Magazine publishers have been criticized for being slow to meet advertisers’ demands for performance metrics, but Condé Nast is taking a step in that direction with an investment in Flite, a cloud-based platform that lets brands measure and adjust their ads in real time.
Condé Nast has been a client of Flite's along with other publishers including Hearst Magazines, Forbes, Tribune Interactive and Federated Media; after today's announcement, it now owns 11 percent of it. Condé Nast president Bob Sauerberg told The New York Times that the investment represented an aggressive strategy to deliver “more scalable, robust set of digital offerings” to consumers and marketers.
The announcement came out of the Condé Nast Media Group, which just put a greater emphasis on growing digital revenue in a leadership shake-up. The company has made a number of digital acquisitions lately as it seeks to reduce its reliance on print advertising.
Publishers have had difficulty converting print dollars to digital revenue, so supposedly, as the use of tools like this spread and they can demonstrate results for clients, they’ll be able to charge higher rates for digital advertising.