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ANNUAL REPORT 2017 IAB ANNUAL REPORT 2017

dynamic creative powerhouses apply their storytelling expertise to build marketers’ . Similarly, the 2017 IAB Leadership Dialogues were a first-ever Building 21st Century Brands: series of discussions with transformative leaders in business, politics, economics, and technology to gain The Race to the New Economy insights from and debate critical industry, political, and economic issues with each other.

A cross-screen economy requires new standards and ife in America in 2017 was lived inside a series a time. These direct brands—as well as the incumbents guidelines to grow the marketplace, and IAB and the of paradoxes, all of them balanced on one side that join their club—are the growth engine of the new L IAB Tech Lab introduced the completely revamped by the ongoing economic boom, characterized by economy. IAB Standard Ad Unit Portfolio, featuring dynamic a bull market now in its 10th year. We had political more than 14,800 digital media professionals Adapting to this new landscape is not optional either: ads that allow for flexible creative on a multitude turmoil … and economic boom. Populist revolt … have advanced through the IAB Certification Two-thirds of consumers now expect direct brand of screen sizes and resolution capabilities and that and economic boom. Immigration mania … and Programs and Professional Development initiatives. connectivity. puts user experience front and center. Another major economic boom. Media disruption … and economic accelerator for growth is a trustworthy supply chain. An emerging economy and fast-changing media boom. Retail apocalypse … and economic boom. THE WORLD HAS SHIFTED FROM AN A major initiative for the Tech Lab in this area was INDIRECT BRAND ECONOMY TO A landscape also requires an active eye on policy, and In the digital media and marketing industries, we DIRECT BRAND ECONOMY. the introduction of the Authorized Digital Sellers IAB continues to be a strong force for advocacy breathed the paradox every day. 2017 was both A new world? Indeed. Clear sailing? No way. program, ads.txt, which has fast gained attention as on behalf of our members at the federal, state, and our most productive year since IAB’s founding, and Consider the disruptions that could disrupt the an essential tool in fighting ad fraud. global level to help educate industry and regulators perhaps the most disruptive. Spending on digital disruptors: in support of policy affecting consumer privacy, data From cross-platform measurement to attribution reached an all-time high of $40.1 billion security, supply chain safety, advertising taxation, • Ill-considered, badly written, seat-of-the-pants modeling, the IAB Mobile Marketing Center of in the first six months of 2017, an increase of 22 and other major regulatory and legislative issues. government regulations in the U.S. and Europe Excellence, in conjunction with IAB Tech Lab, is percent over 2016 (IAB Advertising Revenue threaten to gut the new direct brand industry. focused on developing guidelines and creating Finally, digital advertising is responsible for over Report, December 2017). But it was also the year that digital and cross-media audience measurement 10 million jobs in the U.S.—but filling those jobs Russian bots, “fake news,” and the other maladies • A flawed, porous digital media supply chain metrics that will allow the industry to plan, buy, remains a challenge. The IAB Education Foundation IAB has been warning about (and correcting for a continues to endanger both brand safety and and sell advertising across all platforms and media is working hard to deliver a diverse talent pool that decade) moved from the trade magazines to the front consumer safety, prompting politicians as well seamlessly. IAB has also made great strides in reflects the audiences we serve by addingqualified pages and their digital equivalents. as normal human beings toward their cynicism about digital channels. convening the industry’s top video executives and diverse talent to the industry’s employment It’s easy to get distracted by the headlines and the advertising companies to define the agenda for pipeline through its iDiverse initiative. • Having struggled to keep up with the pace relentless assault of novelty, and thus lose sight the future of video at the invitation-only Video of media disruption and its impact on their As we look ahead to 2018 and beyond, IAB is of the bigger transformations roiling underneath. Leadership Summit, under direction from the IAB advertising, brands are now straining to keep uniquely positioned to help our members succeed In the consumer economy, we are in the midst Digital Video Center of Excellence. up with the ways the same digital technologies in the new direct economy. of an epochal from a century-old “indirect are disrupting the production, distribution, and Data is now at the center of the direct brand brand economy” to a “direct brand economy.” I look forward to an ambitious agenda for our fulfillment of their consumer goods and services. economy, and to drive the data agenda for the Brands characterized by their direct connections to members in 2018 as we devote ourselves to helping digital media, marketing, and advertising industry, consumers and the insightful manipulation of their To help brands, publishers, agencies, platforms, our member companies and our industry prosper in this year the IAB Data Center of Excellence and the flexible supply chains are disrupting the business and technology providers better understand the the direct brand economy. Data and Marketing Association (DMA) released models of market-leading brands that in some cases emerging direct brand economy, IAB introduced the first-evermarket sizing benchmarks for data- Sincerely, have led their categories for decades. While Casper, several new offerings in 2017 to make it easier for related investment, showing that U.S. companies Dollar Shave Club, Glossier, Uber, and Warby our members and stakeholders to navigate their will have spent more than $10 billion on third- Parker are well recognized for their successes, tucked way to the new world. party audience data in 2017 for advertising and away next to them are hundreds of others, in every In the fall, IAB hosted the IAB Content Studio marketing efforts. category, using the same capabilities to shift share Randall Rothenberg Showcase, a first-of-its-kind marketplace for growth to their corner, one fraction of a share point at IAB members have asked for more training programs Chief Executive Officer publishers’ content studios, to showcase how these for growing the talent pool and by the end of 2017 Interactive Advertising Bureau

BUILDING 21ST CENTURY BRANDS 1 2 ANNUAL REPORT 2017

The world has shifted from an indirect brand economy to a direct brand economy

THE INDIRECT BRAND ECONOMY, 1879 – 2010 THE DIRECT BRAND ECONOMY, 2010 –

FULFILLMENT C STACK R A C ET L R U L M L A R C S N E O T P N R M R T CONSUMER PRODUCTION DE I O E PA R LE C R e YM F E S C U D S STACK OM E E I N L L S NV M T F I I EN E IL V N T R G L O C A M E G R E T R Y P E E Y LS M L W N A N A A T I T A R IO N F Y E T G A O S T A G A N R IC I M G S E M R A IC G S M B K T N N S I O E A C IS S I F U T N A G A CONSUMER P O ER T O H P L E R O PUBLISHER A S S PRODUCT W E SERVICES N I IDENTITY S U ANALY TICS B N

DATA O I PROGRAMMATIC T I T STORY TELLING S I N RETAILING U E MEASUREMENT Q M C E A G ADVERTISING Y N RETAILER T A R N O AG ENCY A A I C P T M C G O BRAND D R / A I N N 3 E S S & G T I M D A N R S T 2N R A O G E O R P LY E N S T T E IN D R A Y M I T N N R A M A N E G E A N O D P A L IV IN FINANCE L R P L T IO P IA A K E T R T E I N E T D G A E M B N I N R Z S T U I G A I SOURCING O A IZ Y N T M C R A IN G I G T G PT IA E IO O MANUFACTURING W L TI N E M N BRAND B E G DATA S S D LOGISTICS E IT IA O E STACK DISTRIBUTION ATTENTION INTEGRATION STACK

INDIRECT TO DIRECT ECONOMY (DTC BRANDS) 3 4 ANNUAL REPORT 2017

Table of Contents

Building Marketplaces...... 6

Asserting Global Political Influence...... 8

Convening Thought Leaders...... 10

6 Advancing Brand Safety...... 12

Modernizing the User Experience...... 14

Captivating Mobile Consumers...... 16

Enabling Brand Media Innovation...... 18

18 Advancing Video Everywhere ...... 20

Making Measurement That Matters...... 24

Demystifying Data...... 26

Defining New Standards, Software, and Services...... 28

30 Championing Diversity & Inclusion...... 30

Accelerating Career Growth...... 32 MARKE AL TIN IT G IG & D IA FOUNDATIO MED NS CERTIFICATION Our Members...... 34

2017 Committees & Councils...... 36

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Who We Are...... 40

TABLE OF CONTENTS 5 6 ANNUAL REPORT 2017

Building Marketplaces Showcasing World-Class Creativity to Engage and Delight Consumers

igital advertising was born of technology, and advertising. The invitation-only event, held at The Travis McElroy, Co-Host, My Brother, My Brother and Me; Lauren Lapkus, Host, With Special Guest Lauren Lapkus; Das a result, it’s been oriented around systems New York Times offices in , was 2017 IAB Podcast Upfronts and processes, rather than the aesthetics and developed in direct response to the dramatic impact ideas that captivate hearts and minds and allow content studios are making in the ad industry: brands to change consumer behavior. Marketers allowing brands to directly leverage publishers’ importance of the event as a catalyst for media are struggling to keep up with the pace of platform insights and creative talents to tell meaningful buying decisions, nearly nine in 10 advertisers (88 2017 Digital Content NewFronts, evolution and mobility, and need to learn how to stories through native content. The event featured percent) said they increased their original digital NewFront at Madison Square use the newest platforms without breaking their own presentations from Partner Studio by AOL, CNN’s video budget as a result of attending the 2016 Garden, NYC cost base. But brands are clamoring for creativity Courageous, Condé Nast’s 23 Stories, Disney Co/ NewFronts. More than three-quarters (77 percent) in a marketplace of competing and increasingly Op, and Hearst Digital Media’s Custom Content, agreed that the 2016 NewFronts encouraged them asynchronous platforms. among others. The marketplace was so well- to investigate ways to incorporate new emerging media. To educate marketers and received and successful in 2017, we expect to formats such as augmented reality (AR), virtual As part of our efforts to refocus the interactive advertisers and raise awareness continue presenting content showcases around the reality (VR), and 360-degree video advertising into industry toward inspiring creative, in 2017 IAB of podcasting as a valuable country in 2018 to help publishers succeed. their marketing strategy. continued to host and build creative marketplaces platform to reach consumers, in including the always popular IAB Digital Content DIGITAL CONTENT NEWFRONTS: A PODCAST UPFRONT: A MARKETPLACE September 2017, IAB produced NewFronts, the increasingly influential IAB Podcast MARKETPLACE FOR DIGITAL VIDEO FOR AUDIO CREATIVITY the third annual Podcast Upfront, CREATIVITY Ira Glass, Host and Executive Producer, This UpFront, and the brand new IAB Content Studio U.S. podcast advertising revenues are forecast to a one-day marketplace designed American Life and Editorial Advisor, Serial and The IAB Digital Content NewFronts plays a Showcase: Brand New Ideas. skyrocket to more than $220 million in 2017, an 85 for advertisers and media buyers S-Town; Mark McCrery, Founder and CEO of powerful role connecting leading buyers and percent increase over 2016, according to the first- to preview the latest in innovative Podtrac/Authentic; 2017 IAB Podcast Upfronts CONTENT STUDIO SHOWCASE: sellers of digital video content in the largest annual ever 2017 IAB Podcast Advertising Revenue Study, podcast programming from some A MARKETPLACE FOR CONTENT upfront marketplace for digital video. Held in May, CREATIVITY driven by connected consumers who rely more and of the biggest names in the digital audio arena. the 2017 NewFronts had 33 events attracting In October, IAB hosted the first-ever IAB Content more on mobile devices. But for all their cultural Presenters shared content offerings, audience approximately 16,000 attendees. Confirming the Studio Showcase: Brand New popularity, podcasts remain a bit of a mystery for insights, and opportunities with which advertisers Ideas, a first-of-its-kind marketplace too many brand marketers, who want to understand can effectively align their brands and more than for publishers’ content studios, to how to measure them consistently with other 200 marketers attended the event. showcase the wealth of ways these dynamic creative powerhouses apply their storytelling expertise to build marketers’ brands. These 82% of ad buyers (and 87% of brand buyers) say the Digital Content NewFronts publisher content studios may be are a great way to preview all of the upcoming original digital video offerings in a short the most significant advance in amount of time. Brad Jakeman, advertising creativity since the Creative Formerly Pepsico, The IAB Revolution of the 1960s. Designed Content Studio Showcase: of ad buyers indicate they learned about at least one new opportunity from the Brand New Ideas for an audience of advertisers, this 87% marketplace featured examples NewFronts that would be a good fit for their company or client. of branded content solutions from Source: 2017 NewFronts Attendee Survey, May-June 2017 some of the biggest names in digital 2017 IAB Podcast Upfronts

BUILDING MARKETPLACES 7 8 ANNUAL REPORT 2017

Asserting Global Political Influence Leading Public Policy & Advocacy Efforts in Washington D.C. Maureen K. Ohlhausen, Ajit Pai, Rick Welday, Senator Wyden, and Globally in a Year of Radical Change FTC Chairman FCC Chairman AT&T D-OR

