ANNUAL REPORT 2016 ANNUAL REPORT 2016

Barcelona in February to discuss Turning than ever that IAB continues to educate Mobile into Mobility: Innovation without industry regulators and elected leaders. FUELING GROWTH FOR Borders. Discussion focused on the need In 2016, IAB became a leading voice at IAB MEMBERS to have much more than simply a “mobile the FCC. In meetings with the Commission strategy,” and the desire to adopt holistic, and through our filings with them, IAB liquid, 360-degree experiences that explained the benefits of self-regulation cross all screens. In response, the IAB in the digital advertising space. And in arketers spent $60 billion on To bring awareness to the goal of Mobile Marketing and Digital Video September 2016, before a room full of digital in the United States improving online user experience, IAB and Centers of Excellence published a report senior representatives from the FCC, during the last 12 months—more the IAB Tech Lab introduced the LEAN M in September 2016, “Is Virtual the New Congress, political press, and digital than on any other medium, a resounding Principles in late 2015. In 2016, these Reality?” The report offers opinions media, IAB addressed the growth of affirmation of consumers’ preference for principles became the foundation for a from a distinguished panel of industry- digital advertising, our involvement in the digital media as the entry point to satisfy comprehensive program to improve user leading voices in publishing, advertising, key policy debates of today, and how our their needs and wants. experience, including an overhaul of the VR software, and developer platforms, industry must collectively address the threat IAB Standard Ad Unit Portfolio; live user Enabling digital media companies, as analyzing virtual reality’s potential as an of ad-block profiteers. experience summit meetings; and best well as their marketing and technology advertising and publishing medium. practice guidelines to help enable change, As the digital media and marketing partners, to be invited into consumers’ 2016 was a productive year for IAB’s address publishers concerns, and share To drive the industry’s data agenda, in industries have exploded, IAB members lives has been IAB’s mission since our efforts on our members’ behalf, and we are experiences. 2016 IAB launched the IAB Data Center demand more talent and more training trade association’s founding 21 years doubling down on those efforts in 2017 and of Excellence with the mission to define programs. In 2016 we crossed a lifetime ago. That work of enablement has grown Through the efforts of the IAB Digital beyond. We have reorganized to focus our boundaries and increase value along threshold of 10,000 participants in IAB more multidimensional, more complex, Video Center of Excellence, the 2016 agenda more tightly on areas that are the the data chain for consumers, marketers, Certification programs. The continued more political, and ultimately more Digital Content NewFronts was a success most essential for the sustained growth of our and the ecosystem that supports them. growth of these programs helps ensure fulfilling over the decades. We have the without precedent, with 37 publisher- members’ businesses—and that offer clearer After just a few months of operation, the that the professionals of tomorrow have great fortune—all of us—to be working in presenters (nine of which were new to the accountability. I look forward to delivering Data Center released the Data Maturity the necessary knowledge and skills to help an industry that is altering the means by NewFronts), and many standing-room- on that commitment in the year ahead. Model, a diagnostic test that allows their brand clients navigate the dynamic which human relationships are formed and only events. In July, the industry’s top video Sincerely, brands, agencies, publishers, and data digital marketplace. human knowledge is transferred. For the executives and advertising companies technology vendors to determine where 71 men and women at IAB, our joy and convened at IAB’s invitation-only Video The IAB Education Foundation is also they—and their clients and prospects—rank fulfillment derive from helping our members Leadership Summit to define the video working hard through its iDiverse initiative in data-usage sophistication to help guide accomplish these tasks as efficiently and agenda for the future. A robust training to prepare a diverse pool of future job their investments, implementation, and effectively as possible. program for cross-platform video sales and candidates that reflect the audiences we strategy. Other data initiatives include the Randall Rothenberg planning, and measurement alignment with serve. The Foundation has committed to a We ended 2016 feeling quite fulfilled. Attribution Primer 2.0, which is focused President and Chief Executive Officer the Media Rating Council were the central goal of “200 digital companies, 10,000 IAB concentrated our resources on six on buy-side attribution guidance, ensuring Interactive Advertising Bureau recommendations to emerge from the jobs, by 2020,” and developed tools like themes: developing tools for enablement that the industry has a well-researched summit’s breakout sessions; and new efforts the iDiverse Non-Profit Directory to offer of technology standards; building a video overview of the fundamental techniques in those areas already are underway. digital media companies the opportunity agenda for growth; accelerating revenue and data points that practitioners use to to connect with non-profits and tap growth in mobile; increasing value along the Throughout 2016 much of the focus of assemble a single user-level view of media into their mentoring, volunteering, and data chain for consumers and marketers; the IAB Mobile Marketing Center of exposure across channels. training programs. emphasizing further technical training for Excellence was put on practical advice IAB continues to be a strong advocate for industry professionals; and advocating for for effectively reaching mobile users our members in front of the federal and policy changes that benefit our members, and global consumers across screens. state governments. With a new Presidential our industry, and society as a whole. Influential brand, agency, publisher, administration, Congress, and Senate— and technology leaders joined IAB and as well as changes in many statehouses dmexco at Mobile World Congress in and state legislatures—it’s more important

LETTER FROM RANDALL ROTHENBERG 1 ANNUAL REPORT 2016

TABLE OF CONTENTS

2016 Financial Review ...... 4 4

IAB Tech Lab ...... 6

Public Policy ...... 10

6 Certification ...... 12

Education...... 13

12 Digital Video ...... 14

Mobile ...... 16

Data ...... 18 14

IAB Members ...... 20

Committees and Councils ...... 22

IAB Committees and Councils At Work ...... 24

Measurement ...... 26 24

IAB Research ...... 28

IAB Events ...... 30

Creativity ...... 32

...... 33 30 International

Who is IAB? ...... 34 2016 Executive Committee and Board of Directors ...... 34 IAB Staff ...... 35

Expanding Influence ...... 36

2 TABLE OF CONTENTS 3 ANNUAL REPORT 2016

The Centers of Excellence are also 2016 IAB Revenue Streams* showing solid progress, and are projected to see $2.8 million in revenue in 2016. The IAB Mobile Marketing Center of IAB Video Center of Excellence & NewFronts: $1.3M Excellence is projected to see $1 million in revenue in 2016, which is a positive sign IAB Data Other: $.5M INVESTING IN IAB MEMBERS’ SUCCESS Center of Excellence: $.6M for the relevance and success of our mobile AND THE GROWTH OF THE INDUSTRY efforts. The Video Center of Excellence IAB Mobile Marketing Center saw revenue of $1.3 million including the of Excellence: $1M increasingly popular NewFronts industry roviding value to our members is a industry. On the events side, IAB saw a members of how important certifications event, and the Data Center of Excellence IAB Education Foundation: top priority at IAB, and the financial slight and anticipated drop in income, and training are for developing a healthy saw revenue of $550,000. $.5M state of IAB, like the members and projected to bring in $7.3 million—or a talent pipeline in our industry. P Additional ongoing revenue streams industry we represent, started and ended decline of 1.5 percent—from 2015, due IAB Tech Overall, newly formed IAB organizations include initiatives such as sponsored Lab: $2.1M the year strong. It is a reflection of the work primarily to fixed costs associated with are also taking hold and delivering on research, member services, the spiders and we do on behalf of our members and the events and overall saturation in the market. revenue. The IAB Tech Lab brought in $2 bots list, international licensing fees, and confidence they place in us. As the digital media and advertising million in its second year of operation to other fundraising programs. According to unaudited 2016 financial industry has grown, our members have develop tools, standards, and best practices Membership In 2016, IAB invested revenues received in Dues: $15M statements and under the fiscal leadership asked for more training programs that simplify and reduce costs associated helping member businesses excel. Funding of IAB Executive Vice President and COO, for growing the talent pool. The IAB with the digital advertising and marketing Events: $7.3M Certification Programs and Professional was directed toward producing valuable Patrick Dolan, IAB finished the year with supply chain. IAB also received $500,000 Development, established four years ago, third-party research for building brands Certification and Development: topline revenue of $30.1 million, up from in donations to the IAB Education $2M totaled $2 million in revenue, bringing the in digital media as well as investing in the $28 million in 2015. Foundation and its iDiverse initiative in 2016 four-year total of certification participants IAB Video Center of Excellence, the new for building a more diverse talent pipeline, *Projections based on unaudited estimates through Jan 6, 2017 Membership dues revenue reached $15 to more than 10,000 professionals. The IAB Data Center of Excellence, the IAB and we are already getting recommitments million for 2016, a slight decline from 2015 continued growth of the certification Education Foundation, and a new Buying for 2017 and beyond. due to increased M&A activity within the programs is a validation from our and Planning Certification program. We also made additional investments in the 2010 -2016 IAB Membership IAB Tech Lab to support LEAN initiatives, * Coalition for Better Ads, and a new San 1,962 2016 IAB Financial Key Indicators 2,000 1,898 1,875 Francisco office, investments which we 1,848 (IN THOUSANDS) 2016 Projected 2016 Budget Var from Budget believe are foundations for the future 1,696 growth of our members. Membership Dues $ 14,947 $ 14,579 $ 368 Events $ 7,319 $ 8,065 $ (746) Finally, IAB and its organizations managed 1,500 Certification & Professional Dev $ 1,983 $ 1,870 $ 113 expenses closely in 2016, which totaled $30.2 million, and closed the year near Mobile Center of Excellence $ 1,039 $ 1,000 $ 39 break-even as projected, in spite of some Video Center of Excellence† $ 1,250 $ 1,850 $ (600) 993 unanticipated but essential investments 1,000 Data Center of Excellence $ 550 $ 1,000 $ (450) 823 such as participating in the Coalition for Tech Lab $ 2,082 $ 2,095 $ (13) Better Ads and investing heavily in the IAB Education Foundation $ 500 $ 1,000 $ (500) Tech Lab’s LEAN initiatives. Other Revenue $ 463 $ 625 $ (162) 500 Total Revenue $ 30,134 $ 32,084 $ (1,950) With our members’ support, IAB is well- COGS Expenses $ 6,580 $ 5,750 $ 830 positioned financially to deliver on an Operating Expenses $ 23,655 $ 25,802 $ (2,147) ambitious agenda for championing Total Expenses $ 30,235 $ 31,552 $ (1,317) industry growth in 2017 and beyond. 0 Net Income $ (101) $ 532 $ (633) 2010 2011 2012 2013 2014 2015 2016 *Projections based on unaudited estimates through Jan 6, 2017 † Includes NewFronts Long Tail AssociateGeneral

