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2012 annual report Our members are building new opportunities to produce extraordinary media

experiences and powerful connections with consumers. The explosion of our industry—different devices, new forms of interactivity—demonstrates how far digital

has grown from the days of static banner ads. 1 IAB Annu al Repo rt 2012

A Letter From Ra ndall Rothenberg ------

ur Industryur Creativity, too, comes standard. the first In 2012, IAB Rising Stars, immersive display ad formats devel oped for brand marketers, became IAB Standard Units. Ad Mobile Rising Stars andStars are quickly advancing toward this Digital status, too. Rising We launched IAB Digital Media Sales the Certification, first-ever standard of expertise for digital mediasales forces. have We led the mobile industry, with the IAB Mobile Marketing Center of Excellencefirmlyintegrate to mobile into the fabric helpingdigitalof mar keting by setting standards and producing actionable insights. The expanded IAB Advertising team introduced Technology breakthrough technology standards, such as the updated IAB Video Suite, to the everyday toolboxes of marketers and publishers. We facilitated Madison Avenue greater and through an exclu understanding sive trip to the West Coast for betweenour Agency Advisory Board to meet with luminaries from , Twitter, Zynga, Flipboard, Klout, Byers, and Kleiner Stanford Perkins University. Our collaborated Caufield U.S. closely with leadershipleaders of the global advance our to ketplace countlessmar common cul goals, minating in the fall with the IAB Global Summit where digital leaders from 50 companies and 23 of the national39 IABs met in City. Looking back ouraccomplishments at andthose whohelped achieveus them, IAB is confirmedly the home base of the diverse digital media ecosystem. Through IAB, individuals from disparate corners of the supply chain and the globe meet to pursueunmatched initiatives in ambition and influencesimplify, and that elevate the digital advertising serve industry. to unite, IAB would not be this powerful without center the imagination of and operation ambition of our members and staff. I am deeply thankful for their dedication and the opportunity to lead the organization through this momentous year. I am anticipating prises a and delights 2013 that all of our constituents. sur Sincerely, Rothenberg Randall President and Chief Executive Officer Interactive Advertising Bureau ------and O B and he State of Statehe of IA T As anindustryAs and anas association, we have to recognize and seize oppor tunity wherever we find it, in an environment of constant innovation. ing interactive the second largest advertising medium. Full-year figures forare 2012 not yet available, but in the first three quarters of the year, Internet advertising revenues climbed to a high for the periodlion, up nearly of percent 15 $26 from bil the prior year. Full-year figures for showed 2011 our industry attracted more advertising dollars than cable television, magazines, or newspapers. Digital media are now mainstream media. With such growth comes great I am responsibility—andpleased to say IAB has risen to theHouseWhite endorsed theFebruary of thework 2012, occasion. In the Digital Advertising Alliance, the coalition assem bled by IAB, the Association of National Advertisers (ANA), the American Agencies (4A’s), and Associationseveral other major trade of asso ciations Advertisingrepresenting the spectrum of the advertising industry, for creating robust self-regulation to protect consumer privacy rights in interactive environments. Harvard A economy. U.S. the propels also industry Our Business School study commissioned by IAB found the ad-supported Internet ecosystem contributed bil $530 lion to the U.S. economy and 5.1 million U.S. jobs in 2011. As an organization, IAB, too, has evolved and grown. With a record million $17.8 in revenue for we 2012, ablewererespond to more robustly the needsto theof thriving marketplace. Through the Making Measurement Make Senseinitiative, (3MS) co-led by IAB, the industry ANA, is and near gaining the 4A’s, the the viewable new impression currency as standard, a answering at most vexing last questions one marketers of have the asked since dawn the of the Internet Era: “What’s the right way to mea accomplishment sureit?” chiefA 2012 theinitia 3MSof tive is the new role taken on by the Media Rating Council to manage the ecosystem-wide process for developing, testing, and institutionalizing measurementwith regard standards to the intricacies of digital advertisers, media. At agencies, last, and publishers be will in charge of our own search collectively for truth in measurement. Marketers have embraced mobile and digital video, as well as the entire panoply of interactive reach platforms consumers in to innovative and creative ways, mak (’000) $1 $2,000 $4,000 $6,000 $8,000 0,000 $0 20 DUES 07 2

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2012: The Year at IAB (‘000) Fin $17.8of pro budget. over 9percent million, fundraising other a at in record came revenue topline Overall, grams. and Council, and Board sponsored Technology of Advertising the establishing production research, the including tiatives ini through revenue additional raised We growth. fast-paced of years five after out leveled crowds, sold-out and experts of top industry variety a wide of attracts which number business, events Our higher members. new a and attrition member pated antici than lower through nearly budget high, over historic million $1 an at in came revenue Dues accordingly. and expenses, and revenues, dues events of income expected our increased We its members. provides IAB value the on and large at industry the of fortunes the on based estimate our to 2011the to lar approach our We formed budget. We our2012 planned with budget simi prudence, T ProgressFinancial a variety of programs crucial to elevating member businesses and the marketplace. marketplace. the and businesses to member elevating crucial of programs a variety in investing by ecosystem the to support its extending further industry, the with line in 2012,expanded In IAB creation. job consistent and experiences, consumer tive innova marketing, breakthrough for medium multifaceted a as mature to continued E

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Building Brands concert to help publishers attract larger investments in brand advertising. advertising. brand in investments larger attract publishers to help concert initiatives IAB work in chief other many to But thisvital are central mission. programs Officer, R/GA, served as the first-ever chair of the the of chair first-ever Creative the as served R/GA, Officer, Chief Global President, Vice Executive Law, Nick debate, judges’ the Toguide companies. media major of leaders and world, the in budgets advertising largest the of many over control direct with marketers brands, powerful most world’s the for campaigns create advertis who of executives agency panel ing all-star an by judged petition Annual 8th the com awards interactive It Awards. is only the MIXX held IAB them, behind minds liant bril the celebrate to and interac industry, the advertising tive in impact and creativity of the in evolution advancements greatest year’s the mark To A MIXX to interact. consumers and brands for place safer a internet the making to contribute also marketplace, data the in practice of standards and choice, and privacy efforts consumer protect help that IAB Moreover, creativity. and messaging on directly achieving focus can marketers make that so easy, to scale working is team Ad Technology The home. of out way and print, same television, do the they in advertising online empow of per formance Sense brand-building the measure to Makes marketers ers Measurement Making A B uilding B of interactive advertising on consumers. The MIXX Awards and the Rising Stars Rising the Awardsand MIXX The consumers. on advertising interactive of impact ofthe creativity and advancement the on focus ist IAB, laser maintained wards rands M for Rich Media Media d r a Rich d n a t S IAB new the through tion competi the in their debut made units ad Star the Rising Display another first, In panel. judging Sherwin-Williams and McKinney for “Chip It!” “Chip for McKinney and Sherwin-Williams 2012 Show, in Best Awards MIXX IAB <

------Sherwin-Williams paint colors. colors. paint Sherwin-Williams of pallet an into image any turn consumers lets that campaign a It!,” “Chip for McKinney and Sherwin- Williams to presented was Show, in Best prestigious award, program’s The category. Ad Display I legacy IAB standards by 246% in Universal Universal in 246% by Universal standards outperformed IAB units and new legacy The Rate, Time. Interaction study: Interaction the in used Universal were formats. metrics new IAB the new of Two power the units ad demonstrated standard legacy to Stars Rising paring media com research rich effectiveness major In-market all providers. and publishers by sup ported broadly plans, agency in currency common now are Stars Rising Display six These Portfolio. Rising Unit Ad IAB Standard IAB first the into the of admitted were Stars winners the 2012, February In Displa Portfolio. Unit Ad IAB Standard the into incorporated are units ad successful mar easy ketplace and adoption. After the in-market building-brands, testing, experiences, the in user effectiveness on impact positive expected include criteria Selection testing. for marketplace the into put and IAB Council, the of Operations Advertising subset a by leaders, workability thought for checked agency of by panel judged esteemed then are an formats publish The from others. as and ers well as themselves, creatives agency from canvases advertising brand-friendly new solicits program initia This Stars. an Rising bycalled tive Package Ad Universal the for defining ad to standard approach its IAB revolutionized 2010, IAB In are mats. that sold ads and display bought the of are percent 80 than More Ri AB s y Risi i ng S ng arketers ng St ng tars a r s

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Building Brands 7 IAB Annu al Repo rt 2012

