NOVEMBER 17, 2014

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Audience Extension Gains Popularity Among Publishers and Advertisers

Audience extension – the technological solution allowing publishers to target ads to their audience off their websites – is becoming increasingly popular among publishers and advertisers alike. A survey conducted by Rocket Fuel and Digiday found that 52% of publishers are offering audience extension to their advertising partners, most commonly when they need additional reach to deliver a campaign or when the advertiser specifically asks for it. Two-thirds of publishers also report that the CPMs for audience extension are lower than their on-site inventory, allowing them to reduce the cost of the campaign for advertisers. On the advertiser side, adoption is lower – only 29% are currently working on a campaign that includes audience extension, but 58% view it favorably. The most important factors when advertisers evaluate audience extension opportunities are viewability, performance and cross-platform opportunities.

So what?

Over the past few months, Condé Nast has been dipping its toe in the waters of audience extension. The solution can allow our brands to extend their reach and lower the eCPMs they charge, while advertisers can make their budgets go further and still target the coveted Condé Nast audiences.

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Google: Marketers Need Better Measurement to Truly Understand Consumer Decision Journey

Marketers know that the consumer decision journey consists of many interconnected touch points. However, marketers still often struggle to understand which messages are best served at each point during the journey. A recent paper published by Google suggests that the key to making the most of these touch points is better measurement. Google's four tenets of better measurement include: 

  1. More focus on the metrics relevant to business objectives.
  2. Identifying and understanding behaviors of best consumers.
  3. Attributing credit where due across the journey.
  4. Proving an incremental effect of advertising,
So what?

Publishers, especially those with multi-platform offerings, are constantly challenged to respond to Google's fourth tenet to prove marketing impact. While there may not be a one-size-fits-all solution to demonstrate attribution at varying media touch points during a consumer's journey, a thoughtful blend of passively collected information (such as site visits) and survey data can go a long way to demonstrate a campaign's ad effectiveness.

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McKinsey: Auto Sector Transforming Itself

A recent issue of the McKinsey Quarterly covered the current state of the auto sector. Overall the sector is fairly healthy with car sales up 9% in the U.S. in 2013 and estimates that total global sales will reach 88 million units this year. However, the industry is currently in a period of significant change. The transformation is being spurred by emerging markets, technological advances and disruptions from new competitors by way of the sharing economy.

  • In China, 25 million cars will be sold this year. That number is triple the number sold just one decade earlier.
  • McKinsey's report also covers the technological advances that will not only make cars more convenient with the inclusion of digital features like WiFi, but also bring more radical changes like self-driving vehicles.
  • Carmakers will also have to address consumers' collective rethinking of ownership. Millennials already place less importance on ownership than previous generations, and have embraced sharing economy programs like Zipcar, Uber and Lyft.
So what?

Automakers spent $15 billion on advertising in the U.S. in 2013, second only to retailers. As the category becomes more global and digital, automotive CMOs might more often look to publishers that offer advertising solutions reflective of those changes. Automakers will also need help in finding ways to creatively promote the benefits of car ownership to younger consumers.

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Quick Takes
eMarketer Projects iPad User Growth to Slow Significantly

Source: eMarketer
The Average Movie Ticket is About $8

Source: Box Office Mojo, Statista
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