4 2016 FINANCIAL REVIEW 5 ANNUAL REPORT 2016

in a way that accounts for the amazingly dynamic nature of the user’s experience on the increasingly mobile- DRIVING TECHNOLOGY everything world. The portfolio incorporates ENABLEMENT AND GROWTH the LEAN principles within all of its display, mobile, video, and echnical standards are key to the healthy and sustained growth of an industry, and native ad formats. LEAN specs are based The new IAB Standard Ad Unit Portfolio Improving User was released for public comment in the IAB Tech Lab is the most important global center for the development of standards on HTML5 technology and informed September 2016. Experience by industry surveys, user research, and Tfor the digital media and advertising industries. Under the leadership of Alanna Gombert, Senior Vice President, Technology & Ad Operations, IAB, and General Manager, Good user experience is at the core of testing. The new ad units are expected to Guidelines and IAB Tech Lab, the organization has advanced across a number of dimensions. Key initiatives allowing the interactive ecosystem to thrive. debut in 2017. from the Tech Lab in 2016 included the development of innovative and scalable technical In support of the initial LEAN Ads Principles Standards for IAB Tech Lab has also been participating standards, a code library and tools to assist in their rapid, cost-effective implementation, and (Lightweight, Encrypted, AdChoices in the Coalition for Better Ads, a Measurement test platforms for companies to evaluate the compatibility of their technology solutions with supported, and Non-invasive advertising) workforce of leading international trade In response to the marketplace growth and IAB standards, which for almost 20 years have been the foundation for interoperability and released in 2015, additional research (both associations and companies involved appetite for podcasting, the Podcast Ad profitable growth in the digital advertising supply chain. consumer and publisher), standards creation, Building on the progress to help publishers in online media to improve consumers’ Metrics Guidelines, released in September and white paper guidance to the market and advertisers understand the dynamics experience with advertising. The group is 2016, bring Tech Lab expertise to an was introduced to our members and their of user ad blocking, the IAB Tech Lab already building the technology for the emerging field faced with a significant need partners. IAB has been working to create released an Ad Blocking Primer in coalition which will be released in the for consistent measurement conventions. a scoring system for publishers to use to March 2016 that outlines the range of coming months. The guidelines break down the technical optimize user experience, and for creative communications and response tactics details of content and ad shops to adhere to for asset development. available to publishers to connect with delivery and then define the visitors who have downloaded ad blocking commonly used metrics, with software. In addition, the Tech Lab also some examples on how to released a detection script to consistently measure those metrics. IAB TECH LAB BOARD OF DIRECTORS and reliably determine whether ad The Header Tag Task Force blocking is happening during a page load. FOUNDING CHAIRMAN The Tech Lab also released version 3.0 developed a Header Container Manager David Moore, Xaxis To further support our publisher members, of the Mobile Rich Media Ad Interface Outline which provides the framework for IAB held an invitation-only Ad Blocking Definition (MRAID) for public comment. header tag standards development. This FOUNDERS and User Experience Summit in June 2016 The revised MRAID provides technical was presented to the Tech Lab Board of Anand Das, PubMatic Mike Romoff, LinkedIn Scott Spencer, Google in New York. Leading publishers and top guidance for improved user experience Directors which approved the development Alex Lord, Yahoo Tom Shields, AppNexus Toru Takata, Yahoo Japan advertisers shared successful strategies of rich media ads running in mobile of a protocol which will detail how header Kelly Petersen, Tremor Video Michael Smith, Hearst Magazines Digital for improving user experience to stem apps, faster ad rendering, audibility and managers should work with the Ad Server. Media viewability measurement, and Video Player BOARD MEMBERS the tide of ad blocking. Senior executives Additionally, IAB OpenDirect 1.5.1, Ad Interface Definition (VPAID) integration, David Adams, Condé Nast Kevin Heery, Time Inc. Zach Putnam, ABC Television from across the ecosystem delved into an update to the protocol for the among other advancements that are also Krishan Bhatia, NBCUniversal David Jakubowski, Facebook Jason Richman, Spotify real-world publisher case studies, and the automated guaranteed method of buying latest actionable tools that can help the more developer-friendly. In addition to Neil Bowman, BBC Worldwide Americas Tom Kershaw, Rubicon Project Willard Simmons, DataXu programmatic ads, was released in providing guidance on pre-loading ads and entire industry create better, LEANer user September 2016. And OpenRTB 2.5 was Andrew Casale, Index Exchange Tian Lim, Hulu Peter Sirota, Quantcast understanding ad readiness to display an experiences were discussed. released for public comment in November J. Allen Dove, SpotX John Montgomery, GroupM John Vandermay, Collective ad to the user, MRAID 3.0 also introduces The release of the new IAB Standard 2016, which includes updates that integrate Campbell Foster, Adobe Janneke Niessen, Improve Digital Joe Zawadzki, MediaMath location data. Ad Unit Portfolio for public comment in current trends and allows for improvements Marc Frons, News Corporation Robyn Peterson, Mashable September 2016 aimed to fundamentally in programmatic technology. change the conversation about ad units

6 IAB TECH LAB 7 The Dynamic Content Ad Standard, In December 2016, the IAB Tech Lab a structured system of metadata for released “Transitioning Video Ads from defining creative components and their Flash to HTML5/JS,” practical guidance asset variations in an ad unit, was also for migrating digital video advertisements released in October 2016. This standard to HTML5 and JavaScript, technologies Increasing Transparency and is designed to help creative developers, which have emerged as the default Accountability ad content management systems, and ad media playback options in the majority of servers build and serve real-time dynamic today’s browsers. As a complement to this In the ongoing effort to increase implement the Payment ID protocol, content in advertisements. transition paper, the IAB Tech Lab transparency and to combat criminal which works together with the TAG also provided two detailed checklists activity across the digital advertising Registry to enable companies across Industry Access to to ease the transition for different ecosystem, IAB Tech Lab has assisted the advertising supply chain to verify stakeholders, which include the Trustworthy Accountability Group payment information and protect Essential Testing communications best practices and (TAG) in achieving a number of against fraud. significant milestones. TAG Registered Tools information regarding the technical Companies participating in TAG’s companies have been verified as Continuing the IAB commitment to making components that need to be updated. Certified Against Fraud program have legitimate participants in the digital viewability detection easier, the OpenVV The Tech Lab also created a cross-industry met a range of qualifications, including advertising industry through a code has been updated to handle HTML5 convergence group with cable and completion of the TAG Registration proprietary background check and Intersection Observer functionality. The broadcast engineering trade associations process. Additionally, direct sellers, fraud review process powered by Dun & vendors, and intermediaries provide Tech Lab also developed the Mobile including the Society of Cable Bradstreet and approved by TAG. Once raw data for TAG’s anti-fraud tools: Rich Media Ad Interface Definitions Telecommunications Engineers (SCTE), the registered, companies are awarded a the domain threat list and data center (MRAID) Ads Software Development Kit 4As, the ANA, and the North American TAG ID, a unique global identifier they IP list. IAB Tech Lab is responsible for (SDK) Tester to provide a way to test and In July 2016, the new IABTechLab.com Broadcasters Association (NABA). The website launched. can share with partners and append developing, deploying, and improving validate ads on a mobile device against provides a trusted version. The platform has ultimate goal is to ensure digital video to their ads or the ad inventory they these tools alongside the Anti-Fraud multiple SDKs in minutes. been updated to support OAuth 2.0 specs, files work with commercial broadcast with a front-end JavaScript framework for sell. IAB Tech Lab leads the effort to Working Group, as well as for providing IAB Tech Lab has created a platform for rules from production to delivery, which is authentication and authorization. tools, and compliance programs offered by define requirements and implementation design leadership for distributing real- SaaS access to certain tools and utilities, like essential as video ads are delivered over IAB Tech Lab, and includes a blog which characteristics of the TAG ID protocol, as time, at-scale information on potential the HTML5 Ad Validator. This centralized This technology platform appears alongside connected devices. features writing from staff and industry well as establishing the API interface for threats throughout the supply chain. offering lowers the technology know-how the newly released IABTechLab.com website, accessing a directory of TAG IDs. IAB subject matter experts. IAB Tech Lab has assisted TAG’s anti- threshold for members to use tools, and which streamlines access to specifications, Digital Advertising Tech Lab has also built the foundation of malware efforts by facilitating the the next version of the registration portal, Streamlining Alliance organization’s Anti-Malware Working leveraging D&B’s APIs to streamline the IAB TECH LAB COMPLIANCE: HOW IT WORKS IAB Tech Lab supported the Digital Group, as well as participating in the Standards application process through automated Advertising Alliance (DAA) in their design of the Malware Sharing Hub to checking of applicant credentials. Compliance achievements of bringing opt-out to disseminate near real-time intelligence IAB Tech Lab completed a corporate mobile with the AppChoices program IAB Tech Lab has also been on malware attacks to other companies pilot of VAST/VPAID compliance testing. and in ongoing campaigns to educate instrumental in designing and helping and law enforcement agencies. Corporate compliance verifies member consumers about YourAdChoices and implementations of IAB technologies in the AdChoices Icon. The Tech Lab also the important mission of making industry provided support for the DAA’s digital interoperation of technology more efficient. operations, which will culminate in an The IAB Tech Lab launched the IAB IAB Tech Lab has built out the VAST 4.0 updated website in early 2017. Technology Compliance Program, a Validator, updated the HTML5 Validator, system for auditing and officially validating companies’ compliance with critical industry and created an OpenRTB Bid Validator in standards. order to support the compliance program.

8 ANNUAL REPORT 2016 IAB TECH LAB 9 ANNUAL REPORT 2016 Small Publisher Fly-In Every year since 2009, IAB has brought small online publishers to the nation’s ADVOCATING TO LEGISLATORS capital. This year, attendees spent the first Bringing day immersing themselves in the hottest AND POLICYMAKERS topics in digital: content syndication, Washington to the omnichannel marketing, video, ad Digital Content blocking, native, local, and more, as well as NewFronts he IAB public policy office in Washington, D.C. continues to be a strong force for networking with their fellow small publishers. A Voice in FCC Expanding the In May 2016, the IAB Public Policy team policy and advocacy on behalf of our members at the federal and state level. With Day two was spent meeting with Congress, had a historic first, bringing a handful of the changing administration in 2017, it’s more important than ever that IAB is the voice Privacy Proceedings sharing their experience as small business International Agenda T senior staff from the House Energy and of reason to educate industry and regulators and push through major initiatives in support of IAB has become a leading voice at the FCC, owners, and providing an understanding the Digital is not bounded by borders, and Commerce Committee to New York for consumer privacy, data security, supply chain safety, advertising taxation, and other major particularly regarding the Commission’s impact that legislation and regulations may there continue to be a number of regulatory a day and night at the Digital Content regulatory and legislative issues. In January 2016, IAB appointed Dave Grimaldi as the Notice of Proposed Rulemaking on have on their businesses and livelihoods. priorities at the international level. NewFronts. With the extreme restrictions new Executive Vice President, Public Policy to lead its Washington, D.C. office. Under his Broadband Consumer Privacy. In both put on these kinds of trips by Congressional leadership, IAB continued to push forward on advocacy efforts to ensure that IAB members’ meetings with the Commission and filings ethics laws, outings of this nature are voices are represented before Congress, as well as at key agencies including the Federal made on the proceeding, IAB explained extremely rare, amplifying the incredible Trade Commission (FTC) and the Federal Communications Commission (FCC). the benefits of self-regulation in the digital value they offer. During the course of the advertising space. day, staff members had the opportunity WASHINGTON, D.C. to see the power and growth of digital Native Advertising Guidance video, hear how traditional publishers have evolved into more diverse media companies, Slightly more than two years after holding Council, and Native Advertising Task Force and learn more about the ad technology its first workshop on native advertising, to evaluate the impact of the guidance space. The trip provided an opportunity for the FTC issued guidance on the topic. and discuss next steps. During the course IAB to deepen its Congressional relations, Though generally positive, IAB expressed of the year, those next steps included a put an industry face on the often academic significant concern about the specificity of conversation with members and the FTC in nature of policy discussions in Washington, native advertising guidance in some areas, the IAB New York office, and a webinar and reinforce the IAB brand as a serious including a section on language to denote on the differences and interplay between player in the nation’s capital. native advertising in disclosures. Responding the FTC’s native advertising guidelines and immediately, IAB scheduled a joint meeting endorsement guidance. Media Institute of the Public Policy Council, Legal Affairs Advocating for Communications Smart Consumer Forum Small publishers visited Capitol Hill for the IAB “Eighth Annual Small Publisher Conference Protection Policies In September 2016, Randall Rothenberg and Fly-In.” On October 17, 2016, IAB hosted provided keynote remarks at the Media Congressman Joe Kennedy (MA-4), in the Institute’s Communications Forum in BEYOND THE BELTWAY The IAB Public Policy Office has IAB Ad Lab in New York. A rising star in Washington, D.C. Before a full room coordinated a global policy strategy with Washington, and member of the Energy and of senior representatives from the FCC, The IAB Public Policy Office continues international counterparts to more effectively Commerce Committee since 2015, this was Congress, political press, and industry, his to expand its national and international advocate for the digital advertising industry an opportunity for the Congressman to hear remarks addressed the growth of digital agenda as more of the policies affecting before foreign governmental agencies. IAB from IAB members about the pressing topics advertising, IAB involvement in the key the future of the internet and the digital is a strong advocate for legislation essential for our industry, including online privacy, policy debates of today, and how our advertising industry originate in state to facilitating approval of the Privacy Shield, data security, and tax deductibility. industry must collectively address the threat legislative bodies and in foreign and the replacement agreement for Safe Harbor. of ad-block profiteers. intergovernmental agencies.

