NOVEMBER 26, 2012

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Technology
Online Video Viewers are Impatient; Abandon Video After Just 2 Seconds if there is Startup Delay
Researchers from the University of Massachusetts analyzed data from 6.7 million unique viewers and 23 million video views to better understand online video consumption. What they found was that online video viewers are incredibly impatient -- viewers start to abandon video if it takes more than just 2 seconds to start up. For each extra second beyond that that it takes to start, 5.8% of viewers abandon the video. Viewers of longer form content, such as movies or programs that ran longer than 30 minutes exhibited greater patience. But, viewers of shorter videos, such as news clips, prove to be a much tougher audience -- 20% of them will abandon a video if it fails to load within 5 seconds.
So what? This research is incredibly valuable to web editors. It speaks to the importance of having high-performance sites. There is a measurable audience loss when a video does not load quickly enough on the internet. A site that experiences slow load times with any of its content runs the risk of losing out on visits, visitors, page views and time spent.
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Advertising
Retail Websites Join the Display Advertising Game
A new report from comScore explores the emergence of “Digital Endcaps” – display ads for a manufacturer appearing on a retailer’s website (for example, a Kraft ad on Walmart's site). More than 8.6 billion display ad impressions appeared on retailer websites in September 2012, representing an increase of 10% in the past year. The value of these ads is twofold – they reach customers who have already expressed purchase intent by visiting the online retailer and they are currently sold at below-average CPMs. Much like the endcap displays promoting items at the end of a supermarket aisle, digital endcaps give brands the opportunity to not only increase awareness, but also drive customers to buy their products when they are more likely to make a purchase.
So what? The bad news is that this trend has created more inventory for digital ads and put increased pressure on CPMs. However, the good news lies in Condé Nast's opportunity to own a piece of digital endcaps going forward. As we enhance our audience management capabilities, the opportunities to use our consumer data to develop partnerships that leverage that information should become more abundant.
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Industry Viewpoints
The Synergies between Tablets and Print Magazines
Research by the PPA (the UK Professional Publishers Association) examines the link between tablet ownership and magazine readership. The research reveals that 96% of tablet owners have read a printed magazine in the last year, compared to the 80% national average. They are also more likely to have read and purchased print magazines in the previous three months, suggesting that digital editions are viewed by readers as an enhancement to print magazines rather than a replacement. In addition, tablet owners are open to trying out new brands, with 68% stating that they have read newspapers or magazines on a tablet that they had not previously read in print.
So what? The willingness of tablet owners to expand their magazine repertoire provides new opportunities to build magazine audiences both online and offline. Condé Nast can take advantage of its new partnership with Microsoft and its strong tablet presence to expose new readers to its brands and convert them into print or digital subscribers.
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Lifestyle/Luxury
Accenture Survey: Millennials Warm to Luxury Products
Accenture conducted a study of over 2,000 adult consumers investigating their luxury product preferences. Accenture found that exactly one-half of US consumers plan to make a luxury purchase in the next six months. Although luxury is often associated with older generations, the firm reported that Millennials are more likely than their older counterparts to say their likelihood to purchase luxury goods and services has increased compared to one year ago. Millennials, like all consumers, rank quality and price as the two most important attributes when purchasing luxury.
So what? This report provides valuable insights into the mindset of consumers' luxury preferences and habits. We're in the midst of a time when consumers look at their purchases with greater scrutiny for a number of reasons. With that in mind, luxury providers need to strongly promote quality and value.
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Quick Takes
Amazon's Audience Remains Twice the Size of Other Retail Sites
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Online Video Ad Views are Up 49% Over the Past Year
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The Majority of Americans Feel a Combination of Tax Increases and Program Cuts are Best Way to Cut Deficit
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Green Auto Options Important to Consumers: 3 out of 4 Say Fuel Efficiency is a Priority; 1 out of 3 Say Hybrid/Electric Options are a Priority
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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