DECEMBER 16, 2013

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Video Ads Need to Work Harder to Break Through to Millennials
The online viewing habits of millennials are substantially different from those of older viewers, according to a study by YuMe and IPG Media Lab. Surveying 18-34 year olds before and after they watched 20 minutes of TV content on one of four devices (TV, PC, smartphone, or tablet), the study found that 94% of millennials multitask while watching video and are more easily distracted than other age groups. As a result, ads have a harder time breaking through to them and they are less likely to recall the ads, especially those running on the TV and PC. Although hard to reach initially, millennials are more impressionable when viewing video ads, especially on mobile devices. Smartphone ads were not only the most memorable, but they were also the most likely to positively impact brand opinion.
So what? Many brands are still wary of advertising on smartphones, but this study points to the smartphone as a key medium for reaching and influencing millennials. As consumption of Condé Nast online content is becoming increasingly mobile, advertisers can reach highly valuable young audiences via our digital properties and video channels.
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The State of Online Video Advertising in North America
Online video advertising is entering maturity, according to Forrester’s overview of video advertising in North America. Assessing 50 high-traffic websites in the US and Canada, Forrester found that publishers are heavily investing in video production to meet the growing demand from advertisers. Forrester also found that 98% of sites that carry video allow marketers to run in-stream ads alongside their video content. Video ads appeal to brands across all product categories, with automotive brands and service-oriented companies advertising using video the most, followed by financial services, food and drink, and media. Despite the growing popularity of video advertising, it is still facing challenges. As ad loads and ad lengths are rising, viewers’ tolerance for ads might start declining. Additionally, advertisers still tend to repurpose TV ads to save time and money, but this format is often not a good fit for online viewers, who have short attention spans. 38% of YouTube viewers have taken the option to skip an ad, and if advertisers are not careful, ad skipping might become an even more widespread phenomenon.
So what? Online video advertising is capturing larger shares of marketing budgets, but it is still suffering growing pains. Advertisers need to follow in the publishers’ footsteps and create original and compelling ads that engage audiences and do not sacrifice the user experience for short-term gains.
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Digital Travel Planning Mapped by Stage and Device
A new study by comScore and Expedia demonstrates the importance of platform mix to consumers’ travel research and planning. Most travel planning occurs on the home computer (85% on computer compared to about 18% on mobile), but during travel, mobile devices increase in importance to obtain travel information (31% use mobile compared to 47% on laptop computer). Hotel or accommodation information is the top topic when conducting pre-trip research. During the trip, climate information, restaurant information/reviews, and activities to do are the most sought after content. Post-trip, consumers become content creators. Upon returning home from their trip, 43% of consumers post travel-related content or write a travel review.
So what? Computers still dominate trip planning before departure, but mobile becomes more important, once consumers hit the road. Offering easily accessible, real-time information across all platforms is a necessity for travel-related brands, but the content offered should be tailored based on device, reason for trip, and destination. Condé Nast brands are in a great position to reach consumers throughout the trip, while they plan, during their travels, and when they reach home.
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Burberry Is Digital Genius: Luxury Fashion Brands' Digital Intelligence
Fashion brands are creating highly engaging digital offerings, according to L2’s recent audit of 85 luxury apparel brands based on their website, digital marketing, social media pages, and mobile presence. Affluent consumers prefer to purchase directly from luxury brands’ physical stores or online. When it comes to purchasing online, they are split between buying on a brand site (39%) and buying through a non-specialized, multi-brand site (36%). About four in five brands now support e-commerce, and chasing the mobile shoppers, more two thirds of luxury brands have mobile-optimized sites. The brands that were smartest about digital were: Burberry and Gucci, both were considered “genius.” In the digital IQ index, about 30 brands were considered “gifted,” including: Ralph Lauren, Kate Spade, Tory Burch, Coach, Marc Jacobs, DVF, Calvin Klein, Tommy Hilfiger, Giorgio Armani, Juicy Couture, Louis Vuitton, and Michael Kors.
So what? As affluent shoppers prefer to purchase directly from brands, both online and off, it’s important that luxury brands have engaging, efficient, and consistent brand experiences across platforms. In the past, luxury brands' websites performed poorly, but now many offer streamlined interfaces and online purchase capabilities. Because the sites have improved, Condé Nast brands' advertising also increases in value. Condé Nast creates desire through luscious imagery and storytelling, and now the clients' websites can better deliver on the conversion from want to buy.
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Quick Takes
After Facebook, Teens 16-19 Favor YouTube, Twitter, and Google+
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3% Would Have A Sensor Embedded In Their Skin: Chart Of Wearable Tech On The Body
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The Gender Wage Gap Narrows For Millennial Women
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Thanksgiving Sales Gained on Black Friday Sales 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 |

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