10 PUBLIC POLICY 11 ANNUAL REPORT 2016 ANNUAL REPORT 2016

PROMOTING EDUCATION AND ENCOURAGING DIVERSITY DEVELOPMENT FOR THE DIGITAL ECOSYSTEM IN THE WORKFORCE OF THE FUTURE

s the digital media and In September 2016, IAB Certification DEMYSTIFYING THE healthy and sustainable digital advertising industry has grown, launched its newest program: IAB Digital PROGRAMMATIC AD STACK industry needs a talent pipeline A IAB members have asked for Media Buying and Planning Certification. As the industry has grown, programmatic A that reflects the audiences it serves. more training programs to grow the talent The credential is designed specifically for has become more and more important for IAB has taken important steps toward pool by improving skills in the digital media agencies and digital strategists, a scale. As a result the demand for education this goal by launching the IAB Education media and advertising industries, and by new market segment for IAB. IAB partnered has increased, and in response, IAB has Foundation, and in 2016, IAB was delighted expanding certification programs in sales, with the 4A’s in marketing the program. built out a more robust program and rolled to welcome Microsoft, Facebook, and data solutions, and ad operations. The IAB Additionally, Google committed to the it out to many cities including Boston, MediaLink to the Board of Directors, who train, volunteer, and help build a diverse Certification Program continues to grow Certification sponsoring a portion of the Chicago, Los Angeles, New York City, now join AOL as founding members. The DIVERSITY & THE TALENT POOL talent pool for the digital industry through in size and global recognition. In 2016, program development and underwriting San Francisco, and Washington, D.C. The Foundation is dedicated to championing iDiverse, the diversity and inclusion engagement with the local community. more than 2,500 new digital leaders have a large group of its own agency reps to course focuses on developing an advanced efforts to increase racial, ethnic, gender, and initiative of the IAB Education Foundation, taken part in the Sales, Ad Operations, take the exam and training across the next understanding of the programmatic media economic diversity in the digital industry. announced a goal of its own in 2016— and Data programs across 41 countries, twelve months. ecosystem, including an in-depth working 200 digital companies, 10,000 jobs, bringing the total number of participants to knowledge of the key technologies that TRAINING THE WORKFORCE 2020 workforce target. IAB is committed more than 10,000. make up today’s programmatic ad stack OF THE FUTURE to creating a pipeline of diverse and across display, mobile, video, social media, This August 2016, the IAB Education skilled workers to ensure the continued email marketing, and native advertising. Foundation’s inaugural cohort of the Digital health and vibrancy of the digital industry. Advertising Program began classes at the The ongoing demand from members for Additionally, the Foundation launched College of San Mateo. The Foundation IAB Learning and Certification programs the iDiverse Non-Profit Directory in also announced a partnership with the is a validation of how important training is August 2016. The Directory serves as the Borough of Manhattan Community College for the industry as a whole to extend the intermediary between non-profits and to bring the Digital Advertising Program to talent pipeline. those in the industry looking to mentor, the East Coast in 2017. Similar to the West Coast program, this four-month intensive training includes a Digital Advertising 2012-2016 IAB Certification Growth Certification and prepares diverse constituents for full-time employment in Ad The total number of Ops, Sales Support, Data Analytics, and participants Marketing. Students enrolled in the West in the IAB Coast program graduated in December Certification 2016 and will be interviewing for entry- Program surpassed level jobs in early 2017. 10,000 in 2016.

12 CERTIFICATION EDUCATION 13 ANNUAL REPORT 2016

political implications of television’s evolution and participants created an agenda for Virtual Reality Market Digital Video guiding the industry forward. Key next Snapshot Report Glossary steps­—including cross-platform sales training Recognizing that many IAB members The Digital Video Center also convened and building upon video measurement are increasing their participation and members of the Digital Video and Advanced SPURRING INNOVATION AND capabilities—are already underway for 2017. investment in the fast-moving VR and TV committees in a new working group to AR space, the IAB Mobile Marketing create a digital video glossary. The group STANDARDS IN DIGITAL VIDEO 2016 Original and Digital Video Centers of Excellence identified key video terms that require Digital Video Study published a report in September 2016 consistent, consensus definitions to help titled, “Is Virtual the New Reality?” The buyers and sellers understand the ever- In May 2016, IAB released the “2016 ccording to the 2015 Full-Year IAB Internet Advertising Revenue Report, digital original digital video programming since report offers observations and opinions changing video marketplace. The terms Original Digital Video Study” with the video (non-mobile) reached $4.2 billion in 2015 (a 30 percent rise over 2014) 2014. The study reinforces the critical role from a distinguished panel of over two curated and defined by the working group goal of highlighting original digital video and mobile video ads are also poised for rapid growth over the next five years. the event has played in media-buying dozen industry-leading voices in publishing, were published as a new IAB document. The A viewing behaviors for people age 18 and To further that advancement, the IAB Digital Video Marketing Center of Excellence has decisions. Eight out of 10 respondents said advertising, VR software, and developer working group will reconvene regularly to older, compared with their other online pushed forward the mission to grow, streamline, and improve the buying and selling of their attendance at the 2015 NewFronts platforms, analyzing virtual reality’s refresh the glossary and make sure it stays video and regular TV consumption. The video advertising. resulted in increased spending on original potential as an advertising and publishing relevant as the industry continues to evolve. comprehensive survey of over 1,900 digital video content in the 12 months that medium, and identifying key strengths consumers, produced by GfK, revealed DIGITAL VIDEO CENTER OF EXCELLENCE 2016 BOARD MEMBERSHIP followed, with TV-first buyers more likely to and challenges. Increased development that the audience consuming original digital Understanding commit more dollars up front, and digital-first of 360-degree video was singled out as video programming at least once a month buyers to spend more throughout the year. a likely first step in virtual reality’s growth Automation in grew steadily—from 45 million people in into a mainstream marketing channel. With Programmatic Video 2013 to approximately 63 million in early Video Leadership VR being such a new platform, advertising Despite the official IAB definition of 2016—and represented a nine percent capabilities are just now beginning to programmatic as “the automated buying Summit - increase in median household income year- emerge. As members increasingly engage and selling of inventory,” confusion over-year. In a clear sign of growing value Tele://Vision with VR, IAB is committed to playing the remains, especially in relation to video for advertisers, the study revealed that 38 As television transitions from a broadcast appropriate role in the medium’s evolution in the advertising marketplace. IAB’s percent of the original digital video audience news and entertainment medium distributed as an advertising platform. Digital Video Board saw this confusion found advertising on this format to be more over public airwaves and cable systems to a as an opportunity to shed light on the memorable, versus 29 percent from just a widely distributed IP-based communications programmatic video space for both media year earlier. The 18- to 34-year-old cord- Video Landscape Digital Content In conjunction with the NewFronts, IAB medium, IAB convened global leaders buyers and sellers through the development cutters, and “cord-nevers,” were even more Report released “Digital Content NewFronts: Video from blue chip advertising and technology of a white paper, representing a wide NewFronts likely to remember ads shown alongside As part of its continued effort to educate the Ad Spend Study 2016” highlighting a third companies at the inaugural Video Leadership range of viewpoints and perspectives The Digital Content NewFronts kicked original digital video content (48 percent advertising marketplace, in October 2016 year of increased budget allocations and Summit - Tele://Vision. The intimate event across the video ecosystem. Given the off in May 2016 with IAB serving as the today versus 27 percent a year ago). the IAB Video Center of Excellence released a 114 percent increase in ad spending on explored the economic, cultural, social, and growth of programmatic video—which managing partner for the fourth year in a its “Video Landscape Report.” This report eMarketer estimates made up more than row. Interest this year was unprecedented, distills current industry trends and helps to half of all U.S.-based digital video revenue with 37 publisher-presenters (nine of which educate the advertising marketplace about An all-star lineup of talent showcased in 2016—the stakes are high. The goals of were new to the NewFronts), and many the growth and value of video in reaching original digital video programming at the the paper are to foster an understanding standing-room only events. and engaging consumers. A compilation 2016 Digital Content NewFronts. of programmatic video, to help the buy of rich industry research and analysis, the side and sell side have more meaningful report contents were informed by interviews conversations, and, as a result, to better and feedback from more than a dozen enable the market to collectively leverage industry practitioners and subject matter the emerging technologies, scale, and experts including broadcast, cable, ad tech, efficiencies that programmatic video can digital pure plays, agencies, and brands, as bring to bear for our members. well as multiple stakeholders from the IAB Video Board and Video Buyer’s Advisory Board. Updates to the landscape report will take place every six months.

