ANNUAL REPORT 2019 LETTER FROM THE CEO LETTER FROM THE PRESIDENT

WE CAN STILL SAVE THE WORLD: THE FUTURE OF OUR FUTURE-PROOFING OUR INDUSTRY IS DATA-RICH INDUSTRY AND DRIVING AND FULL OF POSSIBILITIES SUSTAINED GROWTH

emember that scene in The Exorcist where a demonically- We need to evolve away from the proxy metrics that dominated he past decade has seen the media landscape change As AI, 5G, programmatic, and an alphabet soup of other new possessed Linda Blair’s head spins around 360 degrees as media planning and buying in the past and toward performance more than in the previous century. In January 2010, Netflix data-driven technologies continue to fuel the industry, our Rshe spits out profane blasphemies? If you’re like me, that metrics that prize customer acquisition and the building of known Twas still delivering movies in red envelopes via snail mail, future selves will barely recognize 2020 ten years from now. condition has a name: Everyday. customer lifetime value. It requires a concentration on creating Facebook didn’t have mobile apps, nobody knew who Alexa and We are at the very beginning of this new tech revolution and the and managing excellent customer experiences across all channels Siri were, and the revenue for internet adverting was $22.7 billion. possibilities are endless. It wasn’t so long ago that digital technologies were being hailed as — from brick and mortar to digital retail, and from television the saviors of all the world’s ills. Internet apps made micropayments Ten years ago, roughly only one in five Americans had mobile But it’s up to us to use the next 10 years to build a future commercials to community- and influencer-marketing strategies. available to Third World entrepreneurs, enabled democratic phones, Mary Meeker’s annual Internet Trends Report was a we want to live in. uprisings to topple dictators, powered the #MeToo movement, And we have to do this while we’re exorcising outdated playbooks mere 49 slides long, and digital media was much the same as It’s time for our industry to embrace transparency about what data channeled small donors at scale to upstart political candidates, and and speaking in tongues (or become fluent in the new alphabet of it had been since the dawn of the commercial internet in 1996. we’re collecting and why. We need to give consumers control to enabled children to pay for their college educations by launching consumer experiences at any rate). Over the past decade, the foundation of the modern digital media decide what to share and not share. We need to lean in and make global video influencer networks on their smartphones. ecosystem would take hold and begin a major transformation that It means understanding and complying with an evolving global sure we get our governance right as new technologies proliferate. will set its course for the next decade. Fast forward to 2020, and these same apps are deemed regulatory regime focused on consumer privacy and data And we need to have ethics built into our thinking around best responsible for bad jobs in the gig economy, revenge porn, fake security. It requires adopting industry-wide technical standards Fast forward to 2020, and today more than 5 billion people own practices. We all need to be good stewards of data in how we use news, resurgent global fascism, epidemics of credit-card hacks, and best practices for brand safety, consumer safety, regulatory mobile phones around the globe, over 4 million apps are available and protect it and most of all maintain trust with the consumer. and the evaporation of privacy. compliance, and frictionless supply chain transactions. It for download, and well over half of all internet traffic is mobile. In 2020, IAB is investing in efforts to help our members and the requires ongoing training in a world where the breakneck Mary Meeker’s much-anticipated trends report? Now 334 pages No wonder that every day I — and most media, marketing, and industry navigate this rapidly evolving landscape with research advances in the technology landscape make our heads spin. and counting. advertising professionals, I suspect — spit profane blasphemies around the state of data and industry trends as well as sharing while our heads spin! I’m confident there is a clear path forward. It’s truly astonishing what can happen in just 10 years. best practices. We are actively and continuously creating solutions for our members to better understand the role of data for brands So what’s the story, IAB Members — were we foolish to believe IAB has a simple mission: Open doors with insights, create value In the last 10 years, we’ve also seen the rise of advertising including the nuances of in-housing programmatic, using data that as marketing, media, and advertising professionals, we could from peer and expert networks, improve processes and systems, exchanges, artificial intelligence in marketing, automated data- responsibly to ensure brand and consumer safety, and how to use save the world, have fun, and make money at the same time? Are and grow revenue for our members with these services. What driven advertising, and over-the-top (OTT) devices and streaming first-party data to engage with 21st-century consumers. Our newly you doing God’s work, or Beelzebub’s? It’s not an idle question. you’ll see in the pages that follow are highlights of the initiatives networks that are taking over America’s living rooms. We’ve also established Privacy and Compliance Unit which brings together we drove on our members’ behalf in 2019 — as well as what seen the rise of a new growth engine we call the direct brand And there’s no turning back. our public policy, legal, and tech teams is navigating regulation lies ahead for the industry. economy built on digital media. These companies are challenging and providing solutions such as the CCPA Compliance Framework. What we do as marketers in the next 12 months will profoundly incumbent brands by using digital technology to create value I still believe that as marketing, media, and advertising And IAB is developing training and playbooks to help companies and decisively seal our fate. through low-barrier, capital-flexible, leased or rented supply professionals we really can save the world (or at least do lots of understand the most profound digital transformations. chains, low-cost targeted digital media, and using data for direct We are in a new reality in which all brands, especially incumbents, good), have fun, and make money at the same time. 1:1 relationships with consumers. We are heartened by the commitment from the IAB Board of must onboard the capabilities of disruptors to compete. All of us Let’s get to it. Directors and our members. Thank you for your ongoing support need to deepen 1:1 relationships with consumers, leverage the What unites all these innovations and underpins our now $100+ of this team and our efforts. capabilities of the digital ecosystem to become more nimble and Sincerely, billion-a-year industry is one thing: data. Data is the oil of the 21st create data-enriched interactions. century and the lifeblood of all successful brands, publishers, and Now let’s go make the future. marketers. The amount of data companies collect and the ways But we also need to be ruthlessly vigilant when it comes to brand Yours respectfully, in which marketers use it is only set to accelerate in the next safety and consumer safety — because our reputations will rest, 10 years and IAB is well-positioned to help shape our collective in no small part, on our trustworthiness with consumer data, Randall Rothenberg data-driven future. balancing consumer needs for transparency and privacy while Chief Executive Officer, IAB also using that data to create benefits and joy for consumers. Patrick Dolan President & COO, IAB

2 ANNUAL REPORT 2019 1 ANNUAL REPORT 2019

TABLE OF CONTENTS 2019 HIGHLIGHTS

2019 Highlights...... 3 Leading Industry Action on Consumer Privacy and Data Protection...... 3 mpowering the media and marketing industries Driving Growth in the Emerging Streaming Marketplace...... 4 to thrive in the digital economy is IAB’s mission. Navigating Ad Experiences and Measurement in a Converging Digital Landscape...... 5 We are the only organization that does all of the Unlocking the Value of Data...... 5 E following under one umbrella: Fighting Fraud and Promoting Brand Safety to Drive Growth...... 5 • Convenes leading peer-to-peer networks across IAB Leadership...... 6 all significant marketing and media functions and segments IAB Influence: Consumer Privacy, Public Policy, and Legal...... 8 • Develops critical thought leadership on consumer and Leading Consumer Privacy Efforts in a Wildly Volatile Regulatory Environment...... 8 marketing trends • Develops and publishes essential research on data The Direct-to-Consumer Brand Landscape: usage and management Thriving in the New Direct Brand Economy...... 10 • Designs and instantiates essential supply chain technical standards Leading Conversations, Building Relationships & Making Marketplaces...... 12 Champions and leads the development of public • Rik van der Kooi, Corporate VP of Microsoft Advertising, Microsoft, policies with major government institutions IAB Centers of Excellence...... 14 2019 IAB Annual Leadership Meeting Data Center of Excellence: Driving Radical Transparency and Accountability in Data...... 14 • Possesses a world-class training and learning Mobile Marketing Center of Excellence: organization that upskills stakeholder companies industries for the January 2020 rollout of the California Consumer Best-in-Class Mobile Marketing With Consumers at the Center...... 16 We have focused these unique capabilities on key Privacy Act (CCPA). CCPA set a baseline for state-by-state Digital Video Center of Excellence: initiatives to bring value to our members and move the compliance that will be debilitating for brands and retailers as Spurring Growth in a Rapidly Evolving Cross-Screen Video Landscape...... 18 industry forward. well as smaller publishers. Against that harsh reality, IAB has been working tirelessly with our member companies to help IAB Tech Lab: Global Standards to Drive Growth and Innovation...... 20 them understand what they need to do to comply with such a LEADING INDUSTRY ACTION ON broad, comprehensive new regulatory regime. And the Privacy & IAB Global Network: CONSUMER PRIVACY AND DATA Compliance Unit developed the IAB CCPA Industry Compliance PROTECTION Supporting Global Growth and Technology Standards...... 22 Framework, industry agreement, and technical specifications to Consumer trust is the lifeblood of digital media and brand loyalty. help advertising stakeholders meet the requirements of CCPA and IAB Learning & Development: Whether consumers choose to fund their consumption of digital build industry compliance mechanisms to assist our members. content and services through advertising or paid subscription World Class Training and Learning for a Dynamic Ecosystem...... 23 Our work isn’t finished with CCPA either. To respond to member models, our industry’s interests are ultimately best served by companies’ need for a uniform national privacy standard, IAB putting consumer privacy first. To do right for the ad industry, we IAB in the News ...... 24 worked with a coalition of top trade organizations and companies need to do right by consumers. to launch Privacy for America — a first-of-its-kind industry 2020 Upcoming Events...... 25 Meanwhile, in the U.S. and around the world, policymakers are initiative — to pass comprehensive privacy legislation in the pushing legislation and regulations that threaten to kill or cripple U.S. Working with world-renowned privacy experts, Privacy Empowering and Connecting IAB Members...... 26 the digital media industry. Tens of thousands (if not millions) for America developed a comprehensive new framework for of businesses that collect data about consumers online risk nationwide privacy legislation that will fundamentally change the 2019 Committees & Councils...... 28 crushing fines if they can’t comply. way consumer privacy and security are protected in this country.