EXPANDING THE GLOBAL AGENDA IAB certification and n the U.S. and around the world, policymakers are always stood for greater transparency and disclosure In April, IAB hosted an industry roundtable discussion training programs, Iconsidering legislation and regulations that threaten in the digital advertising supply chain, regardless on the recently proposed EU ePrivacy Regulation. and encouraging self- to impair the digital media industry. Well-meaning of whether the ads are political or commercial, Introduced in January, this regulation would regulation and public government regulation could undermine the ability of because we believe transparency and disclosure are replace the current “cookie directive” with new and policy. smaller and more innovative publishers to compete necessary for consumer safety and brand safety. potentially burdensome requirements on how the The annual International in the evolving digital economy. In response, IAB digital advertising industry uses cookies and similar ECONOMIC VALUE OF THE Breakfast Session at advocacy efforts have focused on consumer privacy, technologies for advertising, measurement, and ADVERTISING-SUPPORTED INTERNET the 2017 IAB Annual data security, supply chain safety, advertising taxation, analytics. IAB was joined by a representative from the Earlier in the year, IAB hosted a congressional Leadership Meeting and other major regulatory and legislative issues to European Commission, Andrea Glorioso, Counselor for luncheon for the launch of the IAB research on the brought together nearly ensure that IAB members’ voices are represented the Digital Economy at the EU Delegation to the United Economic Value of the Advertising-Supported 70 digital advertising before Congress, as well as at key agencies. Internet Ecosystem. In attendance at this standing- States, and members of the IAB Legal Affairs and thought leaders from 23 Randall Rothenberg, CEO, IAB, room only event were key congressional staff, Public Policy Councils for this off-the-record discussion As part of the IAB advocacy and policy efforts in countries spanning from Argentina to Canada, and testifies before the House administration officials, and industry stakeholders. on the impact of the proposal and the IAB response. Oversight and Government Reform Washington D.C., our public policy team hosted from Norway to Japan, making it one of the largest Subcommittee on Information The meeting opened with remarks from Congressman many influential visitors from both the U.S. Congress GUIDING THE EVOLVING gatherings since its start four years ago. Technology Fred Upton, Representative from Michigan, on the EU EPRIVACY FRAMEWORK and European Parliament . These visits were an importance of the internet ecosystem to the U.S. In September, the IAB Public Policy Office hosted a EXPANDING THE IAB GLOBAL opportunity to reinforce the value of the digital NETWORK economy. This research, led by Professor John delegation of Members of the European Parliament economy and to demonstrate how legislation affects 2017 also kicked off with the Japanese Interactive Deighton at the Harvard Business School, found that for a roundtable discussion in Washington, D.C. our industry. IAB also held its fourth-quarter Board Advertising Association (JIAA) joining the IAB the ad-supported internet is responsible for 10.4 The visiting members sit on the Internal Market meeting in Washington D.C., in order to provide a Global Network as IAB Japan, the forty-fourth million jobs and generated $1.1 trillion for the U.S. & Consumer Protection Committee, which has close-up view of how senior government stakeholders IAB licensee. Masahiro Katsuno, Senior Managing economy. The event concluded with a discussion jurisdiction over key issues to our industry, including view the industry. Federal Communications Director, JIAA, and JIAA team will work with IAB on how to ensure legislation and regulation provide data protection, digital trade, and standards setting. Commission (FCC) Chairman Ajit Pai, acting Federal to drive common goals, promote global standards necessary protections for consumers without stifling The event was important to our ongoing efforts to Trade Commission (FTC) Chairman Maureen and guidelines, create better ads, improve consumer economic growth and innovation. address the harmful legislative proposals that have Ohlhausen, and Senator Ron Wyden, were just a few experience, and advance the industry’s interests in been introduced in Europe. Participants discussed of the guest speakers from whom IAB Board members DIGITAL CONTENT SHOWCASE WITH the Japanese market. the challenges they are facing to comply with the got a rare, off-the-record glimpse into the perceptions CONGRESS evolving privacy framework in Europe, including the The 2017 IAB Global Summit “Connecting and future of our industry. In October, the IAB Public Policy Office also brought a select group of senior Congressional staff from General Data Protection Regulation (GDPR) and the Global Dots: Marketers, Consumers, and GUIDANCE ON TRANSPARENCY AND the House of Representatives to New York for their the proposed EU ePrivacy Regulation. Platforms” welcomed industry leaders from around DISCLOSURE IN DIGITAL POLITICAL ADS second ever staff trip second ever staff trip. Starting the world to this invitation-only event that gathered On October 24, Randall Rothenberg testified on ACCELERATING GLOBAL GROWTH with the Content Studio Showcase, we were able close to a hundred digital leaders from international behalf of the IAB before the House Oversight and IAB supports our members’ international agendas to demonstrate how digital advertising is evolving. brands, agencies, publishers, and ad technology Government Reform Committee’s Subcommittee by leveraging the strength and collaboration of Through our subsequent visits to four IAB member companies, together with IAB executives from on Information Technology. The hearing, entitled the IAB Global Network, encompassing 44 IAB offices—Bloomberg, Hearst, , around the world to disuss and debate salient issues Oversight of Federal Political Advertisement organizations across 6 continents. The international and Pandora—in New York City that day, we were facing our industry globally and the opportunities Laws and Regulations, examined the current team aims to further the overall mission of IAB and able to reinforce the value of advertising and further for future growth. technological landscape to determine if legislative, to serve the interactive ad industry globally by the IAB brand in D.C. regulatory, or other solutions are needed. IAB has advancing global thought leadership, promoting

ASSERTING GLOBAL POLITICAL INFLUENCE 9 10 ANNUAL REPORT 2017

Convening Thought Leaders A Driving Force for the Industry’s Leading Priorities

AB events bring together members, media media, and technology sectors interacted with Imran Khan, Chief Strategy Amanda Richman, President, Sophie Blum, VP of Marketing, Officer, Snap Inc.,2017 IAB Annual Starcom USA, 2017 IAB Annual Europe and IMEA & Founder and executives and digital influencers, and attract leaders who are reinventing their world. I Leadership Meeting Leadership Meeting Manager, Israel House of Innovation, innovators to the stage to address the most pressing P&G, IAB @ Mobile World Congress In 2017, IAB also updated the format of our one issues facing the digital industry in the U.S. and day events on programmatic, data, mobile, and around the world. video to become more interactive symposiums, In September, IAB hosted the first-ever 0172 adding town halls in the general sessions where IAB Leadership Dialogues, a series of intimate the entire audience can engage in discussion and discussions in which leaders of the marketing, debate around key topics.

From left to right: Nadine Karp McHugh, SVP Omni Media, Strategic Investments, Programmatic and Creative Solutions, L’Oréal, IAB Leadership Dialogues Sophie Kelly, SVP of North American Whiskeys Portfolio, Diageo, IAB Video Symposium Leonid Sudakov, President of Connected Solutions, Mars Petcare, IAB @ Mobile World Congress

2017 IAB Video Symposium From left to right: Dr. Mehmet Oz, Host, The Dr. Oz Show, IAB Leadership Dialogues Marne Levine, COO Instagram, IAB Leadership Dialogues John Martin, Chairman & CEO, Turner, IAB Leadership Dialogues Bob Lord, Chief Digital Officer, IBM, IAB Leadership Dialogues

Mark Risis, Head of Data Partnerships, IBM Watson Alexa Christon, Head of Media Marni M. Walden, Executive Vice Advertising & Aruna Paramasivam, Head of Innovation, GE, IAB Mobile Symposium President and President of Product Data Acquisitions and Partnerships, L’Oréal, IAB Data Innovation & New Businesses, Verizon, Symposium 2017 IAB Annual Leadership Meeting John Mescall, Global Executive Creative Director & President, Global Creative Council, McCann Worldgroup; Susan Credle, Global Chief Creative Officer, FCB; Amy Emmerich, Chief Content Officer, Refinery29; Sebastian Tomich, SVP, Randall Rothenberg CEO, IAB, & Kristin Lemkau, Chief Tim Armstrong, CEO, AOL, Advertising and Innovation, T-Brand Studios, The New York Times; IAB @ 2017 Marketing Officer, JPMorgan Chase,IAB Leadership Dialogues IAB Leadership Dialogues Cannes Lions Festival, Cocktail Party

CONVENING THOUGHT LEADERS 11 12 ANNUAL REPORT 2017

We need better advertising to drive growth, enabled by media Advancing Brand Safety transparency to drive a clean and productive media supply chain … As we Building Trust and Accountability in the Digital Supply Chain “ all know, the problems and solutions are not new: adopt one viewability standard, implement accredited third-party measurement verification, get transparent agency contracts, and prevent ad fraud. t the IAB Annual Leadership Meeting in January in IAB. TAG membership has nearly quadrupled A2017, Marc Pritchard, Chief Brand Officer of since that announcement, and for the first time, — Marc Pritchard, P&G, IAB Annual Leadership Meeting, Procter & Gamble announced publicly that P&G our “cousin” association, the Association of ” would only work with companies that have a clean, National Advertisers (ANA), which represents January 2017 productive media supply chain by the end of this brand marketers, has noted in its member research year. It was a brave and essential move and one a decline in the incidence of bot fraud affecting we whole-heartedly support. We also believe in the its members. Similarly, a study conducted by The importance of digital standards’ development for the 614 Group research confirmed that the use of education and implementation support efforts, Released in September, the OpenRTB 3.0 healthy and sustained growth of the supply chain, a TAG Certified distribution channels for digital especially for mobile apps, and we expect this Framework draft for public comment includes core focus of the IAB Technology Laboratory (IAB advertising reduced the level of fraud by more than updated version of the ads.txt spec to accelerate secure signed bid requests (bid requests Tech Lab). In 2017, the IAB Tech Lab has advanced 83 percent from the broader industry average. As continued adoption in the industry. We encourage (authenticated publisher supply) and an Ad across a number of dimensions. IAB continues to lead the industry toward a more adoption of ads.txt by all IAB members. Management API specification that enhances transparent and secure supply chain, IAB Tech Lab creative management. Both align with a new The IAB Tech Lab develops standards and tools to Built in part on this initiative, in October, IAB UK resources are integral to developing necessary Advertising Common Object Model (AdCOM) that provide consistent baseline utility to members and announced the establishment of the “IAB Gold programs and tools to support those efforts. facilitates consistency across related specifications, industry participants. Some initiatives from the Tech Standard,” an effort to reduce ad fraud, improve and supports demand for authenticated supply and Lab in 2017 included launching the Authorized The Authorized Digital Sellers program, digital advertising experiences, and increase other anti-fraud tools, brand-safe ad experiences, Digital Sellers program, ads.txt, releasing OpenRTB ads.txt, has fast gained attention as an important brand safety in Great Britain. The program requires and expanded support for media channels. 3.0 framework and deep engagement with the tool in fighting ad fraud. Since its first release in buy and sell-side implementation of ads.txt and Trustworthy Accountability Group (TAG) May 2017, the OpenRTB Working Group has adherence to standards IAB Tech Lab developed The Tech Lab was also integral in releasing MRAID— to support their anti-fraud, anti-malware, and incorporated feedback from the industry about with the Coalition for Better Ads (CBA). IAB Mobile Rich Media Ad Interface Definitions—an inventory quality guidelines, as well as specific use cases that need to be supported via the management is confident that a similar model, initiative to define a common API (Application initiatives such as TAG ID. ads.txt mechanism. The IAB Tech Lab is continuing in combination with guidance and programs Programming Interface) for rich media ads running in established by the U.S. Media Rating Council mobile apps. MRAID 3.0 includes features to improve Over FIGHTING FRAUD BY INCREASING TRANSPARENCY AND ACCOUNTABILITY (MRC) and TAG, will soon enable new uniform consumers’ ad experiences. The new MRAID enables 100,000 Continuing progress to help publishers and brand safety guidelines worldwide. the ad to measure viewability and audibility, detect environment, and obtain location data to present the domains have advertisers understand the dynamics to fight fraud STREAMLINING STANDARDS and improve the digital supply chain, early in COMPLIANCE most relevant experience. MRAID 3.0 also includes adopted ads.txt as of guidance on pre-loading ads and understanding 2017 IAB announced that all its member The IAB Tech Lab is also responsible for the December 2017 publishers and technology companies will development of innovative and scalable readiness to display an ad. The Video Player Ad be required to register with TAG—a technical standards, code libraries to assist Interface Definition (VPAID) addendum to MRAID is key digital ad industry’s program in rapid, cost-effective implementation of also now fully included in the MRAID specification. to fight fraud and other standards, and test platforms for companies to Additionally, a new Blockchain Working Group has fraud reduction among criminal activity—before 83% evaluate the compatibility of their technology been created by IAB Tech Lab to investigate how to June 2018 in order TAG certified distribution channels solutions with IAB Tech Lab standards, which apply blockchain technology to the ad industry to to remain eligible for almost 20 years have been the foundation support transparency, billing, reconciliations, and for continued for interoperability and profitable growth in the other use cases. membership digital advertising supply chain.

