NOVEMBER 03, 2014

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Video
Adobe: Free Online Video Views Up 43% Over Last Year

According to Adobe's U.S. Digital Video Benchmark Q2 2014 report, 38.2 billion free online videos were viewed in the second quarter of this year - a 43% gain over the same period last year. Of those videos, more than one-quarter were watched on either tablets (13% of all video views) or smartphones (13.6% of views). However, completion rates on these devices were lower than on desktops. 42% of videos viewed on smartphones and 45% of those viewed on tablets were watched at least halfway through, as compared to 53% of videos viewed on desktop. For viewers, the ad load associated with online video is also getting heavier. Viewers were exposed to 2.08 ads per video, a 26% increase over last year.

So what?

Online video consumption has shown no signs of slowing. However, publishers still have trouble getting viewers to complete their videos. Publishers that can entice viewers to stick with content longer, regardless of device, should be able to create a halo effect to help with the efficacy of ads run within their content, while also being able to increase ad load.

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Culture
Cash, Credit, or Digital? Millennials Think Digital is the Future of Payments

Apple Pay, Venmo, PayPal, and Plastc are just a few virtual wallets and payment systems gaining traction with consumers. In a recent report titled, “The Future of Payments & Currency,” JWT demonstrates how consumer sentiment, especially among Millennials, is starting to favor these digital payment systems over old cash or credit card transactions. Millennials are interested in technology taking over paying transactions, as 51% agree that “with today’s technology, it doesn’t make sense that we mostly still rely on cash, debit, and credit cards to pay for things,” compared to 33% of Gen Xers and 17% of Boomers. Millennials are not just talking the talk as 26% have used a mobile app to pay for something in the past year, compared to only 7% of those 35+. While they are more likely to use digital payments, Millennials are less likely to use credit cards or cash than other generations. In the past year, only 63% of Millennials had used credit cards compared to 82% of those 35+ and 85% of Millennials had used cash compared to 95% of older generations.

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So what?

As Millennial consumers are more open to using digital, seamless payments systems such as mobile apps and virtual currencies, there is an opportunity for brands to attract them by offering streamlined ways to purchase. While the amount of consumer data being collected varies by payment system or type (for example: Apple claims they will not collect any consumer data form Apple Pay), there should be more opportunities to capture and track consumer behaviors with the increased penetration of these systems.

> Click here for report
Fashion/Beauty
How People Search for Beauty Content Online

In a new report about beauty search trends throughout the year, Google reveals that makeup searches hit an all-time high in October 2014, as people were on the hunt for Halloween makeup ideas. This is just one example of the seasonality of makeup searches. According to Google, there is interest in specific makeup looks around holidays and special events – prom in April, weddings between May and August, and makeup gifts in December. The changing weather also affects what people are looking for – dry skin makeup in January, pastel eye shadow in the spring, and nail art in July are just some of the examples. Searches are becoming increasingly mobile, with more than half of all searches – mostly for product information and reviews - coming from mobile devices. Video also plays a significant role in the beauty search routine. Makeup related searches on YouTube were up 36% this summer year-over-year, and makeup tutorials are viewed more than any other kind of how-to video. Google provides L’Oreal and Sephora as examples of brands that were able to build effective strategies around these trends, offering seasonally-relevant content, on-the-go product reviews and easy-to-follow tutorials.

So what?

As companies like L’Oreal and Sephora are becoming meaningful players in the beauty digital content space, their tactics in reaching consumers are evolving. To maintain their competitive edge, Condé Nast brands should be at the forefront of innovation in this space and make sure that they provide the increasingly mobile and video-driven beauty shoppers with the content and experiences they are seeking.

> Click here for reports
Quick Takes
Facebook Relies on Mobile Advertising to Grow Its Business
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Source: Business Insider, Facebook Company Filings
Two-Fifths of the World's Millionaires Live in the United States
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Source: Statista, James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2014
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