Investing in Industry Growth and Our Members’ Success...... 30 Through our IAB Privacy & Compliance Unit, we bring together IAB’s work in the U.S. Congress has also been steady since the cross-functional legal, public policy, and technical expertise gathering privacy storm began in Washington years ago, and the Who We Are...... 32 from IAB and the IAB Tech Lab. One of IAB and IAB Tech Lab’s need for a national privacy standard has never been greater. top priorities in 2019 was preparing the media and marketing In its first privacy hearings of the 116th Congress, IAB was the

2 2019 HIGHLIGHTS 3 ANNUAL REPORT 2019

NAVIGATING AD EXPERIENCES AND MEASUREMENT IN A CONVERGING DIGITAL LANDSCAPE only entity called to testify in both the House and Senate hearings contributor to growth, with spend climbing 36% year-over-year to With new media experiences come new user challenges. In 2019, on online privacy, at which we laid out the need for a new federal $9.5 billion of a record-breaking $58 billion in total U.S. digital IAB Tech Lab introduced several new standards for improving privacy law. IAB CEO, Randall Rothenberg, highlighted the risk and advertising revenues for the first six months of 2019. the video user experience, including the Secure Interactive Media unintended consequences that could result from ill-conceived Interface Definition (SIMID) which enables a secure environment IAB has worked with our members to facilitate growth in video legislation that doesn’t recognize consumer privacy and security for executing interactive creative over video advertising. SIMID, platforms, bringing together the segment’s leadership through as a key foundational requirement for doing business in the along with the Video Ad Serving Template (VAST 4.2) for delivery the Digital Video Center of Excellence and driving sales through modern economy. Members of Congress expressed bipartisan and the Open Measurement Interface Definition (OMID) API for the IAB NewFronts marketplace platform. Streaming video and support for a new privacy law and discussed the burdens that measurement and verification, completes the simplification audio content (also a major growth area according to the IAB/ small and medium-sized companies could face from onerous of video ads delivery methods. This separation of functions PwC report) are emerging as the main formats in which people compliance requirements. provides publishers the control they need to ensure great user are consuming media. experiences while ushering in modern cross-device delivery To help our members and the industry discover best-in-class methods — all in a secure way. digital video creative, the IAB Digital Content NewFronts and Until recently, independent viewability measurement presented IAB NewFronts West play a powerful role connecting buyers and one of the most complex challenges faced by mobile advertising. sellers. Confirming the importance of the event as a catalyst for The Open Measurement SDK (OM SDK) has eliminated the need media buying decisions, 59% of ad buyers surveyed at NewFronts for multiple vendor integrations by supporting all of them. The IAB Direct Brand Summit 2019 plan to increase their advanced TV spend in the next 12 months, new OM SDK Version 1.3 is easier to integrate, easier to activate, with half reporting increases in OTT. and better-aligned with MRC guidelines. FIGHTING FRAUD AND PROMOTING To help prioritize and solve industry-wide issues in the video BRAND SAFETY TO DRIVE GROWTH As technology enables brands to do more, accurately sizing and space, each summer, the Digital Video Center hosts the Annual Ad fraud costs companies billions of dollars annually and sourcing the audience is increasingly challenging yet as important Video Leadership Summit, an invitation-only meeting that gathers eMarketer estimates in 2019 that $42 billion in ad spend was lost as it’s ever been. Rather than trying to find the perfect solution, leading industry stakeholders to address the key problems to it worldwide, up 20% from 2018. brands need to understand the most common measurement facing the video industry. This year’s focus was Showdown in and attribution approaches available to create the version that Global standards and industry-wide adoption will help protect the Streamosphere, the battle for consumer’s attention that’s works for them. IAB is committed to helping members with brands, and ensure that their ads display where intended, playing out with the launch of more and more ad-supported measurement and attribution by getting smart on the options, next to the right content in a brand-safe environment. In 2019, and subscription streaming services as programming, pricing, training teams, and identifying the best solutions. IAB Tech Lab announced the completion of version 1.0 of its distribution, and monetization models continue to evolve. Data Transparency Standard and the launch of an affiliated And, to introduce brands and media buyers to the latest in original UNLOCKING THE VALUE OF DATA Data Transparency Standard Compliance Program. Similar to digital audio programming, the sold-out IAB Podcast Upfront To succeed in the new direct-to-consumer and data-driven economy, manufacturers being required to provide a nutrition label on 2019 in New York in September was a one-day marketplace it is critical for companies to learn how to leverage their first-party packaged foods, the standard asks data providers to offer details designed for advertisers and media buyers to preview the latest data and optimize relationships with third-party providers. that inform segment quality. Combined with recent essential in innovative podcast programming from some of the biggest updates of technologies like OpenRTB 3.0, ads.txt, and more, the Here’s a fascinating development of 2019: A majority of names in the digital audio arena. industry now has a full suite of technical standards to help drive companies are in-housing all or part of their programmatic the growth of the global digital media ecosystem. Randall Rothenberg, Chief Executive Officer, IAB;Sir Martin stacks. This is not because programmatic brings efficiency. Sorrell, Executive Chairman, S4Capital; Pete Kim, Chief Executive Rather, they’re moving toward programmatic as a generator of Officer, MightyHive,2019 IAB Annual Leadership Meeting growth-oriented consumer insights. To help our members navigate this landscape, the IAB Data To help members comply with new international legislation, IAB Center of Excellence conducted the 2019 Outlook for Data, Tech Lab helped develop and guide technical specifications and the fourth annual benchmarking report with the research and updates for the second version of the IAB Europe Transparency consulting firm Winterberry Group. The report helps practitioners & Consent Framework (TCF) which provides a common benchmark their practices and provide perspective on rapidly framework to facilitate compliance with data protection laws for evolving industry priorities and developments, helping every part of the advertising value chain, from publishers and stakeholders plan their future initiatives. technology companies to agencies and advertisers.

DRIVING GROWTH IN THE EMERGING STREAMING MARKETPLACE The rise of streaming video was a major trend in 2019, particularly as leading media companies like Disney and Amazon have launched subscription and advertising video on demand platforms. According to the IAB/PwC 2019 half-year Internet Peter Naylor, Head of Advertising, Hulu, Advertising Revenue Report, video advertising was a major 2019 Digital Content NewFronts IAB Direct Brand Summit 2019

4 2019 HIGHLIGHTS 5 ANNUAL REPORT 2019 BOARD OF DIRECTORS 2019

Brad Bender Steve Horowitz Marian Pittman Jon Werther L E A D E R S H I P 2019 BOARD Krishan Bhatia Jesse Horwitz Penry Price Troy Young

Joe Zawadzki Lee Brown Mark Howard Joy Robins EXECUTIVE COMMITTEE | DECEMBER 2019

Randall Seth Dallaire Julie Jacobs Rothenberg BOARD PRESIDENT BOARD CHAIR BOARD VICE CHAIRMAN 2019 GUESTS Randall Rothenberg Rik van der Kooi Troy Young Jeremy Hlavacek IBM

Rick Erwin Craig Kostelic Carrie Seifer Ryan Mayward Amazon David Spector ThirdLove Rita Ferro Krishan Bhatia Gina Garrubbo Konrad Feldman Katie Kulik Samantha Skey

EX OFFICIO

Miranda Rita Ferro Seth Ladetsky Nada Stirratt Dimopoulos Kimberly Norris Rick Welday Marian Pittman

Gina Garrubbo Danielle Lee Abbey Thomas Townsend Feehan

Jean-Philippe (JP) Rajeev Goel Maheu Sebastian Tomich Stu Ingis

EX OFFICIO MEMBERS OF EXECUTIVE COMMITTEE Rich LeFurgy Jeremi Gorman David Moore John Trimble BOARD SECRETARY FOUNDING CHAIRMAN BOARD TREASURER Stu Ingis Rich LeFurgy John Toohey David Moore Venable, LLP Archer Advisors Formerly Charter BrightPool Communications

Keith Grossman Peter Naylor Rik van der Kooi John Toohey

FORMER 2019 BOARD MEMBERS Chris Guenther Kimberly Norris Rick Welday Dave Brinker David Morris Shailesh Prakesh Jonathan Schaaf Steven Wolfe Pereira Snap CBS The Washington Post CondéNast Quantcast

6 2019 BOARD & EXECUTIVE COMMITTEE 7 ANNUAL REPORT 2019

IAB INFLUENCE: CONSUMER PRIVACY, PUBLIC POLICY & LEGAL LEADING CONSUMER PRIVACY EFFORTS IN A WILDLY VOLATILE REGULATORY ENVIRONMENT

019 was a historic year for the digital advertising industry, IAB took a leading role in calling for clear prohibitions of certain IAB is advocating for a federal level data privacy law to avoid a IAB BOARD HEARS FROM HIGH-RANKING OFFICIALS as policymakers in the U.S., Europe, and around the world data practices, and, in doing so, demonstrated a commitment to patchwork of state laws on consumer privacy, but that will take IN WASHINGTON D.C. 2examined industry practices to pass new data privacy protecting all American citizens. As a result, IAB was a respected time. In the meantime, IAB and IAB Tech Lab have been helping regulation. The costs of CCPA and GDPR are starting to get real and trusted voice in Congress in 2019, and IAB testimony laid the our member companies adapt to the new regulatory landscape and be measured, and companies big and small now have a real groundwork for the launch of Privacy for America. by getting ready and offering educational support to encourage sense of what’s at stake. Amid this unprecedented scrutiny, the rapid marketplace compliance and adoption of the CCPA IAB Privacy & Compliance Unit combines IAB’s Legal, Policy, and LAUNCH OF PRIVACY FOR AMERICA Compliance Framework. IAB hosted two Legal Summits and a Tech Lab expertise to help member companies navigate the new To build the case for a uniform national privacy standard, IAB series of webinars for members and brands, gathering 1,000 regulatory landscape and advocate before state legislatures and worked with a coalition of trade organizations and companies participants to learn about CCPA, GDPR, Congress, and More: the U.S. Congress. Through our combination of technical expertise, to launch Privacy for America How IAB Helps You Navigate the New Regulatory and Privacy industry research, and legal and policy acumen, IAB played a unique — a cross-sectoral industry Landscape to help prepare for the impact of CCPA, GDPR, and role in helping policymakers as they craft new rules of the road. initiative to pass comprehensive other regulations at the state, federal, and global level. IAB Dave Grimaldi, Executive Vice President, Public Policy, IAB, with privacy legislation in the U.S. has been a strong advocate for increasing consumer trust and Commissioner Noah Phillips, Federal Trade Commission PROACTIVELY DRIVING TOWARDS A FEDERAL Working in partnership with transparency in the digital media and marketing landscape PRIVACY LAW world-renowned privacy experts, for more than 20 years, and this is another example of our Over two consecutive days of testimony before the House and Privacy for America developed a commitment. IAB has corralled legal and public policy experts, Senate, IAB’s Randall Rothenberg and Dave Grimaldi urged comprehensive new framework for nationwide privacy legislation as well as some of the best and brightest in ad technology, to Congress to pass legislation to create a federal regulatory that would fundamentally change the way consumer privacy and create a critical tool in meeting CCPA’s stringent guidelines for framework around privacy that will protect consumers and avoid security are protected in this country. the benefit of both the industry and the consumers it serves. the risk of a patchwork of conflicting and damaging state laws. CCPA READINESS ADVOCACY ACROSS THE STATES To help businesses comply with the complex California Following the passage of CCPA, IAB accurately predicted that legislation, and to promote the principles of transparency, many other state legislatures would propose privacy legislation accountability, and choice that are the basis of the California of their own. In 2019, IAB helped educate local lawmakers on Dave Grimaldi, IAB, with Congressman Kevin McCarthy (R-CA-23), Consumer Privacy Act (CCPA), IAB released the IAB CCPA the intricacies of data privacy law to craft effective laws that House Minority Leader Compliance Framework for Publishers & Technology Companies, differentiate between good and bad data practices, but avoid in 2019 ahead of the 1/1/2020 legislation effective date. The IAB unintentionally inhibiting legitimate and privacy-mindful digital Privacy & Compliance Unit has brought together cross-functional advertising practices. Through letter writing campaigns, member legal, public policy, and technical expertise fly-ins, and many individual meetings with key lawmakers, IAB from IAB and the IAB Tech Lab, and worked on behalf of our members in California, Washington, gathered industry stakeholders to Texas, Nevada, and New Jersey, among other states. develop the CCPA Compliance The IAB Public Policy Office has also coordinated a global policy Framework, Limited Service strategy with international counterparts to more effectively Provider Agreement, and tech advocate for the digital advertising industry before foreign specs to help companies governmental agencies. meet the requirements Dave Grimaldi, IAB, with Diane of CCPA. The Framework Rinaldo, Assistant Secretary, provides consumers with National Telecommunications greater clarity and control over and Information Administration, Randall Rothenberg, Chief Executive Officer, IAB;Dave Grimaldi, the use of their data. Executive Vice President, Public Policy, IAB, testify to Congress in Department of Commerce (Acting) Washington, D.C.

