NOVEMBER 10, 2014

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Products that Advertise Utility Perform Best on Mobile

Mobile advertising continues to grow as eMarketer forecasts it to be a $32 billion dollar category in the United States by 2017. With that, marketers and researchers are more invested in gaining a better understanding of the factors that affect mobile advertising effectiveness. In a recent study published in the Journal of Marketing Research, researchers were able to identify the characteristics of mobile display advertising (MDA) campaigns that contributed to favorable product attitudes and increased purchase intent. The field experiment covered 54 U.S. MDA campaigns across 10 different categories involving nearly 40,000 respondents. The researchers placed campaigns into two general dimensions: utilitarian versus hedonic (hedonic campaigns reflect a sales proposition that is more luxury than necessity) and higher involvement versus lower involvement. What they found is that campaigns for products that were both utilitarian and higher involvement (requiring more thought and consideration) were most effective. When MDAs affect attitude and intention, they do so by triggering memories about previously encoded product-specific information and these products tend to be utilitarian and high involvement. For example, an MDA for a car that touts its safety features (as opposed to sportiness) is more likely to affect attitudes and purchase intent. 

So what?

For many reasons including screen-size and the distraction-rich environment of devices, mobile ad executions cannot simply be a recreation of a campaign's desktop or print creative. This research suggests that mobile display ads should be simple, easily-rendered, promote utility and trigger consumers to recall previously stored product information. 

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Digital Publishers Move to Time Based Measurement

Digital Content Next (formerly known as the OPA -- Online Publishers Association) recently shared the results of a survey of 25 members that found publishers are keen to more often utilize time-based metrics when valuing digital media. Participants surveyed in the report represented companies like Condé Nast, ESPN, Hearst, NBC Universal, The New York Times, and Vox Media. 80% of the companies surveyed are already using time-based metrics internally and the same percentage is interested in using time-based metrics to price and sell ads. However, just 4% of companies are already transacting based on time and only another 8% have plans to test before the end of this year. Measurement has been the biggest challenge identified by publishers thus far as 68% said "lack of standard metrics and measurement methodology" was one of the biggest hurdles to time-in-view as a currency. Publishers would also like to see more research on the topic as 48% feel the lack of research demonstrating time-in-view correlating with ad effectiveness has delayed more widespread usage of the metric.

So what?

The results of this study are reflective of the positive momentum around increased adoption of time-based metrics to value digital media. More widespread acceptance of time-based metrics by the advertising community should benefit publishers, like Condé Nast, that boast high-quality, engaging digital content.

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Nielsen: North American Consumer Confidence Continues to Grow; Europe's Progress is Slower

Feeling self-assured, North Americans were the most confident about their personal finances, followed by consumers in Asia-Pacific, Latin America, and the Middle East/Africa, according to Nielsen’s recently issued Global Consumer Confidence Report. Confidence metrics in North America continue to rise and are at their highest levels since 2007. Europeans were least confident in their personal finances. When thinking about what to do with spare cash, on average, half of global consumers say they would save it. A little more than one-third would go on vacation or buy new clothes. How global consumers would spend discretionary money varied by region. Savers of the world, 62% of consumers in Asia-Pacific would save discretionary cash compared to only 42% in North America, 39% in the Middle East/Africa, 36% in Europe or 31% in Latin America. Europeans and North Americans were the most likely to spend extra money on home improvements. 

So what?

For global brands, a positive consumer outlook on personal finances across regions can be a leading indicator of higher demand and potentially increased ad spending. This is good news for media companies, like Condé Nast, that have partnerships with a number of highly visible global brands.

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Quick Takes
Facebook Continues to Drive Far More Referral Traffic than Other Social Media Sites

Source: Shareaholic, Statista
Chrysler, Toyota and Honda Show Sales Growth in October

Source: Autodata Corp., The Wall Street Journal
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