ADVANCING BRAND SAFETY 13 14 ANNUAL REPORT 2017

Modernizing the User Experience USER EXPERIENCE TAKES CENTER STAGE IN 2017 Dynamic Solutions That Drive Engagement

Mobile is not an option anymore, it’s mandatory! As my friend Matias Jaramillo says “Everything that you do has to look good on mobile.”There is still a lot of ood user experience is at the core of allowing also incorporate the LEAN Principles of lightweight, “ Gthe interactive ecosystem to thrive and our encrypted, ad-choice supporting, and non-invasive room for creating and developing new apps and tools using AI. But, I believe efforts on our members’ behalf are all in support of advertising within all of its mobile, display, and AI will be the trigger of the next digital revolution. navigating this new world order. native ad formats. Based on HTML5 technology, it also includes guidelines for new digital content — Carla Eboli, CMO, Dieste Inc., an Omnicom Group Agency DYNAMIC ADS experiences such as augmented reality (AR), virtual ” The IAB Tech Lab saw the need for a standard that reality (VR), social media, mobile video, emoji ad would increase the fluidity of ad formats and allow messaging, and 360-degree video ads. for a more content driven model where an ad simply becomes a real-time rendering of several pieces of BUILDING BETTER AD STANDARDS content (e.g. an image, a line of copy, an animation, IAB also joined forces with the 4A’s and ANA etc.). That need was fulfilled with the release of the in sending a letter to the Coalition for Better Brands need to focus more on attention; publishers should prioritize speed and IAB Dynamic Content Ad Standard V. 1.0, a Ads to propose an industry-wide self-regulatory structured system of meta data for defining creative system, including browser makers and delivery revenue;“ and (users) people want a more performant user experience and fewer components and their asset variations in an ad tech companies, that would banish the most forced view ads. unit. This standard is designed to help creative offensive advertising formats from the internet. IAB developers, ad content management systems, has also been participating in the Coalition for — Colin Thomas, Sr. Analyst, Strategic Insights, and ad servers build and serve real-time dynamic Better Ads, a workforce of leading international ” Jumpstart Automotive Media, a Hearst Company content in advertisements based on audience data. trade associations and companies involved in online media to improve consumers’ experience In July, IAB released a finalized version of thenew with advertising. In March, IAB supported the IAB Standard Ad Unit Portfolio, featuring ads that Coalition’s recommendation that brands, ad allow for creative to adjust to a variety of screen sizes agencies, and publishers in North America and and resolution capabilities. This puts user experience Europe voluntarily retire six desktop and 12 mobile front and center—benefitting both consumers and the advertising formats that fall beneath the threshold brands that want to reach them online. These new of consumer acceptability, and which correlate We believe that in 2017, the quality of storytelling will be paramount to native ad units have gone through comprehensive testing, highly to consumers’ willingness to block ads. As an with expanded mobile and video capabilities that advertising“ success. Data and technology will play an increasingly important industry, our common goal should be to make great will propel interactive marketing to new heights. advertising and content that really engages users role in helping to inform, distribute and measure these stories, but it will Developed by the IAB Tech Lab, the ad units with the best possible experience. be critical to create content that instantly evokes emotion and inspires integrate aspect ratio-based flexible ad sizes, and action. Immersive formats, like 360 and VR, will accelerate this by allowing viewers to become a part of the stories themselves. —Marcia Lesser, Head of Content Partnerships at Oath, ” a Verizon Company TECH LAB

MODERNIZING THE USER EXPERIENCE 15 16 ANNUAL REPORT 2017

Advertising delivered on a mobile device now makes up 54% of total internet advertising Captivating Mobile Consumers revenues. Advertising revenues delivered on mobile devices totaled $21.7 billion in the first Improving User Experience in a Direct-to-Consumer half of 2017, a 40% increase from the prior half year revenues of $15.5 billion. Mobile Always World Source: PwC | IAB internet advertising revenue report, First Half of 2017

he consumer march towards mobile has been on, Always On – A Global Perspective of Mobile were that getting even 15 seconds of viewer attention published in April the Mobile Location Playbook Tin full speed. In the IAB 2017 Internet Advertising Consumer Experience, an in-depth survey of on mobile is a luxury, and success comes when we put for Retail Marketers. The playbook encapsulates Revenue Report conducted by PwC, U.S. mobile ads smartphone users compiled from 18 countries around consumers—not the tools, platforms, or technologies— best practices for retailers to leverage location data account for more than half of digital ad spending. the world. Always On was also the theme of the IAB at the center. As a follow-up, at the Cannes Lions for marketing and customer service throughout This shift has significant and profound implications Mobile Symposium in June, titled “Always-On: Festival in France, IAB hosted a session titled Mobile- the consumer purchase journey. Mobile location for the future of our industry: Mobile ads have Surviving and Thriving in a Mobile World,” only Pioneers: What’s Next? Thought leaders and data enhances retail marketers’ understanding of surpassed desktop ads. We’ve gone from a world of with Alexa Christon, Head of Media Innovation at practice leaders from around the world—including consumer behavior in the physical world, and helps content and platforms that are mobile-optimized and GE, explaining that key to GE’s digital success was Torsten Wingenter, Head of Digital Innovations at reach consumers when they are in the right context, mobile-first to a new reality where many consumers super-serving consumers using mobile as a platform, Lufthansa, Maureen Traynor, Global Director, Creative measuring marketing campaign effectiveness in are mobile only. The IAB Mobile Marketing Center versus a straightforward, traditional mobile strategy. Solutions at Spotify, and Emi Cal, CEO of Teads— driving consumers to store and connecting the dots of Excellence is charged with driving the growth The audience of 180 attendees also heard from Lisa explored emerging trends and technologies, from between different marketing platforms, including TV, of mobile marketing, advertising, and media by Schoder, Integrated Marketing & Media Lead at Ford chatbots and AI to dynamic creative and sentiment desktop, mobile, and Digital Out-of-Home (DOOH). creating standards and best practices, and provided Motor Company, about how Ford took a mobile-first analysis of mobile video ads, to the latest in VR and research and insights that have helped accelerate approach to communicating its passion for innovation physical-virtual-mobile experiences. the growth of the mobile ecosystem. via a Virtual Reality (VR) channel. DIRECT-TO-CONSUMER AND MOBILE IDENTITY ALWAYS ON – A GLOBAL PERSPECTIVE IAB has been aggressively promoting our expertise OF MOBILE CONSUMER EXPERIENCE as a technical standard-setter, research organization, Marketers are now using mobile as a direct-to- After years of uncertainty in the advertising industry and best practices provider for mobile media and consumer pathway. To help our members thrive in 1 in 5 smartphone owners worldwide about the viability of mobile as a serious medium, marketers. To that end, IAB and dmexco—the a mobile-always world, the IAB Mobile Marketing mobile advertising fueled more than half of the European digital conference organization—teamed Center of Excellence published The Mobile Identity use their device every 5 minutes internet economy in 2016, in no small part because for a second year to create IAB@MWC, a mini- Guide for Marketers (and a companion one-sheet) nearly two-thirds of smartphone users worldwide conference for several hundred participants at at the 2017 IAB Mobile Symposium in New York check their device every 30 minutes or more, and the giant Mobile World Congress exposition in on June 13. The guide highlights the importance nearly half say that they took action after seeing Barcelona, the world’s largest gathering for the mobile of identity management, the challenges and Most smartphone users mobile advertising, according to the IAB report, industry. Among the central takeaways from the event opportunities for leveraging identifiers such as Ad IDs, cookies, IP addresses, and location-based data, access the internet at as a foundation for user-level mobile and cross-screen least once a day IAB Mobile Marketing Center of Excellence Board Members marketing activities, from targeting, measurement, 88% via mobile web 84% via mobile app and attribution to ensuring a quality user experience. The guide also presents use cases for identification data within two primary categories—targeting and measurement—and explores related applications that 9 in 10 smartphone users ® range from frequency management and audience recall seeing amplification to attribution and predictive modeling. mobile ads Location-targeted mobile ad spending is forecasted 90% via mobile web 84% via mobile app to grow from $9.8 billion in 2015 to $29.5 billion Source: Always On — A Global Perspective of Mobile Consumer Experience, IAB Global Research, 2017 by 2020. To address this growing market, IAB ” CAPTIVATING MOBILE CONSUMERS 17 18 ANNUAL REPORT 2017

To provide insights into podcast audience native advertising buying that will provide a demographics, listener behaviors, creative framework for defining and thinking about the treatments, ad formats, delivery and targeting, and various native advertising options from publisher- Enabling Brand Media Innovation ad effectiveness measurement before this year’s direct, to more automated offerings. Another Surviving and Thriving in a New Direct-to-Consumer World Podcast Upfronts, IAB also released the IAB Podcast working group is preparing documents that outline Playbook, the organization’s first-ever buyer’s guide how publishers are increasingly using influencer for podcast advertising, This playbook serves as marketing tactics to both build their editorial brand, a go-to reference guide to help brand marketers and engage the right audience on their platforms. 017 was a year of tremendous change for The Green Space in New York City. The event understand podcasts and effectively steer more ad GAME ADVERTISING many parts of the economy. As retail stores featured four hours of informative programming on dollars toward opportunities that will deliver in terms 2 The IAB Game Committee was represented at the were closed by the thousands in 2017, there is a digital audio’s value proposition for marketers. Invited of audience reach. In an industry where explosive New York Media Festival (NYME) in September revolution in commerce underway and it’s being speakers included several high-level agency and growth and dramatic change have been endemic, with a panel titled, Why Engaging Digital Ad led by direct-to-consumer (DTC) brands with their programmatic executives. In March, the Committee IAB seeks to educate marketers on the unique and Experiences Are the New Gold Standard for own products that manage the entire supply chain. also hosted a webinar titled Digital Audio’s Value valuable benefits of advertising on the medium. Marketers. The panel included senior leaders from DTC brands such as Casper, Dollar Shave Club, Proposition. Four committee members presented DIGITAL OUT-OF-HOME , Unity Technologies, InMobi, and Zynga. and Uber, and marketers using mobile as a direct- key points from the Digital Audio Buyer’s Guide While the connected home was once thought to to-consumer pathway, are disrupting the business that had been released in November 2016. Over be the future, it’s the connected consumer who models of market-leading brands in many categories 200 industry executives registered for the webinar Based on significant member interest and with transformed the digital environment and primed as the world shifts from an indirect brand economy including many agency and brand marketers. the goal of helping marketing, technology, and the path for digital out-of-home (DOOH). In our to a direct brand (and cross-screen) economy. These advertising executives navigate the impact AI and Working closely with the IAB Podcast Committee, in fragmented media landscape, billboards, transit direct-to-comsumer strategies are the growth engine machine learning will have on the digital world of June, IAB released the Podcast Ad Revenue Report displays, and other place-based media don’t face of the 21st century brand economy. advertising, IAB has invited the Mobile, Native, in partnership with PwC that provided a first-of-its- the same challenges as other mediums do—there’s no and select Data Committee members to join the To help our members navigate this new world order, kind, data-driven revenue analysis of the largest below the fold, changing channels, or . Artificial Intelligence IAB has assembled a series of digital marketing players in the podcasting industry. Key findings Out-of-home creative is big, bold, and timely. With (AI)/Machine Learning resources and tools for modern marketers in the areas included that U.S. podcast advertising revenues were dynamic digital capabilities, mobile targeting, and (ML) Working Group. of audio, digital out-of-home (DOOH), and mobile. forecasted to skyrocket to more than $220 million in enhanced traffic data, outdoor is more integral to the Co-chaired by IAB 2017, an uptick of 85 percent over the $119 million media mix than ever. In recent years, DOOH is the The 2018 IAB Annual Leadership Meeting: How Mobile Center Board recorded in 2016. This was on top of an impressive main driver behind the outdoor medium’s resilience, to Build a 21st Century Brand will also uncover Member Patrick Albano, 73 percent annual growth between 2015 and 2016. attractiveness, and performance. Its inventory has marketing, data, and organizational strategies AdTheorent, and increased by 30 percent in the last two years, that will help brands, publishers and their partners Weather.com’s CMO, reaching approximately 300,000 units globally. To compete in a world with nimble, tech-focused new Jordan Bitterman, this help publishers and advertisers make the most of this market entrants and adapt their businesses to thrive group of over 100 ubiquitous new medium, the IAB Digital Out-of-Home in the 21st Century. IAB members kicked Task Force met in 2017 and released a set of case off a project in July to AUDIO AND PODCAST studies highlighting best practices for this important develop a document Given the growing importance of digital audio, touch point in the video everywhere world. that seeks to demystify the IAB Audio Committee once again NATIVE ADVERTISING AI/machine learning for marketing purposes. The hosted an Audio Day in early February Two new initiatives are in motion for native group will also focus on organizing tools for the with the goal of spurring interest advertising and influencer marketing as part of industry to plan ahead for the responsible uses in this growing advertising the newly formed Social Media/Native/Content of AI so that humans and machines work well medium. Over 200 brand increase in U.S. podcast 85% Committee, which consists of over 500 members together into the future. Additionally, in December and agency marketers advertising revenue in 2017 vs. 2016 and met in April in New York City. Because there IAB presented an online event on the practical attended the event, is confusion and complexity in the marketplace, applications of AI for marketing. which was held a working group will prepare a document about at WNYC’s

