ANNUAL REPORT 2018 2 ANNUAL REPORT 2018

ACCELERATING GROWTH PLAYING BY THE NEW RULES: IN THE DIRECT BRAND DATA GOVERNANCE, ECONOMY REVOLUTION ETHICS, AND LEGISLATION

et’s not mince words: 2018 was a year of We see no reason to believe this direct brand ata is to the 21st century what capital massive disruption by any measure—and all economy will slow down, let alone go into reverse. This was to the 20th century. If you doubt that, Lsigns point to this disruption accelerating in “stack-your-own supply chain” is now so advanced and Dconsider this: In 2018, American companies 2019 and beyond. so embedded in the economy that the trends we’ve spent nearly $19.2 billion on the acquisition of For over a century, dominant consumer-facing seen for the past decade will only accelerate. audience data and on solutions to manage, process, companies created value through their ownership and and analyze digital audience data—a figure that operation of high-barrier-to-entry, capital-intensive It also represents an incredible represents a staggering 17.5 percent increase supply chains. The most successful companies owned opportunity for those who understand from the prior year (State of Data 2018 Report, outright or had significant control over every major the power of interactive media in this Winterberry Group, IAB). function within their supply chain, from the sourcing of new world order. This is the current data landscape—and the raw materials to the ownership of their factories and elephant in the room. warehouses, to the railway cars and trucks that got Digital advertising—whether display, search, or Our industry is at the center of a seismic change If you don’t have consumers’ trust, their goods to market. mobile video—is one of the most powerful mechanisms in the ways people engage with the world around you won’t get their data. And without Today, all that has been upended. We are of all time for brands to build relationships with them. Up-and-coming direct-to-consumer brands in data, you don’t have a business. in the midst of a shift from a century-old indirect consumers. It’s a truth upon which direct-to-consumer particular are built around data and leveraging it: brand economy to a direct brand economy. brands have built their businesses, and from which all They create value by creating a mutually beneficial, IAB is investing in helping our members and the Brands characterized by their direct connections businesses can benefit. two-way relationship between the brand and the industry navigate this new landscape with research to consumers are disrupting the business model of To succeed in this new economy, you must become consumer, a relationship that involves data that is around the state of data and trends as well as market-leading brands, which is leading to a whole a direct brand, or serve the needs of direct brands, or vital to every part of the business. Because of this analyzing where companies are spending money new way of doing business. help incumbent brands adapt and thrive in this new relationship with consumer data, we can intimately and where they’re going. Our public policy and environment. And what they need more than anything understand the motivations of many consumers—a legal teams are managing the risk around regulation. These direct brands are digitally else is to create more, and more enduring, two-way double-edged sword that brings immense value to the And IAB is developing training and playbooks to savvy, fueled by data, and are the relationships with their consumers. Creating those marketplace, but has also unleashed many problems help companies understand this profound digital growth engine of the new economy. data-enriched relationships most certainly requires that must be addressed head on. transformation. technology, but it also requires storytelling, essential Consumers know we’re collecting their data and In 2019 we’ll be focusing heavily on developing What’s propelling this new world order is the for the three last mile gaps that must be closed: to the they care about what we’re gathering and how resources for our members to understand the role cloud-based internet. The cloud has taken the home, to the head, and to the heart. we’re using it. It’s time for our industry to embrace of data in the direct brand economy including the increasingly finely-tuned ability to manage supply We have committed IAB to advancing this transparency about what data we’re collecting and nuances of insourcing programmatic advertising, and demand across borders, and enabled it to framework—and to helping our members navigate this why. We need to give consumers control to decide using data responsibly to ensure brand and consumer segment down to the individual level. For the first time, exciting but precarious evolution in the way brands what to share and not share. We need to make sure safety, and how to use data to engage with 21st it became possible for customers to make demands and consumers interrelate. What you’ll see in the we get our governance right. And we need to have century consumers. of companies as individuals—and to have those pages that follow are highlights of the initiatives we good ethics built into our thinking. Our industry is big and intimate—and with demands fulfilled. undertook in 2018 on our members’ behalf—as well These are the new rules as data becomes more great power comes great responsibility. It’s time to In this new economy, 21st century brands create as what lies ahead. important and more valuable—and collectively we get to work. value by tapping into a low-barrier-to-entry, capital- We look forward to helping all parts of our industry need to be good stewards of that data in how we use flexible, leased or rented supply chains. And they thrive in the direct brand economy in 2019 and beyond. and protect it. Respectfully, extract that value through a multiplicity of fulfillment If we don’t, more legislation and regulation like Sincerely, models, all of which have a single thing in common: the EU’s General Data Protection Regulation (GDPR) they aim to create a mutually beneficial, two-way and the California Consumer Privacy Act (CCPA) relationship between the brand and the consumer, will be on the way. In fact, many states are already Patrick Dolan because that interactive relationship throws off the considering their own regulation—and we need to President & COO, IAB data that is the central competitive element for every Randall Rothenberg prepare for that. other function in the enterprise. Chief Executive Officer, IAB