14 DIGITAL VIDEO 15 Mobile Marketplace 2016 The 2016 Mobile Marketplace held in April convened leading brands, agencies, and ACCELERATING THE publishers to discuss the way forward in creating content and brand experiences GROWTH OF MOBILE that flow fluidly across screens and borders.

he consumer march toward mobile continues, and we’ve gone from a world of content purchase interest and aiding product and platforms that are mobile-optimized and mobile-first to a new reality where discovery. And within the universe of mobile Mobile Center Fly-In Demystifying many consumers are mobile-only. The IAB Mobile Marketing Center of Excellence is shoppers, the study found that mobile wallet T In April 2016, members of the Mobile charged with driving the growth of mobile marketing, advertising, and media by creating users are the most active and engaged Mobile Terms Center of Excellence’s board of directors standards and best practices, and providing research and insights to accelerate the growth consumers, making more frequent purchases In October 2016, the IAB Mobile Center traveled to the nation’s capital for the of the mobile ecosystem. on their mobile devices. released the App Marketing Glossary, fifth annual Mobile Center Washington, providing a much needed source of D.C. Fly-In. The two-day program MOBILE CENTER OF EXCELLENCE 2016 BOARD MEMBERSHIP clear, concise definitions for commonly Mobile Location- included meetings with Congressmen, used terms in the rapidly growing app Senators, and key policy stakeholders. In based Marketing marketing industry. In 2015, mobile app their conversations with legislators, IAB In early 2016, the Mobile Center released install ads alone made up 25 percent of representatives emphasized the collective the “Mobile Location Data Guide for total U.S. mobile ad revenue, according role of self-regulation through industry-wide ® Publishers,” providing comprehensive to BI Intelligence. Primary tactics in app initiatives, such as LEAN, that develop and information for publishers looking to tap marketing include app installs, user retention promote guidelines for consumer-centric into the power of geomarketing. Offering and engagement, and app monetization. ad and content experiences. Members of practical advice for publishers on getting Stacy Minero, Head of Content Planning The glossary provides a one-stop shop of started using location data as well as how and Creative Agencies, Twitter, at the the Mobile Board also participated in a IAB Mobile Marketplace addressing the information for app developers looking to to expand and refine existing capabilities, well-received panel at the “State of Net” shortening attention span of consumers promote and monetize their apps, while conference, where they addressed the key the guide outlines key opportunities such and the seismic shift in video consumption streamlining communication and enabling to mobile. role of advertising within the larger digital as gaining a better understanding of smoother transactions between buyers and mobile audiences, enhancing mobile media ecosystem. Mobile World Mobile Commerce: Today’s consumers expertly navigate sellers within the app marketing ecosystem. inventory, and providing online-to-offline content in any and all forms, on any and Congress A Global sales attribution insights to advertisers. The all devices, and publishers Make Mobile Work With the global market encompassing 3.6 Perspective Mobile Center then hosted a town hall billion mobile subscribers and 2.6 billion and marketers must create With the goal of understanding mobile in July 2016, drawing on best practices for Marketers and smartphones, the ability to reach and customizable experiences that commerce at a global level, IAB from the guide. The event drew a packed connect with people and businesses in are tailor-made to each and Agencies commissioned an in-depth survey of mobile audience of publishers, providing practical The IAB Mobile Center continued its Make today’s global media landscape requires every moment. In particular, users and purchasers from 19 countries advice on how to leverage mobile location Mobile Work initiative with a series of much more than a mobile strategy. The most video consumption—both around the world. The resulting study— data to expand and refine existing informative webinars aimed at providing influential brand, agency, publisher, and short- and long-form—has released at this year’s MIXX conference targeting capabilities. It also highlighted the marketers and agencies with practical, technology leaders joined IAB and dmexco increased globally year- “Mobile Commerce: A Global Perspective”— opportunity for publishers to gain location- jargon-free advice on how to make mobile at Mobile World Congress in Barcelona, over-year, providing many finds that mobile shopping and purchasing driven insights from their mobile audiences, advertising work in a multi-screen world. Spain, in February 2016, to discuss more opportunities for media have become the norm across the globe, to enhance mobile inventory, and provide Webinar topics included “Build Creatives “Turning Mobile into Mobility: Innovation companies and brands to with 75 percent of smartphone and tablet online-to-offline sales attribution, illustrating that Work Across Devices,” “Make Mobile without Borders.” This invitation-only engage in this immersive format. users indicating they have purchased a how local mobile campaigns can drive foot Advertising Welcome by Consumers,” and event, sponsored by Facebook, Google, product or service on their smartphone or traffic to physical stores. “Going Beyond the Download: Engage and NASDAQ, gathered the most senior tablet in the past six months. The study also The Mobile Center of Excellence Your App Users.” Over the course of 2016, executives among the more than 94,000 Board of Directors at the fifth finds that mobile ads and social media play the Make Mobile Work webinar series attendees at Mobile World Congress. annual Mobile Center Fly-In. an increasingly important role, triggering garnered over 1,000 registrants.

16 ANNUAL REPORT 2016 MOBILE 17 ANNUAL REPORT 2016

DRIVING TRANSPARENCY AND ACCOUNTABILITY IN DATA

he Data Center of Excellence was founded in 2016 to drive the “data agenda” for to support their data-driven initiatives. In in July 2016, the model was detailed in to facilitate a shared understanding of how the digital media, marketing, and advertising industry. IAB Data Center’s mission is addition, 59 percent of those surveyed both a white paper entitled “Data Maturity Data Lexicon this data is used, the IAB Data Council Tto help publishers, advertisers, and marketers operationalize their data assets while agreed that dissolving organizational silos Model” and a companion website, The world of online advertising has developed a “Data Segments & Techniques maintaining quality, transparency, accountability, and consumer protection. Joe Zawadzki, would represent the most important step featuring four customized checklists for witnessed tectonic shifts in the last several Lexicon” which was extensively updated CEO of MediaMath, heads the Data Center of Excellence Board of Directors. their businesses could take to derive more self-evaluation. While the Data-Centric years. While many fundamentals of in early 2016. Whether thinking high- value from their use of audience data, Org project provides a perspective on interactive advertising have remained level about programmatic ad purchasing, constant, the evolution of mobile online DATA CENTER OF EXCELLENCE 2016 BOARD MEMBERSHIP which was the most striking takeaway the industry at large, the Data Maturity or diving into geodata or cross-device from the study. Model allows an organization to assess its advertising and marketers’ use of data has segmentation, there needs to be a common evolution relative to the industry. introduced new terminology that requires framework to keep pace with an industry in IAB Data Maturity standardization. As part of ongoing efforts constant transformation. Model Programmatic The IAB Data Maturity Model is a new Fee Transparency benchmarking system that enables brands, Calculator agencies, publishers, and data technology Advertisers and publishers need better vendors to determine where they or their tools for measuring programmatic costs, clients and prospects rank in data usage so in March 2016 the Programmatic sophistication, guiding further investment, Council launched a Programmatic Fee The Outlook for Transforming for the implementation, and strategy. Released Transparency Calculator, an interactive tool Data Next Generation of that provides advertisers and publishers IAB Data Center’s first body of work was a Audience Marketing with a granular, partner-specific evaluation study by IAB and Winterberry Group titled of their programmatic technology, service, IAB Data Center also partnered with the “The Outlook for Data 2016: A Snapshot and inventory costs as a percentage of Direct Marketing Association (DMA) on into Digital Media and the Evolving Role their effective CPM. Calculator users can a major piece of research conducted of Audience Insight.” In the survey, 70 enter their media plan channels and cost by Winterberry Group. The study, “The percent of responding marketers, media structures, and the calculator organizes Data-Centric Organization: Transforming buyers, publishers, and digital advertising and quantifies these investments based for the Next Generation of Audience technology executives said that “cross- on different suppliers’ roles in the supply Marketing,” was released in September device audience recognition” is a key chain. According to the 2014 IAB and 2016. The study, which surveyed over area of focus and innovation. The report PwC “Programmatic Revenue Report,” 200 advertisers, marketers, publishers, also found that 58 percent of respondents ad technology investments represent over technology developers, and marketing believe cross-channel measurement and half of programmatic expenditures. The service providers, reveals that one third attribution will command significant time calculator will reduce confusion about are “confident”—and just five percent are and attention in 2017. these fees, helping advertisers understand “extremely confident”—that their internal and control them. teams have the right skills and experience

Data Maturity Model Checklist (Publishers) IAB Programmatic Fee Transparency Calculator