ENABLING BRAND MEDIA INNOVATION 19 20 ANNUAL REPORT 2017

boxes and remotes, consuming digital native video, longstanding networks, and “casted” videos promiscuously in single Advancing Video Everywhere viewing sessions. Spurring Growth in a Rapidly Evolving Landscape VIDEO AD SPEND AND THE CHANGING TV EXPERIENCE The IAB Digital Video Center of Excellence released two studies in May, he power of sight, sound, and motion to capture to enable the continued growth of the video in tandem with the 2017 Digital Content Tattention, drive engagement, and build brands advertising space, which is rapidly coming to mean NewFronts. First, the fourth annual Digital is evidenced by the continued growth in digital Video Everywhere. Content NewFronts: Video Ad Spend video advertising. Serving as the industry go-to Study showed original digital video is The 2017 Digital Content NewFronts in May resource for all things video, the Video Center gaining a greater share of total digital marked the fifth year that IAB has acted as of Excellence provides an industry perspective video budgets, reaching 47 percent in Managing Partner of this real marketplace, which on the state of the digital video, a marketplace 2017, double from 2015. And native has become the biggest digital video event of the representing over $9 billion in annual ad spend advertising continues to be a key part year and a critical component in media planning with a growth rate that has surpassed display, in these original digital video buys, for thousands of marketers and their agency- search, and social media. The center’s mission is accounting for 42 percent of investment. side strategists, media buyers, and planners. Other chapters include a Video Ad Tech Overview to help educate the advertising marketplace about The second report, The Changing TV Mobility was a major theme at this year’s event. (explaining the technologies and standards used the growth and value of video in reaching and Experience Study, showed that the majority of time We saw, for example, a striking increase in the to serve ads, with practical checklists for campaign engaging consumers. With a growing library of Americans watch TV is spent streaming video. The number of NewFronts presenters offering live execution), Audience, Data and Measurement, and resources, from the comprehensive Guide to Digital big screen video experience is changing rapidly as programming—for “live” is the lure for the mobile Challenges in the Digital Video Space (and Efforts Video Advertising, the Video Landscape Report, and 56 percent of consumers’ TVs are now IP-connected, millennial. Another significant observation from Underway to Solve Them), with summaries of what’s the Video Glossary, the Video Center empowers and 54 percent of those viewers are now spending the 33 NewFronts presentations is that Over-the- needed to ensure a more efficient marketplace. buyers and sellers to grow their business, through more time watching non-linear content, including Top (OTT) video is morphing into a mainstream Given the speed of change, the guide will be a better understanding of how to create, measure, digital video. And on the small screen, there’s exciting marketing medium. OTT video consumption in the updated on a semi-annual basis. and monetize digital video. The IAB Digital Video growth and advertiser demand, but also plenty of living room is attracting all ages and demographics, Center of Excellence gathered—through its annual challenges as media companies and brands seek to creating equivalencies between upstarts and VIDEO LANDSCAPE REPORT leadership summit—a core team of industry leaders fully leverage the mobile opportunity. DTC (Direct- incumbent video brands, especially as younger As part of our continued effort to simplify video to help prioritize issues and develop action plans to-Consumer) nimble brands also favor OTT as an consumers use their mobile phones as their set-top and educate the advertising marketplace about advertising and storytelling platform and a great way the growth and value of video, in November to reach their target audiences. The key message for the IAB Video Center of Excellence released big screen video advertisers is that you need to be in IAB Video Center of Excellence Board Members the second iteration of the Video Landscape OTT if you’re going to stay visible and relevant with Report, a collection of industry research and on-demand, cord cutting/cord shaving consumers. analysis highlighting key trends, challenges and opportunities related to addressable TV, connected The IAB Video Center of Excellence and its TV/OTT, virtual reality (VR), vertical video, live members have developed a Guide to Digital Video video, esports, interactive and shoppable video, Advertising that offers tools, tips, and guidance for “skinny bundles,” and native formats. The report is publishers, marketers, and brands to understand updated twice a year to provide a snapshot of the video in its multiple current and emerging forms. current state of the video advertising ecosystem. Released in September, the guide is a combination web site and multi-chapter report that addresses In July, the IAB Video Center hosted its annual Video such topics as: which formats and platforms are Leadership Summit: Tele://Vision, an invitation- seeing the most growth, what works, and what’s only working meeting that gathers leading industry trending for the future (including vertical video). stakeholders to address and solve problems facing

ADVANCING VIDEO EVERYWHERE 21 22 ANNUAL REPORT 2017

the video industry. Beginning with a discussion (56 percent) of those co-viewing on OTT say that with Chris Jacquemin (head of digital media at the they regularly talk about the brands or products they Hollywood talent agency WME-IMG), participants see while watching content on screens. examined the world of Hollywood disrupters, the Moreover, brand-related multitasking behaviors are creators and influencers driving the emerging OTT particularly strong among OTT co-viewers, including landscape. Additional themes included resources and chatting on social media about the brands they measurement and what’s needed to support creative see, conducting brand-related searches, and even development across the multiscreen landscape. Issues making purchases online. OTT co-viewers also spend The majority of U.S. adults (56%) own a streaming of communication across the worlds of TV and digital more than double the amount of time watching were also addressed with suggestions focused on ad-supported content than they do on subscription enabled TV in 2017, up 56% from 2015, a fundamental establishing a shared vernacular, buyer education, services with no ads. shift in the way America watches television and clearer key performance indicators (KPIs) to help Also in November, IAB hosted a full-day Video Source: IAB Study, The Changing TV Experience: 2017” bridge gaps in planning, buying and selling. Symposium: Video Everywhere exploring THE COLLIDING WORLDS OF DIGITAL innovation and strategies for creating, distributing, VIDEO AND TV measuring, and maximizing the use of video to THE CHANGING LANDSCAPE OF VIDEO co-opted .for uses it was not intended for. This is The growing popularity of Over-the-Top (OTT) engage consumers across platforms. In a media CONSUMPTION why IAB is making significant moves to simplify and video is shifting the traditional TV landscape, bringing landscape that continues to be transformed by the Driven by the popularity of apps such as Instagram, clean up the digital video standards landscape with interactivity, data, and targeting long associated with confluence of technological innovations and consumer Facebook, and Snapchat, half of the advertisers updated standards. An updated standard, VAST digital media to the television ecosystem. To build on behavior shifts, one thing is clear, the general notion of interviewed for the IAB NewFronts Video Ad 4.0 took a major step in 2016 to cover some of the OTT/Connected TV research program, the IAB a video consumer is in the midst of a rewrite. With the Spend study stated that they purchased vertical these concerns. VAST-based video ads can now be Digital Video Center, in collaboration with Freewheel, goal of examining the opportunities and challenges video ads in 2016. In addition, a recent study delivered to a mobile device on a 4G network in Hulu, and Roku, conducted a primary research study that come from operating in a complex media by analytics firm MOVR shows that most smart milliseconds, an instant-play experience that allows and in November of 2017 released a report called environment where everything is in motion, the event phones are being used in portrait orientation, with publishers and advertisers to minimize consumer The OTT Co-Viewing Experience 2017 to focus on featured leaders from the top publishers, brands, and the most popular size showing 90 percent portrait frustrations while increasing render, fill, reach, and understanding the co-viewing behavior on OTT and tech enablers who shared their first-hand experiences usage. In addition, inspired by this continued completion rates. its benefits to brands, such as incremental reach on key topics in the industry. There were key growth in vertical consumption, the IAB Vertical and advertising effectiveness. Co-viewing, long a discussions surrounding how to monetize OTT, how Video Working group prepared the Vertical IAB is continuing to address issues of transparency staple of linear TV viewing, is similarly popular with to use data to understand the connected consumer Video Advertising Best Practices guide that offers and trust by building function specific standards viewers of OTT, DVR, and video-on-demand (VOD) and measure campaign impact, and strategies for marketers tips and suggestions for how best to (specific specs for Verification and for Interactivity) programming. The study reveals that more than half developing OTT creative. develop device and platform-specific vertical video and by supporting a player-centric architecture. creative that takes advantage of the opportunity for Going forward, the VPAID spec is being retired full-screen immersion. and will be replaced by two separate specs in VERTICAL = 90% OF SMARTPHONE VIEW TIME* development. Verification will be covered under the HORIZONTAL VS. VERTICAL TECHNICAL STANDARDS FOR A Open Measurement (OM) umbrella. The plan is to SCALABLE VIDEO FUTURE rely on VAST to deliver the ad, Open Measurement Nearly 10 years ago, when digital video advertising for verification and VAST Interactive templates for delivery looked like it would veer into a chaotic simpler/common interactive experiences to build jumble of competing standards, IAB and its members 25% immersive interactive experiences. Standards lead to Horizontal 100% crafted the Digital Video Player-Ad Interface Vertical scale, which benefits both publishers and advertisers. Video Video Definition (VPAID) and Digital Video Ad Serving We are committed to greater transparency and Template (VAST) specifications for serving video ads disclosure in the digital advertising supply chain, and consistently to different digital players. The standards better user experience for consumers. Only then can were rapidly adopted by advertisers and loved for digital video realize its full potential as a reliably their flexibility and innovation. But VPAID and VAST scalable, safe, and profitable medium that also were developed in the pre-mobile, pre-app world Source: InMobi, *Smartphone vs. Tablet Orientation, MOVR delights and engages consumers every time. – The Mobile Overview Report, Q2 2017 and over the years, VPAID especially, began to be