< IAB MIXX 2012 Awards Gold Winner for IAB Standard Rich Media Display Ad, Lionsgate and for AOL “The Hunger Games” – IAB Portrait Partner, Executive Vice President,

almer , Chief Executive Officer and Partner, Anomaly ulkan, Partner, <  Brad Brinegar shares insights during a Silicon meetingValley iener, President, 360i - ax, Co-Founder, Ladies & Gentlemen orthen, able, Global Chief Executive Officer, hompson, President, Droga5 N ereira, Chief Creative Officer and th th i avid S ryan W enjamin P arah T teve W J P Director, Agency Communications, McKinney B Co-Founder, Barbarian Group P Co-Founder, Pereira & O’ D Y&R S Johnny V S B Janet Janet venue w s r a - - son A - i - ng St ight ng Mad alley deo Risi i Chief Digital Officer, V al Vi aas, Executive Creative Director, t i con ebowitz, Founder and Chief Executive eorge, George, g li uisa Francoli, Former Global Chief hilippe Maheu, Maheu, hilippe onnect aw, Executiveaw, Vice President, Global Chief P Di consumersWith increasingly captivated digital by video programming, IAB kicked off a Rising Stars competition devoted thisto medium. By year’s end, seven dozen entries undergone review by tech had nical experts and executives from 36 companies representing over 80% of the buy-side volume of the U.S. media market place. The winning for matsbewillannounced in 2013. C Innovations in advertising beget innovative digi tal products, and vice versa. In July, IAB facilitated a historic, in-person sharing of ideas between the AgencyIAB Advisory Boardand thought leaders at Facebook, Zynga, Flipboard, Twitter, Klout, Kleiner Perkins Caufield Byers, and . Si Spotl s ick L hristian H y Montague,Founder and Co-Chief Executive Maria L Executive Officer, MPG Quentin Mediabrands C Goodby Silverstein & Partners N Creative Officer, R/GA Michael L Officer, Big Spaceship, and IAB Agency Advisory Board Chair Jean- Chief Executive Officer, Bluefin Labs T Officer, co:collective p ------i h ard s o ne ne ion ty O i s elat r e R a ory B isory cy Adv pportun Former Global Digital Leader, y ourcy, Co-Global Executive C ng St c e orenzo, Executive Vice President, Chief ng O L rady, Global Creative Director, HUGE ookson, Chairman, BBH New York i i rinegar,Chief Executive Officer and astholm, Chief Creative Officer, Cheil USA edecarré, Chief Executive Officer, AKQA enjamin, Chief Creative Officer, JWT Atherton, e Risi il rad B rian D onor B olleen D mma C ars B om B WPP-Team, Colgate L IAB Agen Julie T C B Jeff B Creative Director, Wieden+Kennedy B Chairman, McKinney, and IAB Agency Advisory Board Founding Chair E C of Production, McCann NY ob gency a Tim at resent lets, and other devices. At the Annual Meeting Leadership that February, five winning Mobile Rising Stars ad concepts were unveiled, selected from a submissions.pool 60 of These formats workacross all major mobile platforms and allow the ad same scale buysand scope as typical at online display buys. By July, when IAB officiallyreleased the tech nical specifications of the winners for public com ment, hundreds of marketers and already publishers implemented had these ad mats that units. excel in-market Those will be for incorporated as IAB Standard Ad Units Forin more2013. informa tion about Mobile Rising Stars, please see page 16. M In 2012, the Mobile Rising Stars programricher brand drove marketing across smartphones, tab Interaction Rate and 49% in Universal Interaction Time. In addition, Rising Stars have been imple mented globally. For more information on global adoption, please see page 21. municate the tools and ties IAB professional currently opportuni has to offer what them the agencies and need to from IAB. learn In total, IAB met with more than 650 team members in person and agency 10,000 staffers via streaming video. P Mutually beneficial relationships are two built parties when understand how they other. can help Between each November 2011 and IAB executives2012, visited December 28 agencies to com Agencies are at the heart of the union among mar en Ag keters, publishers, and consumers. IAB has nurtured relationships with agencies and since in leaned 2012 further its forward inception forging launching new points for collaboration and growth. A 8

Measurement M Media Rating Rating Media The currency. or tions transac to and media active inter of intricacies the to regard specific with ing, and test institutionalizing developing, measurement for standards, process manage ecosystem-wide and an establish to from associations separate trade entity the an identify to or create toinitiative, the of goals primary the of one plished accom 3MS of advisors 2012,In and founders the W M tives across many disciplines, proposed standards to enhance the evaluation of digi of marketing. for brand comparisons platform facilitate evaluation cross- media and tal media the enhance to standards proposed disciplines, many across tives execu senior ecosystem-wide by advised Thisand ANA the 4A’s, the and IAB, by understanding. founded and undertaking, value, efficiency, increase to sold and tive advertisers marketers followhelps and suit by evolving the wayis media bought ake Sense aking aking CL PERFORMANCE devices and platforms. The Making Measurement Make Sense (3MS) initia (3MS) Sense Make Measurement Making The platforms. and devices across advertising with interact seamlessly consumers speed, and ease ith ASSIFIC OF ADUNITS A IMPRESSION TTITUDINAL ST CURRENCY MEASURES BRAND AD ES AND METRICS T BRAND DEFINE ABLISH A TION ARD M - De Shift fr methodology for digitalbrandattitudinalstudies Establish standar re pr Intr Define standardandtransparent metrics fo rich media,andstr Implement classificationsystemandtax porting andcumulativ o easurement ve oduce anonlineGrossRatingsPoint(GRP)metric, viding lop ane om a“serv re ach andfr xposure durationmetric - ds andv ed” toa“view eaming videoads - - equenc e socialactivity endor accr quality, and precision of tools and currencies for for currencies and tools fairness, of the precision and for quality, out looking institution the has been Congress, of behest the at formed MRC, the originally decades For role. key this on taken has standards, quality and methodological necessary meet that for measurements audience known media long ensuring organization an (MRC), Council y r eporting ofvie able” impressionstandard. editation toimpr l mda n hs en etn stan setting been has and media all

onomy fo w r vie able impr dards. Today, the digital mar digital the Today, dards. w-through ov r banner ketplace has created created has ketplace e essions , - - - - - MEASUREMENT 9 IAB Annu al Repo rt 2012 Chief Operating Officer, Managing Director Media and Publisher and Chief Executive Executive Vice President, owers, Senior Vice President North iener, Chief Executive Officer, 360i - - - - aylor, alzman, sberg, S N O ayne P reg reg ryan W arry eter eter hubu Mitra, Director, Connection Planning S Effectiveness and Productivity, Coca-Cola Montgomery, John GroupM Interaction, USA GroupM P Advertising Sales, NBC Universal G Officer, Philadelphia MediaNetwork W America Sales, Yahoo! B Platforms, Americas, B etplace k th the Mar > ng Wi i Vice President, President, Chief Chief Executive Officer, Vice President Corporate Global Chief Executive Officer, line, and its objectives On July 25, initiative leaders from the collabo ratingorganizations web-basedprovidedlive, a update for more than 450 participants, ing show the cross-industry desire edge for on this more topic. This knowl webinar is available at MeasurementNow.net In July, MeasurementNow.net, the online for3MS, came homelife. thisto Visitors to website can learn more about initiative including its benefits for key types of industry participants, its time ee, Senior Vice President, AT&T agedorn, agedorn, H • Interact The results of 3MS will impact and alter the entire interactive advertising ecosystem. To maintain an informedmarketplace, the supporting associations developed communications key in 2012. • eborah Meyer, Chief Marketing Officer, Pulte ill Koenigsberg, ill cott cott sther L S Marketing, IBM Jason Kint, Senior Vice President, CBS Interactive Jack Klues, Managing Partner, VivaKi B Universal McCann Universal Kennedy, John Executive Officer and Founder, Horizon Media E D Homes Omnicom PHD Kelly, Jackie ------e ce

evaluating brand advertising 3MS is an ecosystem-wide initiative to define digital media currencies and the erved core metrics for planning, buying, and ons S i Senior Vice President, Marketing, astro, Chief Operating Officer, press k For Tas ue Ribbon e C Executive Vice President, Chief m lark, Senior Vice President, Integrated ass, President, Carat USA evlin, Senior Vice President, Global ochrane, Caine, C een ng I endy C enrique D avid Friedman, Marketing Chief, Sears aul aul ki 3MS Bl These executives have been part of the steering committee for the Making Measurement Make Sense initiative. P Revenue Officer, Time Inc. Martin C W Marketing Communications and Capabilities, Coca-Cola Lisa Allstate H Yahoo ! Marie D Advertising, Media, and Sponsorships, American Express D tion that has long been the operating standard of marketing and media. The “viewable impression,” a new standard of measure that increases compa rability with other media and overall confidence in digital media transactions, is interactive’s answer to this expectation. And, it’s the foundational goal of the initiative’s five-part digital marketing mea surement solution. First proposed as a key guiding principle the 2011, in June viewable impression has grown concept from to an imminent November,theMRCreleased resultslarge-scaleof marketplace reality. In thatindicatedtestsproposed pilotthestandard, 50 minimum a for percent in view pixels one of of sec ond, is on target for most ad units—but that there are outstanding challenges to be resolved before finalizing the viewable impression as a new adver tisingcurrency. The SafeFrame program, led the by IAB, ensures that ad impressions can be measured for viewability. It is expected to eliminate many of the existing challenges. For more informationSafeFrame, please see page on 12. Advertisers expect consumers actuallyto have the opportunity to see the ads they buy—an expecta Ma a need for the MRC to also address how transac tionalstandards developedare and interacsetfor media.tive and S , essions e r banner ov w-through able impr r vie w onomy fo editation to impr able” impression standard. eporting of vie y r endor accr e social activity equenc eaming video ads ed” to a “view ds and v xposure duration metric ach and fr re om a “serv lop an e viding oduce an online Gross Ratings Point (GRP) metric, ve o porting and cumulativ Implement classification system and tax rich media, and str Define standard and transparent metrics fo Intr pr re Establish standar methodology for digital brand attitudinal studies Shift fr De ARD TION A ABLISH DEFINE BRAND T METRICS AND ES BRAND AD MEASURES CURRENCY ST TTITUDINAL IMPRESSION A OF AD UNITS ASSIFIC PERFORMANCE CL 10 the administration released released administration the DAA received accolades accolades received DAA from the White House, as as House, White the from this report on consumer consumer on report this