8 IAB INFLUENCE 9 ANNUAL REPORT 2019

THE DIRECT-TO-CONSUMER BRAND LANDSCAPE THRIVING IN THE NEW DIRECT BRAND ECONOMY

t IAB, we firmly believe that what helps one set of of initiatives and events in 2019. At the sold-out IAB Annual stakeholders in the ecosystem helps everyone. For Leadership Meeting (ALM) in February 2019 in Phoenix, over Ainstance, all companies benefit from consistent consumer 1,100 brand marketers, publishers, and digital media and privacy regulation, reliable terminology, consumer-elevating advertising leaders convened to explore the Theory of Revolution: community marketing, and OTT advertising. Sparking Growth in the Direct Brand Economy. How to Build a 21st Century Brand was released at the event, the second version As these capabilities must be resident across the marketing- of the IAB Direct Brand Economy report, which provides an media ecosystem, we opened our membership to brands and in-depth illustration and analysis of how direct brands are driving now have over 120 brand members. Having brands in the room Leah Logan, Head of Product Marketing, Inmar Brand Solutions; a tremendous transformation in the way consumer goods and elevates the conversation with publishers, platforms, and tech Andy Prochazka, Co-Founder and CMO, Article; Rishi Prabhu, services are created, marketed, and sold. The IAB 250: Direct companies. IAB is an expertise-infused big tent, and we believe Co-Founder, Bespoke Post; Savannah Sachs, Chief Executive Officer, Brands to Watch were also announced at ALM, based on a first-of- all companies will benefit from brand membership. TULA, IAB Direct Brand Summit 2019 its-kind analysis pinpointing the most important direct brands to watch in the U.S. economy. respond to, and understand their To help our members thrive in this fast-changing marketing Brian Berger, Founder and CEO, Mack Weldon, IAB Direct customers more holistically. landscape, IAB explored the effect of direct brand companies on Brand Summit 2019 Who are direct brand consumers, the video landscape and innovative media at the IAB NewFronts how big is the market, and what West in Los Angeles, and the effect of influencers in the direct The Direct Brands: Founders Benchmark Study revealed that drives the consumer decision brand economy at the Influencer/UGC Marketing Day. The world’s direct brands focus on profitability and customer satisfaction process? To answer these and other largest gathering of direct brands, with over 1,000 attendees, the ahead of market share, and 90% of direct-to-consumer brands pressing questions, IAB produced second annual IAB Direct Brand Summit (DBS) offered a unique report that they are already profitable. The findings also landmark research about this dynamic opportunity to experience many points of view from the people indicate that the vast majority of disruptor brands are building landscape called the Disrupting Brand building and leading the direct brand economy. At the Summit, institutions to last. Preference Study, which was released IAB revealed some surprising findings in the Direct Brands: Media To show how modern marketers are using data, mobile, and at VidCon in July. It shows that direct Ariane Goldman, Founder & Customer Acquisition Study. In sharp contrast to the popular video-driven marketing strategies to increase consumer brand shoppers comprise 48% of all and CEO, Hatch belief that direct brands focus their marketing around social, the engagement and accelerate business growth, the IAB Data, U.S. consumers. They are younger data shows that direct brands are leveraging all media, including Mobile, and Digital Video Centers of Excellence joined forces to than incumbent brand-only shoppers, with 84% under 54 years old, display, social, video, digital out-of-home (DOOH), and audio, and produce the IAB NexGen Marketing Conference. To continue the and are likelier to have a household income of more than $75,000. Richard Ybarra, Vice President of Retail, Fourpost; Michelle Cordeiro their offline media spend is bigger than most would think. conversation online and off, IAB offered a series of brand council Grant, Founder & CEO, LIVELY, IAB Direct Brand Summit 2019 In December 2019, IAB released the Legal Guide for Direct Brands, meetings, peer-to-peer networking opportunities, and founders’ which offers a concise overview of legal issues often confronted insights in a video series throughout the year. by companies, particularly direct brands, and helps companies Over the past few years, we The challenges and opportunities navigate the legal implications of have witnessed a record rise that direct-to-consumer companies direct connections to consumers. The of direct brands — disruptor have created are ongoing subjects of guide covers such thorny issues as companies that create value discussion with our members and were why founder and equity agreements through direct relationships also the focus of a research paper: are vital for direct brands including with consumers. These direct Pivoting to Growth: Selling Advertising the documents necessary for such brands have forever changed and Marketing in the Direct Brand investment transactions, and the the marketing landscape, and all Economy. Key suggestions and essentials of privacy, advertising, and brands, especially incumbents, Joe Megibow, Chief takeaways include knowing the brand’s marketing law for companies that must onboard the capabilities of Executive Officer, Purple,IAB mission and product story, and how compete with them. disruptors to compete. Direct Brand Summit 2019 they engage with their target consumer; To help our entire industry and digital ecosystem navigate Stephen Kuhl, Co-Founder and CEO, Burrow, IAB Direct Brand using data, real-time reporting, and Rachel Cohen, Co-founder, SNOWE; Sarah this dynamic direct brand landscape, IAB championed a raft Summit 2019 attribution to help them personalize, LaFleur, Founder & CEO, M.M.LaFleur

10 THE DIRECT-TO-CONSUMER BRAND LANDSCAPE 11 ANNUAL REPORT 2019

MARKETPLACES & THOUGHT LEADERSHIP LEADING CONVERSATIONS, BUILDING RELATIONSHIPS, AND MAKING MARKETPLACES

AB plays a crucial role in convening thought leaders and Heidi Zak, Co-Founder & Co-CEO, ThirdLove; creating marketplaces. At events like the IAB Digital Content David Spector, Co-CEO/Co-Founder, ThirdLove, NewFronts and NewFronts West, the IAB Podcast Upfront, and Rosanna Pansino, I Creator, IAB Brand 2019 IAB Annual Leadership Meeting Audio Days, IAB works to spur the interactive industry toward truly inspiring creative. These events play a powerful role connecting Storytellers @ VidCon Dave Morgan, Chief Executive Officer, Simulmedia; Jessy Dover, buyers and sellers of digital video and emerging media. The 2019 Co-Founder and Creative Director, Dagne Dover; Bryce Goldman, IAB NexGen Marketing Conference and the 2nd annual IAB Direct Chief Executive Officer, Kopari Beauty;Josh Hix, Co-Founder, Brand Summit provided insights from and for direct brands. And Plated, 2019 IAB Annual Leadership Meeting agenda-setting events such as the IAB Video Leadership Summit and the IAB Annual Leadership Meeting provided discussion platforms, thought leadership, and inspiring insights. In 2019, we also brought more networking opportunities to our members with IAB@Cannes Lions, IAB@VidCon, the IAB Cross- Cultural Marketing Day, Women Visionaries breakfasts and town halls, and our Brand Council events. IAB continues to be the leading convening force for the digital industry to bring publishers, platforms, and brands to solve industry challenges. As platform and publisher interdependency continues to grow, IAB facilitates high-level conversations Jodi Goldberg, Head of Retail Industry, Google; Daniel Pahl, Vice Scott Galloway, Founder & Chairman, between key parties and members throughout the year. President of Media and Customer Acquisition, TechStyle Fashion Group, L2; John Shi, Chief Executive Officer, IAB Brand Storytellers @ VidCon Networking, 2019 IAB@Cannes BZR; Leigh Radford, Vice President, Lions International Festival of P&G Ventures; Dave Spector, 2019 Digital Content NewFronts, Hulu presentation at Creativity Michael Lebowitz, Co-Founder & Co-Chief Executive Officer, Madison Square Garden, New York, NY Founder & Chief ThirdLove; 2019 IAB@Cannes Lions Executive Officer, Big Spaceship, 2019 IAB Nada Stirratt, Vice NexGen Marketing President, North America, Conference Facebook; Brett Northart, Co-Founder and President, Le Tote, IAB Direct Brand Summit 2019

Kerry Cooper, President & Chief Sinéad Burke, Host, As Me with Sinéad; Jamie Lee Curtis, Rich Fulop, Co-Founder & CEO, Brooklinen; Sahil Patel, Operating Officer, Award-Winning Actress & Best-Selling Author, 2019 IAB NewFronts West Reporter, The Wall Street Journal, IAB Direct Brand Summit 2019 Rothy’s, IAB Direct Brand Summit 2019 Troy Young, President, Hearst Magazines; Randall Rothenberg, Chief Executive Officer, IAB; 2019 NexGen Marketing Conference

12 MARKETPLACES & THOUGHT LEADERSHIP 13 ANNUAL REPORT 2019

how they relate to one another and considers the levels of online, offline, and owned data to determine where your brand falls on the custom data matrix. IAB CENTERS OF EXCELLENCE IAB DATA ROCKSTARS AWARDS To raise awareness and visibility of the great work done by data industry practitioners the IAB Data Center of Excellence and IAB IAB Centers of Excellence provide leadership, best practices, and research Learning & Development honored key members as recipients of for the continued growth of the interactive advertising industry through the 2019 IAB Data Rockstar and Rising Star Awards. IAB brought together 200 + industry professionals to connect and celebrate peer-to-peer and expert networks. the success of their peers.