ADVANCING VIDEO EVERYWHERE 2327 24 ANNUAL REPORT 2017

Brand safety, ad fraud, ad blocking, the three V’s—viewability, Making Measurement That Matters verification,“ and value—are all important issues in their own right, but it Creating New Cross-Platform Currencies concerns me that as an industry we seem to see them each with tunnel vision, jumping from one to the next, rather than seeing them as connected and part of a holistic digital landscape. Ultimately, it he ability to count media exposures and in the assignment of audience characteristics to is about seeing one consumer and one budget, not different Tmessage frequency across channels is impression-level data. These standards are an foundational to assessing ad effectiveness and important and meaningful milestone for the media budgets for different parts of consumers’ [online] and the relative contributions of individual touchpoints and marketing industry as we move together toward offline lives. towards marketing objectives. IAB is committed cross-media measurement comparability—the to helping the industry define meaningful and ultimate goal of 3MS. The adoption period for the — Keith Weed, Unilever relevant metrics across all forms and formats standard is the full year of 2018. ” of media—including mobile video, native, and MEASURING DIGITAL LOCATION-BASED audio—to make cross-media planning, buying, and ADVERTISING analysis comparable, so brand advertising budgets With ad measurement and performance under DIGITAL AUDIO AD METRICS The Open Measurement Software Development can flow to digital media. more scrutiny than ever, the Media Rating Council The Podcast Measurement Technical Guidelines Kit (OM SDK) initiative was created to address (MRC) issued the final version of itsLocation-Based IAB continues to engage with MRC (Media establish a common set of ad metrics in the podcast scaling for third-party measurement of ads served Advertising Measurement Guidelines in March, Rating Council), ANA (Association of National space by introducing a four-step process that will within mobile app environments. In October, IAB a collaborative effort between MRC, MMA, and Advertisers), and 4A’s (American Association help increase the accuracy of measuring podcast Tech Lab announced an exciting change in the way IAB. These measurement guidelines are formally of Advertising Agencies) to move the Making downloads, audience size, and ad delivery. In that viewability is measured and vendors interact in place to serve as industry guidance for the Measurement Make Sense (3MS) initiative addition, the new guidelines provide an expanded with mobile applications with a beta rollout of the measurement of digital location-based advertising. beyond viewability as it focuses on the next 3MS set of podcast content metrics definitions, OM SDK to the members of the Open Measurement The guidelines provide key definitions for location- goal of creating common audience currency since podcast advertising is intrinsically tied to Working Group for testing. This is an essential and based measurement terms, as well as recommended across media channels. As part of this effort, MRC corresponding editorial content. important first step in introducing this SDK to market, research practices and disclosures concerning the together with IAB, ANA and 4A’s issued its new and the beginning of a new era for the industry. MODERNIZING MEASUREMENT Digital Audience-Based Measurement Standards assignment of device, or user location for use in STANDARDS AND GUIDELINES We are entering an age where complex shared document in 2017. These standards build on MRC’s digital advertising measurements. They serve as Finally, IAB is committed to eliminating confusion software frameworks will be centrally managed, prior work on viewable impression measurement a benchmark that companies and agencies can and reducing friction in the marketplace by with collaboration across multiple companies. and the effective filtration of invalid traffic, and use if they choose to have their services voluntarily developing and updating measurement standards provide a set of recommended practices for the validated through an independent third-party and guidelines. The Modernizing Measurement collection and processing of information used auditing process. Task Force (MMTF) released the final versions of the Mobile In-App Ad Measurement Guidelines and Digital Video Ad Measurement Guidelines, which

cover the measurement and disclosures related to Across Screens dynamic, in-application advertisements that appear on mobile devices, the Mobile Web Measurement

Across Screens Guidelines, and the Desktop Display Impression Measurement Guidelines, with the goal of TECH LAB defining and driving clear standards-based metrics for interactive advertising across the marketing ecosystem that are comparable to legacy media.

MAKING MEASUREMENT THAT MATTERS 25 26 ANNUAL REPORT 2017

SIZING THE DATA MARKET The five winners of the 2017 IAB Data Rockstar In December, the Data Center of Excellence and the Awards and the winner of the IAB Data Rising Star are: Data and Marketing Association (DMA) released Demystifying Data the first-ever market sizing benchmarks for data- Driving Transparency and Accountability in Data related investment across classes and types. Called The State of Data 2017, a study showing that U.S. companies will have spent $10.05 billion on third-party audience data in 2017 for advertising n 2016, IAB launched the IAB Data Center of • Two-thirds of companies surveyed (67 percent) and marketing efforts. However, slightly more— Data Center of Excellence to expand existing IAB resources increased their spending on data and related Rajiv Bhat Jason Bier Jaysen Gillespie I $10.13 billion—will have been spent on third-party InMobi Engine Media Criteo Excellence Board and drive the data agenda for the digital media, services from 2015 to 2016, and even more (71 solutions to support its activation. Compiled by Members marketing, and advertising industry. The IAB Data percent) anticipated bigger budgets in 2017, Winterberry Group and based on an analysis of Center of Excellence has the mission to define reflecting the continued importance of data in financial information provided by a range of the boundaries and to increase value along the data our industry. nation’s leading commercial data providers, the chain, for consumers, marketers, and the digital research shows that of the money spent on third- SPEEDING THE ADOPTION OF ecosystem that supports them, as well as to help the IDENTITY STANDARDS party solutions, $4.3 billion is expected to be spent industry grow revenue and speed the adoption of Over the next decade, everything will be in 2017 on supporting data integration, processing, Stacey Hawes Bill Michels Dorothy Advincula identity standards in the marketplace. Epsilon Factual Samsung Ads connected; and to understand that connection and hygiene. These types of services help maximize IAB Data Rising Star across people, places, and things, the industry the accuracy and actionability of audience data, THE OUTLOOK FOR DATA 2017 AND This year, IAB and the IAB Data Center of Excellence BEYOND needs clearer identity standards to gain consumers’ while providing contextual brand safety. The report also presented the first-everIAB Data Rising Star Early in 2017, the IAB Data Center of Excellence trust. With much more sensitive consumer was released at the IAB Data Symposium in New Award, won by Dorothy Advincula, Research and partnered with the Winterberry Group for the information being used and shared, the industry York City and demonstrates that modern marketers Insights Lead, Samsung. The IAB Data Rockstar second consecutive year in order to better needs a leader to create the rule sets and guardrails are strategically investing in solutions to ensure Awards were created to acknowledge the understand and quantify audience data applications that will ensure innovation and growth. To help their third-party data is not only ethical and secure, importance of leadership in data science—and to among digital marketing practitioners. The Outlook buy-side practitioners navigate the political and but also effective and accurate. The Data Center highlight the ongoing need for exceptional talent in for Data 2017: A Snapshot into the Evolving operational challenges of transitioning away expects to build on this seminal research in 2018 the space. These award winners represent the best-of- Role of Audience Insight is a data benchmarking from last-touch attribution strategies, the IAB Data by working with publishers, brands, and other the-best in the dynamic arena of Big Data and play survey (released during the IAB Annual Leadership Center released a new Attribution Hub, which was stakeholders to ensure that they have the skill sets key roles in ensuring that digital marketing delivers Meeting at the end of January) that provides a state developed to provide a centralized resource that and insights necessary to take full advantage of the powerful results for brands and consumers alike. of the union perspective that practitioners can use to consolidates and organizes all attribution related audience data they collect and acquire. benchmark their current efforts and plan for the year guidance IAB has developed across its various TRANSFORMING FOR THE NEXT DATA ROCKSTAR AWARDS 2017 GENERATION OF AUDIENCE ahead. Among the findings: verticals and working groups. Additionally, the IAB Also in December at the Data Symposium, IAB and MARKETING Data Center of Excellence Board voted to approve • Better reporting, measurement or attribution was the IAB Data Center of Excellence announced the Finally, the IAB Measurement & Attribution Committee work on identity standards and services, as well the top industry issue in 2017—a shift from 2016, winners of the second annual IAB Data Rockstar continued its focus in 2017 on buy-side multitouch as data market sizing. An Identity Standards and when cross-device audience recognition took the Awards. The awards recognize outstanding attribution (MTA) guidance with the issuance of Services Working Group was formed to define lead position. work being done by data industry practitioners, a primer on key considerations and evaluation best practices around user-level identity sourcing encouraging greater interest in the dynamic field of criteria for MTA providers. This overview document is • Cross-channel measurement and attribution and normalization—a central step to addressing data science. Winners were selected by the Data intended to help practitioners better understand the will occupy the most time and resources in measurement, attribution, and consumer privacy Center Board of Directors and were evaluated different types of data collection platforms at their 2018. This is notable progress from 2016, when needs. These standards, developed in partnership based on demonstrated excellence, creativity, or disposal, their key value propositions, and how MTA general audience analytics demanded the most with the IAB Tech Lab, will be a foundation for forward-thinking approaches to solving problems analysis requires the aggregation of certain types of attention—highlighting increasing sophistication technical services, which then enable improved in data science, as well as the impact their measurement inputs to function effectively. Using this across the industry. identity solutions across the industry. contributions have made to their team, company, or as a reference point, readers will have a much more the industry as a whole. informed understanding of the key questions to ask MTA providers when evaluating their capabilities.

DEMYSTIFYING DATA 27 28 ANNUAL REPORT 2017

BRAND AND MEDIA GROWTH

Consumer Supply Chain Measurement Defining New Standards, Software, and Experience

Services to Drive Members’ Growth TECH LAB STRATEGIC FOCUS Channels (Mobile / “TV”) he IAB Technology Laboratory is a nonprofit • A new working group just launched to prioritize Tresearch and development consortium charged education, testing, and standards work related to with producing and helping companies implement blockchain global industry technical standards and solutions guidelines for new digital content experiences Germany, the Netherlands, and the U.K. have taken MEASUREMENT for the digital media and advertising industries. The such as augmented reality (AR), virtual reality ad-blocking and user experience best practices The IAB Tech Lab enables simpler and more IAB Tech Lab produces and provides standards, (VR), social media, mobile video, emoji ad into action, actively engaging with their users and consistent measurement: software, and services to drive growth of an effective messaging, and 360-degree video ads continuing to work with the IAB Tech Lab. The IAB New and sustainable global digital media ecosystem— • Open Measurement SDK to address challenges • Dynamic Content Ad Sandards to help creative Ad Portfolio has also been embraced by IAB Europe’s from sell side to buy side. In 2017, the Tech Lab in scaling third-party measurement of viewability developers, ad content management systems, Brand Advertising Committee and representatives from made real progress towards our collective goals. and other attributes of ads and users within and ad servers build and serve real-time the IAB Global Network at the IAB Global Summit, mobile app environments dynamic content in advertisements ensuring a global scope and adoption. SUPPLY CHAIN • Podcast Measurement Guidelines to define Building a transparent, safe, and effective digital • Defining a LEAN Seal program, so players Overall, 2017 marked a continued growing spirit standard metrics for both podcast content and supply chain for improved brand and consumer safety: throughout the ecosystem can attest to their of collaboration in the international marketplace podcast ads, and provide technical guidance for alignment with these critical principles (launching with great opportunity for publishers, marketers, • Ads.txt – the simple mechanism to identify server-side measurement in 2018) and agencies to participate in driving the industry Authorized Digital Sellers • Updated click and impression measurement forward. IAB plans continued activities in all these CHANNELS (MOBILE/“TV”) • OpenRTB 3.0 – a new framework (in public guidelines, as part of the Modernizing Measurement countries and across borders in 2018 and beyond We provide members with updated standards, comment) for increased security, transparency, initiative, working with MRC and others to help government entities understand which specs, and actionable tools to facilitate transactions and authentication in automated (programmatic) regulations can be good for the industry and to CONSUMER EXPERIENCE and automated processes, with a focus on mobile advertising promote responsible growth. Our initiatives support improved user experiences, and TV/video channel enablement: • Support for the Trustworthy Accountability especially for video and native: IAB TECH LAB COMPLIANCE PROGRAM Group anti-fraud and anti-malware initiatives • Mobile Rich Media Ad Interface Definitions The IAB Tech Lab has launched the Technology and TAG ID to support transparency and safety • The IAB New Ad Portfolio, based on (MRAID) version 3.0 and MRAID Ads SDK Tester HTML5 technology for mobile, display, and Compliance Program, a system for auditing and • Projects in progress to develop standards for • Digital Video Ad Serving Template (VAST) native formats, follows the LEAN principles formally validating companies’ use of critical industry identity resolution/management and data version 4.0 and VAST Tag Validator (Lightweight, Encrypted, AdChoice-Supporting, standards. Becoming an IAB Tech Lab Compliant quality/integrity • Substantive progress in addressing evolution of Non-intrusive advertising), and also includes Partner means you’ve joined an elite group of industry the ATSC standard, file formats, and metadata to leaders who share common goals including: facilitate connected TV and OTT platforms and • Driving efficiency in our complex ecosystem IAB Tech Lab Board Members the overall transition of TV to digital • Influencing the growth of standards that align with These efforts are just highlights of the progress IAB cost saving, effectively increasing your bottom line Tech Lab has made with the support of our members. • Spending more time on advancing platforms STANDARDS IN A GLOBAL CONTEXT when selecting partners who are compliant Borders do not confine digital, and the steps the • Using your IAB Tech Lab Compliance as proof Learn more at industry is taking to improve the advertising experience that you are compliant and expect the same from iabtechlab.com/compliance for consumers continue to be seen well across Europe. your partners Publishers in countries such as France, Sweden,