data privacy data Public Policy < will promote continual innovation. and innovation. continual promote will capabilities, powerful media’s interactive of advantage taking while themselves protect to how consumers educates rules, ground clear businesses gives that a program advertis is also This media. digital in ing deploying agencies and marketers, lishers, pub major the by met be would expectations and 4A’s, ANA, IAB, the together came “When DMA and 23, 2012: February on response Rothenberg’s Randall internet. Officer Executive Chief and President advertising-supported IAB from excerpt an is the Below expec in and rights tations privacy Advertising consumer Digital protect to self-regulation and robust creating IAB in (DAA), the Alliance of work the endorsed 2012, early In administration Obama the E L Influencing Public Policy mobile marketing industry, please see page 16. page see industry, please marketing mobile the targeting initiatives specifically policy public on information For expansion. and innovation for opportunity the restraining without protected be must privacy sumer con and choice consumer industry, the of ascendancy the Tocontinue internet. the is that tool communications revolutionary the of growth sup and it maintenance the and ports U.S., the in jobs million 5 than more for responsible is ecosystem tising adver interactive The time. critical this during advertising interactive for advocating ndorse involving digital and mobile media. The IAB public policy team is on the ground ground the on is team policy public IAB The media. mobile and digital involving egislative policies and regulatory are to formed and updated being address issues m ent f ent consumers that their privacy rights rights privacy their that consumers assure could that program tive—a asser and flexible, quick, be could that mechanism self-regulatory ful meaning a build to the determined we and Bureaus, Business Better of Council Initiative, American Federation, the Advertising by subsequently more Joined curiosity. diversity little interesting an than into turn cultural likely would and growth economic of engine great this ing, advertis advertis internet without internet and ing, no be would there trust, Without idea: big one on coalition our built we Alliance, what is now the Digital form Advertising to ago years four-and-a-half ro the W m the h i te H te ouse ouse ------ers will promote economic growth.” economic promote will ers consum by right doing that and economy, the ARE consumers that again proving are con who their stituencies, and DAA the of members the thank all, we of most But the self-regulation. business supporting of power for Administration the thank We than 2 billion impressions for this pro bono promo bono pro this for impressions billion 2 than more secured 2012, IAB In company. Worldgroup concerns. privacy The campaign legitimate was developed for by MRM, a McCann solutions offers and communications marketing online of benefits campaign Matters” two years ago, this effort new explains industry the “Privacy IAB’s upon Building campaign. education consumer AdChoices”“Your IAB has also steadfastly supported the DAA and its included. are publishers smaller when companies 3,000 than more to rises that ure fig a icon, the license companies major 350 than More month. each consumers U.S. to delivered are icons Option Advertising trillion 1 than More ing. advertis targeted from behaviorally opt-out easily may they how and used, and collected is data their how about more learn can to consumers companies, adjacent icon, participating of the advertising targeted behaviorally clicking By icon. Advertising Option the through visibly most life program to this come of principles The Member Conduct. IAB of the Code under members IAB all for date man a Advertising, Behavioral Online for Program Self-Regulatory DAA’s the of the philosophy is bedrock That information. to access of freedom the on hinges experience internet and privacy their of management the in choice of freedom Consumers’ powerEm C ont i nu i ng to E to ng C onsu mers ducate and and ducate ------Public Po licy 11 IAB Annu al Repo rt 2012 Participants at the Long AllianceTail Fly-In unite in Washington, D.C. < political first IAB’s cartoon supporting member interests regarding COPPA < ------n in ldren’s i h ng ing on to C on on i ttent Understand i rotect P ng ing ng A i raw vacy rivacy IAB worked with Federal Trade Commission reg ness operations in online and mobile platforms.March, In Mike Zaneis, IAB Senior Vice PresidentPublic of Policy & General Counsel, testified the House before Committee on Energy and Commercehearingentitled “Balancing at a Privacy and Innovation: Doesthe President’sProposal Tip theScale?” about the potential for harm if these proposals advance. D ulators throughout the year to provide input theoverhaul FTC’s of the intoChildren’s Online Privacy Protection Act (COPPA), a decade-old erning rule children’s gov privacy online. Given the explo sion of new technology avenues access for content, childrenIAB engaged to with FTC regulators to educate them about the various online protec tionsalready available to children, which and IAB membersthe ways are in already engaged in inno vative ways to safeguard children online. To thisend, IAB produced its first-ever political cartoon, which received positive reception by membership and the press. Several proposals are being considered in the U.S. Congress that would restrict the industry’s collectto and ability use data for even the most basic busi Foster Congress P ------ll tol Hi i nesses ce i i ap us ho er C - - all B m or Sm upport on C onsu ng f i ng S ng C i i n i dvocat rotect usta Over the 2012 election cycle, IAB engage continuedwith leaders in Washington advance to the to interests of the interactive advertising industry. The IAB Political Action Committee (PAC) made paign candidates contributions five cam to all who won theirofSenate racesand nine sevenoutofraces for seats in the House. Overall, 92 percent of IAB PAC spending went to candidates who won their races in this cycle. In addition, for the first time, IAB repre sented the interactive advertising industry at both theRepublican National Convention, inTampa, and the Democratic National Convention, in Charlotte. S bership grew to 1,128 members inbership 2012. grew 1,128 to ing online and entrepreneurs the negative that impact legislation and lations regu may have on theirlivelihoods and businesses. Attendees also took partin IAB training sessions and presentations tailored to their business interests. Small publishers play an increasingly prominent role at IAB. Long Tail mem In June, 44 ad-supported small publishers from 18 joinedstatestheCapitol thefourthatIABfor annual SenateAllianceseven withFly-In. metLongTail They offices and offices including 32 Members Houseof key Committees as the such Senate CommerceCommittee and the House Energy and Committee to Commerce discuss changes the and concerns fac A trol over internet ad experiences was threatenedthrough the way browsers handle settings “do-not-track” and standards. In resented the Summer, industry IAB interests rep at World Wide a Web meeting Consortium’s (W3C) of Tracking Protection the Working Group W3C is in attempting to Amsterdam. develop a global standard The for the way “do-not-track” requests ognized will by be browsers. In rec addition, IAB leadershipissuedfullits support position against thefor DAA’s machine-driven “do-not-track” browser standards because these browser-specific and automatically functioning systems inhibit consumers’ manage their privacy ability settings. to P IAB supports consumers’ freedom of unwavering choice with consistency. In 2012, consumer-con tional effort from members, plus Google donated a ADTECH/ addition, In component. search generous AOL served as the pro bono campaign ad and server, UM provided support as the pro bono cam paign media planner. In total, IAB ered 4.2 members billion impressions of the campaign. deliv 12

Advertising Technology the most cutting-edge digital advertising technologies. digital advertising cutting-edge most the even of advantage take successfully to marketers for easier it make that standards and systems developing by realities practical these harmonized team Technology Council plans to release a final version in 2013. in version afinal to release plans Council comment IAB the Technology and public in December ended period 1.0 SafeFrame The challenges. these of many eliminate to expected is SafeFrame measured; be always cannot viewability reason primary the are iFrames cross-domain on 9, and page detailed program, foun industry the vital this is of dation impression viewable The Sense initiative. Make Measurement Making the by posed if pro determining viewability for standards the for meet ads served mechanisms provides also It resources. externally-provided other or widgets, advertisements, be it whether content, third-party embedded, and page web a between of interaction to richness 2012 and in transparency the increase launched safely initiative SafeFrame The E F For M nabl or the interactive advertising industry, innovation is constant, as is the need to con to need the is as constant, is innovation duct business simply, efficiently, industry, and with consistency. In 2012, advertising the IAB Advertising interactive the or aking aking i ng the Vi the ng the Industry Industry the ewable I ewable T echnology echnology m press i on - - A ers used by compliant publishers. publishers. by compliant used ers play and devices various the large to audiences—across digital engaging and advanced, rich, deliver easily more publishers and advertisers pro help to 2008, standards technical revised since and new vides standards advertising in-stream IAB video the to update comprehensive the first Suite, Video IAB The advertising. and content video digital of reach and growth the limited artifi cially marketplace video online the of mentation frag the from resulting complexities Historically, B • • • T he u he u cross D cross Introduction of the Video Multi-Ad Playlist Playlist Multi-Ad Video the of Introduction advertising video of forms edge leading- other and interactive rich for standards interoperability sets which API (VPAID), Player-Ad Definition Video the to revisions Critical server ad video compliant enables Serving compliant any from ads to display players video Ad which Video (VAST), the Template to revisions Critical i ld p W i d ng the Di the ng a te i te ev ork ork n i ces ces cl ude placed in their content content their in placed be should breaks advertising con where describe to owners tent allows which (VMAP), g devices and platforms and devices across advertising video deliver marketers enables Suite Video IAB The < i