18 DATA 19 Vibrant Media Westwood One VIDEA WE tv video intelligence AG WideOrbit Yahoo en Espanol VideoAmp Wiland YieldMo STEEL MEDIA Videology Wildfire YouTube SteelHouse Vidible WNYC YP StickyADS.tv Digilant Hotwire Vindico Worldata YuMe Strategy& (formerly Booz Virool WorldNow ZEDO Digital First Media Hulu & Company) Visible Measures Woven Digital Zefr Digital Photography HyprMX Mobile Strategy+Business Review VISIT FLORIDA WWE Zemanta I-Behavior Podtrac StubHub Discovery Communications Warner Bros. Media xAd Ziff Davis IDG Communications POPSUGAR Sublime Skinz IAB MEMBERS DISH Research XappMedia ZUMOBI IDG Consumer & SMB Sundance Channel Positive Mobile Washington Post Digital Xaxis Zynga Disney Interactive IDG TechNetwork SundaySky PowerLinks Media Watchwith XFire Dominion Digital Media IFC Swoop Prisa Digital WebMD XUMO Dow Jones & Company iFilm Swyft Media PROXi Digital WebSpectator Yahoo (Wall Street Journal) IGN Entertainment Synacor Drawbridge Publishers Clearing House iHeartMedia Digital (PCHdigital) Taboola Dstillery ImServices Group PubMatic Tapad he IAB mission is to empower the media and marketing industries to continue to thrive Earth Networks Inc.com PulsePoint Tapjoy eBay in the digital economy, and helping you—our members—is how we strengthen those Index Exchange MGID Purch TargetSpot NEW ASSOCIATE MEMBERS Ebiquity Micro Cube Digital Limited INFORM PushSpring Taunton Interactive Admiral Adblock Publisher FastPay Sensewhere Efficient Frontier Microsoft Advertising industries. IAB membership now includes more than 650 companies, and we thank all InMobi Quantcast Teads Solutions Good Apple Digital Sourcepoint Electric Sheep Midroll Media T Inneractive LTD Quotient Technorati Media Advertiser Perceptions Instart Logic SQAD Electronic Arts of our members for their support throughout the year. Innity Minnesota Public Media Radar Online Telemetry AIG eMarketer iOPEX Technologies Taco Bell Innovid Mirriad RadiumOne Telemundo Cadreon Emogi Magna Global Teralytics InStyle Mixpo Rakuten Marketing Teradata Coalition for Innovative engage:BDR Maru VRC Throtle Intersection MODE Media Rare Terra Networks (USA) Media Measurement Entertainment Weekly Pumpt Verto Analytics Investor’s Business Daily MONSTER RawVoice Test Com (CIMM) Epom Purina NEW GENERAL MEMBERS Iponweb MoPub Reader’s Digest The Daily News Acast CrossChannel Orange142 Unacast Equinix IRI Morningstar Association Interactive The Exchange Lab Activision Dailymotion Parsec Media Unity Technologies ESPN.com IronSource MTV Real Media Group The Guardian Adacado Eko Pixalate Vertebrae Essence Magazine Jivox Multiview Real Simple The Huffington Post AddNewer Eyeota Platform, Inc. Viant Everyday Health JUICE Mobile my6sense Realtor.com The Morning Call eXelate Adelphic Feature Forward Playboy Vidillion Jumpstart Automotive MySpace Realvu The New York Times ASSOCIATE MEMBERS Adsiduous Media Gruuv Interactive Programmatic Mechanics Viisights Expedia Media Solutions Media Nanigans Reelz Company ADVR HookLogic Public Media Marketing ViralGains Experian Marketing Jun Group NASCAR Refinery29 The New Yorker 6Sense Epsilon Projectize Media Services Adyoulike InfoSpace Sekindo Visa Advertising JW Player National Football League Resonate The Trade Desk AAM EY Redbooks Extreme Reach ALC Interpolls SITO Mobile Solutions Kantar Media (NFL) Reuters The Wall Street Journal Ace Metrix Forensiq Research Now eyeReturn Marketing Alphonso Jellyfish Skimlinks VisualDNA Kantar Video National Geographic Revision3 Digital Network Acquia GeoEdge ResponsiveAds Eyeview American Public Media LogoBar Enterprises Smithsonian Media Group Wondery Kargo National Public Media RevJet The Weather Company, Active International GfK North America Revolution Messaging Facebook AudioHQ Lucid Sight StickyAds Wrap Media KBM Group Nativo RhythmOne an IBM Business Ad-iD Ghostery RiskIQ Factual Blippar Madhive Tech Mpire YellowHammer Media Kelley Blue Book Nature Publishing Group Rocket Fuel TheStreet.com ADLOOX GroupM Rokkan Group Fandom powered by King Entertainment NBCUniversal Thinknear by Telenav Archer Advisors Havas Media Sales Athlete Media BroadSign Media iQ Digital The Mobile Majority Wikia Rodale Charter Communications Media.net Tiller Zergnet Kiosked NCC Media Roku This Old House Authenticated Digital iCrossing Network Fans 1st Media Kochava Netmining Time Inc. Avant Digital Media IHG Sorenson Media Connatix Micro Cube Digital UberMedia Fast Company Rubicon Project Krux NetSeer RUN Time Out America Bartle Bogle Hegarty Infinitive Szabo Associates FatTail Kudzu Network World Time Warner Cable BIA/Kelsey Innocean Worldwide Tania Feature Forward Salesforce Marketing LA Times Neustar Cloud Travel+Leisure Bionic Advertising Systems Integral Ad Science Television Bureau of Federated Media Leaf Group Ltd. New York Post Samsung Electronics Tremor Video Bonzai Intel Advertising GENERAL MEMBERS Firefly Video Legacy New York Public Radio America TreSensa BPA Worldwide IPG Mediabrands The Center For Sales Flashtalking Libsyn News Corporation SAS Institute Triad Retail Media BrightLine Ipsos Strategy 21st Century Fox AdTheorent Bazaarvoice Collective Flipboard LIN Digital Newsday Savings.com Tribal Fusion Burt Media Management Inc. The Media Trust Company 33Across Adversal.com BBC Worldwide Comcast Regional Sports Flite LinkedIn Nexstar Digital Scripps Networks TripAdvisor CDK Digital Marketing Media Rating Council Theorem Networks 4INFO Advertising Age Beachfront Media Fluent Liquidus Nick, Jr Interactive TripleLift Cisco MediaLink TiVo Research Comcast Spotlight 5min Media AdYapper BET Networks Flurry Lithium | Klout Nickelodeon Semcasting Triton Digital ClarityAd Merkle Toluna Comedy Central A+E Networks AerServ BidSwitch Food & Wine Live Nation NinthDecimal Shareablee Trivver Clearstream.TV Millward Brown Digital Unilever Complex Media AARP Affinity Express Bidtellect Forbes Media LiveIntent NovoRoll ShareThis Tronc comScore Moat Varick Media Condé Nast Management ABC News Alliant BlogHer Fortune LiveRail NPR Sharethrough true[X] Crowdtap Monotype ABC TV Network Allrecipes BlogTalkRadio Conde Nast, Foursquare Ooyala SheKnows TruEffect Visual IQ GQ Magazine LiveRamp Dell Nestle Purina About.com Altitude Digital Bloomberg FOX Networks Group OpenX Shopping.com TubeMogul VivaKi Connexity Lonely Planet Deloitte & Touche News Media Alliance Accordant Media Amazon Bloomberg Businessweek FOX News Channel Opera Mediaworks Signal Tubular Labs White Ops Conversant Media Lotame DeviceAtlas by dotMobi Outsourced Ad Ops AccuWeather AMC Bounce Exchange Fox Sports Opera Software Simpli.fi Tumblr Winterberry Group Convertro LotLinx Dieste Pivnet ActionX AMC Networks Digital Brides Magazine FreeWheel Optimatic Simulmedia Turn zVelo Core Audience Machinima DoubleVerify PMX Agency Acxiom American City Business Bright House Networks Fullscreen Optonline Sizmek Turner Broadcasting Cox Madison Logic Dun & Bradstreet PricewaterhouseCoopers Adadyn Journals Brightcove Gamut Oracle Skyhook Wireless System Cox Automotive Magnetic DWA Prohaska Consulting ADARA, Inc. American Express BrightRoll GasBuddy Orlando Sentinel Slate TV Land Publishing Cox Enterprise Major League Gaming Adbrain Burst Media Corporation Genesis Media Outbrain Smaato Twitch American Media, Inc. Cox Media Maker Studios AdColony BuzzFeed Golf Digest Outfront Media Smart AdServer Twitter Amobee Cox Media Group Mansueto Ventures AddThis C1 Exchange Golf Magazine OWN: The Oprah Winfrey SmartyAds Ubimo Aniview Cox Reps Marchex AdFin Cable One Advertising Goodway Group Network SnapChat Undertone IAB TECH LAB MEMBERS AnyClip Cox Target Media Markit On Demand Adform Cablevision Media Sales Google OwnerIQ Social Reality Univision AOL CPXi Mashable All IAB U.S. general members are automatically members of the IAB Tech Lab. AdGear Cablevision Systems Grab Media Match Media Group PadSquad Sonobi Unruly AOL Platforms Corporation Crackle Additional members include: AdLarge Media Grapeshot Matomy Media Pandora Sony Pictures Television US News & World AppNexus Cars.com Crain Communications adMarketplace Greenhouse Group MaxPoint Panoply Southern California Public Report AAM Ghostery PageFair AT&T AdWorks CBS Interactive Criteo AdMeld GumGum MEC Global Paramount Motion Pictures Radio USATODAY.com Admiral Adblock Publisher GroupM Pivnet Adobe Atlanta CBS Local CSO Online Hanley Wood PBS Southern Living Utah.com Solutions Improve Digital ResponsiveAds Journal-Constitution Media General Adometry Celtra Daily Press Hartford Courant PC World Sovrn V12 Group AndBeyond.media Instart Logic Sourcepoint AtomShockwave Mediabrix AdoTube Centro DailyMail.com/Elite Daily Harvard Business Review People Specific Media Valassis and Brand.net Authenticated Digital Integral Ad Science Teralytics Audience Partners Medialets AdRoll Cheetah Media Link DashBid Haystak Digital Marketing People En Espanol Speed Shift Media Valpak Baverianvine LogoBar Enterprises The Media Trust Company AudienceScience MediaMath Adslot Chicago Tribune DataXu Health.com Persado Spike TV Vdopia Blockthrough Lucid Sight Tiller Auditude MediaOcean AdsNative ChoiceStream Dealer.com HealthiNation PGA TOUR Spongecell Verizon Wireless Cedato Technologies Madhive Unacast Autotrader Mediative AdSpirit CIO Defy Media Hearst Magazines Digital Pinterest Sports Illustrated VertaMedia ClarityAd Moat White Ops BabyCenter Medicx Media Solutions Adswizz Clear Channel Outdoor Delivery Agent Media Pixability Spotify Verve Mobile Cognitiv Momentum Widespace Baltimore Sun Meredith Digital ADTECH Clipcentric Demandbase HIRO-Media PlaceIQ SpotX VEVO DeviceAtlas by dotMobi Monotype Yahoo Japan Corporation Barron’s MeritDirect Adtegrity CNN.com Departures Hotels.com PodcastOne StartApp Viacom Media Network DoubleVerify Neuranet Batanga Media

20 ANNUAL REPORT 2016 21 ANNUAL REPORT 2016 Working Groups and Task Forces Working groups are formed by members of committees and councils. They are smaller, more focused groups of members and aim to complete a project, initiative, or committee action that requires member contributions.

COMMITTEES AND COUNCILS Task forces are created to address an industry challenge or topic that is emerging and requires discussion, definition, and development of an IAB perspective. The groups may transition into a committee or council should the topic require numerous and long- hough the efforts of committees and councils in various industry segments, IAB helps Performance Marketing term resources. Task forces are made up mostly of invited members drive the industry forward. These groups include the brightest minds in the industry Committee John Busby, Marchex, and may include non-member partners should their expertise be Multicultural Day Tand work together to develop solutions that improve the interactive advertising and Co-Chair required to move forward. marketing ecosystem for everyone. Neil Hoyne, Google, Co-Chair IAB committees are based on specific platforms within the digital advertising medium. Social Media Committee Committee members work together to prove platform value or simplify the processes for IAB WORKING GROUPS AND IAB TECH LAB WORKING GROUPS AND Christine Cuoco, Twitter, TASK FORCES TASK FORCES buying, selling, and creating interactive advertising. Co-Chair Carine Roman, LinkedIn, Ad Effectiveness Studies Mobile Location Data Ad Blocking Working Group Mobile Rich Media Ad IAB councils are based on specific industry roles within members’ organizations. Council Co-Chair Working Group Working Group Interface Definitions Digital Video Ad Format members share best practices and develop tools to improve efficiency, provide thought (MRAID) Working Group Ad Ops Council Advanced Attribution Working Mobile Measurement Task Guidelines Working Group leadership, and grow digital advertising. Group Force MRAID Ads SDK Tester Advertising Technology Digital Video Technical Council Audio Events Working Group Mobile Video Task Force Standards Working Group OpenData Task Force Compensation Working Group Modernizing Measurement Display Creative Guidelines OpenDirect Working Group CFO Council Task Force Working Group Michael Waxman-Lenz, Connected Car Working OpenRTB Compliance Committees and Councils Undertone, Chair Group Native Advertising Playbook - Header Tag Task Force Working Group Advanced TV Committee B2B Committee Digital Video Committee V2 Working Group Data Council Cross Platform Ad HTML5 Best Practices Task OpenRTB Native Working Chris Falkner, NBCUniversal, Andrew Goldman, LinkedIn, Matthew B. Corbin, Facebook, Khurrum Malik, Facebook, Effectiveness Research OTT Video Working Group Force Group Co-Chair Co-Chair Co-Chair Chair Working Group Adam J. Lowy, DISH, Steven Suthiana, Mansueto Jarred Wilichinsky, CBS Podcast Business Working Dynamic Content Ad OpenRTB Working Group Co-Chair Ventures, Co-Chair Interactive, Co-Chair Cross Platform Measurement Group Standards Working Group Legal Affairs Council Issues Working Group OpenVV Work Group Stephen Hicks, Ziff Davis, Programmatic Education - Sell Flex Ad Standards Working Audio Committee Digital Out of Home Games Committee Chair Data Measurement Research Side Group Podcast Technical Working Scott Liss, iHeartMedia, Committee Kym Nelson, Twitch, Co-Chair Working Group Group Co-Chair Rainbow Kirby, Clear Channel Julie Shumaker, Unity Multicultural Council Programmatic Fee In-App Viewability Douglas Sterne, Pandora, Outdoor, Co-Chair Technologies, Co-Chair Data Quality Project Working Transparency Working Measurement Taxonomy and Mapping Diego Antista, Google, Working Group Co-Chair Margit Kittridge, Intersection, Co-Chair Group Group Standardization Working Co-Chair Local Committee Group Liz Blacker, iHeartMedia, Data Revenue Report Working Programmatic Lexicon TV Convergence Technical Kristen Berke, tronc, Co-Chair Co-Chair Task Force Nickelle Sletteland, Verve Group Working Group Mobile, Co-Chair Programmatic Council Digital Audio Buyers Guide Programmatic Video Working Bob Arnold, Google, Working Group Group Mobile Advertising Committee Co-Chair Kurt Hawks, Conversant Digital Video Glossary Retailers’ Location Data Guide Jason Fairchild, OpenX, Working Group Working Group Media, Chair Co-Chair Native Advertising/Content Jason White, CBS Interactive, Diversity and Inclusion Task The Comprehensive Committee Co-Chair Force Multicultural Guide Ari Lewine, TripleLift, Public Policy Council Header Bidding Working Vertical Video Working Group Co-Chair Group Video Center T&Cs Steering Ann Marinovich, Forbes Research Council Media, Co-Chair Messaging App Marketing Committee Working Group Stephanie Fried, Condé Nast, Working Group Asher Rapkin, Facebook, Co-Chair Co-Chair Dan Murphy, Univision, Mobile App Marketing Co-Chair Working Group Mobile Identity Working Group The Blurred Lines Between Digital Out-of- Home & Mobile How to Get in the Game: Game Advertising Showcase