DEFINING NEW STANDARDS, SOFTWARE, AND SERVICES 29 30 ANNUAL REPORT 2017

Students coming out of the program have a core knowledge of the industry and are prepared for entry level jobs. Graduates of the program are Championing Diversity and Inclusion eligible to take the IAB Digital Marketing and Building a Diverse Talent Pipeline for the Digital Workforce Media Foundations Certification exam, further solidifying their knowledge of the ecosystem. By hiring iDiverse graduates, you’re hiring a highly credentialed, entry-level candidate, ready to make healthy and sustainable digital industry needs MULTICULTURAL BEST PRACTICES an impact at your company. View all iDiverse graduate students’ profiles at idiverse.org/students a talent pipeline that reflects the audiences it A The shift of the digital ad audience for the multicultural QUALIFIED CANDIDATES LOOKING FOR serves. IAB continues to champion this goal with the demographic has far outpaced the demographic shift JOBS IN COMPANIES LIKE YOURS IAB EDUCATION FOUNDATION BOARD IAB Education Foundation, a 501(c)(3) charitable of the ad industry: Today, more than 40 percent of the We are now proud to claim 70 graduates from our Under the leadership of the IAB Education Foundation non-profit organization, dedicated to tackling the U.S. population are diverse, non-white Americans. To iDiverse Digital Marketing and Media Foundations Board Chair and Oath CEO Tim Armstrong, the growing talent and skills gap and increasing gender, support our members in this important opportunity, the Program on both the East and West coasts. Our board met in October and discussed the expansion of racial, cultural and economic diversity in the digital IAB Cross-Cultural Marketing Day: “Our America first New York City cohort with the Borough of the program and ways to bolster hiring initiatives. We marketing and advertising industry. iDiverse, the was held on Is Multicultural So Is the Opportunity.” Manhattan Community College (BMCC) graduated urge our members to show their support as a thought Education Foundation’s marquee education initiative, October 10 at Oath offices in New York. The event from the iDiverse Digital Marketing and Media leader in diversity by joining our board of directors is committed to creating a pipeline of diverse and featured speakers from Kimberly-Clark and Ipsos, as Foundations Program in October. And we now and supporting our initiatives. skilled professionals to ensure the continued health well as discussions of approaches for addressing the have three student cohorts who graduated from the and vibrancy of the digital industry, through training, “majority minority,” how companies, agencies, and College of San Mateo (CSM) in the Silicon Valley. As we were going to press with this year’s annual mentoring, recruiting, and workforce development. marketing teams are organizing for success, and the Program graduate profiles can be found by visiting report, IAB was humbled and honored to learn increasing importance of quality data and consumer idiverse.org/students. that the IAB Education Foundation and Randall insights. Client-based case studies were shared Rothenberg have been inducted into the Diversity We encourage our members to show support by throughout the day. Hall of Honors at the inaugural Advancing Diversity hiring these qualified candidates, by joining our Honors event held during CES on January 10 in Las PROMOTING EDUCATION, DIVERSITY, board of directors, and/or supporting and funding Vegas. It’s an affirmation that the AND DEVELOPMENT IAB Education our program initiatives. is uniquely positioned to connect the The Education Foundation is working hard to deliver Foundation stakeholders that understand the looming skills gap a diverse talent pool that reflects the audiences DIVERSITY & INCLUSION TASK FORCE and human capital problems facing the interactive we serve by adding qualified diverse talent to the The Diversity & Inclusion Task Force met in October industry—so we can all work together to solve them. THE DIGITAL TALENT POOL industry’s employment pipeline through its iDiverse for a lively discussion presented by Education As a cornerstone of our policy and research effort, initiative. The iDiverse education program is an Foundation board member Freada Kapor Klein of this year IAB released the third iteration of our in-depth four-month training program, developed Kapor Center for Social Impact on Why Diverse ground-breaking study: The Economic Value of the by leading industry experts, that prepares a Employees Leave Tech and What to Do About IAB Education Advertising-Supported Internet Ecosystem. The diverse group of enrollees for jobs in digital media, It. Tim Armstrong, CEO, Oath, sat down with two Foundation Board Members research found that digital advertising propelled marketing, sales support, and data analytics. of our newest iDiverse graduates to hear their $1.1 trillion into the U.S. economy in 2016, and perspective on why they took the Digital Marketing is responsible for 10.4 million jobs in the U.S., and Media Foundations course, what they hope to accounting for 7.3 percent of the country’s total do now that they have finished, and why they are nonfarm employment. To help fill the talent gap, interested in joining the digital marketing industry. the IAB Education Foundation, following up on the We also hosted a “Career Accelerator” event in commitment the organization made to diversity NYC on November 6 for the graduates of our and inclusion three years ago, has added qualified iDiverse program, asking Hiring Managers, D&I diverse talent to the industry’s employment pipeline Professionals, and HR representatives to lend their through its iDiverse initiative. expertise and meet our students.

CHAMPIONING DIVERSITY AND INCLUSION 31 32 ANNUAL REPORT 2017

Accelerating Career Growth Certification Programs and Professional Development 86% of sales leaders reported seeing a significant increase in digital seller’s job performance after training, while 83% reported an increase in employee satisfaction. s the digital media and advertising industry interactive with live discussions and demos from Source: 2017 IAB Certification Survey Ahas grown, IAB members have asked for more industry experts, providing technical know-how and training programs to build the talent pool by improving best practices for buyers and sellers. Responding skills in the digital media and advertising industries to high demand for this training, the course will be IAB DIGITAL MEDIA SELLER The ongoing demand from members for IAB and expanding certification programs in sales, data available online globally. INTELLIGENCE STUDY learning and certification programs is a validation of solutions, and ad operations. The IAB Certification The IAB Digital Media Seller Intelligence Study is the how important training is for the industry as a whole MARKETING AND MEDIA first-ever benchmarking research at the industry level Program continues to expand in size and global FOUNDATIONS CERTIFICATION to extend the talent pipeline and our commitment to to understand the impact of training and certification recognition. In 2017, digital leaders have taken part in IAB also introduced the IAB Digital Marketing and ensuring members’ needs are being met. on performance and career prospects. This important the Sales, Ad Operations, and Data programs across Media Foundations Certification, the only globally study synthesizes both qualitative and quantitative 73 countries, bringing the total number of participants recognized professional certification created insights—collected from digital media sales leaders in the program to more than 14,820. specifically for digital media and advertising. This and digital media sales professionals—to inform program is for those new to the digital , PROGRAMMATIC DECODED the development of best practices for training and and provides a solid understanding of the digital The industry is changing quickly and IAB has development as a tool set for the leaders of digital marketing and media ecosystem, while helping continued to introduce new certifications and retool advertising sales organizations to develop their teams, candidates build their careers and secure jobs older ones to reflect the changes in technology and and for individual digital media sales professionals to in a range of digital advertising departments— the industry. In 2017, IAB launched a new training develop their own individual career paths. program called Programmatic 360: Automation from to selling, ad operations, data Decoded, an exclusive, comprehensive training for solutions, marketing, and more. buyers and sellers that provides in-depth knowledge 2012-2017 IAB CERTIFICATION GROWTH of programmatic technologies. IAB also launched

the online counterpart to our Programmatic 360: 16,000 Automation Decoded in-person course, which already reached more than 150 learners in cities 14,000 across the U.S. in 2017. The online course is highly 12,000

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E E M M K K A A R R 34 ANNUAL REPORT 2017

Purch SmartyAds Torrential Vidillion Westwood One Yieldmo PushSpring Smithsonian Media Group Tremor Video DSP, Inc. ViralGains WideOrbit YP Quantcast Snapchat TreSensa Visa Advertising Solutions Wiland ZEDO Quotient Sonobi TripAdvisor Visible Measures Wondery LLC Zefr Rakuten Marketing Sony Pictures Television TripleLift Visto Worldata Zergnet RawVoice SoundCloud Triton Digital VIX WWE , LLC Realvu Sovrn Trivver, Inc Warner Bros. Digital XappMedia, Inc. ZUMOBI Our Members Receptiv Speed Shift Media Tronc Media Sales Xaxis Zynga Refinery29 Spongecell true[X] inc. Washington Post Digital ZypMedia Resonate Insights Spotify TruEffect WebMD YellowHammer Media Reuters SpotX Trusted Media Brands Webspectator Group RevJet Springer Nature TuneIn rewardStyle SRAX Turner Broadcasting RhythmOne StartApp System Rocket Fuel SteelHouse Twitch NEW GENERAL MEMBERS Roku Strategy+Business Twitter he IAB mission is to empower the media and marketing industries to continue to Gimlet Meredith Digital Rubicon Project Stuff Media UberMedia 4C Engine Media Pacific Content Goodway Group MeritDirect, LLC RUN Sublime Skinz Ubimo AdBrilliant Evo Clip USA Panasonic Avionics thrive in the digital economy, and helping you—our members—is how we strengthen Google MGID Addapptr FORTVISION Parrable T Salesforce Marketing SundaySky Undertone Grapeshot Microsoft Advertising Adrizer Gameloft Placecast those industries. In 2017, IAB reconfigured its internal structure in order to better serve Cloud Swoop Unity Technologies Groundtruth Mixpo Samsung Electronics Synacor Univision Albert Genius Monkey Placed Amino Payments Gimlet Premion Gruuv Interactive MONSTER America, Inc. Taboola Unlockd its members. With a focus on servicing key accounts and implementing systems to fully Anghami Inoventiv Publica GumGum Morningstar SAS Institute Tapad Uproxx Appodeal ION Media Networks Reveal Mobile, Inc. engage members with white-glove service, IAB now dedicates a single point of contact to Hanley Wood Multiview Screen6 Tapgerine USATODAY.com Art19 Jukin Media rewardStyle Harvard Business Review MUNDO Media Scripps Networks TargetSpot US News & World Report Audio Network Kiip, Inc. Screen6 every member. We also conduct ongoing qualitative and quantitative research to uncover HealthiNation my6sense Interactive Taunton Interactive V12Data Audioboom Konduit Sentient.ai Hearst Magazines Digital NASCAR Digital Media Semcasting Teads Valassis unmet member needs, refocus our IAB priorities, and inform staff about best practices for Media Beeswax LiquidSky Software Shazam National Football League Sentient.ai Tech Mpire Vdopia HIRO-Media (NFL) Blis LKQD SoundCloud ShareThis Telaria VertaMedia servicing members effectively. Homes.com National Public Media Botworx.ai Lo70s Spaceback Sharethrough Terra Networks USA Vertoz Hulu Nativo Bringhub Market Enginuity SpringServe Shazam The New York Times Verve IAB membership now includes more than 650 leading media and technology companies. iHeartMedia NBCUniversal SheKnows Company VEVO Cadent Technology MightyHive Tapgerine Index Exchange NCC Media Signal TheStreet.com Viacom Cheddar MUNDO Media Teemo Cignal.io Newbase Topix The Long Tail Alliance—our body representing smaller developers of original digital INFORM Netmining Simpli.fi The Trade Desk Viant Deluxe NextVR TuneIn InMobi NetSeer SITO Mobile The Weather Company, Vibrant Media content, including bloggers and other sites with less than $1 million in annual revenues Dianomi NGL Media Verse Innity Neustar Sizmek an IBM Business Vice Media District M Nucleus Marketing Vertoz Innovid Newbase Skimlinks Thinknear by Telenav VideoAmp and fewer than five full-time employees—now includes 1,190 members. Together, they DMD Marketing Corp. Ogury Vice Media Inoventiv News Corporation Slate Time Inc. video intelligence AG DMG DSNR Media OpenSlate Webspectator account for 86 percent of in the United States. We thank all of our Intersection New York Public Radio Smaato Topix Videology Investor’s Business Daily Nexstar Digital Smart AdServer Group Outcome Health members for their support throughout the year. ION Media Networks Nexstar Media IPONWEB Inc NextVR IRI NGL Media ASSOCIATE MEMBERS Jivox NinthDecimal Acquia GenerationIM Outsourced Ad Ops GENERAL MEMBERS JUICE Mobile Nucleus Marketing Active International GeoEdge Pebble Post Jukin Media Oath 21st Century Fox AMC Networks Centro Drawbridge Ad-iD Geopath PIVnet Jun Group Ogury ADLOOX GfK North America PMX Agency NEW ASSOCIATE MEMBERS 33Across American City Business Charter Communications Dstillery JW Player Ooyala 4C Journals Cheddar eBay Advertiser Perceptions Ghostery PricewaterhouseCoopers Affinio GenerationIM Mortgage Solutions of Kantar Media OpenSlate Affinio Good Apple Digital Prohaska Consulting 4INFO American Media, Inc. Cignal.io Eko Kargo OpenX Cielo24 Geopath Colorado, LLC A+E Networks American Public Media Clear Channel Outdoor Electronic Arts AIG Gregory Welteroth Redbooks Confiant Gregory Welteroth OMD KBM Group Optimatic Advertising AARP Amobee Clipcentric eMarketer Alliance for Audited Research Now Critical Mix Advertising SimpleReach Kiip, Inc. Oracle Media (AAM) GroupM AccuWeather Anghami Spotlight Emogi ResponsiveAds Cuebiq HCL technologies Standard Media Index Kochava Inc. Orange142 Archer Advisors Havas Media Activision Blizzard Aniview Complex Media Engine Media RiskIQ Dentsu Aegis MarketStar Universal Parks & Resorts Leaf Group Outbrain Bartle Bogle Hegarty HCL technologies Acxiom Anyclip Condé Nast Entravision Rokkan Media LLC Ericsson Mars VSA Partners Legacy.com Outcome Health Bionic Advertising Systems iCrossing Adacado AppNexus Connatix Native Epsilon Sales Athlete Media FusionSeven Media Japan Network Libsyn Outfront Media Bonzai Infinitive Network ADARA, Inc. Appodeal Exchange Equinix LinkedIn OwnerIQ BPA Worldwide Logic Sensewhere Adbrain Art19 Conversant Media eXelate Liquidus Pacific Content BrightLine Integral Ad Science SimpleReach AdBrilliant AT&T AdWorks Core Audience Expedia Media Solutions LiveIntent PadSquad Burt Intel SQAD AdColony AudienceScience Cox Enterprises Experian Marketing Live Nation Panasonic Avionics CDK Digital Marketing iOPEX Technologies Standard Media Index Addapptr Audioboom Crain Communications Services LKQD Pandora Cielo24 IPG Mediabrands Szabo Associates, Inc Adform Audio Network Criteo Extreme Reach Lo70s Parrable Cisco Ipsos Taco Bell AdGear Technologies, Inc. BabyCenter DailyMail.com/Elite Daily Eyeota Lonely Planet Parsec Media Coalition for Innovative Johnson & Johnson Television Bureau of IAB TECH LAB MEMBERS AdLarge Media Bazaarvoice Dailymotion eyeReturn Marketing Lotame Solutions PCH/Media Media Measurement Magna Global Advertising adMarketplace BBC Worldwide Americas DashBid Eyeview All IAB U.S. general members are automatically members of the LotLinx PGA TOUR (CIMM) MarketStar Teralytics Adobe Beachfront Media DataXu Facebook IAB Tech Lab. Additional members include: Madison Logic Pinterest comScore Mars The Center For Sales Adrizer Bidtellect DAX U.S. Factual Magnetic Pixability Confiant Maru/Matchbox Strategy AdRoll Blippar Defy Media Fandom powered by Wikia AdEx Happy Punk Panda PageFair Mansueto Ventures Pixalate Critical Mix Media Japan Network The Media Trust Company Adslot Blis Demandbase Feature Forward Ltd. Baverianvine Improve Digital Papyrus Marchex Placecast Crowdtap MediaLink Theorem International B.V. AdSpirit BlogTalkRadio Dianomi Flashtalking Bitposter Publicis Groupe Market Enginuity Placed Cuebiq Media Management Inc. TiVo Research Intowow Adswizz Inc Bloomberg Digilant Flipboard Blockthrough Publicis Media Markit Digital PlaceIQ Deloitte & Touche, LLP Media Rating Council Unilever JCDecaux Adtegrity Bounce Exchange Digital First Media Fluent Blue 449 Spark Foundry Mashable Platform Inc Dentsu Aegis Merkle Universal Parks & Resorts Kr8os AdTheorent Brightcove Digital Remedy Forbes Media ComboGuard Starcom Worldwide Match Media Group PodcastOne DeviceAtlas Millward Brown Digital Varick Media Cyberagent, Inc. Ligatus (Publicis) Adversal.com Bringhub Discovery Foursquare Matomy Media Podtrac Dieste Management Communications Moat Cyber Communications MEC Global TenMax Adyoulike BroadSign Frankly Media MaxPoint Polymorph DoubleVerify Visual IQ DISH Monotype Inc. Mediasmith VM1 Adzerk BuzzFeed FreeWheel Media.net POPSUGAR Dun & Bradstreet VSA Partners C1 Exchange Disney Interactive Fullscreen, Inc Mortgage Solutions of Digital Advertising MetaX Weborama AerServ Media iQ Digital Ltd Positive Mobile DWA Media Colorado, LLC White Ops Consortium Inc. Cable One Advertising District M Fyber Miaozhen Systems Yahoo Japan Affinity Express MediaMath PowerLinks Media Ericsson Nestle Purina Pet Care Winterberry Group Digitas LBI Corporation Cadent Technology DMD Marketing Corp. Gameloft Momentum ALC MediaOcean Prisa Digital Ernst & Young Zentrick DigiTrust YOSPACE Cars.com DMG DSNR Media GasBuddy.com Monotype Alliant Mediative a division of Programmatic Mechanics eZanga.com News Media Alliance zVelo FRECKLE IoT Zenith Media CBS Interactive Group Genesis Media Alphonso Inc Yellow Pages DMS Public Media Marketing Forensiq Nielsen Altice USA CBS Local Dominion Digital Media Genius Monkey Limited Dotdash PubMatic FusionSeven OMD Amazon Celtra Gimbal Medicx Media Solutions PulsePoint OUR MEMBERS 35 36 ANNUAL REPORT 2017