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deo Industry Industry deo ------Advertising Technology 13 IAB Annu al Repo rt 2012 - - - - verification; in the 2012, finalized standard was released. This initiative, developed in conjunction with the Media Rating Council, ensures publishers and marketers, who rely on providers verification to confirm service that campaigns were deliv ered as expected, can be audited against a trans parent standard. Digital Advertising Workflow Best Practices is an ambitious, new initiative to update the and 2008 expand Campaign Best with the goal Practices of improving operational Guidelines efficiency and transparency in an increasingly intricate eco system. The resulting documentan accurate would description of provide the involved complex in process executing a digital paign advertising and best-practice guidelines cam for workflow. ------> ents m rand sh i on on ” ” i k pl m cale B S press cco de- m

m aperwor P es i ng Wi a i ng “ i rogra considerable advantages the to industry y sh ng Fewer I i i onal 2012 A onal 2012 i if t i The SafeFrame initiative provides a variety of pl ety P f screpanc dd dopt a stabl tion between buyers and sellers. Real-time bidding and Real-time between buyers sellers. tion allows advertisers and publishers to use technol ogyto buy and sell high volumes oftising targeted in an adver automated manner. OpenRTB 2.1 was and workfinalizedhas already atthe end 2012, of begun on the next update. Guidelines for the Conduct Ad Verification ensure a common set of methods and practices for ad A OpenRTB is a program growth in the real-time aimed bidding (RTB) at marketplace encouraging by providing industry standards for communica Resolving impression and click-countbetween discrepancies agency ad servers and publisher ad serv A tional work for a Digital Advertising Invoice, work ing with buyers and sellers to establish content standard for this key type of document. This an is outgrowthtive initia of the long-standing eBusiness Initiative, which developed a system for the auto mated and electronic delivery of documents such as RFPs and insertion orders. ers is a time-consuming, painstaking task. Thesecrepancies dis often lead to billing disputes that result in late payments. The Impression Exchangelessens this Solutionissue by helping publishers and adver tisers detect and resolve discrepanciesa campaign’s early in lifecycle, end allowing with reconciled campaigns impressions and to click counts.In two 2012, of the largest industry participants, and Google, agreed to work toward implementation, together with Microsoft represent ing the buyer and Google representing the seller. Given the great volume of interactive advertising transactions, inaccuracies and the paperwork inefficiencies required for in buying and sellinga costly issue.IAB is completedIn 2012, the founda Sim E The internet’s inherent openness and its atmo sphere the of constant 2011, expansion In West. and Wild eternal an change ways some in it makes IAB Networks and Exchange Committee launched the Quality Assurance program to Guidelinesassure customers of ad compliancenetworks and exchanges that their ads to will inappropriate not content. appear In expanded next 2012, the to program include marketers, agencies,SSPs, and DSPs, trading desks. The goal greater is marketplace to establish trust on all sides, while tecting pro the dynamic nature of digital media. Di S 14 This simplified view of the the of view simplified This ecosystem accounts for for accounts ecosystem typical roles played by roles played typical Data data users data > • major two initiatives: realized educational IAB need, this serve help To innovations. keep greatest and to latest the of advertis abreast difficult be can it data-driven rapidly, so evolves ing supporting industry The D S usage. data in protection account consumer and ability, transparency, quality, of the establishment through growth revenue enable to strives IAB intricacy. marketplace and management, and trol con data performance, site in issues 10), page (discussed on privacy consumer protecting of terms in information, powerful this with along challenges come great that also are there But possible. ing messag brand personalized what and targeted makes activity—data—is user about Information N G goal of sending the right message to the right person at the right time. time. right the at person to right the message right the of sending goal fundamental the keyunlocking to the hold data of volumes large publishers, and ers AD har ven riven esoas n o dt i ue t sre d to ads consumers serve to used is data how on pro fessionals advertising for resource definitive the be to designed site web a Advertising, Driven Data VERTISER uiding D the 1 i plexity of the digital age as succinctly and powerfully as “Big Data.” For market com the by generated opportunities and challenges the capture wordstwo o ng D ng A dverti ata A A GENCY DATA s bout D bout i ng 2 ata 8 10

DSP 3 DATA ata M ata THIRD A EX GGREG - - - - - C HANGE 11 PA 4 Ex P • performance, and data control. data and performance, page protect procedures, workflow to improve ing aim recommendations detailed of set a Practices, Best Tagging Site comment public for released IAB 2012, of end the At risk. at put be to privacy sumer con and performance, site poor unintentional data, the of transfer cause can tags in increase The user. the to experience an tailor to parties between information transfer and servers ad to calls techni make as well as tags advertising, In insights, challenges. operational and cal and benefits massive advertisers with and publishers providing complex ecosystem, and large a into evolved has “Tagging” RTIE rotect hosted at Microsoft and Rubicon and Microsoft at hosted West Coast, the on continued was It data-driven advertising. of basics the teach to Lab, Ad IAB the in Week Internet during Group Winterberry the and Council event Data IAB the by an launched series Tour, and Day Demystification Data AT per S ORS arketplace i ence through T through ence i ng D ng SSP 5 ata U and 9 C ONSUMER NET DATA W 12 6 ORK ags ser ser PUBLISHER 7 - - - - - data 15 IAB Annu al Repo rt 2012 , Co-Founder,

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< Chris Hughes Facebook, and Editor-in-Chief, , speaks on “How the Internet Decide Will the Presidency” at MIXX - - - - ht ig -

f bout ; David Plotz, Editor, Slate; and Joe se o on Spotl on ng A i mi i ata” and ata” t ro s c P g D “When the races are this thin, all of the advertising, the internet, the digital work that’s being done, absolutely will matter and decide a lot of these races,” Hughes said. Bi ducat le E “ the P Data Management Platforms, technology tools that normalize dis parate data sets so marketers can better understand and utilize data from multiple sources, could very well serve as a princi pal technology solution for the entire dig ital advertising landscape. IAB and Group Winterberry discovered this insight of through 150 industry a leaders, survey and paper published entitled a “The whiteEngagement”. DataConsumer ManagementRight-Time for Foundation Platform: The information uncovered in this report can helpthe industry more fully understand how DMPs can act as a powerful dashboard helping to unlock the opportunitiesafforded theproliferation by data.of On stage at IAB cornerstone events, political and digital thought leaders Co-Founder, including Facebook, Chris and Hughes New Editor-in-Chief,Republic The Lichtenberg, Vice Mirror President, Image Internet, among others, discussed Edge the Computing,role of technology in politics. technologies, and advertising delivery platformsthat enable marketers to amass great intelligence about their audiences, but great challenges inhibit turning this raw data into action. “From Information to Audiences: The Emerging Marketing Cases,” Data a Use white paper by IAB, reveals new tices prac in data deployment, and aggregation, spotlights the barriers management, spread to adoption. wide and DM

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al E on on i i Campaigns ibut ent ttr pproaches A sid ng A i re erg ccurate ccurate , captured the perspectives of A ng ing ng Em i se ata U ata alue “The IAB Digital Attribution Primer” explains the prevalent attribution models in use and clarifies the distinction between attribution tional media mix modeling and tradi “DigitalAttribution Comes of Age” analyzes the drivers of the shift toward advanced of attributing methods modeling. Key trend identified: As media buyers become confident in their attribu tion models, they will more frequently demandthat publishers sign on structure—or to find themselves this on the compensation outside of media deals he 2012 P he 2012 f D f V howcas ncourag In this election year, interactiveadvertisingelection thisyear, enjoyedIn endorsement from the highest and most influential echelons. IAB uncovered the advertising teams—behind the campaigns for dates president of other and national candi political are elections—who using digital media like never before to their brands build in rapid time and influence the vote. Spend Ad Survey”, and Political 2012 “Elections The conducted by IAB in collaboration with & Elections Magazine politicalstrategists and consultants. The respondents stated the most beneficial attributes of digital adver tising are its targeting capabilities, response to negative immediacy attacks, and the ability to have of a conversation with voters through social media. CampaignDeliversDataBigon “ElectionThe 2012: Promise” white paper by the IAB find Data revealed Council, survey, the of con independently ducted ings very much in concert with it. has Microtargetingbecome the predominant means of delivering politicalmessages online, and campaigns usedto it raise money, persuade undecided voters, and get out the vote. T There is a plethora of new data sources, targeted S • • E Campaign performance and compensa publisher tion has long been based on a last-click model measurementof and valuation—wherever a user last clicked to go to the advertiser’s site earned all of the credit. But many campaign elements can influ ence user actions andgoals. Recent contribute advances to in campaignanalytic data capabilities processing now and make accurate ment assess of the effectiveness possible, but have brought also confusion to the transparency marketplace.and efficiency theattribution to land To bring scape, IAB released two documents: o o IAB Mobile Marketing Center of Excellence

ince its launch in December 2010, the IAB Mobile Marketing Center of Excellence Shas been nurturing the immediate and long-term growth of this burgeoning indus- try sector, as it becomes firmly rooted in the interactive advertising ecosystem. The Mobile Center is an independently funded and staffed unit inside IAB.