IAB DATA CENTER OF EXCELLENCE 2019 DATA ROCKSTARS

DRIVING RADICAL TRANSPARENCY AND 2019 DATA RISING STARS ACCOUNTABILITY IN DATA

irect-to-consumer brands are fueled by data, devoted to performance and developing new ways of doing business. Key efforts Donna Hamilton, Ross Jenkins, Kevin Moeller, Emma Pop, for the IAB Data Center of Excellence in 2019 focused on helping bring programmatic in-house and supporting key research to Alliant IPG Mediabrands PepsiCo Starcom U.S. Dfoster a better understanding of the current state of data in the interactive landscape. Nisreen Danielle Al-Basha, Dzbanek, Yieldmo MediaMath GUIDE TO NAVIGATING THE CHILDREN’S ONLINE audience data for advertising and marketing efforts. Spoiler PRIVACY PROTECTION ACT (COPPA) alert: In 2019, American companies are expected to spend nearly Children are now one of the fastest growing online audiences. $19.2 billion on the acquisition of audience data and on solutions Isaac Quiroga, Jeff Sporn, Charles Wolrich, UNICEF reports more than 175,000 kids globally go online for the — a 17.5% increase from the prior year. The report also shows Mattel Equifax Hearst Data Studio first time every day. This IAB Guide explains COPPA, provides practitioners how to benchmark their current efforts and plan for recommendations to brands, advertising technology providers, the year ahead. and publishers, and acts as a resource for the media industry. OTHER 2019 INITIATIVES INCLUDED: A MARKETER’S GUIDE TO DEFINING THE DATA STACK Artificial Intelligence in Marketing THE STATE OF DATA • An in-depth educational examination into how both rising direct Growing Programmatic DOOH: Opportunities and Challenges To better understand and quantify audience data applications • brands and mainstay traditional brands can identify their current Benchmark Study among digital marketing practitioners, this study shows how place in the data ecosystem, this IAB whitepaper presents an Programmatic In-Housing: Building Internal Capabilities 2019 IAB Data Rockstar Awards U.S. companies are accelerating their spending on third-party assessment criteria for understanding your current datasets, and • • The Essential Guide to Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA)

2019 IAB DATA CENTER OF EXCELLENCE BOARD Visit iab.com/data for more information.

Eric Danetz, Accuweather Michael Bird, Dun & Rebecca Stone, Liveramp Kristoffer Nelson, Srax Karen Caulfield, Acxiom Bradstreet Evgeny Popov, Lotame David Danziger, The Trade Matthew Groner, AdTheorent Ian Wright, Equifax Mark K. Wright, MediaMath Desk Andy Johnson, ALC Kevin Dean, Experian Michael Schoen, Neustar Jay Webster, Valassis Dana Tunks, Broadsign Dan Taylor, Google Cecilia Mao, Oracle Julie Bernard, Verve Ric Elert, Conversant Jeremy Hlavacek, IBM Jay Habegger, ownerIQ Tim Barnes, Xandr Watson Advertising Antonio Tomarchio, Cuebiq Gunnard Johnson, Pinterest

Joe Pilla, Director, Data & Automation, Data Center of Excellence; Orchid Richardson, Vice President & Managing Director, Data Center Nisreen Al-Basha, Data Engineer, Yieldmo and the Yieldmo team at of Excellence; Kevin Moeller, Head of Media Insights & Analytics, the 2019 IAB Data Rockstars Awards PepsiCo, 2019 IAB Data Rockstar Awards

14 IAB CENTERS OF EXCELLENCE 15 ANNUAL REPORT 2019

RECOMMENDATIONS FOR MARKETERS IN A SCREENLESS WORLD Screenless devices are seeing exponential growth across households throughout the U.S. The IAB Audio Committee released IAB MOBILE MARKETING CENTER OF EXCELLENCE Recommendations for Marketers in a Screenless World to help marketers to make the BEST-IN-CLASS MOBILE MARKETING most effective investments, understand what these emerging devices are, how they are used, WITH CONSUMERS AT THE CENTER and what their benefits are across the consumer experience, activating campaigns, creative formats, and he Mobile Marketing Center of Excellence empowers the media and marketing industries to thrive in a mobile-always world measurement criteria. and in an increasingly direct-brand economy. Since its launch in 2010, the Mobile Center helps accelerate the growth of the Tmobile ecosystem by championing standards, best practices, consumer research, and public advocacy. In 2019 the Mobile OTHER 2019 INITIATIVES INCLUDED: Center collaborated extensively with the Data Center of Excellence and focused on the following areas: • Native Advertising Playbook 2.0 • Account-Based Marketing in an Omni-Channel World • Augmented Reality for Marketing Purposes Playbook PODCAST REVENUE STUDY where ordinary people have become avid and voluntary content Visit iab.com/mobile for more information. To better understand the rapidly evolving podcast landscape, IAB creators, notably on their mobile devices. To help brands and their Dave Spector, Co-Founder & Co-Chief Executive Officer, ThirdLove; released in June the latest version of its widely cited advertising agencies understand how UGC can help meet their marketing and 2019 IAB Annual leadership Meeting activities benchmark report on advertising activities in the advertising objectives this IAB guide includes key benefits, sources, podcast marketplace. Key trends of the study revealed that and types of UGC, as well as use cases and legal considerations. year-over-year self-reported ad revenue increased 34% in 2018 to $355.7 million, up from 2017’s $257.4 million. Moreover, the PLAYABLE ADS FOR BRANDS estimated market year-over-year revenue jumped 53% from 2017 To help brands embrace the potential playable ads have to drive to 2018 to $479.1 million and revenue will top $1 billion in 2021. quantifiable business results and eliminate misconceptions in the industry about playables, the IAB Games Committee created IAB AUDIO DAYS the first of its kind guide which helps brand marketers and their Designed to minimize focus agencies learn everything they need to know to get started and on individual platforms and expand their usage of playable ads. promote investments in Digital Audio, the IAB Audio IAB LOCATION-BASED MARKETING GLOSSARY committee held two Audio An estimated $26.5 billion was spent in 2019 on mobile location- Days for brands and agencies targeted ads, according to eMarketer. Current trends in location- Jenna Fischer, Host, Office Ladies;Angela Kinsey, in 2019. The programs based marketing make it critical for brands to have an in-depth Host, Office Ladies,2019 IAB Podcast Upfront discussed exciting trends in understanding of their customers and how to maximize outreach digital audio, offered advice effectiveness. The IAB Location-Based Marketing Glossary brought executing efficient digital together marketers, publishers and technology platforms to align 2019 IAB MOBILE MARKETING CENTER OF EXCELLENCE BOARD 2019 IAB Podcast Upfront audio campaigns and offered and define the language specific to location-based marketing. best practices for audio creative, measurement, and one-on-one Russell LeFevre, Conversant Josh Cohen, Foursquare Anthony Katsur, Nextstar Tim Ruder, Taboola Digital advertiser insight discussions with brands and agencies. Dave Madden, EA (Electronic Chris LaSala, Google Grant Whitmore, Tribune Arts) Sheri Bachstein, IBM Watson David Staas, NinthDecimal Matthew Kaplan, Univision IAB INSIDE INFLUENCER/UGC MARKETING DAY Goksu Nebol-Perlman, Christina Tang-Cua, Evan Ruthchik, Ogury Communications Inc. Facebook Consumers are discovering, researching and making brand Instagram Nishant Khatri, Pubmatic Pete Chelala, Viacom Gilad Elbaz, Factual choices and leveraging brands to help them gain influencer Ryan Polley, Kargo Jeff Weiser, Shopify Brian Gottesman, Flipboard status. The power wielded by influencers across all segments Shannon Callies, Microsoft Ali Rana, Snap Inc. Advertising of the purchase funnels requires a clear understanding of disclosure. To address this need, the Social Media/Native/ Content Committee featured conversations about influencer vetting, live streaming, user-generated content effectiveness, and the impact of influencers on the direct brand economy. Annie Murphy, Actor, EW On Set: Schitt’s Creek, 2019 IAB USER-GENERATED CONTENT (UGC) Podcast Upfront FOR MARKETING AND ADVERTISING Gina Garrubbo, President and UGC for marketing and advertising has grown significantly in recent CEO of National Public Media, years largely due to the rise of social and messaging platforms 2019 IAB Podcast Upfront

16 IAB CENTERS OF EXCELLENCE 17 ANNUAL REPORT 2019

IAB DIGITAL VIDEO CENTER OF EXCELLENCE 2019 IAB DIGITAL VIDEO CENTER OF EXCELLENCE BOARD SPURRING GROWTH IN A RAPIDLY EVOLVING Lalit Balchandani, Adobe Brian Albert, Google Anthony Katsur, Nexstar Pooja Midha, TrueX Katie Kulik, CBS (Youtube) Media Guilherme Ribenboim, Twitter CROSS-SCREEN VIDEO LANDSCAPE Eric Harris, Cheddar Peter Naylor, Hulu Brian Matthews, NFL Michael Dorf, Univision Philippe Guelton, Crackle Anne Frisbie, InMobi Tom Fochetta, Samsung Ads Kevin MuGurn, Vevo Tal Chalozin, Innovid Dave Morgan, Simulmedia ublishers are looking to effectively monetize consumer’s seemingly insatiable appetite for video in a brand-safe environment, Eden Gorcey, Condé Nast Julian Zilberbrand, Viacom Jodie McAfee, Inscape Philippe Browning, Snap especially on mobile, and in the fast growing OTT streaming video space. To help our members and the industry discover and Travis Howe, Disney Jay Prasad, VideoAmp participate in best-in-class creative, and to help buyers and planners be smarter about investing in digital video, the Video Daniel Brackett, Extreme Lisa Utzschneider, Integral Brian Danzis, Spotify Marinn Jackson, Verizon P Reach Ads Science Ebonie Newman, Storyful Media Group Center fielded essential new research, tools, marketplaces, and events including: Alvin Bowles, Facebook Mike Fisher, MediaMath Bertrand Quesada, Teads Evan Giamanco, Warner James Rooke, Freewheel Andrew Snyder, Meredith Adam Lowy, Teleria Media Mike Reidy, NBC Christina Beaumier, Xandr 2019 VIDEO AD SPEND STUDY Overall the future looks bright for video as advertisers indicated they planned to spend about 25% more on digital video advertising in 2019 with nearly two-thirds (59%) planning to increase spend in advanced TV spend and half reporting increases specifically in over-the-top streaming video. This annual report, released in tandem with the IAB NewFronts, provides key insights on where brands and buyers are focusing their digital video ad spend including specific verticals and categories.

Danielle Lee, Vice President, Global Head of Partner Solutions, OTT STREAMING VIDEO PLAYBOOK FOR ADVANCED MARKETERS Spotify; Mayur Gupta, Chief Marketing Officer, Freshly,2019 IAB Direct Brand Summit VIDEO LEADERSHIP SUMMIT Designed to educate brands on the fast-moving OTT landscape, To help prioritize and solve industry-wide issues in the video this playbook examines the technologies, key terms and ADVANCED TV MATRIX: A MARKET SNAPSHOT space, each year in July the Video Center hosts the Annual Video definitions, use cases, industry data and offers practical advice To simplify and organize the complex and constantly evolving Leadership Summit, an invitation-only meeting that gathers on how to leverage the power of OTT streaming video. IAB also advanced TV landscape, the IAB Digital Video Center released leading industry stakeholders to address the key problems facing released video interviews with industry experts on how they this comprehensive reference guide, which aims to simplify the video industry. This year 80+ senior leaders from across the are thinking about the OTT streaming video space in terms of and organize the complex and constantly evolving advanced TV media ecosystem, including top OTT and broadcasting companies, measurement, audience and creative capabilities. landscape. By placing all types of TV and advanced TV products top brands, and media buying and creative agencies, gathered side by side, buyers and planners can understand the differences to discuss the battle for consumer’s attention that’s playing out and similarities amongst these TV products to determine the best with the launch of more and more ad-supported and subscription course of action for their brand depending on their marketing streaming services as programming, pricing, distribution, and objectives, needs, and capabilities. monetization models continue to evolve.