FOREWORD 1 2 ANNUAL REPORT 2018

TABLE OF CONTENTS 2018 HIGHLIGHTS

2018 Highlights...... 3 he IAB’s mission is to empower the media and marketing industries to thrive in the digital Industry Advocacy in Washington D.C. and Beyond...... 3 Teconomy. This report covers some of the Thriving in a New Direct-to-Consumer World...... 3 important work IAB has engaged in to deliver on this mission and to respond to the rapidly changing digital Fighting Fraud and Promoting Brand Safety...... 4 media landscape. Below please find highlights from Driving Industry Growth through Programmatic...... 4 our main areas of focus in 2018: Navigating Digital Video Convergence...... 5 • Industry Advocacy in Washington D.C. and Beyond Developing Talent-Rich Organizations...... 5 • Thriving in a New Direct-to-Consumer World • Fighting Fraud and Promoting Brand Safety Leadership...... 6 • Driving Industry Growth through Automation Andy Dunn, Founder, Bonobos & SVP of Digital Consumer Brands, Walmart U.S. eCommerce; Micky Building Marketplaces...... 8 • Navigating Digital Video Convergence Onvural, CEO, Bonobos; Randall Rothenberg, • Developing Talent-Rich Organizations CEO, IAB; 2018 IAB Direct Brand Summit Convening Thought Leaders...... 9 Leading Public Policy & Advocacy Efforts in a INDUSTRY ADVOCACY IN WASHINGTON D.C. AND BEYOND Volatile Regulatory Environment ...... 10 ver the past year, we have seen headline increased scrutiny policy makers have of our industry. after headline about problems such as The IAB policy team, with the help of IAB members, Accelerating Global Growth...... 11 Omisuse or lack of security relating to digital has worked to minimize the impact of the General data. It is therefore not surprising that in the U.S. and Data Protection Regulation (GDPR), the California Centers of Excellence...... 12 around the world, policymakers are pushing legislation Consumer Privacy Act (CCPA), and the host of new Data Center of Excellence...... 12 and regulations to tightly regulate data usage. federal and state level laws that are working their way Mobile Marketing Center of Excellence...... 14 While we have advocated for sensible regulation, through drafting committees. IAB will continue to be the solutions currently being offered up are often so a strong force for policy and advocacy on behalf of Digital Video Center of Excellence...... 16 draconian that they threaten to kill or cripple the digital our members at the federal, state, and global level Standards, Software, and Services to Drive Growth...... 18 media industry. Whether it is testifying on behalf of our in support of consumer privacy, data security, supply members in Congress or working to help our members chain safety, advertising taxation, and other major Promoting a Diverse and Inclusive Ecosystem...... 20 testify, IAB has been at the forefront of addressing the regulatory and legislative issues.

Empowering Our Members...... 22 THRIVING IN A NEW DIRECT-TO-CONSUMER WORLD 2018 Committees and Councils...... 24 o explain the seismic new shift from an indirect level by putting digital marketing practices at the brand economy to a direct brand economy core of the conversation. Essential Investments in IAB Member Success and Growth...... 26 T and the opportunities for brands, marketers, Throughout 2018, IAB brought brands into the and publishers, at IAB’s Annual Leadership Meeting room, specifically digitally native vertical brands to Who We Are...... 28 in February 2018, IAB released research on spark conversations for our members and the industry economic conditions that are fueling the growth of with these functional experts at the forefront of the brands that have direct relationships with consumers. direct brand revolution. The Rise of the 21st Century Brand Economy research To help every company in the value chain and our identifies how and why more brands are taking members learn and adapt, the IAB Brand Council was control of their relationships with consumers through and will continue to be a central location for research, data, storytelling, and e-tailing and has provided a development, and networking to help every company unique opportunity to engage with brands on a new in the value chain learn and adapt.