Advocating for Mobile in D.C. more information about the DAA and the self-reg- ulatory program, please see page 10. Just as mobile media consumption is a behavior not confined to a specific device, lawmakers regulate Crusading for Balanced Legislation based on mobile media activities, not expressly and Regulation on smartphones, tablets, or laptops. Consumer pri - IAB took action on Capitol Hill in response to tar- vacy, for example, is a cardinal priority for IAB as geted legislative and regulatory measures that well as legislators and regulators across any and would affect the performance of the mobile mar- all digital media. Mobile technology, however, keting and publishing marketplace. Below are two does present marketers and policymakers with dis- examples of this activity. tinct attributes, such as location-awareness and apps, to manage. In 2012, IAB assigned Sarah The Location Privacy Protection Act is a bill spon- Hudgins, IAB Director of Public Policy, to dedicate sored by Sen. Al Franken (D-MN) that would require 16 her efforts to mobile policy in order to advance the consumer consent for the collection of location data, interests of mobile users, marketers, and publishers subject to criminal penalty. Regarding this legisla- in Washington, D.C. tion, IAB performed outreach to key legislative staff

IAB Mobile Full Page Flex > IAB Mobile Adhesion Banner IAB Mobile & Tablet Rising Stars IAB Mobile & Tablet Rising Stars are designed to discover and capture the industry’s best mobile ad products and make them IAB standard ad formats

Expanding Self-Regulation and wrote a letter that outlined its harmful impact on The celebrated self-regulatory program admin- innovative and responsible companies. This letter istered by the Digital Advertising Alliance (DAA) was read before the Senate Judiciary Committee by and endorsed by the Obama Administration is Ranking Member Charles Grassley (R-IA). expanding to include two mobile-specific mat- ters: the collection of cross-app data and precise In May, the Federal Communications Commission location data. The cross-app data update will requested comments from the public regarding the govern third-party collection of consumer infor- update of the Privacy and Security of Information mation across multiple apps; the precise loca- on Mobile Devices, a five-year-old document tion data addition will direct when marketers and regarding carrier and third-party access to infor- publishers must request consumer permission to mation collected and stored on mobile devices. IAB access their precise location. The DAA Mobile submitted comments urging the Commission to set Task Force and the IAB Mobile Center is expected the stage for freedom of innovation and growth of to release the Mobile Principles in early 2013. For the mobile marketing ecosystem. Mobile 17 IAB Annu al Repo rt 2012 der li e S il < see demonstrationsTo of the ad units and tech specifications, go to iab.net/risingstarsmobile ob B M

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ty a i s v r i a t a ng St ll ng Cre i e Pu e Risi g il a il ob ob our B M c B M n IA E role leadership a played Center Mobile and the IAB at the Cannes Lions Annualof International Creativity. IAB Festival President a moderated Randall Rothenberg first-ever Officer and Chief Executive all-day forum devoted to the topic in of Mobile “Creativity Advertising,” with a grand finale round- table entitled “The IAB Creative Showcase: Secrets IA This program propels across devices richer by introducing brand new, industry-created, brand-friendly, marketing and scalable mobile ad units theto IAB Standard Ad Unit Portfolio. At the Annual Leadership the five Meeting winning Mobile in Rising February, Stars ad conceptswere unveiled. Winning submitters included AOL, BabyCenter, Crisp, Google, Medialets, Jivox, Mediamind, Microsoft, Pointroll, Weather Channel, and Yahoo!. Time Inc., The Within six months, top marketers had begun imple menting the innovative Cola, mobile Disney, GM, HBO, Jaguar, ad Verizon and J.C. Penney, Procter Toyota, units—Coca- McDonald’s, Sony, Gamble, & among them. Publishers and that mobile served the ad units include networks AOL, Gannett, Google, IDG, Millennial Media, Mojiva, MSN, The NewTimes, York Thomson Reuters, Time The Weather Inc.,Channel. For more Viacom,information on the and Rising Stars program, please see page 6. of the Mobile Superstars.” During this special ses sion, Colleen DeCourcy of Socialistic, at thenow time, at Wieden+Kennedy;Iconmobile; and Thomas Per Holmkvist of FellgerstunningMobiento examples unveiled of the of best mobile creative, and revealed critical insights on how to take advantage of the breakthrough opportunities in mobile today. Anna Bager, IAB Excellence’s Mobile Vice President and General Manager, Marketing Center hosted of a series of “Mobile Diaries”views video on inter the Croisette with insidesmartphoneantheirgetlookownat to atives attendees and cre and tablet usage. - - - - - s der a eters

k cipals

ng between ng s n ip i ngton Le or Mar i tr h andi s vent t m s t E il e F rands f nd Was nder il e Center Pr U zed a il ob li ng B try a i ng ng ob s B M di nge ld i IA il a The Congressional Internet Committee’s Caucus Annual Advisory “State of The Mobile Conference” Net on Capitol Hill The Federal Workshop: “In Trade Short, Disclosures in a Digital World” Advertising Commission’s & Privacy Public B M The U.S. Chamber alongside industry and the expertsUnder Secretary of Commerce regard ing the National Telecommunications Information and Administration MultistakeholderProcess u u v • ing engagements and publicity events at and conferences. more Highlights include: than 11 • IAB increased mobile policy visibility with speak IA At the fourth annual IAB MobileNew York Marketplace City, Robert McDowell, in Commissioner, Federal Communications Commission, took to the stage for a fireside chat about wireless spectrum availabilityPresident, Conroy, Kevinwith Univision Interactive Media. the IAB MobileIn 2012, Center held its first annual Washington, D.C. Fly-In. The event empowers influ B Indu ential members of the mobile marketing industry to communicatetheirhow businesses beaffectedwill by pending legislation and regulation directlythose who produce The it. inaugural to event included meetings with four members of Congress and two Federal Trade Commission staff members. E ing more brand marketers to the mobile place market by providing the industry with the tools to produce breakthrough, creative campaignslarge audiences. for B The IAB Mobile Center is committed to welcom • e

il Inspiring By Example The IAB Mobile Center developed a Smartphone

M ob Creative Showcase, and an IAB Tablet Creative Showcase. Available online, these growing libraries of great creative serve to inspire new, breakthrough mobile marketing endeavors.

Making Mobile More Accessible In 2012, the IAB Mobile Center debuted Tap into Mobile, a program dedicated to helping businesses build a better mobile web, by providing them with the tools and resources they need to make their websites more mobile-friendly.

Achieving Scale With In-App Ads

To encourage the growth of advertising in apps, the < IAB Mobile Center produced the second iteration of the Mobile Rich-Media Ad Interface Definitions IAB team at the Cannes Lions Festival (MRAID). The program defines a common applica- of Creativity: Randall Rothenberg, tion programming interface (API) for mobile-rich President and Chief Executive Officer; media advertisements, thereby establishing a stan- Anna Bager, Vice President and General dardized framework in which rich media ads can Manager, IAB Mobile Marketing Center of communicate their needs and behaviors with apps. Excellence; and David Doty, Executive MRAID 2.0 enables greater consistency when it Vice President and Chief Marketing Officer comes to delivering a wider range of rich media ad formats, including the new IAB Mobile Rising Stars units. The combination of common rich media mobile ad formats and a standardized way to pro- IAB Mobile Marketing Center o f Excellence gram those ads “under the hood,” will help the indus- 18 2012 Board of Directors try scale to levels that were previously impossible. John Cantarella, Time Inc. Alex Linde, The Weather Channel Improving Mobile Measurement Paul Childs, Adfonic Stephanie Bauer Marshall, In 2011, IAB and the Mobile Marketing Association, Badal Choudhari, Yahoo! Verizon Wireless Joshua Rahn, Facebook with the help of the Media Rating Council, released the Kevin Conroy, Univision first standardized key metrics for measuring mobile Greg Schwartz, Zillow Jennifer Creegan, . The guidelines provide a framework for Mandar Shinde, AOL Asher Delug, Airpush governing measurement of mobile web-based ads Maria Mandel Dunsche, AT&T Mollie Spilman, Millennial Media across the mobile interactive ecosystem. In 2012, Anne Frisbie, InMobi Amy Vale, Mojiva the team released an important update to the guide- Barbara Healy, Tribune Company Kevin Wassong, LIN Mobile lines for public comment. The guidelines now require client-side counting for mobile web ad impressions, Chris LaSala, Google Michael Zimbalist, which will make impression counts far more robust and reliable, and may help to reduce mobile discrep- IAB Mobile Marketing Center o f Excellence ancies. The document also mentions the importance Supporting Members of “viewable impressions,” which are expected to be established soon as a PC ad measurement best practice as part of the Making Measurement Make Sense initiative. For more information on the view- able impression, please see page 9.