IAB WORKING GROUPS AND TASK FORCES IAB TECH LAB WORKING GROUPS AND TASK FORCES

2017 Committees and Councils Accounts Receivable Identity Standards Working Group Ad Blocking Working Group OpenDirect Working Group Working Group Influencer Marketing for Publishers Blockchain Working Group Open Measurement Ad Effectiveness Studies Working Group Data Quality Working Group Working Group Working Group Interactive Video Working Group Digital Video Ad Format Guidelines OpenRTB (Real-Time Bidding) Advanced Attribution Measurement Perspective Working Group Commit Group AB helps drive the industry forward through the efforts of Local Committee CFO Council Working Group Working Group Digital Video Technical Standards OpenRTB Native Working Group Kristen Berke, Tronc, Co-Chair Michael Waxman-Lenz, Undertone, committees and councils in various industry segments. These AI/Machine Learning for Marketing Mobile Location Data Working Group OpenRTB Working Group I Co-Chair Rachel Pasqua, Verve, Co-Chair Working Group groups include the brightest minds in the industry gathered Working Group Display Creative Guidelines OpenVV (Video Viewability) Legal Affairs Council Blockchain for Video - Business Mobile Measurement Task Force Working Group Working Group to develop solutions that improve the interactive advertising Measurement & Attribution Working Group Committee Steve Hicks, Ziff Davis, LLC, Co-Chair Mobile Rich Media Ad Interface Dynamic Content Ad Standards OTT (Over-The-Top Video) Technical and marketing ecosystem for everyone. There are currently CFO Tax Working Group Definitions (MRAID) Working Group Working Group Working Group Andrew Covato, Snapchat, Co-Chair Marketers Council Compensation Working Group Mobile Video Task Force Flex Ad Standards Working Group Podcast Technical Working Group more than 20 IAB committees and councils and more than 50 Neil Hoyne, Google, Co-Chair Nadine Karp McHugh, L’Oréal, Co-Chair Cross Platform Ad Effectiveness Modernizing Measurement (MMTF) Header Tag Task Force SafeFrame Implementation working groups and task forces. In 2017 we also introduced Jack Haber, JJH (Formerly Colgate Mobile Working Group Task Force Working Group Palmolive), Co-Chair HTML5 Best Practices an Investment & Relations team to prioritize IAB resources on Committee Cross Platform Measurement Issues Native Advertising Buyer’s Guide Working Group Taxonomy & Mapping Deng-Kai Chen, Yahoo, Co-Chair Working Group initiatives with the most impact for our members’ growth and the Multicultural Council Working Group Identity Standards Working Group Working Group Kurt Hawks, Conversant Media, Diego Antista, Google, Co-Chair Data Measurement Research OpenDirect Working Group Video Tools & Best Practices overall health of the industry. Co-Chair Working Group Mobile Rich Media Ad Interface Stacy Graham, BET Networks, Co-Chair OpenRTB Working Group Definitions (MRAID) Working Group Subgroup Matt Kaplan, Univision, Co-Chair Data Quality Working Group IAB committees are based on specific platforms within the Public Policy Council OTT Technical Working Group MRAID Ads SDK Tester Digital Out of Home Metrics Working Group digital advertising medium. Committee members work together to Selling Automation Todd Thorpe, News Corporation, Chair Glossary Working Group OTT Video Working Group Committee OpenData Task Force Digital Video Ad Format Guidelines Podcast Business Working Group prove platform value or simplify the processes for buying, selling, Jason Fairchild, OpenX, Co-Chair Research Council Working Group Podcast Technical Working Group and creating interactive advertising. Andrew Kraft, AppNexus, Co-Chair Stephanie Fried, Condé Nast, Co-Chair Digital Video Glossary Programmatic Video Dan Murphy, Univision, Co-Chair Jason White, CBS Interactive, Co-Chair Working Group Working Group IAB councils are based on specific industry roles within Social Media/Native/ Sales Executive Council Digital Video Technical Standards SafeFrame Implementation members’ organizations. Council members share best practices Working Group Working Group Content Committee and develop tools to improve efficiency, provide thought Federico Acuna, Twitter, Co-Chair Display Creative Guidelines Taxonomy and Mapping Working Group Work Group leadership, and grow digital advertising. Melissa Diaz, Time Inc., Co-Chair ADVISORY BOARDS Esports Working Group VR/AR Working Group Ari Lewine, TripleLift, Co-Chair Ad Product Advisory Board IAB Dynamic Content Ad Standards Asher Rapkin, Facebook, Co-Chair Ad Tech and Ad Ops Working Group Advisory Board Committees and Councils Ad Ops Council Agency Advisory Board James Deaker, Yahoo, Co-Chair Advanced TV Committee Data Benchmarks & Research Advisory Board Doug Fleming, Hulu, Co-Chair Activation Committee Advertising Technology Video Center Buyer Main Outputs of Committee and Council Work Adam Lowy, DISH, Co-Chair Council Advisory Board Digital Out of Home WHITEPAPERS, BEST PRACTICES, AND BUYER’S TECHNICAL SPECIFICATIONS Committee Jonathan Bellack, Google, Co-Chair Audio Committee GUIDES IAB creative ad formats and technical specifications provide Mike Agovino, PodcastOne, Co-Chair Adrian D’souza, Intersection, Co-Chair These are documents that serve to define, understand, or consistency in ad formats and delivery methods (usually in the Gina Garrubbo, National Public, Rainbow Kirby, Clear Channel Working Groups and Task Forces Co-Chair Outdoor, Co-Chair provide an update on a particular industry platform or topic. form of code) so the marketplace can realize efficiencies of Task forces are created to address an industry challenge or Les Hollander, Spotify, Co-Chair Digital Video Committee Whitepapers tend to provide an industry overview and scale in ad buying, selling, and ad creation. These standards topic that is emerging and requires discussion, definition, and Scott Liss, iHeartMedia, Co-Chair Matthew Corbin, Facebook, Co-Chair perspective on a platform, problem, or process. Best practices apply to publishers, other media sellers, and technology Douglas Sterne, Pandora, Co-Chair Jarred Wilichinsky, CBS Interactive, development of an IAB perspective. The groups may transition are determined by a group of IAB industry experts and are vendors, and most of them are now developed in partnership Co-Chair into a committee or council should the topic require numerous B2B Committee benchmarks or proven methodologies to approaching a with the IAB Tech Lab. Andrew Goldman, LinkedIn, Co-Chair Games Committee and long-term resources. Task forces are made up mostly of platform process, industry workflow, or common practice. Gabrielle Heyman, Zynga, Co-Chair Steven Suthiana, Mansueto Ventures, invited members and may include nonmember partners should IMPLEMENTATION GUIDELINES Co-Chair Kym Nelson, Twitch, Co-Chair Buyer’s guides are designed to be the definitive industry guide their expertise be required to move forward Julie Shumaker, Unity Technologies, for anyone who wants to learn about using digital media Upon the completion of a technical specification, an Buying Automation Co-Chair implementation guideline provides organizations with a clear Committee Working groups are formed by members of committees and to advertise within a specific platform or technology. This template for applying and adopting IAB standards into their Bob Arnold, Google, Co-Chair Identity & Audience Data councils. They are smaller, more focused groups of members and resource usually includes information such as market statistics, Christopher Murphy, LiveRamp, Committee metrics commonly used, and successful ad campaigns. business practices. Co-Chair Alysia Borsa, Meredith Digital, Co-Chair aim to complete a project, initiative, or committee action that Greg Williams, MediaMath, Co-Chair requires member contributions.