IAB DATA-DRIVEN VIDEO BEST PRACTICES AND CASE Verna De Jesus, Head of TV, Streaming, Amazon Advertising; STUDIES David Rolfe, EVP, Director of Integrated Production, BBDO New York; To showcase how data can be used not just to inform targeting, Travis Howe, SVP Disney Ad Sales Global Operations, Disney, IAB but also actual creative messaging, the Data-Driven Video Best 2019 Video Leadership Summit Practices Guide and Case Studies highlight the current state of data-driven video, best practices for implementing these OTHER 2019 INITIATIVES INCLUDED: strategies, while highlighting the key consumer signals brands Kickstarting Creative Success can leverage to create more effective campaigns. • • Member Roadshow: Current State of Video Advertising A DAY IN THE LIFE OF VIDEO VIEWERS Ecosystem Bunker Sessions, Vice President, Business Development, Extreme Video advertising is affected by the motivations and mindsets a Visit iab.com/video for more information. Reach; Cathy Hoag, Global Lead Media Management, Marriott consumer experiences as they make their content viewing choices Peter Naylor, Senior Vice President, Advertising Sales, Hulu; International; Rachael Haley, Regional Marketing Director for the throughout the day. Released at the 2019 Digital Content NewFronts, John Frelinghuysen, Consultant; Randall Rothenberg, Americas, Airbnb, 2019 IAB Video Leadership Summit this study looks into the different ways consumers watch digital Chief Executive Officer, IAB,Jennifer Koester, Director, Global video — going beyond dayparts, demos and/or personas. Partnerships, Google, IAB 2019 Video Leadership Summit

18 IAB CENTERS OF EXCELLENCE 19 ANNUAL REPORT 2019

BUILDING TRANSPARENCY AND TRUST IN PROGRAMMATIC To provide buying platforms and intermediaries with transparency IAB TECH LAB into the origins, paths, and legitimacy of ad inventory, the sellers.json and SupplyChain Object specifications are ready for full industry adoption. These specifications complement the suite of GLOBAL STANDARDS TO DRIVE anti-fraud brand safety tools that IAB Tech Lab has developed with 2019 IAB Tech Lab Innovation Day on Data Responsibility: The New ads.txt for publishers to declare their list of authorized digital sellers Normal in a Consumer-Centric World GROWTH AND INNOVATION and the mobile app version app-ads.txt. Over 2.5 million domains have implemented ads.txt and over 100,000 apps have implemented or VPAID. It also provides publishers the ability to add interactivity app-ads.txt across Google Play and the iOS app store. to video ads in a safe, secure, and predictable environment.

BLOCKCHAIN APPLICATION IN AD TECH GUIDELINES FOR CTV/OTT DEVICES AND apid growth has created some unintended consequences ENHANCED GDPR TRANSPARENCY AND Imagine a world where the challenges of digital advertising APP IDENTIFICATION such as ad fraud, privacy and security issues, and CONSENT FRAMEWORK operations fade into a chain of collaborative record keeping, With the growth of connected TVs (CTV), set-top boxes, and inefficiencies. To support a healthy and sustainable The IAB Europe Transparency & Consent Framework (TCF) R and full transparency removes the need for out-of-band other over-the-top (OTT) devices, and the explosion in streaming media industry, IAB Technology Laboratory (IAB Tech Lab) is provides a common framework to facilitate compliance with reconciliation. This is the promise of blockchain, but the video services, the OTT space is fast becoming one of the most producing and helping companies implement global technical data protection laws for every part of the advertising value chain, technology is far from ready for primetime in the digital media important segments of video advertising. With this growth comes standards and solutions for digital media and advertising. from publishers and technology companies to agencies and ecosystem. The Tech Lab guide on blockchain technology and many technical challenges, such as how verification should work In 2019, Tech Lab made real progress towards our collective advertisers. Version 2.0 has been developed under the stewardship its application in adtech offers an informed starting point for on OTT devices and updates to the AdCOM object model to better goals with new standards, protocols, software, and services of IAB Tech Lab, and based on feedback received in the first 12 exploring and using solutions. support video/OTT inventory. to drive solutions in four main areas: championing privacy, months after the General Data Protection Regulation (GDPR) took identity and data standards, building anti-fraud and brand safety effect from the market and EU member state data protection TRUST, CREATIVITY, AND CAPABILITIES MEASUREMENT VERIFICATION MADE standards, improving programmatic effectiveness, and refining authorities (DPAs). Key changes in the new version are even FOR DIGITAL VIDEO ADS EASY: OPEN MEASUREMENT SDK measurement and the overall ad experience. more transparency and control for consumers, greater control for The Secure Interactive Media Interface Definition (SIMID) is the Until recently, independent viewability measurement presented publishers, and enhanced accommodation of GDPR’s “legitimate latest release from the Digital Video Technical Standards Working one of the most complex challenges faced by mobile advertising. interest” legal basis for processing personal data. Group. It is the last step in truly modernizing the video standards The Open Measurement Software Development Kit (OM SDK) PROPOSAL FOR ENHANCED stack. Along with the Open Measurement Interface Definition has eliminated the need for multiple vendor integrations by ACCOUNTABILITY (OMID) and the Video Ad Serving Template (VAST) 4.2, it enables supporting all of the major providers and the OM SDK Version true cross-platform video advertising delivery, verification, and 1.3, released in December, is even easier to integrate, easier to The open standards and open architecture of the internet have interactivity, and replaces the Video Player Ad Interface Definition activate, and better-aligned with MRC guidelines. fueled tremendous innovation and consumer value over the last 20+ years. But some parties have been overly open in exchanging data — causing concerns around consumer privacy, data sharing practices, and security. In September, IAB Tech Lab released 2019 IAB TECH LAB BOARD a Proposal for Enhanced Accountability which outlines three ideas from our industry for building consumer privacy into the fabric of Jason White, CBS Interactive Patrick Dolan, IAB Steven Silvers, Neustar Neal Richter, SpotX Yoav Arnstein, Director of Product Marketing, Facebook; Isaac our ecosystem, and ascertaining real-time, privacy-compliant use of Alanna Gombert, ConsenSys Randall Rothenberg, IAB Christopher Guenther, News Ajit Thupil, Tapad Schechtman, Director, Sales Engineering, BidSwitch; Per Bjorke, consumer identifiers: an encrypted, revocable token, tied to a joint Daniel Brackett, Extreme Andrew Casale, Index Corporation Paige Bilins, Telaria accountability system, with a controlled container for ad delivery. Senior Product Manager, Google; Jennifer Derke, Director of Product, Reach Exchange Todd Parsons, OpenX Gruia Pitigoi-Aron, Programmatic, IAB Tech Lab, 2019 IAB Tech Lab Innovation Day Yoav Arnstein, Facebook Dale Older, Integral Ad Mark Kopera, Oracle The Trade Desk DATA TRANSPARENCY STANDARD AND Scott Spencer, Google Science Data Cloud James Kelm, Twitter CCPA COMPLIANCE FRAMEWORK FOR COMPLIANCE PROGRAM Michael Palmer, GroupM Mike Romoff, LinkedIn Eric Picard, Pandora Guy Levit, Verizon Media PUBLISHERS & TECHNOLOGY COMPANIES In June, the IAB Tech Lab announced the completion of Ken Weiner, GumGum Anneka Gupta, LiveRamp John Sabella, PubMatic Steven Truxal, Xandr To support CCPA compliance for version 1.0 of its Data Transparency Kate Sloan, Hearst Wilfried Schobeiri, Dorothy Tse, Quantcast Ai Matsubara, Yahoo Japan website and app owners and the digital Standard, and the launch of an MediaMath Vincent Karachira, Rakuten ad tech ecosystem, the IAB Privacy & Dennis Buchheim, affiliated Data Transparency Standard IAB Tech Lab Joe Cepollina, Microsoft Marketing Compliance Unit, gathering legal, public Compliance Program, to advance policy, and tech experts from IAB, IAB data collection best practices. Similar Tech Lab, along with member companies to manufacturers being required to representing the digital advertising, provide a nutrition label on packaged marketing, and media ecosystem, has foods, the standard asks data providers developed this framework. It represents to offer details that inform segment an opportunity for companies that are Neal Richter, Chief Data Scientist, SpotX; Dennis quality, addressing things like segment truly invested in privacy by design to forge Buchheim, Executive Vice President & General recency, provenance, and segmentation greater trust with our most valuable and Manager, IAB Tech Lab, 2019 IAB Tech Lab criteria, and to encourage more important business assets: consumers. Innovation Day informed data usage.

20 IAB TECH LAB 21 ANNUAL REPORT 2019

IAB GLOBAL NETWORK: IAB LEARNING & DEVELOPMENT SUPPORTING GLOBAL GROWTH AND WORLD-CLASS TRAINING AND TECHNOLOGY STANDARDS LEARNING FOR A DYNAMIC ECOSYSTEM

AB supports our members’ international agendas by leveraging by advancing global thought leadership, expanding the IAB brand s the industry continues to grow, IAB members have the strength and collaboration of the IAB Global Network, into strategic markets, and encouraging self-regulation and public showcased a need for additional training to further upskill Iencompassing nearly 50 IAB organizations across six policy. This year, the IAB Global Network continued to focus its Atheir organizations and stay ahead of the curve. Some of continents. The international team aims to further the overall efforts on an issue that profoundly affects the entire media and the main courses offered in 2019 included: mission of IAB and to serve the interactive ad industry globally marketing ecosystem: consumer privacy and regulations. INTRODUCTION TO DIRECT BRANDS Direct-to-consumer brands are disrupting the traditional GLOBAL SCOPE – IAB s AROUND THE WORLD retail economy, capturing unprecedented market share from legacy category leaders. This online learning course traces the development of direct brands and explains how you and your organization can thrive in the direct brand economy. SOCIETY OF DIGITAL MEDIA PROFESSIONALS NETWORK IAB LEADERSHIP TRAINING: MEDIA SALES Each month the Learning & Development team hosts an event To actively enable the emergence of new strong sales where an IAB member provides insights on how their organization leaders in the industry, the IAB Education Advisory Board, approaches a particular topic, inciting open discussion where comprised of fourteen top executives in the digital industry, members can share ideas and build relationships. architected a two-day leadership training for media sales. PARTNERSHIP WITH DMI AND 212 NYC PRIVACY ESSENTIALS To increase the reach of digital media and marketing training Designed for business professionals, the Privacy for the interactive industry, IAB Learning & Development has Essentials course gives an in-depth introduction to PRIVACY established partnerships with the Digital Marketing Institute ESSENTIALS the most comprehensive EU and U.S. privacy laws and (DMI) and 212 NYC, to extend training and certification how they affect your business and apply to the various opportunities directly to their members. players in the digital advertising ecosystem.