22 COMMITEES AND COUNCILS 23 discussed the FTC guidance in a fireside featuring speakers from Facebook and published three “Best Practices” pieces: chat with IAB’s Brad Weltman. In December Messenger, The Washington Post, Match “Multicultural Search,” “LGBTQ Top 10 Best 2016, IAB hosted a member-only webinar Media, Swyft Media, and more. Practices,” and “Multicultural Programmatic with IAB Public Policy and Venable to Best Practices” to navigate challenges, IAB, along with members of the Digital outline the differences between FTC Native develop authentic creative, and help Audio Committee, have pursued a goal of Game Advertising and FTC Endorsement guidance in light of marketers be more effective. SOLUTIONS THAT IMPROVE educating marketers and agencies about 2016 FTC actions. Focus on Brands THE DIGITAL ECOSYSTEM digital audio advertising opportunities, and In March 2016, the Games Committee was B2B Digital discussing best practices and guidelines for The IAB voice was represented at the once again represented at SXSW with a reducing operational costs while driving Content Marketing World conference panel titled “How All Brands Can Win with Predictions sector growth. The November 2016 release in Cleveland in September 2016 with a Game Advertising” featuring Facebook, Following the publication of a B2B omprised of representatives from IAB member companies, committees and councils of the “IAB Digital Audio Buyer’s Guide” panel titled “Great Content. Now What Nielsen, and Twitch. The Game Committee Committee member crowdsourced drive the industry forward in industry segments that are vital for our members with dives further into these points and answer Are You Going to Do With It?” The panel also held its first ever Game Advertising B2B 2016 Digital Predictions piece, the in-depth research, best practices development, and other essential activities. In C questions that creatives, planners, and featured co-chair leadership speakers Showcase in July 2016. The event featured committee agreed to prepare a B2B KPI 2016, these groups were indispensable in developing practical and scalable solutions for buyers have about investment in digital from LinkedIn, Forbes, and TripleLift who research from Nielsen and Unity along with report. Despite the diverse composition of the benefit of the industry, particularly in the areas of digital audio, digital out-of-home, audio advertising. exchanged viewpoints on various paid brand advertising case study presentations the nearly 150 active committee members, native advertising, and gaming. content distribution options. IAB ended the from Twitch, MediaBrix, TreSensa, Zynga, one resounding similarity shone through: Understanding year with a predictions piece featuring 28 and Absolut Labs. Over 350 participants B2B marketers have moved well beyond The event aimed to educate and raise member contributions about what will stay registered for the event which was held the click as a leading metric of success, and Innovation in awareness around the power of podcasts Digital Out-of-Home the same or change in 2017. Most agreed at Tumblr headquarters in New York City. are moving toward a more holistic view of as a valuable platform to reach consumers, Digital Audio Experiences that mobile, video, and data will be the In November 2016, a shorter version of digital campaign effectiveness. and nearly doubled in size this year. The demand for digital audio is growing, The Digital Out-of-Home (DOOH) Task native game changers. the Game Case Study Showcase was driven by connected lives that rely more Leaders in the podcast space spoke to Force released the “Digital Out-Of-Home On the social media front, IAB was presented at Social Media Week in and more on mobile devices. In September an engaged audience including keynotes Buyer’s Guide” in February 2016, with represented at Social Media Week to Chicago to a largely buy-side audience. 2016, the IAB Audio Committee worked from Questlove, Malcolm Gladwell, and an accompanying blog post on IAB.com. discuss the Media Rating Council (MRC) to produce the IAB Podcast Upfront, a one- more. At the event, the Audio Committee The report highlighted the strong and Social Media Measurement Guidelines Multicultural Best day marketplace designed for advertisers released the “IAB-Edison Research Podcast steady growth of Digital Out-of-Home as issued in December 2015. IAB moderated and media buyers to Advertising Study” which surveyed Practices well as opportunities for marketers who a panel with executives from MRC, 4A’s, preview the latest in nearly 1,000 podcast listeners The IAB Multicultural Council hosted a have considered investment in DOOH. WOMMA, and The Coca-Cola Company innovative podcast and found that 65 percent of Multicultural Day at Google. The Council To bring this accomplishment to life, the to discuss how the entire industry can win programming from fans are more willing to also launched the IAB Multicultural DOOH Task Force hosted a breakfast with these guidelines in place. consider purchasing products some of the biggest event at IAB’s AdLab in May 2016 to Resource Hub on iab.com, an initiative to and services they learn about names in the digital create a live discussion on the topic of establish best practices that will support during a podcast. Advertising and audio arena. “Blurred Lines Between Digital Out-of- buy-side agency and brand partners in Home and Mobile.” Messaging Apps navigating multicultural advertising in the A working group comprised of “new America.” Council members wrote Native Advertising approximately 40 members from the Native, Social, and Mobile Committees, and Social published a document in December Measurement 2016 which serves as a helpful first step For Native, much of IAB’s focus was in providing both publishers and marketers on disclosure in light of the December with some basic parameters for evaluating 2015 FTC guidance. In March 2016, the various options in this rapidly evolving IAB welcomed Laura Sullivan from the space in the U.S. It also emphasizes the IAB importance of putting the consumer first Federal Trade Commission (FTC) Bureau Multicultural of Consumer Protection, who for a second when it comes to marketing activations. Resource Hub time visited IAB in New York where she Alongside that, the group hosted a one-sheets Messaging Case Study event to share At the 2016 IAB Podcast Upfront, over 40 podcast stars, A-list celebrities, and surprise guests shared the latest in innovative industry best practices with members podcast programming and content offerings for brands.

24 ANNUAL REPORT 2016 COMMITEES AND COUNCILS AT WORK 25 ANNUAL REPORT 2016

AD EFFECTIVENESS AND STANDARDS FOR CROSS-PLATFORM SUCCESS

he ability to count media exposures and message frequency across channels is Guidelines for mobile web and mobile foundational to assessing ad effectiveness and the relative contributions of individual in-app advertising in the “Mobile Web Understanding T touchpoints towards marketing objectives. IAB is committed to helping the industry Advertising Measurement Guidelines” Attribution and define metrics across all forms and media formats—including mobile video, native, and (version 3.0) and “Mobile Application Cross-Screen Paths audio—to make cross-media planning, buying, and analysis comparable, so brand Advertising Measurement Guidelines” advertising budgets can flow to digital media. (version 2.0). This important update to Conversion At the 2016 IAB Ad Operations Summit, eliminates “count on decision” as an As the industry acclimates to the George Ivie, Chief Executive Officer, 2016 to present and discuss the primer Executive Director, Media Rating Council, Improving Ad option for reporting served impression unprecedented control and precision provided an update on the state of the and foster industry-wide conversation on counts to ensure that counting occurs only that programmatic tools afford, there market, including insights into an audience- Viewability improving viewability. after an ad is actually delivered to has yet to be sufficient progress in one based currency standard to facilitate cross- media comparisons. To continue supporting the tremendous IAB is taking a more aggressive stance a mobile app or browser. Mobile Viewable important area: attribution. To address progress made in viewable ad this gap, the IAB Performance Committee towards agencies’ inconsistent practices and In December 2016, IAB, MRC, and the Advertising Impression impressions in the marketplace, at the focused specifically on buy-side attribution resistance to industry consensus, including Mobile Marketing Association (MMA) beginning of 2016 IAB distilled and guidance in 2016, ensuring the industry a revamped “Attribution Primer 2.0”—the an op-ed in AdAge entitled “It’s Time to released major overhauls to the “Mobile Measurement outlined a range of successful tactics has a well-researched, descriptive first significant overhaul of IAB’s attribution Fix the Viewability Tower of Babel.” IAB is In-App Measurement and Mobile Web Guidelines for improving ad viewability in the first shining a bright light on this issue and calling overview of the fundamental techniques guidance since 2012—this rebuilt and Measurement Guidelines” for public The MRC, together with IAB, MMA, “Primer for Publishers on Improving the industry to the table to collectively solve and data points that practitioners use to modernized document accounts for comment. The revised guidelines shift and other 3MS members issued the final Ad Viewability.” The purpose of the this problem. Duration-based metrics are the assemble a single user-level view of media the many developments in cross-screen both mobile in-app and mobile web from version of its “Mobile Viewable Advertising primer was to guide publishers in their next step, and IAB made strides in 2016 to exposure across channels, as well as the measurement and data collection over the a “count-on-download” minimum to a Impression Measurement Guidelines” in endeavors to increase the viewability begin to address this challenge as well. primary methodologies used to assign past five years, and fills six specific gaps in “count-on-begin-to-render” ad impression June 2016. The final version was based in of display and video ads on their sites, value to those touchpoints. Captured in previous marketplace guidance: measurement minimum. The change part on cross-industry input received during thus improving the value of those ads for Continued Updates will better align measurement of these a 30-day public comment period. The advertisers and marketers, while also impressions with the counting model in document offers guidance for measuring The need to incorporate user-level, deterministic, and probabilistic device mapping as delivering a better user experience. The on Ad Impression place for viewable impressions. At the viewable impressions in mobile web a necessary foundation for understanding cross-screen path to conversion primer identifies four primary levers that Measurement same time, IAB, IAB Tech Lab, and the and mobile in-app environments and can drastically improve ad viewability: The centrality of path-to-conversion analysis to allow practitioners to infer behavioral To promote improved digital advertising MRC also introduced a proposed revision supersede all previous MRC guidance on scenarios that are likely to produce desired outcomes measurement and to the “Desktop Display Served Impression the measurement of viewable impressions strive for measurement Guideline,” shifting desktop digital ad of advertising that appears in mobile The general consensus on how to apply credit to events in path: simplistic alignment across measurement away from a minimum environments. The final release of the approaches, fractional rules-based approaches, and fractional algorithmic platforms, IAB has of “count-on-ad-insertion” approach to “Mobile Viewability Guidelines” represents approaches continued efforts to a “count-on-begin-to-render” model. the last step in “Defining Impressions,” the update ad impression With this move, mobile and desktop first principle within Making Measurement The need to account for online-to-offline attribution options, specifically visitation, measurement on both measurement will be more closely in sync Make Sense’s (3MS) five principles of purchases, and phone calls mobile and desktop. with digital video measurement. digital measurement. With Viewable Descriptions of common challenges around attribution model scope, optimization Impressions—across desktop and mobile engaging editorial content, site redesign, In April 2016, IAB, in collaboration with lag, and managing optimization throughout the purchase funnel latency improvements, and ad tech the Mobile Marketing Association (MMA) environments—now clearly defined, MRC strategy and policy changes. IAB hosted and the Media Rating Council (MRC), and 3MS will move forward to address Overview of the need for practitioners to focus on better, not perfect solutions, and to a 3MS Educational Forum in March released the updates to the Measurement digital and cross-media audience currency. iterate and refine methodologies over time, given the tools available to the industry