2017 COMMITEES AND COUNCILS 37 38 ANNUAL REPORT 2017

IAB organizations are also taking hold and services, international licensing fees, and other delivering on revenue. The IAB Tech Lab brought fundraising programs. in $2.6 million in its third year of operation In 2017, IAB invested revenues received towards (up from $2 million last year) to develop tools, Financial Review helping member businesses grow and excel. standards, and best practices that simplify and Essential Investments in IAB Member Success and Growth Funding was directed toward producing valuable reduce costs associated with the digital advertising third-party research for building brands in digital and marketing supply chain. IAB also received media as well as investing in the IAB Video Center $505,000 in donations to the IAB Education of Excellence, the relatively new IAB Data Center of Foundation and its iDiverse initiative in 2017 for elivering lasting value to our members and more than budgeted. Events at IAB in 2017 were Excellence, and the IAB Education Foundation. We building a more diverse talent pipeline. Densuring the safe and sustained growth of the projected to bring in $5 million, slightly lower than also made additional investments in the IAB Tech interactive industry are top priorities at IAB, and the anticipated due to fixed costs associated with The Centers of Excellence are also showing Lab to lead the industry toward a more transparent financial state of IAB, like the industry we represent, events, but we carefully managed expenses to offset ongoing progress. The IAB Mobile Marketing and secure supply chain, which we believe is a started and ended the year strong. This sustained the shortfall. Center of Excellence is projected to see $1 million foundation for the future growth of our members. growth is a reflection of the work we do on behalf of in revenue in 2017, which is $203,000 more than As the digital media and advertising industry Overall, IAB managed expenses closely in 2017, our members and the confidence they place in us. expected and a positive sign for the relevance and has grown, our members have asked for more which totaled $25.1 million, and closed the year success of our Mobile Always efforts. The Video According to unaudited 2017 financial statements training programs to grow the talent pool. The with a surplus of $1.7 million. and under the fiscal leadership of IAB President IAB Certification Programs and Professional Center of Excellence saw revenue of $2.1 million and COO Patrick Dolan, IAB finished the year with Development, established five years ago, totaled $2 (up sharply from $1.3 million in 2016), including the With our members’ support, IAB is well positioned topline revenue of $30.9 million, up slightly from million in revenue, similar to last year. The continued wildly popular Digital Content NewFronts industry financially to deliver on an ambitious agenda for $30.1 million in 2016. health of the certification programs is a validation event. The Data Center of Excellence saw revenue championing industry growth in 2018 and beyond. from our members of how important certifications jump to $807,000, up from $550,000 in 2016. Membership dues revenue was $15.7 million for and training are for career growth and to build a 2017, up from $14.9 million in 2016 and $554,000 Additional ongoing revenue streams include healthy talent pipeline for our industry. initiatives such as sponsored research, member

FINANCIAL KEY INDICATORS FOR 2017* (‘000) IAB REVENUE STREAMS*

PROJ BUDGET VAR FROM VAR FROM REVENUE YEAR END FULL YEAR BUDGET $ BUDGET % IAB Tech Lab $2.6M $2.1M IAB Video Center of Excellence DUES REVENUE $ 15,704 $ 15,150 $ 554 4% $2M Certification & Professional Development EVENTS REVENUE $ 5,386 $ 6,256 $ (870) -14% $1.1M IAB Mobile Marketing Center of Excellence MOBILE CENTER $ 1,052 $ 900 $ 152 17% Events $5.4M $0.8M IAB Data Center of Excellence VIDEO CENTER† $ 2,116 $ 1,570 $ 546 35% $0.5M IAB Education Foundation DATA CENTER $ 807 $ 1,000 $ (193) -19% $0.77M Other** CERT & PROF DEV $ 1,961 $ 2,795 $ (834) -30% TECH LAB‡ $ 2,623 $ 4,060 $ (1,437) -35% EDUCATION FOUNDATION‡ $ 505 $ 1,500 $ (995) -66% OTHER REVENUE $ 777 $ 254 $ 523 206% TOTAL REVENUE $ 30,931 $ 33,485 $ (2,554) -8% COST OF GOODS SOLD $ 4,026 $ 5,885 $ (1,859) -32% GROSS PROFITS $ 26,905 $ 27,600 $ (695) -3% Membership Dues $15.7M TOTAL EXPENSES $ 25,147 $ 27,600 $ (2,453) -9% NET INCOME /(LOSS) $ 1,758 $ (0) $ 1,758 N/A ** Professional Development & Certification, International Licensing Fees, Spiders & Bots List, Ad Lab Rentals, and other sources of revenue

*Projections based on unaudited estimates through December 2017 FINANCIAL REVIEW 39 † Including NewFronts ‡ Excluding revenue share 40 ANNUAL REPORT 2017

Who We Are THE IAB OFFICES NEW YORK OFFICE Interactive Advertising Bureau Executive Committee 2017 116 East 27th Street, 6th Floor IAB Staff BOARD PRESIDENT Meredith Kopit Levien Rik van der Kooi New York, NY 10016 CHIEF EXECUTIVE OFFICER Randall Rothenberg The New York Times Company Microsoft Advertising 212 380 4700 Randall Rothenberg — [email protected] IAB David Morris Lauren Wiener SENIOR VICE PRESIDENT AND SAN FRANCISCO OFFICE BOARD CHAIR CBS Interactive Tremor Video PRESIDENT & CHIEF OPERATING OFFICER GENERAL MANAGER, IAB TECH LAB Interactive Advertising Bureau Scott Schiller Sridhar Ramaswamy Troy Young Patrick Dolan — [email protected] Dennis Buchheim — [email protected] 121 Spear Street NBC Universal Google Hearst Magazines Digital EXECUTIVE VICE PRESIDENT, PUBLIC POLICY Vivek Shah Media Rincon Center 2, Suite 270 SENIOR VICE PRESIDENT, GENERAL COUNSEL SECRETARY Ziff Davis, LLC San Francisco, CA 94105 Dave Grimaldi — [email protected] Michael Hahn — [email protected] Stu Ingis EX-OFFICIO MEMBER OF Venable LLP TREASURER EXECUTIVE COMMITTEE WASHINGTON, DC OFFICE EXECUTIVE VICE PRESIDENT, INDUSTRY INITIATIVES SENIOR VICE PRESIDENT, RESEARCH John Toohey David Moore Anna Bager — [email protected] Chris Kuist — [email protected] Allie Kline Xaxis Interactive Advertising Bureau Oath Charter Communications rawner Building 888 17th St., NW Suite 312 Washington, DC 20006 Board of Directors 2017 Philip Ardizzone Conor Healy Kenya Reynolds Kerry Bianchi Meredith Kopit Levien Samantha Skey The Interactive Advertising Bureau (IAB) Senior Director, Investment & Senior Director Senior Manager, Business IAB EDUCATION Visto The New York Times Company SheKnows Media empowers the media and marketing industries Relations [email protected] Operations, Mobile & Video Centers FOUNDATION to thrive in the digital economy. It is comprised [email protected] of Excellence Skylar Hogan [email protected] Megan Hauck Lee Brown Seth Ladetsky Brad Smallwood of more than 650 leading media and Priscilla Arguinzoni Manager, Events Buzzfeed Turner Broadcasting System Facebook Senior Director technology companies that are responsible Director, Learning & Certification [email protected] Orchid Richardson [email protected] [email protected] Vice President and Managing Seth Dallaire Jeff Lucas John Trimble for selling, delivering, and optimizing digital Nicole Horsford Maggie Maxwell Amazon Media Group Snapchat Pandora advertising or marketing campaigns. Together, Director, Data Center of Excellence, Christa Babcock Senior Director, Investment & [email protected] Manager Rick Erwin Jean-Philippe Maheu Lisa Valentino they account for 86 percent of online Vice President, Learning and Relations [email protected] Acxiom Twitter Condé Nast Entertainment advertising in the United States. Working with Certification [email protected] Virginia Rollet-Moore its member companies, IAB develops technical [email protected] Vice President, Events IAB TECH LAB Eric John [email protected] Rita Ferro Peter Naylor Jacob Weisberg standards and best practices and fields critical Laura Baker Deputy Director, Video Center of Jennifer Derke Disney | ABC Television Group Hulu Slate research on interactive advertising, while also Senior Manager, IAB Ad Lab Excellence Soizic Sacrez Director, Product Management [email protected] Rajeev Goel Kimberly Norris Rick Welday educating brands, agencies, and the wider [email protected] [email protected] Senior Director, Marketing [email protected] Pubmatic Spectrum (Time Warner Cable) AT&T AdWorks business community on the importance of digital Kevin Blouin James Linney Courtney McDermid marketing. The organization is committed to Senior Manager, Business Operations Senior Manager, Marketing Alexandra Salomon Executive Assistant Keith Grossman Marian Pittman Steven Wolfe Pereira [email protected] professional development and elevating the [email protected] [email protected] Senior Director, International Bloomberg Cox Media Group Quantcast [email protected] knowledge, skills, expertise, and diversity of the Susan Borst Kathleen McKay Mayank Mishra Chris Guenther Penry Price Jen Wong workforce across the industry. Through the work Vice President, Industry Initiatives, Director, Events Operations Kristina Sruoginis Senior Director, Engineering NewsCorp LinkedIn Time Inc. Digital [email protected] of its public policy office in Washington, D.C., Mobile Center [email protected] Director, Research [email protected] [email protected] Jed Hartman Sridhar Ramaswamy Troy Young IAB advocates for its members and promotes Haley Milch Mina Pajevic The Washington Post Google Hearst Magazines Digital Media the value of the interactive advertising industry Erika Bradbury Manager, Events Brooke Stevens Manager [email protected] to legislators and policymakers. Founded in Director, Content [email protected] Manager, Investment & Relations Mark Howard Michael Rubenstein Joe Zawadzki [email protected] [email protected] Forbes Media AppNexus MediaMath 1996, IAB is headquartered in New York City Nina Munoz Dharmik Patel and has a West Coast office in San Francisco. Luz Brito Director, Video Center of Excellence Amanda Tallini Software Engineer Allie Kline Carrie Siefer Director, Financial Operations [email protected] Coordinator, Video Center of [email protected] Oath IBM [email protected] Excellence Brendan Riordan Butterworth Diana Negron [email protected] Jeanie Carstensen Manager, Administration Senior Director, Technical Vice President, Finance & Operations [email protected] Michael Texidor Standards [email protected] Senior Director, Operations, Learning [email protected] FORMER 2017 BOARD MEMBERS EX OFFICIO Shira Orbach and Certification Amit Shetty David Brinker Jory Des Jardins Eric Johnson Stu Ingis David Moore Sara Childs Senior Manager, Marketing & Public [email protected] News Corporation SheKnows ESPN Venable LLP Xaxis Manager, Mobile Center of Relations Senior Director, Product, Video Excellence [email protected] Brianna Theobald & Audio Paul Caine Michael Friedenberg Harold Morgenstern Rich LeFurgy John Toohey [email protected] Manager, Operations [email protected] Bloomberg Media IDG Communications Discovery Communications Archer Advisors Charter Communications Edwin Orta [email protected] Craig Coleman Senior Facilities Manager Colleen Shields Frank Cooper Joan Gillman Neal Mohan Vice President, Marketing [email protected] Bradley Weltman Senior Manager, Business Ops BuzzFeed TWC Media YouTube [email protected] Vice President, Public Policy & Events Marketing Myrna Perez [email protected] [email protected] Jennifer Corners Staff Accountant Events & Ad Lab Manager [email protected] Eva Wu Shailley Singh [email protected] Director, Mobile Center of Excellence Senior Director, Product and IAB Board Members Daniel Phelan [email protected] Research & Development Lauren DellaFave Staff Accountant [email protected] Director, Human Resources [email protected] Maggie Zhang [email protected] Senior Director, Digital Video Yashica Wilson Alexander Propes Research Director, Enterprise Certification Benjamin Dick Senior Director, Public Policy [email protected] Programs Director, Data Center of Excellence [email protected] [email protected] [email protected] Melody Zimmer Bandita Ray Director, Learning and Development John Grifferty Manager, Operations [email protected] Director, Investment & Relations [email protected] [email protected] Kori Reese Natalie Hamingson Executive Assistant, President’s Office Manager, Investment & Relations [email protected] [email protected]

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