2018 HIGHLIGHTS 3 4 ANNUAL REPORT 2018

In 2018, IAB also appointed media and also played a key role in shaping the agenda for the NAVIGATING DIGITAL VIDEO CONVERGENCE marketing veteran Jim Norton as the trade group’s IAB Direct Brand Summit which debuted in October n 2018, original digital video (ODV) reached core tenet of IAB. The sold-out IAB Podcast Upfront latest Executive-in-Residence. A publishing world in New York City. The Direct Brand Summit is the first 86 million Americans, 13 years and older, 2018 in New York in September was a one-day thought leader and former Chairman of the IAB and only conference dedicated to direct-to-consumer among which 72 million are adults (18+). ODV marketplace designed for advertisers and media Board of Directors, Norton is leveraging his extensive brands and the direct brand economy. I viewership among American adults has been on a buyers to preview the latest in innovative podcast experience with premium content brands to move Helping our members thrive in the direct brand steady rise from 45 million in 2013 to 72 million in programming from some of the biggest names in the forward the direct brand economy initiative. He economy was a key theme through initiatives and 2018, a 60 percent increase. digital audio arena. has been working with IAB leadership to educate activities across IAB in 2018 and we expect to To help our members and the industry discover To help prioritize and solve industry-wide issues in members and incumbent brands on how to rethink continue that in 2019. and participate in best-in-class digital video creative, the video space, each year in July the Video Center strategy to thrive in the direct brand economy. He the 2018 Video Symposium titled “How to Build a hosts the Annual Video Leadership Summit, an invite- 21st Century Brand through Digital Video and OTT” only meeting that gathers leading industry stakeholders FIGHTING FRAUD AND PROMOTING BRAND SAFETY brought together industry leaders, marketers, and to address the key problems facing the video industry. his year’s spate of data and privacy revelations Excellence launched a five-city data roadshow titled publishers to explore innovation and strategies for (and subsequent Congressional hearings) Data Demystified in May in San Francisco, leveraging creating, distributing, measuring, and maximizing the Thave forever changed the conversation about the results from the Data Centric Organization and use of video across platforms. Key industry thought consumer data and privacy. We’ve known for years in Data Marketing Sizing Research. leaders shared their first-hand experiences on how to the advertising industry that bots are a problem. But the On the policy front, as Congress is looking into the monetize OTT, use data to understand the connected industry was focused on bot fraud aimed at stealing events surrounding the revelations about Facebook consumer and measure campaign impact, as well as money out of people’s pockets. What we didn’t know and Cambridge Analytica, IAB’s Washington D.C. revealing strategies for developing OTT creative. then—and what’s happening now—is we are finally policy office continued to deliver a holistic story Marketplaces like the IAB Digital Content recognizing that this is serious business, that people can and message for our members about the digital NewFronts and IAB NewFronts West also play get hurt from bad communications in the same way they advertising industry. During dozens of meetings a powerful role connecting buyers and sellers of can get hurt from bad grains in food or bad parts in cars. before the hearings, legislators were reminded about digital video content in the largest annual upfront To lead the industry toward a more transparent the robust self-regulatory programs in place, the marketplace for digital video and emerging media and secure supply chain, the IAB Tech Lab and the significant economic value of the digital advertising forms. Confirming the importance of the event as IAB Data Center of Excellence continue to invest in industry, and the way in which our members a catalyst for media buying decisions, eight in ten 2018 HIGHLIGHTS 2018 essential resources for our members such as ads.txt, responsibly handle consumer data. We expect these advertisers (81 percent) have said that they increased the Open Measurement Software Development Kit efforts to ramp up considerably in 2019. their original digital video budget as a result of (OM SDK), the Trustworthy Accountability Group IAB believes that self-regulatory models, coupled attending the NewFronts. (TAG) Registry and more—all in service of this mission with well-reasoned sectoral laws focused on concrete Introducing brands and media buyers to the for our members and the industry. consumer harm, have improved consumer protection, latest in original digital video programming, and fostering continued growth of the nascent podcast To help companies and our members become privacy, and security over the past twenty plus years, Abbey Thomas, CMO, Tremor Video; Eddie Revis, more data-centric, and understand where U.S.-based while also promoting innovation and growth in the industry through creative innovation and showcasing Vice President of Brand Marketing, Strategy & Media, Chobani; marketers, publishers, and others invested more modern internet-enabled economy and we continue advertising opportunities across emerging media is a 2018 Video Symposium than $20 billion in data in 2017, the Data Center of to support these efforts on our members’ behalf. DEVELOPING TALENT-RICH ORGANIZATIONS DRIVING INDUSTRY GROWTH THROUGH PROGRAMMATIC s the digital media and advertising industry The ongoing demand from members for IAB espite the complexity of today’s digital supply • Promote informed conversations among buyers, grows, IAB members have asked for more learning and certification programs is a validation of chain, automation will continue to refine buying sellers, and vendors-supporting evaluation, Atraining programs to build the talent pool by how important training is for the industry as a whole Dand selling processes and shift attention negotiation, and activation of platforms and tools improving skills in the digital media and advertising to extend the talent pipeline and our commitment to to higher-value marketing and advertising functions. that can enable effective advertising industries and expanding certification programs in sales, ensuring members’ needs are being met. data solutions, and ad operations. The IAB Certification Recognizing the uniquely important role that Automated platforms and services can continue to • Highlight areas where automation hasn’t yet been Program continues to expand in size and global learning and development (L&D) programs play in drive industry growth through increasingly relevant and enabled, beyond the scope of what may have recognition. In 2018, IAB also launched a variety of successful media and marketing organizations, the effective advertising, flexible publisher monetization been considered “programmatic” historically opportunities, and enhanced consumer experiences. training programs and events to support our members. IAB Learning & Development Council published the Instead of relying on the false dichotomy of defining • Support consistent benchmarking of marketplace In an effort to provide IAB members with an IAB Guide to Learning & Development Best Practices, overall buying and selling practices as “programmatic” sizing, investment, and attitudes all-inclusive certification and training option that examining and sharing our community’s expertise to or not, IAB recommends acknowledging the broader To help our members and the industry define the better caters to their organizational needs, we provide advice to senior leaders on implementing and deeper implications of automation on the media different types of solutions that can help take charge introduced the All Access Pass to our learning and an L&D function within their organization, as well as industry, and proposes a framework rooted in the of programmatic platforms, the IAB Data Center of certification efforts. This offering is for organizations advice to L&D practitioners on improving the quality digital supply chain processes and tasks that can be Excellence leads the industry understanding of the looking to activate large groups of employees and impact of their learning programs. partially or fully automated. The aim is to provide a in-housing programmatic trend that many marketers with unlimited access to IAB’s online courses common vocabulary and structure to: and brands are undertaking. and certifications.

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2018 BOARD 2018 Company The New York Times KopitMeredith Levien Verizon MediaGroup Allie Kline The Washington Post Jed Hartman FORMER 2018 BOARD MEMBERS Venable, LLP Ingis Stu BOARD SECRETARY COMMITTEE EX OFFICIOMEMBERSOFEXECUTIVE LEADERSHIP EXECUTIVE COMMITTEE COMMITTEE EXECUTIVE Rita FerroRita Randall Rothenberg BOARD PRESIDENT Rik van derKooi BOARD CHAIR Schiller Scott BOARD CHAIR Facebook Brad Smallwood Google RamaswamySridhar Snap Inc. Lucas Jeff Archer Advisors LeFurgy Rich | DECEMBER 2018 DECEMBER Slate Jacob Weisberg Entertainment Condé Nast Lisa Valentino Davis,LLCZiff Vivek Shah Xaxis MooreDavid Troy Young WeldayRick Norris Kimberly Morris David Time Inc.Digital Time Jen Wong Tremor Video Lauren Wiener John Toohey BOARD TREASURER BOARD 2018 OFDIRECTORS Steve Horowitz Guenther Chris Keith Grossman Rajeev Goel FerroRita Erwin Rick Dallaire Seth Lee Brown Brinker David Bianchi Kerry Brad Bender Shailesh Prakash Pittman Marian Pereira Steven Wolfe Norris Kimberly Peter Naylor Morris David MooreDavid Maheu Jean-Philippe (JP) Ladetsky Seth Julie Jacobs HowardMark

2018 BOARD & EXECUTIVE COMMITTEE 2018 & EXECUTIVE BOARD John Trimble TomichSebastian Abbey Thomas Stirratt Nada SkeySamantha Siefer Carrie Schiller Scott Schaaf Jonathan Rubenstein Michael Rothenberg Randall Price Penry