Leveraging Local Following the “Tablet Buyer’s Guide” of 2011, the IAB Mobile Center produced the “Mobile Local Buyer’s Guide” in 2012. The document empowers marketers to take advantage of one of the greatest In 2012, the IAB Mobile Center doubled its number of members. strengths of mobile marketing: the ability to con- nect with consumers anywhere they are through targeted, relevant messaging. Mobile 19 IAB Annu al Repo rt 2012 nited 5 . obile: U

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Professional Development Sales Certification Sales development company Professional Testing Inc. Inc. Testing Professional company development test accredited fully the with conjunction in content exam the members—developed IAB them of many experts— matter Subject inter sales. in advertising active practices best and guidelines, concepts, important most the understands participant the fies certi passed when that examination an is terpiece cen Its forces. sales media digital for expertise of the first-ever in standard May, establishes launched program, Certification Sales Media Digital IAB The D IAB method to gauge and build their teams’ expertise, and company training programs programs for success. salespeople of how training to prepare understanding aclear company need and expertise, teams’ their build and gauge to a method need executives sales addition, In inventory. advertising sell just not marketers, to tosolutions deliver knowledge the forceshave effective most itself.sales The industry advertising interactive the of value the build and professionalism, promote petency, out in digital media sales.” ‘badge’ so professionals can stand the bar for talent and provides acareer —  Certification Founding Commission Chair Commission Founding Certification and NBCUniversal, Sales, Advertising President, Vice Executive Schiller, Scott speaks directly to the complexities that digital media sales executives dard of knowledge and skillsdard of and knowledge for sales toteams tomaster is define necessary com stan baseline a Setting innovation. rapid by characterized field a is media igital

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- - 21 IAB Annu al Repo rt 2012

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ng < i tars G s tage: C ng S i rganization rganization s n S i dvert Ri The demand forthrough large-format powerful display advertising brand universal. units Rising is Stars display storytelling formats are quickly gaining significant traction with gold-label global and regional brands. Rising Stars display and continents five on formats been adopted already have in more than 35 countries—includingBrazil, Canada, Australia, France, India, Germany,Italy, Mexico, Russia, Singapore, Taiwan, the Hong Kong, United Kingdom, and, of course, the U.S. O A At Annualthe 2012 Leadership Meeting in Miami, executives from Chinese media and advertis ing organizations came to attendees the about stage the to Chinese inform ecosystem. them Among were Chen Yong, Interactive Secretary General, Internet the Advertising (IIACC), and President, CommitteeModern Advertising Magazine, of China; Ya Li, Chief Operation Officer, Phoenix New Media; and Tong Su, Chief Executive Officer, Hylink Advertising. Similar to what’s hap pening China, in the industry the United in States, is growing rapidly, and many believe more standard ization will help it faster. grow ------tal tal i p p g i , Partner, bersh m uropean Di t t ance ance lobal Industrylobal i onal Me mmi i f the E All u ng ng i on o s i i Fulbright & Jaworski, former Commissioner of the US Federal Trade Commission, shares insights at the IAB Global Summit Pamela Jones Harbour at

lobal S < onsumers around the world now share the same foundation of informationaboutsamefoundation of the share now onsumers world aroundthe current events and brands, and IAB member companies are entering new and m

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B Internet Advertising verview and Reconceptualization igital Ad E ising Stars Ad E lections and Political 2012 Ad O Conducted by IAB in collaboration with Campaigns & Elections Magazine Developed in partnership with Ipsos MediaCT By IAB in collaboration with Radar Research Conducted independently by the New Media Group of PwC on behalf of IAB R By IAB and Moat Screens to the nth IA Revenue Report Spend Survey e d 6 7 8 9 10 13 $26 billion $26 9 . connected device while 65 percent65 respondents of who owned four screens were higher among these respondents than those who or two three own screens. influence socialmedia edia elivers on effectively igital’s Lost all-time high of cosystem he M ata D engagement ig D shopping electronics. for ravel & T alue of the Advertising- ispanic Consumer ispanic H p Advertising: D O is necessaryis to An interplay media of buys—including digital— climbed an to In the first three quarters of 2012, internet advertising revenuesIn three the quarters first 2012, of people Consumer adoption of yield significantly higher interactive consumer IAB Rising display Stars ad units further exposing the as an “click-through” often-inadequate Interactions thatcan be tracked and fed into the concept engagement of have exploded, companies offer high value and relevant engagement opportunities. pportunity? lection 2012: B lection 2012: conomic V Supported Internet E An in-depth whitepaper by IAB and the Local Search Association An in-depth analysis by IAB utilizing intelligence from BIGinsight Co- IAB utilizing intelligence from BIGinsight. Consumer T Conducted by the Business School on behalf of IAB O A whitepaper by the IAB Data Council Campaign Promise Campaign digital e e 5 4 3 2 1 24

Events Highlights Dave Morgan Dave and GroupM, Global, M Comes T W ticipants of the ever-expanding interactive advertising ecosystem. interactive advertising ever-expanding of the ticipants are events IAB partnerships. truly the centripetal and force opportunities of the ad-supported new digital shape world, and uniting the network, diverse insights, par share executives—to agency or marketing were which of percent 40 uals—nearly ties with stronger consumers. building In 2012 and industry atthe 27 elevating eventsof acrossinterest shared the country, the with events IAB hosted 6,300 individ IAB Annual Leadership Meeting Leadership Annual IAB Simulmedia, Officer, Executive Chief Rob Norman Rob here D the ture capitalists, and entrepreneurs come together at IAB thought leadership leadership thought IAB at together come entrepreneurs and capitalists, ture arketers, advertisers, publishers, as well as technologists, data scientists, ven , Chief Digital Officer Officer Digital , Chief ogether > , igital W Leadership Meeting Leadership Annual IAB Spaceship, Big Officer, Executive Chief and Lebowitz Michael <

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< Kim Kadlec Global Marketing Group, Johnson & Johnson, < Peter Naylor President, Advertising Sales, NBC Universal, IAB Annual Leadership Meeting ht , Chief ig IAB MIXX Twitter pressTwitter event during Advertising Week LatinVision Media Marketing Latinas to Conference & Networking Event MR YOUTH Social Media Week Event Merkle “Digital Data Workshop” Event NARC Social Media Week event Senator Claire McCaskill Fundraiser The Hatchery start-up pitch event IAB Ad Lab Author Series: Evening “An with Steven Levy” IAB Research and Ipsos Media OTX CT on con sumer perceptions of new devices and the role of advertising IAB Great Debate on “Who Owns the Data?” co-sponsored YieldEx by and Google J&J/Rutgers Digital Marketing Mini-MBA Program Judging for IAB MIXX Awards, Mobile Rising Stars, Digital Video Rising Stars • • • • • • • • • • • •

Marc Speichert Marketing Officer, L’Oréal USA, < - - - on Spotl on i n 2012 n 2012 ab i d L AB A tyCreat i m I ro un ghts f i mm ghl Headlines & Humor: IAB Digital Content NewFronts Showcase First-ever Hall: IAB Town “Advertising vs. the User Experience” Christie Vilsack, Candidate 4th for Iowa’s Congressional District, Meet & Greet • • Hi • cate in an intimate setting. Social Media Week, Internet Week, Week, Advertising Digital Content NewFronts 2012—events during each of assemblies came life in to the Ad Lab. Also in 2012, these industry-wide, industry participants multiday attended professional devel opment classes, top-tier reporters attended press events, and members Councils met of to hash out solutions IABto the industry’s Committees most pressing issues. and In its debut year, IAB and its members hosted more thanmeetings 280 and 5,000people atthe venue, located directly at IAB from headquarters, a new asset into a recognized turning hub for it the digi tal industry in New City. York Co Twenty-twelve marked the first full year of activity in the IAB Ad Lab, a state-of-the-art multipurposemeeting and events center, where the digital world comes together to collaborate, innovate, and edu Expanding the Sphere of Influence

owerful marketing solutions amplified the IAB mission in 2012. Through a variety Pof communications efforts, IAB shaped marketplace conversation across a multi-

ng plicity of topics and stimulated the minds of key industry audiences. Endeavors such

i as the IAB Agency Advisory Board trip to Silicon Valley, the historic presence at the Cannes Lions International Festival of Creativity, and IAB visits to nearly 30 agencies, detailed throughout this publication, also functioned to enhance awareness of IAB.

rket IAB executives share insights at key industry events

Ma Here are just a few of the conferences around the world where IAB executives were featured speakers.

Events | DoubleClick 28 Insights Live Stream

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YJ Crisis Agendas Clash at Annual Meeting 29 – February Fast Chat: IAB CEO Randall Rothenberg IAB Hostto Mobile Forum at Cannes – June 12 Small Publishers Web Head the to Hill Will Push Politicians Consider to Potential Impacts of New Internet Rules – May 25 Ad-supported Internet Makes Big Contribution U.S. to Economy, IAB Report Says – October 1 Do Not Advertisers Track? Say ‘Don’t Tread on – October Us’ 13 WSJ onWSJ Mobile Video Research – December 13 a O MA di 09 PR 20 y 2012: y 2012: g S RA October 11 T MA 08 20 Study: More Men Than Women Use Mobile Phones Choose to Movies, Watch Trailers – OctoberWatch 2

EB 20 most20 important women in mobile advertising Anna Bager named top to 07 20 Strate ss NF JA on Majors on Me “IAB Pushes for DIY Ad Units, Modules” and “Half of Digital Video Be Ads Interactive To In – July Years” 30 Two re u RESUL PRESS -Line 0 0 0 c 50 50 000 000 op Meet The 21 Most PowerfulMeet Women The In 21 Mobile – July Advertising: 11 2012 T As Global Competition in Digital Grows WhoFiercer, Will Be Left Standing? – 24 February The 100-Question Have Pass to to You Test in SalesWork at One Company Ad-Tech – September 18 Sherrill Mane recognized as Media Maven Special Report: – Media Mavens 2012 October 1 Internet in Ad Revenue First Half 14% Grew But CPG Staying In TV –of 2012, 1, 1, 2, AB P I Fo 30