DIGITAL ADVERTISING ESSENTIALS FOR LAWYERS, POLICY, AND PRIVACY ONLINE PREP COURSES FOR PROFESSIONALS CERTIFICATION

ITAL MED IG IA As privacy and policy continue to be key topics of D G & PLANN BUYIN ING discussion, this course was designed for lawyers, and C E R T I F I E D public policy professionals looking for a crash course in South North the digital media industry. Europe Africa Asia Pacific America America ONLINE TRAINING • IAB Austria • IAB Finland • IAB • IAB Serbia • IAB GCC • IAB Australia • IAB • IAB (United AUDIO 360 • IAB Belgium • IAB France Macedonia • IAB Slovakia (Golf • IAB China (CAA) Argentina States) IAB Cooperation IAB Brazil IAB Canada The first digital audio training of its kind, the IAB Audio • IAB Belarus • IAB Germany • • IAB Slovenia Council) • IAB Hong Kong • • (BVDW) Netherlands (HKDMA) IAB Chile IAB Mexico 360 course dives into where audio has been, where it’s • IAB Bulgaria • IAB Spain IAB South • • IAB Greece • IAB Norway • IAB Japan (JIAA) IAB going, and how advertisers are taking advantage of it for • IAB Croatia • (INMA) • IAB Sweden Africa • • (INAMA) IAB Hungary IAB New Zealand Colombia the future. • IAB Poland • IAB • ONLINE & IN-PERSON TRAINING IAB IAB Ireland • Switzerland IAB Singapore • IAB Ecuador • • • IAB Portugal • Denmark IAB Italy IAB Turkey IAB SEA + India (IAB • IAB Peru CORPORATE TRAINING (FDIM) • • IAB Romania • • IAB UK Southeast Asia+ India) • IAB Uruguay DATA • IAB Europe • IAB Russia • • All Access • Licensed Content • IAB Ukraine *Regional IABs • Custom In-Person • Modular Training

22 IAB LEARNING & DEVELOPMENT 23 ANNUAL REPORT 2019

IAB IN THE NEWS 2020 EVENTS

EXCLUSIVE: Interactive The IAB Finalizes CCPA Advertising Bureau Unveils The Framework As Industry Readies FEBRUARY 9-11 2019 IAB 250 For More Regulators IAB ANNUAL LEADERSHIP MEETING

IAB CEO: programmatic a IAB: Higher Ad Growth For OTT APRIL 27-MAY 6 'strategic resource' thanks to Platforms, 'Walled Garden' NEWFRONTS disruptor brand Concerns MAY 12-13 IAB’s NewFronts West to Return to IAB names direct-to-consumer L.A. in September 2019 brand to board seat for first time IAB @ MADCON

Targeted TV Advertising Is Brands No Longer Want Your MID JULY Taking Off Loyalty. Now They Want Your Love IAB VIDEO LEADERSHIP SUMMIT

IAB Tech Lab intros 'nutrition Direct-to-consumer disrupts SEPTEMBER 10 label' program to simplify all sectors with new customer IAB PODCAST UPFRONT audience data journey SEPTEMBER 16 Podcasting To Become A How Disruptor Brands Are Billion-Dollar Ad Business By Thriving in Industries Dominated IAB TECH LAB SUMMIT 2021: IAB-PwC By Giants Like Amazon NOVEMBER 9-10 Marketers Turn Up Podcast IAB Releases CCPA Framework As IAB DIRECT BRAND SUMMIT Advertising Privacy Law Deadline Looms

D2Cs: Faster Than Legacy Brands, Meet Sellers.json: It’s Like But Surprisingly Traditional Ads.txt, But For The Buy Side

IAB Tech Lab releases final IAB Tech Lab releases new specs version of app-ads.txt to fight to boost transparency across mobile app fraud entire supply chain For information on sponsorsing these events, contact us at

24 25 ANNUAL REPORT 2019 ASSOCIATE MEMBERS A. Eicoff & Company Infinitive Accenture Ipsos Active International Kantar Millward Brown IAB MEMBERS HealthiNation Microsoft Advertising Rooster Teeth / The Roost TiVo Ad Results Media Kelley Drye & Warren LLP Healthline Midroll Media Podcast Network TomboyX ••• Advertiser Perceptions Local Media Consortium Hearst MightyHive Rovio Torrential Akin Gump Strauss Hauer Maru/Matchbox Helix Sleep ••• MiQ RTL AdConnect Traffic Steer & Feld LLP McKinsey & Company, Inc. HIRO-Media Mirriad Rubicon Project TrafficGuard Alliance for Audited Media United States EMPOWERING Hiscox Mobcrush RUN Taptica ••• (AAM) Media Japan Network HMETE ••• Mobilewalla Rutgers University ••• TreSensa Analytic Partners Media Management Inc. Hobo ••• Monster Energy ••• RXBAR ••• Tribune Publishing Archer Advisors Media Monitors Homes.com Montclair State Samba TV TripAdvisor Baker & Hostetler LLP Media Rating Council AND CONNECTING Hubble Contacts University Samsung Electronics TripleLift ••• ••• Bionic Advertising Systems MediaLink Hulu MOOP ••• America Triton Digital Bonzai Mixpanel HyperTV Morningstar SAS Institute true[X] BPA Worldwide Monotype IBM Watson Advertising mPlatform SC Johnson ••• Trusted Media Brands Calibrant Digital News Media Alliance IAB MEMBERS iHeartMedia Museum of the City of Scholl’s Wellness Tubular Labs CDK Global LLC OAREX Capital Markets, Inc. IHS Markit New York ••• Company ••• TULA Skincare ••• Coalition for Innovative Oxford Road Index Exchange Music Audience Exchange Scotts Miracle-Gro ••• TuneIn Media Measurement PIVnet Infogroup NASCAR Digital Media Semcasting TurboTax ••• (CIMM) Prisa Brand Solutions Inmar Brand Solutions National Football League ShareThis TUSHY ••• Dentsu Aegis Prohaska Consulting he IAB mission is to empower the media and marketing industries InMobi (NFL) Sharethrough TVSquared Dieste Redbooks to continue to thrive in the digital economy, and helping you — Innity National Public Media SHE Media Twitter Dun & Bradstreet RPA Innovid Nativo Shopify Uber ••• Dynata Sales Athlete, Inc. our members — is how we strengthen those industries. IAB INOVA ••• NBCUniversal Signal Ubimo Ebiquity Specialists Marketing T Inscape Nectar ••• Simpli.fi Undertone Essence Services/d3 membership includes more than 650 leading media and technology Instinctive Netsertive Simulmedia Unity Technologies Frankfurt Kurnit Klein SQAD companies, including more than 120 brands. We thank all of our Instreamatic, Inc. Neustar SITO Mobile Universal Parks & & Selz Standard Media Index Integral Ad Science New York Public Radio Slate Resorts ••• Geopath Television Bureau of members for their support throughout the year. Intersection News Corporation Smaato Univision GfK North America Advertising Investor’s Business Daily Nexstar Digital Smart AdServer US News & World Report Gregory Welteroth Varick Media Management Invisibly Nexstar Media SmartyAds Inc. Valassis Advertising Veritone One Brand ••• New Member IPONWEB NextRoll SmileDirectClub ••• VCC Brands ••• GroupM Viamedia IRI Nielsen Smithsonian Media Group Verizon Media Havas Group Winterberry Group ironSource USA, Inc. NinthDecimal Snapchat Verus Media Group iSpot.tv NomNomNow ••• Solé Bicycles ••• Verve JioSaavn NorCal Cannabis Solo Stove ••• VEVO Jivox Company ••• Sonobi Viacom Johnson & Johnson ••• Northwell Health ••• Sony Pictures Television Viant Jukin Media Nucleus Marketing SoundCloud Vibrant Media TECH LAB MEMBERS Julianna Rae ••• Nutrafol ••• Sourcepoint Vice Jun Group NYIAX Sovrn VideoAmp All IAB U.S. general members are automatically members JW Player Oars + Alps ••• Specialists Marketing ViralGains of the Tech Lab. Additional members include: Kabbage Ogury Services/d3 Visa Advertising Solutions ••• A Million Ads Ligatus Kantar Media OneTrust Spectrum Reach Visit Orlando ••• Aawaz LiquidThread Kargo OpenSlate Speed Shift Media Vivoom, Inc. AdEx Line EmpireStreaming KERV Interactive OpenX SpineNevada VIX ••• Admixer EU Gmbh Luminati EMX Digital Kiip Oracle Data Cloud Spot.IM Vox Media Podcast AdProfs Macromill, Inc. Entercom Communications Kinship Orange142 Spotify Network ••• AdSecure Meetrics Entravision Kochava Ori Apparel Inc. SpotX Voxnest, Inc. ••• Adserve MetaX Equifax Konduit Outbrain SRAX VRTCAL AdView Miaozhen Information Essence Kopari Beauty Outcome Health StackAdapt Vungle ••• AlikeAudience Consultancy Co., Ltd Evidon Kroger Outfront Media Stanley Martin Walmart ••• ••• Aotter Mintegral Evite Inc. Kustomer Pandora Homes Wander Beauty ••• ••• Audion Movable Ink Expedia Media Solutions L’Oréal Parsec Media Starwood Retail Warner Bros. Digital ••• Audit Bureau of Moxie Experian Marketing Lancer Skincare Peach Goods Partners Media Sales ••• ••• ••• Circulations UK NeuroMedia Commonwealth Joe Coffee Services Leaf Group PebblePost Steereo WarnerMedia Axel Springer SE NEXD Roasters Extreme Reach Leatherman Tool Penn State University Strategy+Business Washington Post Digital ••• ••• BARC India Nextek Comscore Eyeota Group Pepperjam Sublime Skinz WBUR ••• Bartle Bogle Hagerty Noqoush Condé Nast Eyeview Legacy.com PepsiCo SundaySky Weiman Products ••• ••• Baycloud Systems NumberEight Confiant Facebook LendingTree Pfizer SuperAwesome WellWell ••• ••• ••• Bidstack Omnicom Media Group Connatix Native Exchange Factual Libsyn PGA TOUR Survata WestwoodOne Bitposter Omny Studio Consumable Fandom powered by Wikia LinkedIn Philo Swoop White Ops Blue 449 OneOneDay Bloomist ••• Conversant Media Firefly Liquidus Marketing Pinterest Synacor Wiland Browsi Oona Bounce Exchange Conviva Flashtalking Live Nation Pixability T-Mobile Marketing Winc ••• Canvas Worldwide Permutive Amino Payments Brandless ••• Cox Enterprises Flipboard LiveIntent Pixalate Solutions Winterberry Group ••• Captify PIVnet GENERAL MEMBERS Amobee Brightcove Criteo Fluent LIVELY PlaceIQ Taboola Wondery, Inc. ••• CHEQ Platform161 Ampersand BritePool Cuebiq Flywheel Sports LiveRamp Placements.io Taco Bell WoodWing 16 Handles AdPushup ••• Cinemoz Pokkt ••• Analytic Partners BroadSign DailyMail.com Forbes Media Location Sciences Plantation Products Talking Rain Beverage Worldata 3 Day Blinds AdRizer ••• Collectcent Digital Media Protected Media ••• Andie Swim ••• Brooklinen ••• Dailymotion Forensiq Loeffler Randall Platform.io Company WWE 33Across AdSensor ••• ••• Pvt. Ltd. Publicis Groupe Anheuser Busch Brooklyn Roasting Datawallet Foursquare Los Angeles Times Media PodcastOne Tapad X-Mode ConsenSys Publicis Health Media 4C Insights Adslot InBev ••• Company ••• Dataxu Fox Group Podtrac Tapjoy Xandr CPEx Publicis Media 605 Adsmovil Aniview BuzzFeed DAX U.S. Freshly Lotame Solutions Powerinbox TargetSpot XAPPMedia ••• Creator’s NEXT Publicis Sapient 6Sense AdSpirit Anura Solutions C3 Metrics DeepIntent FuelX Lucid Premion Tatari Xaxis Cyberagent, Inc. Rosetta A+E Networks Adswizz Anyclip Cable One Advertising Dell Inc. Future US Lucidity Prisa Digital Taunton Interactive XUMO ••• Cyber Communications Inc. S4M AARP Adtegrity AppSamurai Cadent Dermstore Fyber LumenAd Procter & Gamble TB12 Sports Yieldmo ••• ••• ••• D. A. Consortium Holdings Inc. Spark Foundry Acast Stories Inc. AdTheorent Arrivalist Cafe Media DeviceAtlas Fyllo Made In Cookware Public Media Marketing TD Ameritrade Zeel ••• ••• ••• Dabbl Starcom Worldwide AccuWeather Advangelists Art19 Canoe Ventures Dianomi Gameloft Madhive Publishers Clearing House Teads Zefr Deepline Survata Activision Blizzard Media Adzerk Artsy ••• Capital One ••• DIG Labs Garden Lites Market Enginuity PubMatic Telaria Zergnet ••• ••• Deloitte Digital TenMax AcuityAds Aer Lingus Limited ••• Audioboom Captivate Digital Remedy GeistM Marla Aaron Jewelry PubNative GmbH The Atlantic Ziff Davis, LLC ••• Didomi Terragon Group Acxiom Affinio Babbel ••• Caskata ••• Diray Media General Motors Mattress Firm PulsePoint The Coca-Cola ZippyPaws Inc. ••• ••• Digital Advertising TikTok Inc. Ad Lightning Affinity Express Barstool Sports CBS Interactive Discovery Communications Company Maven PureFormulas Company ZipRecruiter Inc. ••• ••• ••• ••• Consortium Inc. True Data Ad Persistence AI Music BauBax ••• Centro DISH Genius Monkey Maximus Live PushSpring The Hansen Company Zoom Media ••• Digitas LBI TrustX Ad-iD ALC BBC Worldwide Americas Chandanni ••• Disney Interactive GeoEdge Media.net Quantcast The Hershey Zynga Display.io ucfunnel Co., Ltd. Adacado Allen Media, LLC BD (Becton, Dickinson Channel Factory District M Gimbal MediaMath Rakuten Marketing Company ZypMedia ••• DLT Labs Videonow AdBrilliant Alliant and Co.) ••• Chartable, Inc. DMD Marketing Corp. Gladly MediaNews Group RawVoice The Inquirer Everrise Corporation Vivaki AdColony Allstar Innovations ••• Beachfront Media Cheddar Dormify Goodway Group MediaOcean RB Health The Man Company ••• ••• ••• Fiducia DLT Ltd VM1 Addapptr Altice USA Beau Ties ••• Chicory DoubleVerify Google MediaRadar Renew Anchored The Media Trust Company FreckleIoT Waveline Media Adform Amazon Advertising Beeswax Chocolate Drawbridge Gray Line Worldwide Medicx Media Solutions Dentures The New York Times ••• ••• GMO Ad Marketing White Bullet AdKernel AMC Networks Beliv ••• Cignal.io Dstillery GRESSO Megaphone Reuters Company ••• Gridsum WideOrbit AdLarge Media AmeribaseDigital Powered Bespoke Post ••• Citigroup ••• Duration Media Group Nine Media Meredith Digital RevContent The Trade Desk by Lighthouse List ID5 X-Mode ADLOOX Bhang Inc ••• Claritas Earfleek GumGum MeritDirect Reveal Mobile, Inc. The Wolf Project Company ••• ••• Infocomm Group LLC Yahoo Japan Corporation adMarketplace Bidtellect Clipcentric Eargo Haerfest Meryl Diamond Ltd RevJet Thinknear by Telenav American City Business ••• ••• ••• Insticator Yeahmobi Admiral Adblock Publisher Bigabid Codewise eBay Hanley Wood Mezzetta Foods rewardStyle ThirdLove Solutions Journals ••• ••• Intowow Yomedia Network Blingby Colgate-Palmolive ••• Electronic Arts Hartsfield-Jackson MGID RiskIQ Tiege Hanley AdNode American Media, Inc. ••• Iubenda YOSPACE Blis Comcast Spotlight eMarketer Atlanta International Micron ••• Roku Timehop Adobe American Public Media Bloomberg Command Precision Emodo, Inc. Airport ••• Jicwebs Zenith Media