EX OFFICIO John Toohey LeFurgy Rich Ingis Stu Joe Zawadzki Troy Young Jon Werther WeldayRick Rik van derKooi 7 8 Advertising, Marketing Marketing Advertising, Times; ANNUAL REPORT ANNUAL Sebastian Tomich, Tomich, Sebastian Solutions, New York York New Solutions, Global Head of of Head Global 2018 New IAB Fronts West Fronts IAB EVENTS 2018 NewFronts West NewFronts SoulPancake Wilson Rainn ideas. big and creation content on focus alaser had marketplace Content”—the Meet Ideas Where LA: theme—“Hello, inaugural the West first-ever the present to and community creative 2018 of Fall LA the in the celebrate to NewFronts forms. media emerging and video digital of sellers and buyers connecting role a powerful ShowcaseStudio NewFronts A BUILDINGMARKETPLACES Leveraging the success of the the of success the Leveraging , a two-day marketplace in Los Angeles. With With Angeles. Los in marketplace , atwo-day marketplaces like the the like marketplaces creative, inspiring truly toward industry interactive the refocus to efforts our of s part in New York, IAB went to the West Coast West Coast the to went York, IAB New in , the , the I Built This, and Wow In The World; Money The In Planet Wow and This, Built I Sanders; Sam with Minute Grundmann Anya ; 2018 IAB , IAB Podcast Upfront Podcast IAB Co-Founder, Co-Founder, , and the the , and ; IAB NewFronts West NewFronts IAB 2018 Upfronts Podcast IAB IAB Digital Content Content Digital IAB , Digital Content Content Digital NPR , the , the

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Host Host key parties and members throughout the year. the throughout members and key parties between conversations high-level grow, facilitates IAB to continues interdependency publisher and platform I LEADERS CONVENINGTHOUGHT players together to solve industry challenges. As As challenges. industry solve to together players digital more and brands, platforms, publishers, bringing force convening leading the is AB Jen Rubio Jen Brand Officer Brand Annual Leadership Meeting Leadership Annual , Co-Founder & Chief Chief & Co-Founder , Away Summit Brand Direct 2018 IAB Brandless Co-Founder and CEO Sharkey Tina ; 2018 IAB ; , , Leadership Meeting 2018 Annual IAB Unilever Communications Officer, Officer, Communications Keith Weed Keith Leadership Meeting ; 2018 Annual IAB Marketing and and Marketing Allison Murphy Allison Vice President, Research and Insights, BuzzFeed; BuzzFeed; Insights, and 2018 Research President, Vice Company Times York New , Chief Chief , IAB Data & Mobile Symposium &Mobile Data IAB , Vice President, Ad Innovation, Ad President, Vice 2018 Summit Brand Direct IAB Writer Entrepreneurship Catherine Clifford CEO and Founder Tommy John; Fujimoto Erin ; Meeting Annual Leadership EY Entertainment & Media for Leader Advisory P Balis Janet Officer Executive Chief Freer Randy Edwin Wong Edwin artner, Global Global artner, ; 2018 IAB IAB EVENTS IAB , Hulu Tom Patterson , ; , Co-Founder, , , , , Tommy John Tommy Senior Senior , Senior Senior ,

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IAB INFLUENCE: PUBLIC POLICY 2018 highlighting the belief that self-regulatory models, models, self-regulatory that belief the highlighting comments filed IAB workshops, the of advance In protection. consumer and competition of issues the at looking winter the through running workshops of aseries held Trade Commission Federal The INTERNET SUPPORTED ADVERTISING- VALUE THE OF THE digital ads.political viewing consumers to use and familiarity its promote to FEC the with working is IAB and FEC, by the warmly received was icon Ads The Political testified. IAB which at June, in (FEC) hearing Commission Election aFederal at stage center took icon new The symbol. AdChoices ubiquitous its of outgrowth May, in an is and by DAA released was Ads” icon “Political The ads. political online into transparency meaningful and new toward charge the led (DAA) Alliance Advertising Digital the and IAB November, in elections Congressional mid-term the With ADS POLITICAL DIGITAL IN DISCLOSURE AND TRANSPARENCY issues. legislative and regulatory major other and taxation, advertising safety, chain supply security, data privacy, consumer of support in level global and state, federal, the at members our of behalf on advocacy and policy for force astrong be to continues IAB committees. drafting through way their working are that laws level state and federal new of (CCPA), host the Act and Privacy Consumer California (GDPR), the Regulation Protection Data General the of impact the minimize to together worked have allies association industry and members IAB of help the with team policy IAB The industry. our of have makers policy I ENVIRONMENT A VOLATILE REGULATORY & ADVOCACY EFFORTS IN LEADING PUBLIC POLICY working to help our members testify, IAB has been at the forefront of addressing the increased scrutiny scrutiny increased the addressing of forefront the at been has IAB testify, members our help to working or Congress in members our of behalf on testifying is it Whether industry. media digital the cripple or kill to threaten that regulations and legislation pushing are policymakers world, the around and U.S. n the governmental agencies. foreign before industry advertising digital the for advocate effectively more to counterparts international with strategy policy a global Commission. European the of request the at Framework Shield Privacy E.U.-U.S. the on feedback provided and landscape advertising the in change essential and critical this navigate members our helping work at hard been has IAB brands. and advertisers, platforms, publishers, all for implications profound has and effect in now is (GDPR) Regulation Protection Data Union’s General European The (GDPR) REGULATION PROTECTION DATA GENERAL NAVIGATING THE economy. internet-enabled modern the in growth and innovation promoting also while years, plus twenty- past the over security and privacy, protection, consumer improved have harm, consumer concrete on focused laws sectoral well-reasoned with coupled The IAB Public Policy Office has also coordinated coordinated also has Office Policy Public IAB The concerted effort of working with the U.S. government government U.S. the with working of effort concerted a begun also has IAB Trade Representative. States United the of Office and Department, Commerce Department, State the with briefings held has IAB dialogues, government-to-government of advance in guidance share to and businesses U.S. on having is GDPR impact negative the on input To provide LEGISLATION FUTURE SHAPING regulation. new this about members our for questions tactical and urgent answer to webinars 25”. May of After aseries We hosted Expect to –What GDPR The Readiness: “Beyond called D.C. Washington in event an and Francisco San York New in and Town Hall Technology ePrivacy GDPR/ Tech Lab’s IAB the for experts industry We convened regularly. also updated are and Hub GDPR IAB the on available are Network Global IAB the from resources these GDPR, with comply brands and advertisers, To publishers, help HUB GDPR IAB initiative. source open a non-commercial, is Framework The GDPR. of consent) (including requirements choice user and transparency the meet advertisers and vendors, technology publishers, help to effort a cross-industry is Framework The Framework. & Consent for technical GDPRspecifications Transparency final V1.1 the released Tech Lab IAB and Europe IAB April, In landscape. advertising the in change essential and critical this navigate members our helping work at hard been has IAB FRAMEWORK &CONSENT TRANSPARENCY GDPR GDPR. ecosystem: marketing and media entire the affects profoundly that issue an on efforts its all almost focused Network Global IAB the year This policy. public and self-regulation encouraging and markets, strategic into brand IAB the expanding leadership, thought I GROWTH GLOBAL ACCELERATING to further the overall mission of IAB and to serve the interactive ad industry globally by advancing global global by advancing globally industry ad interactive the serve to and IAB of mission overall the further to aims team international The 6continents. across organizations 47 IAB encompassing Network, Global IAB the of collaboration and strength the by leveraging agendas international members’ our supports AB