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IAB Membership MailOnline Corporation Local LinkedIn Media LIN Technologies Kontera Book Blue Kelley Jumptap Register Journal Media Jivox One Interactive inPowered Innity Corporation InMobi Digital Impremedia Entertainment IGN IDG I-Behavior Hulu Media Digital Magazines Hearst HealthiNation Review Business Harvard Wood Hanley Network Games GSN Grooveshark Media Grab Google Group Goodway Media Glam Media Gawker Media Interactive Sports FOX Channel News FOX Forbes.com FindTheBest.com Publishing Media Federated Facebook Solutions Media Expedia Everyday Health e-Miles eMarketer Arts Electronic Education in Projects Editorial eBay Networks Earth &Company Jones Dow Group Media Interactive Disney Communications Discovery Group Broadcasting Digital Media Demand Communications Crain Interactive CPX Connexity Nast Condé Media Complex Media Interactive Comcast Collective Digital CMG and Media Channel Clear Chitika Interactive CBS Media Casale Cars.com Caring.com CafeMom BUZZMEDIA tinue to grow. To learn more about IAB membership opportunities, opportunities, membership www.iab.net/member_center IAB visit please about more learn To grow. to tinue con will IAB the of ranks the participation, ongoing your With years. W Entertainment e’d like to thank all of our members for their support throughout the the throughout support their for members our of all e’dthank to like TheStreet.com Channel Weather The Company York Times New The Insider Business The Press Associated The Networks Media Technorati TargetSpot Synacor SugarInc Strategy+Business SpotXchange Spotify Media Specific Television Pictures Sony Sojern SocialVibe Smowtion SmartBrief ShareThis Scripps Networks Nation SB SAY Media Rovi Corporation Rodale ! 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Warner Viggle Media Vibrant Networks Media Viacom Works Search Vertical Media ValueClick USATODAY.com Report &World News US Media Unruly Media Interactive Univision Undertone TubeMogul Triton Digital Trip Advisor Company Tribune Media Retail Triad Video Tremor Travora Media Cable Warner Time Inc. Time Thomson-Reuters Associate Members Associate Core Audience Core ComScore Compete Labs Compass Clinic Cleveland ClearSaleing Systems Cisco ChoiceStream Centro Celtra Ventures Canoe Laboratories Television Cable BrightTag BrightLine Mobile Briabe BPA Worldwide &Company Booz Bluekai BlueCava BlackArrow BIGinsight Games Fish Big Media Bering BCM Bazaarvoice Hegarty Bogle Bartle Advisors Archer Arbitron AppNexus Amobee Media Audited for Alliance Alcatel-Lucent Adzerk Advertiser Perceptions AdTruth ADTECH AdShuffle AdReady AdPerfect Adometry Adobe AdJuggler Ad-iD Addroid Media Adara Corporation International Active Media Accordant (AAM) IAB Membership 33 IAB Annu al Repo rt 2012 Communications NetSuite nPario Pixalate PlaceIQ ResponsiveAds RUN DSP Salorix Screen Dreams Publishing ScreenShot Digital SeamBI SET Shareaholic Skinected Social Media Link SpotRight StrikeAd SymphonyIRI Group TagMan Tealium The Howard-Sloan-Koller Group Trust Metrics UBL Interactive UBM Tech Varick Media Management Velti Verizon Wireless Visual IQ Webspectator SolutionsX+1 Yext ZEDO Zenovia Digital Exchange Smart AdServer Smart Spongecell SQAD Szabo Associates Tapad TARGUSinfo Telemetry Limited Television Bureau of Advertising Teradata TheAllant Group The Center For Sales Strategy The Hacker Group The Integer Group The Media Innovation Group The Media Trust Company The Rubicon Project The Trade Desk Theorem thisMoment Time Warner Corporate TiVo TruEffect TruSignal TRUSTe Turn Group V12 Videology VINDICO Group Visible Measures WebTrends Winterberry Group WiT Media Worldata xAD YieldEx Ventures America Associate Members 1000mercis ActionX AcuityAds AdFin Solutions AdGent Digital AdMobius AdRoll AdsPromotion Blink New Media Bluefin Labs Burt MetricsC3 Chango Cobalt, an ADP company Cognitive Match Collider Media Contextin Dennoo Dieste Disqus Extole FreakOut International Greco Associates Information Capital Technology Integrate Iponweb IPS Kilpatrick Townsend & Stockton LocalResponse MarkMonitor MaxPoint Interactive Mirror Image Internet motionBEAT Merkle Metamarkets Mixpo Moat Morpheus Media NeoMedia Technologies Nestle NetSeer Neustar Newspaper Association of Nexage NextMark Nielsen OneScreen Ooyala OpenX Technologies Operative Organic Phorm PIVnet PointRoll Polk PricewaterhouseCoopers Proximic PubMatic Quantcast Realvu Rich Relevance Rocket Fuel Sales Athlete Media Network Salesforce Marketing Cloud SAS Institute Scarborough Research International SeaChange Semcasting Sharethrough Simpli.fi Simulmedia Luminate Machinima Major League Gaming MediaFire NASCAR National Football League New Public York Radio Opera MediaWorks Red Loop Media RedMas Samsung Electronics SessionM Shiny Ads Showtime Networks Slacker SOHU Spafax Networks STEEL MEDIA Stipple Summit Business Media Swoop Tapjoy Targetwise The Christian Post TrialPay Trulia Turner Broadcasting System Twitter Tylted Valassis Verve Mobile VISIT FLORIDA YP YTM ZUMOBI Zynga ImServices Group IncisentTechnologies Innovid InsightExpress Integral Ad Science Corporation Interpolls Interpret Intuit Invite Media IPSOS Janrain Jordan, Edmiston Group Kantar Media North America Kimberly-Clark Corporation Korrelate KPMG Krux Leapfrog Online Legolas Media LinkShare Liquidus LiveIntent LivePerson LiveRail LiveRamp Lotame Magnetic MarketShare Partners Markit On Demand Maxifier Media6Degrees Mediabrix Medialets MediaMath MediaMind MediaOcean Mediaplex MediaWhiz s er mb Me w e International Fight Telecommunications Telecommunications Association Company About Ad4Game AdExcite AdMonsters Adslot AdSupply AdTheorent Radio by Harman Airpush Audience Partners Ballantine Communications BBN Networks Belo Bestofmedia Group Networks BuzzFeed Cablevision Media Sales Chegg Cynopsis Media deviantART Dominion Digital Media Exponential Flipboard Greystripe GumGum GunBroker.com Hoover’s Hyperlocal Industries DBA Street InteractiveTV Today Investor’s Business Daily Jingit LeadBolt N General Members Crisp Media Criteo Science Crowd CTAM: Cable & Datalogix DataXu Deloitte & Touche DeSilva + Phillips Digilant Dotomi DoublePositive Marketing Group DoubleVerify DraftFCB Drawbridge Dynamic Logic, a Millward Brown DynamicVideo Epsilon Ernst & Young LLP Evidon ExactTarget eXelate Experian Marketing Services Extreme Reach Eyeview FatTail Flashtalking Flite FreeWheel GfK North America Goldspot Media Gridley & Company Ground Truth Healthy Offers HIRO-Media iCrossing IHG 34

Committees and Councils Suzie Reider, Google Digital Video Committee Dennis Oldroyd, Microsoft Data Council Andrew Kraft,Collective Data Council Matthew Hull,AT&T AdWorks Data Council David Geithner, Time Inc. CFO Council Thomas Etergino, TheStreet.com CFO Council Michael Friedenberg, IDG B2B Committee Robert Felsenthal,Crain B2B Committee Doug Sterne,PandoraMedia Audio Committee Mike Agovino, Triton Digital Audio Committee Brian Benedik,Katz360 Audio Committee Jay Sears,TheRubiconProject Ad Technology Council Jonathan Bellack,Google Ad Technology Council Zach Putnam,Disney Interactive Ad OpsCouncil Dan Foehner, Facebook Ad OpsCouncil advertising. grow digital General and leadership, within thought provide role efficiency, and improve to tools specific practices develop best a share members on Council based organizations. Members’ each are Councils IAB C and advertising. interactive selling, creating buying, with associated platform processes prove the to simplify or together value work Committees medium. digital the advertising within platforms specific a on based are Committees IAB C 2012 and Councils Committees ounc o Advertising Communications Media Group mmi ttees ils Joey Trotz, Turner Broadcasting Digital Video Committee Sharon Knitter, Cars.com Committee Mobile Advertising Scott Jensen,Viacom Media Committee Mobile Advertising Brent Hardesty, Tribune Local Committee Kim Luegers,PandoraMedia Local Committee Greg Hallinan,Verve Mobile Local Committee Jesus Chavez, Univision Local Committee Steve Hicks,ZiffDavis Legal Affairs Council Jason Ryning, Microsoft Legal Affairs Council Chris Falkner, NBCUniversal ITV Committee Jared Iwata, Time Warner Cable ITV Committee Joy Taylor, ElectronicArts Games Committee Kym Nelson,IGNEntertainment Games Committee System Networks Interactive Media Advertising Digital Media David Jacobs,Advertising.com Committee Networks &Exchanges Julia Casale-Amorim, Committee Networks &Exchanges Mary Zerafa, Impremedia Multicultural Council Borja Perez, NBCUniversal Multicultural Council Ulla McGee,IDG Committee Tablet Advertising Alex Linde,TheWeather Committee Tablet Advertising Shane Steele,Twitter Social MediaCommittee Kristen Fergason, ShareThis Social MediaCommittee Brian Quinn,Triad RetailMedia Sales Executive Council Sheila Buckley, Vibrant Media Sales Executive Council Beth Uyenco, ShattoMicrosoft Research Council Dan Murphy, Univision Research Council Stephanie Fried,VEVO Research Council Dave Morgan, Simulmedia Public Policy Council Dave Tan, Committee Lead Generation,Email& Lana McGilvray, PulsePoint Search Committee Lead Generation,Email& Casale Media Digital Digital Media Channel Advertising Interactive Media 35 IAB Annu al Repo rt 2012