26 IAB MEMBERS 27 ANNUAL REPORT 2019

MOBILE MARKETING CENTER OF EXCELLENCE

Audio Committee Playables Working Group Social Media/Native/Content Committee Gina Garrubbo, National Public Media, Rob Grossberg, TreSensa, Co-Chair Melissa Diaz, Meredith Digital, Co-Chair 2019 COMMITTEES & COUNCILS Co-Chair William Lee, Facebook, Co-Chair Judy Lee, Pinterest, Co-Chair Les Hollander, Spotify, Co-Chair Local Committee Ari Lewine, TripleLift, Co-Chair Carrie Lieberman, iHeartMedia, Co-Chair Kristen Berke, Los Angeles Times Media Asher Rapkin, Facebook, Co-Chair Priscilla Valls, Pandora, Co-Chair Group, Co-Chair Native Advertising Playbook Podcast Business Working Group Jeanne Brown, Verve, Co-Chair Working Group B2B Committee Brian Czarny, Factual, Co-Chair Ari Lewine, TripleLift, Co-Chair Tusar Barik, LinkedIn, Co-Chair Location-Based Marketing Glossary Publisher Content Studio Working Group Jim Riesenbach, Ziff Davis, Co-Chair Working Group User Generated Content (UGC) for Dan Maxwell, PlaceIQ, Co-Chair AB helps drive the industry forward through the efforts of committees and councils in Account-Based Marketing Working Group Advertising Working Group Adam Sweet, InMobi, Co-Chair various industry segments. These groups include the brightest minds in the industry Darragh Fitzpatrick, Rollworks, Co-Chair David Elkins, TripAdvisor, Co-Chair Iand work together to develop solutions that improve the interactive advertising and Ethan Simblist, MeritDirect, Co-Chair Mobile Advertising Committee Clay Webster, Vivoom, Inc., Co-Chair marketing ecosystem for everyone. Committee and council participation is open to any Games Committee Matt Kaplan, Univision, Co-Chair eligible staff at an IAB member company. Gabrielle Heyman, Zynga, Co-Chair Augmented Reality (AR) for Marketing Agatha Hood, Unity Technologies, Working Group DATA CENTER OF EXCELLENCE DIGITAL VIDEO CENTER Co-Chair Badi Badkoube, Snap Inc., Co-Chair OTHER COMMITTEES Jonathan Stringfield, Activision Blizzard Tony Gemma, Verizon Media, Co-Chair & COUNCILS Automation Committee Defining The Data Stack 2.0 Advanced TV Committee Media, Co-Chair Joelle Mefford, Meredith Digital, Co-Chair Brand Council Programmatic Digital-Out-of-Home Valentina Marastoni-Beiser, Cuebiq, Chris Falkner, Cuebiq, Co-Chair Tony Parisi, Unity Technologies, Co-Chair CFO Council Ryan Pogy, Broadsign, Co-Chair Co-Chair Doug Fleming, Hulu, Co-Chair Esther Raphael, Intersection Co., Co-Chair Ian Rubenstein, GroupM, Co-Chair Advanced TV Attribution Working Group CRO Council Michael Tuohy, Eyeota, Co-Chair Christine Cook, Warner Media / Short-Term vs. Long-Term Profitability VR/AR Working Group Identity & Audience Data Committee IAB TECH LAB CNN Digital, Co-Chair Brandon Beard, The E.W. Scripps Julie Bernard, Verve, Co-Chair Digital Video Committee Tom Fochetta, Samsung Company, Co-Chair IAB Tech Lab Council Alysia Borsa, Meredith Corporation, Jarred Wilichinsky, CBS Interactive, MRAID Ads SDK Tester Working Group Electronics America, Matt Petersen, Outbrain, Co-Chair Co-Chair Co-Chair Co-Chair Tim Wall, AdRizer, Co-Chair Ad Product Portfolio Working Group OpenData Task Force Greg Williams, MediaMath, Co-Chair Digital Video Glossary Working Group Legal Affairs Council Data Benchmarks & Activation Blockchain Working Group OpenDirect Working Group AI in Marketing Working Group Terms & Conditions Working Group Privacy Subcommittee Committee Open Measurement Working Group Matthew Groner, AdTheorent, Co-Chair CCPA/US Privacy Technical Valentina Marastoni-Beiser, Cuebiq, Open Measurement Commit Group Public Policy Council Antonio Tomarhio, Cuebiq, Co-Chair Working Group Co-Chair Todd Thorpe, News Corp, Chair Michael Tuohy, Eyeota, Co-Chair Measurement & Attribution Committee Data Transparency Standards Open Measurement Participant Group Research Council Sable Mi, NinthDecimal, Co-Chair Working Group Children's Online Privacy Protection OpenRTB (Real-Time Bidding) David Iudica, Facebook, Peter Minnium, Ipsos , Co-Chair Act (COPPA) Digital Video Technical Standards Working Group Co-Chair Kate O’Loughlin, SuperAwesome, Reconciliation of Marketing Mix Working Group OpenRTB Commit Group Ad Effectiveness Studies Co-Chair Modeling (MMM) & Multi-Touch TV Convergence Technical Working Group Aundra Thompson, Conversant, Co-Chair Attribution (MTA) Task Force OpenRTB Native Working Group Bradley Timmers, Innovid, Co-Chair Sable Mi, NinthDecimal, Co-Chair Cross Platform Measurement Peter Minnium, Ipsos, Co-Chair Video Tools & Best Practices Programmatic Practices Task Force Issues Working Group Data Consumer Journey Videos Subgroup Multicultural Council Improving Ad Revenue Margit Kittridge, Dynata, Co-Chair Stacey Graham, BET Networks; Nelson OTT (Over-The-Top Video) Technical Stacey Graham, BET Networks, Co-Chair DigiTrust ID Working Group Reporting Working Group Darryl McNutt, Visto, Co-Chair Pinero, GroupM, 2019 IAB Cross-Cultural Working Group Nelson Pinero, GroupM, Co-Chair Marketing Day Dynamic Content Ad Standards Podcast Technical Working Group Working Group SafeFrame Implementation GDPR Technical Working Group IAB VIDEO BUYER ADVISORY BOARD Working Group GDPR Commit Group Taxonomy & Mapping Working Group GDPR Mobile Technical Sub-group The LEAN, DEAL, and Experiences Working Group Identity Graph Validation Working Group