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IAB GLOBAL NETWORK GLOBAL IAB IAB GLOBAL NETWORK GLOBAL IAB 11 12 ANNUAL REPORT 2018

CENTERS OF EXCELLENCE 2018 IAB DATA ROCK STARS IAB Centers of Excellence provide the next phase of leadership required for continued growth of the interactive advertising industry.

Arthur Coleman Jessica Donohue Judith Hammerman John Haws David Justus DATA CENTER OF EXCELLENCE Acxiom Research Nielsen Adobe Reveal Mobile Lotame DRIVING TRANSPARENCY AND ACCOUNTABILITY IN DATA DATA ROCK STARS 2018 The awards recognize outstanding work being done 2018 IAB DATA RISING STARS o drive the data agenda for the digital media, marketing, and advertising industry, IAB launched the IAB by data industry practitioners, encouraging greater Data Center of Excellence in 2016 with the mission to define boundaries, reduce friction, and increase interest in the dynamic field of data science. Tvalue along the data chain, for consumers, marketers, and the ecosystem that supports them. Key efforts in 2018 focused on helping bring programmatic in-house, defining the data stack, and supporting key research to DOOH METRICS GLOSSARY foster a better understanding of the current state of data in the interactive landscape. This interactive guide aims to serve as a reference for planners, buyers, and strategists who are looking to DATA DEMYSTIFIED A MARKETER’S GUIDE TO engage with Digital Out-of-Home (DOOH) media. To help companies and our members become more DEFINING THE DATA STACK data-centric, and understand where U.S.-based This is an in-depth educational examination into how Amanda Paloma Torres marketers, publishers, and others invested more both rising direct brands and mainstay traditional brands Newport-Foster GroupM than $20 billion in data in 2017, the Data Center can identify their current place in the data ecosystem. Valassis of Excellence launched a five-city roadshow titled “Data Demystified”, leveraging the results from the THE STATE OF DATA Data Centric Organization and Data Marketing The State of Data 2018: A Snapshot into the Evolving DOOH + MOBILE ATTRIBUTION CASE Sizing Research. Role of Audience Insight is a data benchmarking STUDY COLLECTION survey that provides a state of the union perspective From driving in-store visits to increasing app BRINGING PROGRAMMATIC that practitioners can use to benchmark their current downloads and propelling social and online action, IN-HOUSE efforts and plan for the year ahead. these case studies were released in October 2018 To help define the different types of solutions that can to illustrate the myriad of ways marketers across help take charge of programmatic platforms, the Data verticals are driving growth through mobile and Center is leading the industry understanding of the digital out-of-home. in-housing programmatic trend that many marketers Jackson Jeyanayagam, Former Chief Marketing and brands are undertaking. As a follow-up to the Officer, Boxed; 2018 IAB Data & Mobile Symposium research, the Data Center hosted a Programmatic Brand Summit with the theme “Bringing It In-House”. IAB CENTERS OF EXCELLENCE

IAB DATA CENTER OF EXCELLENCE BOARD

IAB DATA CENTER OF EXCELLENCE BOARD OF DIRECTORS Tim Barnes, Xandr Jay Habegger, ownerIQ Antonio Tomarchio, Cuebiq Julie Bernard, Verve Jeremy Hlavacek, IBM Watson Advertising Dana Tunks, Broadsign Paul Chachko, Throttle Gunnard Johnson, Pinterest Anudit Vikram, Dun & Bradstreet David Danzinger, The Trade Desk Jessica Morel, Oracle Jay Webster, Valassis Kevin Dean, Experian Kristoffer Nelson, Srax Ian Wright, Equifax Jason Downie, Lotame Michael Schoen, Neustar Joe Zawadzki, MediaMath Ric Elert, Conversant Aarson Shuster, LiveIntent Damian Garbaccio, Nielsen (aka Exelate) Dan Taylor, Google Matthew Groner, Adtheorent Scott Tieman, Accenture Interactive

IAB CENTERS OF EXCELLENCE 13 14 ANNUAL REPORT 2018

MOBILE MARKETING CENTER OF EXCELLENCE BEST-IN-CLASS MOBILE MARKETING THAT PUTS CONSUMERS FIRST

he Mobile Marketing Center of Excellence, led by a Board of Directors from leading mobile companies, is charged MOBILE MARKETING CENTER OF EXCELLENCE BOARD with empowering the media and marketing industries to thrive in a mobile-always world and in an increasingly Tdirect brand economy, where user experience and consumer relationships are at the heart of modern-day marketing and a significant driver of publisher transformation. Since its launch in 2010, the Mobile Center has helped accelerate the growth of the mobile ecosystem through standard setting, best practices, consumer research, and public advocacy. In 2018, the Mobile Center focused on the following areas:

