (n=580) 43 $30,000-$49,999 (n=374) 52 $50,000-$74,999 (n=298) 61 $75,000+ (n=582) 78 education level less than high school (n=168) 36 high school graduate (n=630) 46 some college (n=588) 60 college graduate+ (n=834) 70 Source: Pew Research Center s Internet & American Life Project, Tracking Survey, April 17-May19, N=2,252 adults ages18+. Interviews were conducted in English and Spanish and on landline and cell phones. Margin of error is +/- 2.3 percentage points digital devices 60

63 Magazine apps are top sellers in key ipad categories Top-grossing ipad apps as of July 2013 Lifestyle Apps News Apps Health and Fitness Apps 1 GQ 1 NYTimes 1 Men s Health 2 O, The Oprah Magazine 2 New York Post 2 Women s Health 3 Cosmopolitan 3 The Economist 3 Jillian Michaels Slim-Down Solution 4 Crestron Mobile Pro G 4 Zinio 5,000+ Digital Magazines 4 Runner s World 5 Real Simple 5 The New Yorker 5 SELF 6 HGTV 6 The Wall Street Journal 6 Fitness 7 Car and Driver 7 National Geographic 7 Prevention 8 Martha Stewart Living 8 TIME 8 ShapeMag 9 Maxim+ Magazine 9 WIRED 9 Men s Fitness 10 InStyle 10 Popular Mechanics 10 Food Diary and Calorie Tracker 11 Esquire 11 The Week U.S. 11 Yoga Studio 12 Better Homes and Gardens 12 Mac Life Magazine 12 South Beach Diet 13 Glamour 13 Mr. Reader 13 Bicycling 14 People StyleWatch 14 SFGate 14 FitnessClass 15 Interior Design for ipad 15 Bloomberg Businessweek 15 Muscle & Fitness Source: ipad App Store, July 2013 digital editions and apps 61

64 Magazine media apps: More, more, more! Number of U.S. magazine-branded apps released number of magazine apps percent of change Digital-only audience grew 84% from 9.2 to 16.9 million. Source: GfK MRI, Spring 2012 vs. Spring Average quarterly increase since 2011 = 28% Increase since Q = 559% ,287 1,570 1,871 2,234 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Source: imonitor, McPheters & Company, digital editions and apps 62

65 Downloads up! 170% increase vs. prior year Number of magazine downloads number of magazine issues downloaded (millions) percent of change 64 million issues were delivered in the last year (about 300,000 every day). Average quarterly increase since 2011 = 36% Increase since Q = 699% Source: Adobe Systems Incorporated, data as of April Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Source: Adobe Systems Incorporated, digital editions and apps 63

66 Digital magazine downloads by category food 35% celebrity/entertainment 28 computers 24 health 23 women s 23 sports 22 news 21 travel 19 science/technology 19 house/home 19 business/finance 18 men s 15 women s fashion 15 automotive/motorcycle 13 music 12 outdoor 9 bridal 6 general editorial 5 parenting/babies 3 boating 1 Base: 796 respondents who have used e-newsstands to find, subscribe to and download magazine-branded content apps Source: How Magazine Media Readers Evaluate and Use Digital Newsstands, GfK MRI/MPA, November 2012 digital editions and apps 64

67 Paid digital content reaches 78% Paid content 63% Pricing seems fair for digital magazines. 10% single issues 73% I like having the ability to pay a flat subscription fee for a large library of magazine brands. 35% print and digital bundles 22% free 34% digital subscriptions Note: Percent who somewhat/strongly agree with each statement. Base: 796 respondents who have used e-newsstands to find, subscribe to and download magazine-branded content apps Source: How Magazine Media Readers Evaluate and Use Digital Newsstands, GfK MRI/MPA, November 2012 Source: Adobe Digital Index, percent purchase instances, February 2013 digital editions and apps 65