26 MEASUREMENT 27 Digital Marketplace Influence Intelligence IAB ONLINE HOLIDAY IAB/PWC INTERNET AD REVENUE 2016 SHOPPERS AND DIGITAL Emerging Technology HALF YEAR REPORT INFLUENCE Digital advertising revenues in the United States THE INTERNET OF THINGS One-third of holiday shoppers for the first half of 2016 reached an all-time Nearly two-thirds (62 percent) of Americans own at least one internet of things IAB RESEARCH plan to do most of their high, scaling to $32.7 billion. This represents a (IoT) connected device, and 65 percent are considering buying one. The report shopping online, and these 19 percent increase over 2015’s then record- explores consumer attitudes and usage of various connected devices along online-first holiday shoppers setting half-year revenues of $27.5 billion. with a profile of who these device owners are. The study takes a further look tend to be younger with Notably, mobile ad revenue now accounts for into consumer attitudes towards messaging and the potential for ads on such he research produced by IAB helps guide and advance the digital media and higher incomes. They are also 47 percent of digital ad revenue for the first half devices, revealing that 65 percent are willing to receive ads on IoT screens in advertising industry by delivering information that our members and partners need to more likely than the general of 2016. exchange for offers. build brands and business—and inform them how media matters. population to research and buy T gifts using their smartphones. IAB/PWC INTERNET AD REVENUE 2015 IS VIRTUAL THE NEW REALITY? FULL YEAR REPORT THE RACE FOR THE WHITE This comprehensive report explores virtual reality’s promise and pitfalls as the Overall digital and mobile ad revenue has HOUSE 2016: REGISTERED “the next big thing” in digital advertising. Interviews with two dozen leading grown a full 20 percent over 2014 to reach an VOTERS AND MEDIA AND Digital Video voices in advertising, publishing, VR software, and developer platforms offer all-time high of $59.6 billion—and represents the INFORMATION DURING key takeaways, lessons learned, and future plans in the emerging virtual reality VIDEO LANDSCAPE REPORT THE PRIMARIES sixth year in a row of double-digit growth for the field, including thoughts on augmented reality and 360-degree video. As part of our continued effort to simplify video and educate the advertising marketplace about the Digital media has reached industry. Mobile, Video, and Social continue to growth and value of video, this report was compiled from existing industry research and analysis, parity, with TV as a primary show strong growth. In addition, 2015’s fourth- and consultations with more than a dozen industry practitioners and subject matter experts from information source about quarter numbers reached $17.4 billion, a 23 broadcast, cable, ad tech, digital pure plays, agencies, and brands. presidential candidates (61 percent increase from $14.2 billion in Q4 2014, percent for both digital and TV) and an 18 percent increase from the $14.7 2016 ORIGINAL DIGITAL VIDEO STUDY and political issues (67 percent Mobile billion in 2015’s third-quarter. This study was part of a comprehensive research program around the NewFronts, tracking for digital vs. 69 percent MULTISCREEN VIDEO BEST PRACTICES: MID-YEAR 2016 IAB CONSUMER consumer attitudes, awareness, and usage of original digital video. In its fourth year, the purpose UNDERSTANDING THE NEXT WAVE OF VIDEO AD for TV) among registered USAGE DIGITAL TREND REPORT of this study is to benchmark how many consumers are watching original digital video, and to RECEPTIVITY U.S. voters. More politically This report looks at consumer usage patterns inform the buying community about what consumers do, watch, think, and feel about original, This research was conducted to understand which qualities involved and influential voters of desktop and mobile sites, apps, and videos professionally produced digital video content. of mobile video advertising are most important in breaking rely on digital sources more over the first half of 2016, and compares it to through to audiences, and how these vary across generations. It than on TV for candidate and 2015. As of June 2016, two-thirds of all time 2016 IAB DIGITAL VIDEO AD SPEND STUDY features findings from a proprietary advertising study conducted issue information. spent online was spent on a mobile device. In its fourth year, this annual IAB survey revealed the NewFronts’ direct impact on ad spend: 8 to understand the differential impact of creative length and in 10 attendees spend more than planned on original digital video advertising, with TV-focused screen size variables in driving advertising effectiveness. 2015 YEAR IN REVIEW: IAB buyers spending more upfront while digital-focused spend more throughout the year. Advertisers CONSUMER DIGITAL USAGE TREND and media buyers have doubled their investments in original digital video programming over the UNDERSTANDING DIGITAL COMMERCE IN THE U.S. REPORT & CHINA past two years. Ad Blocking Overall digital and mobile internet use has A study which shows that digital commerce is strong in the grown slightly over the year as internet AD BLOCKING REPORT: WHO world’s two largest economies, U.S. and China. Chinese digital BLOCKS ADS, WHY, AND HOW usage continues to shift from computers to users engage in more shopping behaviors on smartphones and TO WIN THEM BACK mobile devices, particularly among younger tablets than those in the U.S. An IAB consumer research study that demographics. The report covers which Data examines drivers of ad blocking, A GLOBAL PERSPECTIVE OF MOBILE COMMERCE devices consumers are using, which sites THE DATA-CENTRIC ORGANIZATION: TRANSFORMING FOR THE NEXT including which ad elements rank Mobile shopping and purchasing have become the norm across they’re visiting, for how long, and how this has GENERATION OF AUDIENCE MARKETING highest in annoyance, and follows the globe. This research explores the similarities and differences changed over the year. A white paper showing that a lack of talent and ongoing functional silos are major up with testing potential solutions to in consumer purchase and payment activities that take place on hurdles to taking full advantage of “big data.” ad blocking. The research shows that THE IMPACT OF DIGITAL MEDIA mobile devices. A compilation of IAB research that illustrates THE OUTLOOK FOR DATA 2016: A SNAPSHOT INTO DIGITAL MEDIA while 27 percent of consumers block AND THE EVOLVING ROLE OF AUDIENCE INSIGHT ads, two-thirds of U.S. consumers SEEKING BETTER MOBILE AD EXPERIENCES: THE the power, influence, and impact of digital This inaugural study found that digital media practitioners focused their 2015 efforts using ad blockers can be convinced to SCROLLER AD CONCEPT media on consumers, advertisers, and predominantly on the continued expansion of their programmatic display media uninstall their ad blocking software. This study takes a look at an emerging mobile ad concept, the spending. It also shows the growth of digital buying initiatives. In the year ahead, these same stakeholders expect to shift their scroller. Although not an IAB standard unit, several vendors and mobile media in terms of consumer usage attention and resources to programmatic approaches across emerging channels and offer variations on the scroller concept, and publishers have and ad revenue. formats—as well as to develop solutions for audience recognition across devices. started to adopt it. The scroller runs inline within a content feed, scrolling smoothly onto and off the screen as a user scrolls through an article. While it is a large canvas, because it is inline in a feed it does not run on top of or block underlying content, a major user annoyance. 28 ANNUAL REPORT 2016 IAB RESEARCH 29 Judy Lee, Facebook, Ian Carrington, Google, Adam Kostyál, Nasdaq IAB at Mobile World Congress

Meredith Kopit Levien, New York Times IAB EVENTS MIXX

t IAB, events bring together our members and attract the most important innovators to the stage to tackle the most pressing issues Afacing our industry in the U.S. and around the world. From the Video Leadership Summit: Tele://Vision and the Ad Blocking and User Experience Sridhar Karin Timpone, Michael Smith, Hearst Magazines Summit to Mobile World Congress in Barcelona and a presence at Cannes, Ramaswamy, Marriott Digital Media Google IAB MIXX IAB Ad Blocking Summit media executives and digital IAB Annual influencers from around the Leadership Shaquille Meeting Marisa Thalberg, globe attended more than O’Neal Taco Bell 100 IAB events and Podcast IAB Annual conferences in 2016. Upfront Leadership Meeting Travis Coleman, Millward Brown Digital IAB Mobile Marketplace

Sam Cox, MediaMath IAB Programmatic Marketplace Andrew Bosworth, Katie Couric Adam Bain, Lauren Wiener, Tremor Video Peter Naylor, Hulu, Facebook IAB Podcast formerly of IAB MIXX Julian Zilberbrand, IAB MIXX Upfront Twitter Viacom Media IAB MIXX Networks Video Leadership Summit

Susan Schiekofer, groupM Deborah Wahl, IAB Ad Travis Coleman, Millward Michael Bendell, McDonald’s Operations Brown Digital SheKnows Media IAB MIXX Summit IAB Mobile Marketplace IAB Ad Blocking Summit