MOBILE AD QUALITY IAB PODCAST UPFRONTS 2018 MEASUREMENT GUIDE A marketplace in New York designed for advertisers A big focus for the Mobile Center in 2018 was on ad and media buyers to preview the latest in innovative quality measurement. The Ad Quality Measurement podcast programming from some of the biggest Guide highlights that advertisers should expect their names in the digital audio arena, the sold-out Podcast ads to be 1) viewable, 2) displayed next to brand- UpFronts aimed to educate and raise awareness appropriate content, and 3) seen by real people around the power of podcasts as a valuable platform to understand the many factors that can affect the to reach consumers. IMPLICATIONS OF VOICE FOR measurement of ad quality metrics. MARKETING PURPOSES: MARKET STORYTELLING IN A DIRECT-TO- SNAPSHOT REPORT DIGITAL AUDIO’S ROLE IN THE CONSUMER MOBILE-ALWAYS WORLD This report explores why consumers are adopting BRAND SAFETY CONVERSATION To help brands and publishers understand the power of voice assistants and smart speakers and what the Meant to increase advertiser confidence in digital storytelling in the direct brand economy, IAB focused implications are for marketers and the future of audio platforms, this whitepaper offers a summary extensively on the subject in 2018 with the publication advertising. of why investments in digital audio platforms, both of three key resources: The Publisher Content Studio streaming and podcasting, are among the safest digital Directory featuring nearly 70 IAB member content OPT-IN VALUE EXCHANGE media investments an advertiser can make today. studios, the Content Creation & Distribution Guide PLAYBOOK FOR BRANDS & CASE aimed to help the buy-side make sense of today’s STUDY SHOWCASE This first-of-its-kind guide provides guidance options, and the Influencer Marketing for Publishers on creative delivery, what/how to buy, pricing, Guide to help marketers understand why publishers are and measurement to help brands new to the increasingly adding an influencer component to their space get started. branded content offerings. Susan Borst, VP, Mobile, Industry Initiatives, IAB; Paul Kontonis, CMO, WhoSay; Eric Edge, Head of Global Marketing Communications, Pinterest; 2019 DIGITAL AUDIO BUYER’S GUIDE Linda Petta, Global Creator Innovation Manager, YouTube; Jeremy Sigel, Global SVP, Content + Innovation, Essence; IAB Influencer Marketing Day To help marketers understand the value of both streaming audio and podcasting platforms, the 2019 Patrick Dolan, President, and COO, Digital Audio Buyer’s Guide published in December IAB; Bob Lord, Chief 2018 contains current research on the medium as well Digital Officer, IBM; as case studies from IAB Audio Committee members. 2018 IAB @ Mobile World Congress

MOBILE MARKETING CENTER OF EXCELLENCE BOARD OF DIRECTORS

Sheri Bachstein, The Weather Company, John Kelly, Univision Communications Inc. Allison Murphy, The New York Times an IBM Business Nishant Khatri, Pubmatic Rachel Pasqua, Verve Shannon Callies, Microsoft Advertising Alia Lamborghini, Verizon Media Group Joel Pulliam, Conversant Pete Chelala, Viacom Gefen Lamdan, Celtra Ali Rana, Snap Inc. Josh Cohen, Foursquare Chris LaSala, Google Tim Ruder, Taboola Carrie Czech, Tronc Kelly MacLean, Facebook Evan Ruthchik, Ogury Gil Dudkiewicz, StartApp Dave Madden, EA (Electronics Arts) David Staas, NinthDecimal Lex Friedman, Chief Business Development Gilad Elbaz, Factual Duncan McCall, PlaceIq Christina Tang, Instagram Officer, Midroll; Jonathan Van Ness; Actor; Anthony Katsur, Nextstar Digital Ryan McConville, Kargo Josh Walsh, AdTheorent Korri Kolesa, VP of Sales & Partnerships, Midroll; 2018 IAB Podcast Upfront