Working Groups, Tas kforces, and Advisory Boards oards Working Group Working Definitions (MRAID) Group Working Group Working Group Exchanges Working Steering Committee Group Paper Working Group Working Group Working Taskforce Group Working Earned #POEM Initiative Group Working Group Working Group Working Adoption Specifications Working Group Mobile In-App Ad Measurement Measurement Ad In-App Mobile Group Working Research Mobile Interface Ad Richmedia Mobile Taskforce Video Mobile Kit Online Media/Sales and Real Time Open RTB Group Podcasting Working Quality Assurance Guidelines Board Advisory Research Design Perspective Responsive Ops Ad Rising Stars Mobile Agency Rising Stars Mobile Group Working Sales Award Best Practices Site Tagging Social Data Best Practices Paid, Owned Social Media Guide Buyer’s Tablet Group and Cs Working Ts Suite Education and Video Suite Technical Video roups, roups,

Research Working Group Working Research Group Working Group Working Convergence Group Working Automation, etc.) Group Working Taskforce Invoice Group Working Group Working Group Working Group Working Studies Effectiveness Ad for Group Working Group Working Group (IES) Working Group Working Digital Video and TV Synergies TV Synergies and Digital Video Industry Narratives Digital Video Measurement Digital Video Taskforce Discrepancies Guidelines Display Creative eBusiness (Discrepancies, eBusiness Digital Advertising Ecosystem Mapping Whitepaper Email Monetization Taskforce Innovation Emerging of the Cookie Future Games Industry Video Best Practices Guidelines for HTML5 Best Practices Exchange Solution Impression Guide Local Buyer’s Group Working Local Search Group Ops Working Ad Mobile orces, and kf as orking G roups, T oards

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ki sory B i Best Practices Working Best Practices Working Group and Best Practices Group Working Education Working Group Education Working Revamp Working Group Working Revamp Advisory Board Board Advisory Working Group Working Working Group Working Working Group Working Working Group Working Working Group Working Working Group Working Implementation and Group Implications Working

askforces, and Advisoryaskforces, and B dv Digital Advertising Workflow Workflow Digital Advertising Data Standards, Quality, Quality, Data Standards, Data Attribution Working Group Data Attribution Working and Agency Data Marketer Creative Specs Database Creative Consumer Protection Taskforce Consumer Protection Compensation Working Group Compensation Working Consumer Experience Audio Tagging Working Group Working Audio Tagging Code of Conduct Agency Advisory Board Board Advisory Agency Days Audio Agency Ad Ops Advisory Board Ops Advisory Ad Board Advisory Technology Ad African-American Ad Load Performance Load Performance Ad Accounts Receivable Receivable Accounts 3MS and Viewable: 3MS and Viewable: Working Groups, taskforces, and advisory boards directly issuesaddress facing the industry. thought They leadership provide necessary solutions, to influence,across take the advertising ecosystem. on and specific challenges from T Wor 2012 W 2012 A 36

2012 IA B Board of Directors 2012 E active advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields fields and www.iab.net. visit office Policy practices please Public a and with City York information, New more in For D.C. standards Washington, in headquartered is 1996,IAB recommends in the and Founded evaluates advertising. IAB interactive the on research critical companies, inter of value the member about its with community Working business mar wider total the of advertising. and share active companies, members’ media its of and agencies, marketers, spend, educates IAB marketing The growth total the to of spend. keting share dedicated is interactive’s IAB of the members, marketplace, its of advertising behalf On interactive States. the United of the in advertising respon are who online of companies percent 86 technology selling for and media sible leading 500 than more of comprised is (IAB) Bureau Advertising Interactive The 212 380 4700 York 10016 York, New New 116 7th 27th Floor Street, East Bureau Advertising Interactive gener For Founding Chairman Archer Advisors Rich LeFurgy BlogHer, Inc. Jory DesJardins Yahoo!, Inc. Henrique deCastro Univision Interactive Media Kevin Conroy Hulu Jean PaulColaco Time Inc. Paul Caine AOL, Inc. Ned Brody Network The Wall Street JournalDigital Alisa Bowen Federated Media Publishing John Battelle Facebook Tom Arrix Collective Joe Apprendi Washington PostDigital John Alderman 2012 B IDG Bob Carrigan Chairman NBCUniversal Peter Naylor Executive Officer IAB President andChief Randall Rothenberg E x Offici o xe o i al a c n rd o ut f orm i ve Commve a f Di t i on a on Cella Irvine Forbes.com Mark Howard The Weather Channel Curt Hecht Time Warner Cable Joan Gillman 24/7 RealMedia, Inc. David Moore CMG Digital Leon Levitt Vice Chair Tremor Video Randy Kilgore Treasurer Bruce Gordon Millennial Media Paul Palmieri CBS Interactive David Morris Google, Inc. Neal Mohan Cablevision Media Sales Greg McCastle Electronic Arts Dave Madden Everyday Health Mike Keriakos Turner Broadcasting System,Inc. Walker Jacobs Vibrant Media re bout the IA the bout c tor i ttee s B , pl e as e c ont Vivek Shah Condé Nast Drew Schutte NBCUniversal Scott Schiller AudienceScience Jeff Pullen The New York Times Company Denise Warren Microsoft Advertising Rik van derKooi ValueClick Media Bill Todd Secretary ReedSmith LLP Joe Rosenbaum Hearst Magazines DigitalMedia Grant Whitmore AT&T AdWorks Mike Welch Amazon.com Lisa Utzschneider Discovery Communications Evan Sternschein ,Inc. ac t u s a t: - - - 37 IAB Annu al Repo rt 2012

IAB Staff

al h c s opment Phil Ardizzone Sales and Event Director, Business Development [email protected] Chuck Jones Events Manager, [email protected] Jenna Martinez Finance Manager, and Administration [email protected] Lauren Harris Office Manager [email protected] fession Pro Devel Michael Theodore President, Vice & Development Training [email protected] Resear Kristina Sruoginis Research Director, [email protected] Event Lisa Milgram Events President, Vice [email protected] Moore Rollet Virginia Events Senior Director, [email protected] Andrew Kao Andrew Finance and Manager, Human Resources [email protected]

al on & tion & l tra tion e s a ce urement tions er an er as e Director, Public Policy Director, [email protected] Adminis Fin Goldman Mark Finance and Senior Director, Administration [email protected] Marketing & Public Rela Chris Glushko Marketing Director, [email protected] Laura Goldberg Public Relations Consultant [email protected] Keller Tracy Events Senior Manager, Marketing [email protected] Jeff Fryer Marketing Manager, [email protected] Shira Orbach Marketing Manager, and PR [email protected] Public Policy Alison Pepper Public Policy Senior Director, [email protected] Sarah Hudgins Intern Salomon Alexandra International Senior Director, [email protected] al Coun ng Offic ics & M ng Offic i ener i t yt a al rket er y & G er lic f Op f Ma h, An ab e e c i i r a lic Po e veOffic s i e Senior Manager. Business Business Senior Manager. Operations [email protected] Corie Levy Services Member Manager, [email protected] Sharon Scoble CRM Coordinator [email protected] IAB Ad L Laura Baker Lab Ad Manager, [email protected] Membership Ullen Julie Van Member President, Vice Services [email protected] Nicole Horsford Senior Manager, Services Member [email protected] Blouin Kevin Joe Laszlo Senior Director, Center Mobile [email protected] Sabrina Alimi Senior Manager, Industry Initiatives Center and Mobile [email protected] Brown Yolanda Mobile Coordinator, Center of Marketing Excellence [email protected] ut c dent & Ch dent & Ch xe si si dent, Pub dent, R — [email protected] f E si si e i e Pre e Pre — [email protected][email protected] e Pre e Pre — [email protected][email protected]

ce othenberg ve Vic ve Vic i i & tives & dent & Ch ut ut or Vic or Vic i i c c si cellen andall R xe xe atrick Dolan Ex Anna Bager & General President Vice Center Mobile Manager, [email protected] ng Mobile Marketing Center of Jessica Ramirez Industry Coordinator, Services [email protected] Jessica Anderson Advertising Manager, Technlogy [email protected] Brendan Riordan- Butterworth Standards Technical Director, [email protected] Seneca Mudd Industry Initiatives Director, [email protected] Chris Mejia Digital Supply Director, Chain Solutions [email protected] Susan Borst Industry Initiatives Director, [email protected] Peter Minnium Head of Brand Initiatives [email protected] ittees Comm Advertising President, Vice Technology [email protected] Initia Sullivan Steve Sen Sherrill Mane Sen Zaneis Mike E David Doty E P Pre R