30 ANNUAL REPORT 2016 IAB EVENTS 31 ANNUAL REPORT 2016 ANNUAL REPORT 2016

RECOGNIZING WORLD-CLASS CREATIVITY IAB INTERNATIONAL: TO ENGAGE AND DELIGHT CONSUMERS AN EMPHASIS ON POLICY

igital advertising is largely a child IAB@CANNES: WHY everaging the strength and activities in all of these countries and of technology, and as a result, it’s WORLD CLASS collaboration of the IAB Global across borders in 2017 and beyond to Andrew Ross Sorkin, The New York Times, at the CREATIVITY WILL IAB Global Summit. Dbeen oriented around systems and OBLITERATE AD L Network, and encompassing 44 help government entities understand which processes, rather than the aesthetics and BLOCKING IAB organizations across six continents, regulations can be good for the industry and Investment Management Marketing ideas that captivate hearts and minds and Putting user experience first in 2016, IAB International was intently and to promote responsible growth. Executive at Bank of America, was allow brands to change consumer behavior. is crucial to maintaining the focused on global policy initiatives, interviewed by Lisa Donohue, Global Brand To refocus the industry toward truly inspiring open, ad-supported web including coordinating policy across IAB GLOBAL SUMMIT President of Starcom Worldwide, about creative, in 2016 IAB shared insights from and its wealth of free news, borders and encouraging proactive The annual IAB Global Summit welcomed how to move a brand forward and use senior leaders in the industry on the best information, and entertainment industry self-regulation. industry leaders from around the world for technology to connect to consumers, drive practical ways to improve user experience, offerings. IAB has helped an invitation-only event exploring the theme innovation, and compete in an environment as well as thought-provoking perspectives to lead the way by championing AD BLOCKING AND “Putting Consumers First: Refocusing the where disruption is the norm. Meredith further spark creative thinking. the LEAN scoring system, STANDARDS IN A GLOBAL Global Digital Advertising Industry.” On Jess Greenwood, R/GA, and Mark CONTEXT Kopit Levien, Executive Vice President and by convening an Ad Blocking and User September 28 and 29, 2016, over 100 Thompson, The New York Times Company Publishers in countries such as France, CRO of The New York Times Company, IMPROVING DIGITAL AD Experience Summit, and by hosting an senior executives from global brands, media at the Cannes Lions Festival of Creativity Sweden, Germany, the Netherlands, and joined Andrew Ross Sorkin, Financial EXPERIENCES ON MOBILE incredibly popular session at Cannes called discussing how creativity and technology agencies, publishers, and ad technology PLATFORMS the U.K. are putting DEAL (Detect, Explain, Columnist at The New York Times, to discuss “BLØCK YOU: Why World Class Creativity can and should come together. companies, from 30 countries, convened Consumers with increasing fluidity are Ask, and Limit - a recommended approach the importance of credible reporting, and Will Obliterate Ad Blocking” that featured in New York City—with day one graciously moving across devices in an ever more for publishers to connect with ad blocking what works across boundaries and media Mark Thompson, President and CEO of hosted by Bank of America at the Bank mobile landscape. The challenge for Boff, CMO of GE; among others. The consumers) into action. Publishers are borders. Su Tong, Founder and CEO of The New York Times Company, and Jessica of America Tower at One Bryant Park— advertisers lies in how to unlock the kind of report presents the best-of-the-best in actively engaging with their users and Hylink Digital Solutions, provided insights Greenwood, Vice President, Content & to discuss the salient issues that affect us creativity to engage and delight consumers digital marketing that brands and agencies proactively communicating with consumers on ever-growing Chinese market and how Partnerships at R/GA. locally and drive us globally. The two-day in these momentary environments by alike can apply to their creative thinking. about the importance of digital advertising. to engage with it. Jim Norton, now Chief event included Town Halls on policy, ad delivering the most relevant message at International companies—members of the Business Officer, President of Revenue at A MASTER CLASS IN “WHAT IAB Global Network—continue to submit fraud, and transparency; the digital video; the right time and place. In June 2016, IAB WORKS AND WHY IN IAB MIXX 2016 Condé Nast, and 2017 Chair IAB Board the IAB Tech Lab, LEAN scoring, and the released a white paper—in partnership with DIGITAL” The 2016 IAB MIXX conference was requests for the exclusive ad blocking of Directors, presented in his former role new flexible ad portfolio; optimizing data Kargo and Refinery29—that revealed nearly To help educate and improve digital themed “Advertising’s New World Order,” detection script from the IAB Tech Lab. as Global Head of Media Sales at AOL, usage; and training, talent, and diversity. three-quarters (73%) of marketers and advertising, IAB tapped into the MIXX acknowledging the innovation and Before the IAB New Ad Portfolio was and discussed how to structure and service media agency executives believe that user Awards and expert analysis from creative chaos seen on every platform, as well as released for open public comment, it Meredith Verdone, Senior Vice President, global ad partnerships. And Jessica experience needs improvement in digital luminaries, brand marketing powerhouses, consumers’ demand for more original, was previewed with IAB Europe’s Brand Enterprise, Consumer & Global Wealth, Greenwood, Vice President, Content & marketing. The survey’s 283 respondents and blue-chip publishers in a report on personal, and provocative experiences. Advertising Committee, presented at an IAB Partnerships at cited ad clutter as the biggest obstacle to “What Works and Why in Digital: IAB Among the influential speakers at the event Tech Lab event in London, and discussed R/GA explored key quality user experience (54%). The report MIXX Awards 2016 Insights Report.” The were Deborah Wahl, Senior Vice President with the representatives from IAB Global user experience offers insights from senior leaders in the report features insights from Michael and CMO of McDonald’s; Bryan Weiner, Network at the IAB Global Summit. challenges and the industry including Lars Bastholm, Global Lebowitz, Founder and CEO of Big Executive Chairman of 360i; and Adam International IABs have encouraged importance of creativity Chief Creative Officer, The ZOO at Google; Spaceship who chaired the IAB MIXX Bosworth, Vice President, Ads & Business their members to participate in the public in solving them. Jed Hartman, Chief Revenue Officer atThe Awards jury; Nick Law, Global Chief Platform at Facebook; to name a few. The comment period, ensuring global input. Washington Post; and David Sable, Global Creative Officer at R/GA; Mark D’Arcy, event was sold out again in 2016, and the Meredith Verdone, Bank of Overall, 2016 marked a growing spirit Chief Executive Officer of Y&R on the best Vice President and Chief Creative Officer feedback from members and attendees was America, and Lisa Donohue, of collaboration in the international Starcom Worldwide at the IAB practical ways to improve user experience. of Facebook Creative Shop; and Linda overwhelmingly positive. marketplace. IAB expects increased Global Summit

32 CREATIVITY INTERNATIONAL 33 STAFF PRESIDENT & CHIEF EXECUTIVE OFFICER SENIOR VICE PRESIDENT AND Randall Rothenberg — [email protected] GENERAL MANAGER, MOBILE AND VIDEO CENTERS EXECUTIVE VICE PRESIDENT & CHIEF Anna Bager — [email protected] OPERATING OFFICER Patrick Dolan — [email protected] SENIOR VICE PRESIDENT, DATA AND AD EFFECTIVENESS, AND GENERAL MANAGER, WHO IS IAB? EXECUTIVE VICE PRESIDENT & CHIEF IAB DATA CENTER MARKETING OFFICER Dennis Buchheim — [email protected] David Doty — [email protected] SENIOR VICE PRESIDENT, TECHNOLOGY FOR GENERAL EXECUTIVE VICE PRESIDENT PUBLIC POLICY AND AD OPERATIONS, AND GENERAL INFORMATION ABOUT EXECUTIVE COMMITTEE 2016 Dave Grimaldi — [email protected] MANAGER, IAB TECH LAB IAB, PLEASE BOARD PRESIDENT Joe Apprendi Rik van der Kooi Alanna Gombert — [email protected] CONTACT US AT: Randall Rothenberg Collective Microsoft Advertising President and CEO Interactive Advertising Bureau David Morris EX-OFFICIO MEMBER OF Phil Ardizzone Zhana Edmonds Edwin Orta Tina Shih 116 East 27th Street, 6th Floor BOARD CHAIR CBS Interactive EXECUTIVE COMMITTEE Senior Director, Sales Senior Manager, Events Senior Facility Manager Director, Marketing [email protected] [email protected] [email protected] [email protected] New York, New York 10016 Lauren Wiener Scott Schiller David Moore 212 380 4700 Tremor Video NBCUniversal Xaxis Christa Babcock Ilham Elkatani Mina Pajevic Shailley Singh VP Learning and Certification Manager, Product Manager Coordinator, IAB Tech Lab Senior Director, Product and www.iab.com BOARD VICE CHAIR Vivek Shah [email protected] [email protected] [email protected] Research & Development Ziff Davis, LLC Jim Norton Laura Baker Chris Glushko Dharmik Patel [email protected] Condé Nast Senior Manager, IAB Ad Lab VP, Marketing Software Engineer Janet Slavinsky [email protected] [email protected] [email protected] Director, HR BOARD OF DIRECTORS 2016 Val Baron John Grifferty Myrna Perez [email protected] Director, Video Senior Manager, Member Coordinator, Finance Kristina Sruoginis Lee Brown Meredith Kopit Levien Brad Smallwood [email protected] BuzzFeed The New York Times Company Facebook [email protected] Relations Director, Research Kevin Blouin [email protected] Alexander Propes [email protected] Seth Dallaire Seth Ladetsky Jeremy Steinberg Director Public Policy Amazon Media Group Turner Broadcasting System The Weather Company Senior Manager, Business Natalie Hamingson Christopher Staley Operations Coordinator, Member Services [email protected] Manager, SF AD LAB and Office Mark Ellis Warren Lapa John Trimble [email protected] [email protected] Bandita Ray Manager Time Inc. Spectrum Reach Pandora Susan Borst Megan Hauck Coordianator, Data Entry & [email protected] Rick Erwin Mark Lopez Lisa Utzschneider Deputy Director, Mobile Director, Education Foundation Integrity Brooke Stevens Acxiom Univision Communications Inc. Yahoo [email protected] [email protected] [email protected] Account Manager Eric Franchi Jean-Philippe (JP) Maheu Lisa Valentino Erika Bradbury Conor Healy Kori Reese [email protected] Undertone Twitter Condé Nast Director, Conference Programs Director, IT Executive Assistant Michael Texidor [email protected] John Frelinghuysen Kirk McDonald Jacob Weisberg [email protected] [email protected] Director, Certification Operations Disney|ABC Television PubMatic Slate Diana Braithwaite Skylar Hogan Kenya Reynolds [email protected] Coordinator, Education Coordinator Events Senior Manager, Mobile & Brianna Theobald Keith Grossman Marian Pittman Rick Welday Foundation [email protected] Video Coordinator, Learning & Bloomberg Media Cox Media Group AT&T Adworks [email protected] [email protected] Eric John Development Jed Hartman Penry Price Troy Young Brendan Riordan- briann.theobald.com The Washington Post LinkedIn Hearst Magazines Digital Media Luz Brito Deputy Director, Video Manager, Finance [email protected] Butterworth Brad Weltman Mark Howard Sridhar Ramaswamy Joe Zawadzki [email protected] Senior Director, Technical VP, Public Policy Forbes Media Google MediaMath James Linney Standards [email protected] Jeanie Carstensen Manager, Events [email protected] Allie Kline Michael Rubenstein VP, Finance and Operations [email protected] Claire Whalen AOL AppNexus [email protected] Virginia Rollet Moore Manager, Events Margaret Maxwell VP, Events [email protected] Sara Childs Coordinator, Education [email protected] FORMER 2016 BOARD MEMBERS Coordinator Foundation Yashica Wilson David Brinker Jory Des Jardins Eric Johnson [email protected] [email protected] Nicole Ross Director, Enterprise Certification News Corporation SheKnows ESPN Senior Director, Member Services Programs Jennifer Derke Courtney Mcdermid [email protected] [email protected] Paul Caine Michael Friedenberg Harold Morgenstern Senior Manager, Product Executive Assistant Bloomberg Media IDG Communications Discovery Communications Management [email protected] Soizic Sacrez Eva Wu [email protected] Director, Marketing Senior Manager, Mobile & Frank Cooper Joan Gillman Neal Mohan Lauren Milligan [email protected] BuzzFeed TWC Media YouTube Emerging Platforms Benjamin Dick Senior Manager, Marketing [email protected] Director, Data & Ad Effectiveness [email protected] Alexandra Salomon EX OFFICIO [email protected] Senior Director, International Maggie Zhang Mayank Mishra [email protected] Senior Director, Digital Video Stu Ingis Rich LeFurgy John Toohey Jennifer Dutko Senior Director, Engineering Venable LLP Archer Advisors Charter Communications Amit Shetty Research Executive Assistant [email protected] [email protected] [email protected] Director, Product, Video & Audio Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 Diana Negron [email protected] leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Melody Zimmer Enxhi Dylgjeri Executive Assistant Director, Learning & Development Together, they account for 86 percent of online advertising in the United States. Working with its member companies, IAB develops technical Manager, Video [email protected] Colleen Shields standards and best practices and fields critical research on interactive advertising, while also educating brands, agencies, and the wider business Senior Manager, Business Ops & [email protected] community on the importance of digital marketing. The organization is committed to professional development and elevating the knowledge, skills, [email protected] expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., IAB advocates for its Shira Orbach Events Marketing members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in Senior Manager, Marketing & PR [email protected] New York City and has a West Coast office in San Francisco. [email protected]

34 ANNUAL REPORT 2016 WHO IS IAB? 35 ANNUAL REPORT 2016

TOP NEWS HEADLINES FROM 2016

IAB Creates Guide for Publishers to Combat Ad Blocking U.S. Internet Ad Spending Accelerated in 2015 to Reach $59.6 Billion Brands See Potential in Virtual Reality Advertising Internet Advertising Honcho Slams Ad Blockers As ‘Profiteers’

9 Members of Video’s Vanguard Discuss Creating Content for the Scrolling Economy U.S. Mobile Advertising Surges 89%

IAB Overhauls Ad Guidelines to Encompass Proliferating Screen Shapes, VR, Vertical Video

Invisible Ads, Digital Media Rivals Phantom Readers TV as Key Source of Political Information

IAB Looks to Recruit Minorities, Women and Vets Into Digital Advertising With College Partnership

36 EXPANDING INFLUENCE