IAB CENTERS OF EXCELLENCE 15 16 ANNUAL REPORT 2018

DIGITAL VIDEO CENTER OF EXCELLENCE of recent studies as well as industry sources of research and analysis, and consultations with dozens of industry Linda Yaccarino, Chairman, VIDEO EVERYWHERE: SPURRING GROWTH IN A practitioners and subject matter experts. Advertising Sales & Partnerships, NBCUniversal; 2018 IAB Video Symposium RAPIDLY EVOLVING CROSS-SCREEN LANDSCAPE BLOCKCHAIN FOR VIDEO ADVERTISING ublishers are looking to effectively monetize consumer’s seemingly insatiable appetite for video in a Blockchain is best known in the context of financial markets and cryptocurrency but new transactional CROSS-PLATFORM TRAINING FOR brand-safe environment, especially on mobile. To help our members and the industry discover and BUYERS AND PLANNERS use cases are emerging for blockchain in many Pparticipate in best-in-class creative, IAB continues to be a force behind the sold-out and wildly popular We want our members to excel in a cross-platform industries including media and advertising. IAB Digital Content NewFronts, a video marketplace in New York and now also on the West Coast. landscape, so IAB introduced a new master class in cross- IAB developed an in-depth whitepaper called Another important industry event was the IAB Video Symposium which followed the NewFronts and platform training for buyers and planners at the IAB Ad Blockchain for Video Advertising based on showcased research and other proof points for our members that illustrated what works and why, and best Lab. The curriculum focused specifically on digital video interviews with key industry leaders. practices to move the industry forward. To help buyers and planners be smarter about investing in digital video, and advanced TV ecosystems, audience-based planning the Video Center also fielded essential new research, tools, and events including: strategies, programmatic video buying, and more. ADVANCED TV ATTRIBUTION GUIDE This guide aims to help educate the buying community DIGITAL CONTENT NEWFRONTS: 2018 IAB PERSONAL PRIME TIME STUDY STANDARD ADDENDUM FOR DIGITAL VIDEO AD SPEND STUDY This study looks at the consumer journey through on the benefits and opportunities to leverage VIDEO ADVERTISING IN TV LONG IAB released this study to help our members better the lens of seven types of content (episodic shows, attribution studies to evaluate campaign ROI. FORM VIDEO understand the video shift in the media landscape music, news, podcasts, short videos, social media, To address the technical and business issues specific and capitalize on it. Among the key findings: 59 and weather) to identify opportunities for brands to MARKETER’S GUIDE TO ESPORTS: to advertising in TV long-form video, IAB and the percent of marketers’ digital advertising budgets are engage with consumers throughout the day during HOW TO GET IN THE GAME 4A’s released the final version of this addendum currently allocated to digital video, a consistent climb their own personal prime times. This media buyer’s overview explains how brands can ahead of the 2018 Upfront season. This will reduce in share since 2016. capitalize on this growing market (now numbering the delay and expense in preparing multiple, custom ANNUAL VIDEO LEADERSHIP SUMMIT over 300 million globally and growing) and evaluate agreements and ultimately enhance the efficiency, BUILDING 21ST CENTURY BRANDS: To address the key problems facing the video industry its opportunities. growth, and competitiveness of the market for VIDEO CREATIVE INNOVATION and to establish the priorities and agenda for the Video advertising in TV long-form video. Showcasing innovation represented a central theme Center, in July, the Video Center of Excellence hosted DIGITAL VIDEO GLOSSARY Lauren Wiener, Former CEO, across IAB video initiatives in 2018. The Video Center its third Annual Video Leadership Summit, an invitation- The updated version of this glossary was released in INTERACTIVE AD EFFECT: CTAS IN Tremor Video DSP; 2018 IAB Video Symposium created a whitepaper that represents the first phase of only meeting that gathers leading industry stakeholders. December 2018 and added 18 new terms including MOBILE VIDEO SHOPPABLE ADS this innovation initiative and is based on perspectives AVOD (ad supported video on demand) and SVOD This research focuses on video-based interactive ads in from thought leaders across publishers, agencies, LIVE VIDEO STREAMING–A GLOBAL (subscription video on demand) and new video a mobile web environment to understand consumer’s marketers, and ad tech providers. PERSPECTIVE formats like skippable video ads, branded video receptivity to interaction, learning about products, and Expanding video learnings globally, this research content, and more. shopping directly within mobile video ads, and what DIGITAL VIDEO VIEWERS AND BRAND study, in partnership with 21 international IABs, sheds initial calls to action (CTA) work best. CONNECTION light on the growing popularity and ad opportunity of AR & VR GLOSSARY To better understand digital video’s younger, more livestreaming video across the globe. As new immersive media formats, augmented AD RECEPTIVITY AND THE ethnically and racially diverse, and tech-savvy and virtual reality, while still in the early stages of AD-SUPPORTED OTT VIDEO VIEWER demographic, IAB fielded this comprehensive study VIDEO LANDSCAPE REPORT development, provide unprecedented opportunity for This consumer study developed a profile of who which highlights how brands have huge opportunities To highlight recent trends, opportunities, and the marketers to tell stories that capture user attention and watches ad supported OTT video content and why this to leverage original digital video (ODV) as an current state of the video advertising ecosystem for our invoke natural exploratory curiosity. audience should matter to marketers. advertising and engagement platform. members, the Video Landscape Report is a compilation

DIGITAL VIDEO CENTER OF EXCELLENCE BOARD DIGITAL VIDEO CENTER OF EXCELLENCE BOARD OF DIRECTORS

Brian Albert, Google (YouTube) Travis Howe, ESPN Bertrand Quesada, Teads Lalit Balchandani, Adobe Anthony Katsur, Nexstar Media Mike Reidy, NBC Universal Jack Bamberger, Verizon Media Group John Kelly, Univision Guilherme Ribenboim, Twitter Alvin Bowles, Facebook Katie Kulik, CBS James Rooke, Freewheel Daniel Brackett, Extreme Reach Danielle Lee, Spotify Rene Santaella, Sony (Crackle) Philippe Browning, Snap Inc. Adam Lowy, Telaria Scott Saperstein, Conde´ Nast Tal Chalozin, Innovid Brian Matthews, NFL Andrew Snyder, Meredith Joe Dugan, Turner Pooja Midha, true[X] Abbey Thomas, Tremor Video DSP Mike Fisher, MediaMath Kevin MuGurn, Vevo Mike Welch, Xandr (formerly AT&T) Tom Fochetta, Samsung Ads Peter Naylor, Hulu Julian Zilberbrand, Viacom Anne Frisbie, Inmobi Ebonie Newman, Newscorp/Storyful Eric Harris, Cheddar Jay Prasad, VideoAmp

IAB CENTERS OF EXCELLENCE 17 18 ANNUAL REPORT 2018

TECH LAB OPEN MEASUREMENT SOFTWARE DEVELOPMENT KIT (OM SDK) STANDARDS, SOFTWARE, To accelerate the growth of mobile and promote third-party viewability and verification AND SERVICES TO DRIVE measurement for mobile in-app advertising, the IAB Tech Lab released the OM SDK, a set of tools designed to seamlessly facilitate third-party GROWTH viewability and verification measurement for ads served in mobile app environments.