Mobile Rich Media Ad Interface Definitions (MRAID) Working Group

28 2019 COMMITTEES & COUNCILS 29 ANNUAL REPORT 2019

FINANCIAL REVIEW INVESTING IN INDUSTRY GROWTH AND OUR MEMBERS’ SUCCESS

elivering value to our members is our top priority at IAB; IAB organizations continued to deliver on revenue in 2019. Given Additional ongoing IAB revenue streams in 2019 included made significant investments in our Learning & Development and the financial state of IAB started and ended the year the tremendous growth of OTT video streaming, the Digital Video initiatives such as strategic partnerships with investment on curriculum, events, and increased investment in our public policy Dstrong, allowing us to make big investments in solutions Center of Excellence is expected to see revenue of $1.4 million, research in the direct brand economy, international licensing efforts on behalf of our members. for growth for our industry and our members. an increase of 14% from $1.2 million in 2018. The Data Center of fees, and other new initiatives. Overall, IAB managed expenses closely in 2019, which are Excellence revenue topped $1 million or 9% year-over-year growth According to unaudited 2019 financial statements, IAB is projected In 2019, IAB invested the revenues received towards helping projected to total $29.8 million, and closed the year with a net thanks to expanded board participation. And the IAB Mobile to finish the year with record-breaking topline consolidated revenue member businesses grow and excel. Funding was directed income surplus of $749,000. Marketing Center of Excellence is projected to finish 2019 on par of $36.7 million, up from $33.3 million in 2018. towards producing valuable third-party industry research with the previous year. We are poised and structured for a successful 2020 and look and tools for building brands in digital media. We have also Membership dues revenue is projected to be $16.6 million for forward to connecting at a deeper level with all of our members. The IAB Tech Lab is expected to bring in $6.5 million in its fourth 2019, up 4% from $15.9 million in 2018. Events at IAB in 2019 year of operation (up from $4.9 million in 2018) to develop are expected to bring in $7.7 million, up $7.3 million from 2018. tools, standards, and best practices that simplify and reduce Learning & Development revenue is projected to be up by 20% costs associated with the digital advertising and marketing year-over-year at $1.6 million compared to $1.3 million in 2018. supply chain. This growth is due in part to industry interest and increased participation in global compliance programs. IAB REVENUE STREAMS*

IAB Mobile Marketing Center of Excellence: $.87M Membership Dues: $16.7M

FINANCIAL KEY INDICATORS FOR 2019 Other: $.84M IAB Data Center of Excellence: $1.1M **2019 2018 ACTUAL REVENUE (‘000) PROJECTED PROFORMA $ VAR YOY % VAR YOY IAB Video Center of Excellence: $1.4M MEMBERSHIP DUES $ 16,678 $ 15,971 $ 707 4% EVENTS $ 7,709 $ 7,352 $ 357 5% MOBILE CENTER $ 868 $ 883 $ (14) -2% Learning & Development: $1.6M VIDEO CENTER $ 1,449 $ 1,275 $ 174 14% DATA CENTER $ 1,090 $ 1,003 $ 88 9% LEARNING & DEVELOPMENT $ 1,638 $ 1,368 $ 270 20% *TECH LAB $ 6,518 $ 4,963 $ 1,555 31% OTHER $ 838 $ 571 $ 267 47% TOTAL REVENUE $ 36,788 $ 33,385 $ 3,403 10% IAB Tech Lab: $6.5M COST OF GOODS SOLD $ 6,186 $ 4,683 $ 1,503 32%

GROSS PROFITS $ 30,603 $ 28,703 $ 1,900 7% Events: $7.7M TOTAL EXPENSES $ 29,854 $ 28,351 $ 1,503 5% NET INCOME $ 749 $ 352 $ 397 113% *Projections based on unaudited estimates through December 2019

*Excluding Revenue Share ** Final unaudited financials for 2019

30 FINANCIAL REVIEW 31 ANNUAL REPORT 2019

THE IAB OFFICES IAB STAFF NEW YORK OFFICE PRESENCE ON WEST COAST Interactive Advertising Bureau Los Angeles WHO WE ARE 116 East 27th Street, 6th Floor San Francisco New York, NY 10016 Seattle 212 380 4700 CHIEF EXECUTIVE OFFICER WASHINGTON, D.C. OFFICE Randall Rothenberg — [email protected] Interactive Advertising Bureau Brawner Building PRESIDENT & CHIEF OPERATING OFFICER 888 17th St., NW Suite 312 Patrick Dolan — [email protected] Washington, DC 20006 Evan Mei Orchid Richardson Coordinator, Certification Vice President & Managing EXECUTIVE VICE PRESIDENT, PUBLIC POLICY The Interactive Advertising Bureau (IAB) empowers the media and Dave Grimaldi — [email protected] Operations, Learning & Director, Data Center of Development Excellence marketing industries to thrive in the digital economy. Its membership SENIOR VICE PRESIDENT, MARKETING & MEMBER [email protected] [email protected] is comprised of more than 650 leading media companies, brands, and the technology firms responsible for selling, delivering, and optimizing ENGAGEMENT DEVELOPMENT Haley Milch Soizic Sacrez Sheryl Goldstein — [email protected] Manager, Events Operations Sr. Director, Marketing digital ad marketing campaigns. The trade group fields critical research [email protected] [email protected] on interactive advertising, while also educating brands, agencies, and the SENIOR VICE PRESIDENT, FINANCE & OPERATIONS wider business community on the importance of digital marketing. Jeanie Carstensen — [email protected] Holly Miller Sharon Scoble Coordinator, Salesforce Director, Operations (CRM) In affiliation with the IAB Tech Lab, IAB develops technical standards and SENIOR VICE PRESIDENT, GENERAL COUNSEL [email protected] [email protected] solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the Michael Hahn — [email protected] Twafiqa Mohinuddin Diana Serquen Coordinator, Industry Initiatives Collections & A/R Specialist industry. Through the work of its public policy office in Washington, D.C., SENIOR VICE PRESIDENT, RESEARCH AND MEASUREMENT [email protected] [email protected] the trade association advocates for its members and promotes the value Sue Hogan — [email protected] of the interactive advertising industry to legislators and policymakers. Virginia Moore John Skelton Vice President, Events Operations Executive Assistant Founded in 1996, IAB is headquartered in New York City. [email protected] [email protected] LaToya Anderson Deb Carrara Conor Healy Nina Munoz Alexus Smith Staff Accountant Director, Member Engagement Sr. Director, Operations Director, Digital Video Center Coordinator, Industry Initiatives [email protected] & Development [email protected] of Excellence [email protected] [email protected] IAB TECH LAB Joe Aunce Sara Childs Nicole Horsford Julian Soler Coordinator, Marketing Manager, Events Sr. Director, Member Hannah Nardone Director, Mobile Marketing [email protected] [email protected] Engagement & Development Coordinator, Member Center of Excellence EXECUTIVE VICE PRESIDENT & GENERAL MANAGER [email protected] Ranjeeta Baijnauth Craig Coleman Engagement & Development [email protected] Dennis Buchheim — [email protected] [email protected] Director, Account Management Vice President, Marketing Daniel Jasper Zoe Soon [email protected] [email protected] Director, Member Engagement SENIOR VICE PRESIDENT, MEMBERSHIP & OPERATIONS Diana Negron Vice President, Mobile Jordan Mitchell — [email protected] & Development Manager, Administration Marketing Center of Excellence Amanda Baldwin Lauren DellaFave [email protected] Manager, Mobile Marketing Director, Human Resources [email protected] [email protected] VICE PRESIDENT, PRODUCT MANAGEMENT Center of Excellence [email protected] Eric John Andie Odynski Graham Spencer Shailley Singh — [email protected] [email protected] Deputy Director, Digital Video Coordinator, Marketing Manager, Instructional Designer Christopher Elias Center of Excellence Rick Berger AV & IT Support Technician [email protected] [email protected] VICE PRESIDENT, ENGINEERING (CTO) [email protected] Sam Tingleff — [email protected] Vice President, Member [email protected] Edwin Orta Alicia Stansbury Engagement & Development Deleela Jones Sr. Manager, Facility Director, Learning & [email protected] Preethi Gadusu Sr. Director, Marketing Salesforce Developer [email protected] Development Zack Carlson Alexandra Salomon Katie Stroud [email protected] [email protected] Erika Bradbury [email protected] Daniel Phelan Frontend Software Engineer Sr. Director, Global Business Sr. Manager, Product Sr. Director, Conference James Linney Sr. Staff Accountant Tierney-Lee Steele [email protected] Development Support Programs Stacey George Director, Marketing [email protected] [email protected] Manager, Customer Success [email protected] Director, Learning & Ben Dick [email protected] Development Luz Brito [email protected] Joe Pilla Director, Product/Data Amit Shetty Jill Wittkopp Director, Financial Operations Nhychelle Lowe [email protected] [email protected] Sr. Director, Product Director, Product Meredith Green Director, Data & Automation [email protected] Coordinator, Industry Initiatives [email protected] Brooke Stevens Video Audio Management Software Manager, Research Analyst [email protected] Courtney McDermid [email protected] [email protected] Chris Bruderle [email protected] Business Analyst & Executive Assistant Alex Propes Salesforce Admin Sr. Director, Research Analyst Stacey Lyons Sr. Director, Public Policy [email protected] Colleen Shields Jarrett Wold [email protected] John Grifferty Executive Assistant to CEO/COO [email protected] Director, Member Services Director, Compliance Director, Member Engagement [email protected] Mayank Mishra [email protected] Michael Texidor & Events Programs Lucia Cameron & Development Kori Reese Sr. Director, Engineering [email protected] [email protected] Vice President, Human [email protected] Kathleen McKay Vice President, Learning & [email protected] Manager, Events Operations Development Resources Director, Events Operations [email protected] Kelsey Sorenson [email protected] Natalie Hamingson [email protected] [email protected] Mina Pajevic Coordinator, Member Sales Manager, Member Engagement Manager, Member Services Kenya Reynolds John Ward [email protected] & Development Sr. Manager, Business Operations [email protected] [email protected] Director, Conference Programs [email protected] [email protected]

32 IAB & TECH LAB STAFF 33