DEMYSTIFYING IDENTIFIERS AND apid growth in our industry has created some unintended consequences such as ad fraud, privacy and UNDERSTANDING THEIR CRITICAL security issues, and inefficiencies. To spur industry growth, theIAB Technology Laboratory (IAB Tech Lab), ROLES IN ADVERTISING a nonprofit research and development consortium, is charged with producing and helping companies To shed light on identity in a broader context, R covering consumers, creative assets, and the implement global industry technical standards and solutions for the digital media and advertising industries. In Dennis Buchheim, SVP & GM, IAB Tech Lab; 2018 the Tech Lab made real progress towards our collective goals with new standards, protocols, software, and businesses involved in the supply chain, the IAB Tech Jon Steinberg, Founder & Chief Executive Officer, services to drive growth of an effective and sustainable global digital media ecosystem. Those global standards Lab published research devoted to Demystifying Cheddar; IAB Tech Lab Video Summit: Scale and help reduce engineering costs and speed up time to market for our members across the digital supply chain. Identifiers and Understanding Their Critical Roles Innovation through Standards in Advertising. The IAB Tech Lab also released Guidelines for Identifier for Advertising on OTT VAST 4.1 (VIDEO AD SERVING IAB TECH LAB OPEN DATA 1.0 OPENRTB 3.0 Platforms with recommendations on how to maintain TEMPLATE) A new data nomenclature to facilitate campaign The IAB Tech Lab has also strengthened efforts to clean a high-quality advertising experience within over-the- To provide clear direction on implementing reporting, this is a resource for agency analysts, up the supply chain, including launching OpenRTB 3.0 top television (OTT) environments. a transparent non-VPAID or Video Player technology platforms, and data provider companies with ads.cert beta testing, and deliberations on how to Ad-Serving Interface Verification method, using to aide in merging aggregate reports. move forward with mobile ads.txt support. GDPR TRANSPARENCY & CONSENT Open Measurement the IAB Tech Lab released FRAMEWORK the final version of VAST 4.1. ADS.TXT CONTENT TAXONOMY 2.0 A cross-industry effort to help publishers, technology A valuable and essential tool in fighting fraud and A resource to enable content creators to more vendors, and advertisers meet the transparency and BLOCKCHAIN WORKING GROUP promoting growth, ads.txt (Authorized Digital Sellers) accurately and consistently describe content, facilitating user choice requirements (including consent) of GDPR, Supporting new technologies that can accelerate has now grown to over two million domains and more relevant advertising and providing a higher IAB Europe and the IAB Tech Lab released the final growth for our members was a priority in 2018 publishers continue to adopt it. The beta version quality and more granular foundation for data analysis. V1.1 technical specifications for GDPR Transparency and to that end, the IAB Tech Lab’s Blockchain of app-ads.txt was also released in November to & Consent Framework. Working Group launched a pilot program to look at eliminate fraud on mobile apps and OTT video apps. blockchain-based advertising-targeted projects from Dan Garraway, WIREWAX; Michael Tuminello, Integral Ad Science; Anne Frisbie, InMobi; Ryan DIGITRUST ID WORKING GROUP the working group’s 100+ member organizations. Thompson, Google; IAB Tech Lab Video Summit: In support of an effective programmatic supply Scale and Innovation through Standards chain, the IAB Tech Lab has acquired DigiTrust, for a PODCAST MEASUREMENT standardized, privacy-compliant consumer ID for the COMPLIANCE PROGRAM industry’s use. The DigiTrust ID Working Group is aimed To accelerate podcast advertising and encourage at accelerating adoption of the DigiTrust ID broadly, uniformity in measurement systems and metrics, the and demonstrating its value as a neutral industry utility IAB Tech Lab Podcast Measurement Compliance that can reduce duplicative cookie syncing efforts, Program certifies that companies are adhering to improve match rates throughout the supply chain, and the IAB Podcast Measurement Technical Guidelines, improve bottom line ROI for publishers and platforms. released in December 2017.

IAB TECH LAB BOARD

IAB TECH LAB 19 20 ANNUAL REPORT 2018

PROMOTING A DIVERSE AND JOIN US IN 2019 2019 EVENTS INCLUSIVE ECOSYSTEM

IAB ANNUAL LEADERSHIP MEETING FEBRUARY 10-12 • PHOENIX, AZ

healthy and sustainable digital industry needs talent that reflects the audience it serves. IAB continues to IAB WOMEN VISIONARIES champion the goal of increasing racial, ethnic, gender, and economic diversity in the digital marketing APRIL 2 • NEW YORK CITY Aand media industry. IAB is committed to fostering and growing the pipeline of diverse and skilled professionals and to being the convening force in the industry into 2019 and beyond. DIGITAL CONTENT NEWFRONTS IAB also seeks to promote diversity and inclusion in all walks of the interactive marketplace by convening APRIL 29–MAY 3 • NEW YORK CITY thought provoking events where our members can learn, share, and grow. IAB NEXGEN MARKETING SUMMIT JUNE 5 • NEW YORK CITY CROSS-CULTURAL MARKETING DAY The IAB Cross-Cultural Marketing Day emphasized that successful brands must pay attention to their IAB VIDEO LEADERSHIP SUMMIT customers’ cultural cues and characteristics to engage JULY 15-16 • CARLSBAD, CA consumers with respect.

IAB WOMEN VISIONARIES DIGITAL CONTENT NEWFRONTS WEST In 2018, IAB hosted the first-ever “Women AUTUMN • LOS ANGELES Visionaries: Female Founders and Brilliant Bosses” event in New York City, which sold out. The gathering convened top leaders in tech, media, and IAB PODCAST UPFRONT marketing to share great lessons in leadership and OCTOBER 16 • NEW YORK CITY give real-world takeaways to advance women’s trajectories and the workplace at large. Tonia O’Connor, Chief Revenue Officer, Univision; Brad Jakeman, Former President, PepsiCo Global IAB DIRECT BRAND SUMMIT

DIVERSITY & INCLUSION Beverage Group; Suzanne Vranica, Advertising Editor, The Wall Street Journal; 2018 IAB Women Visionaries NOVEMBER 20–21 • NEW YORK CITY

Allison Allen, Former Vice President of Diversity, Inclusion & Talent Management, Oath; Danielle Anna Bager, Executive Vice President of Industry Lee, Global Vice President, Partner Solutions, Spotify; Initiatives, IAB; Alexa Christon, Host. Adlandia; Kerry Bianchi, President and Chief Executive 2018 IAB Women Visionaries Officer, Visto; 2018 IAB Women Visionaries

2019 EVENTS 21 22 ANNUAL REPORT 2018

Oracle’s Data Cloud SoundCloud Vungle Westwood One XAPPMedia Zergnet Orange142 Sourcepoint Warner Bros. Digital WideOrbit Xaxis Ziff Davis, LLC EMPOWERING OUR Outbrain Sovrn Media Sales Wiland XUMO Zoom Media Outcome Health Spectrum Reach Washington Post Digital Wondery, Inc. YellowHammer Media ZUMOBI Outfront Media Speed Shift Media WBUR Worldata Group Zynga OwnerIQ Spot.IM WebMD WWE Yieldmo ZypMedia MEMBERS PadSquad Spotify Webspectator Xandr Zefr Panasonic Avionics SpotX Pandora Springer Nature Panoply SRAX Parrable StackAdapt ASSOCIATE MEMBERS Parsec Media StartApp PCH/Media SteelHouse Active International Critical Mix iCrossing PIVnet Theorem Pepperjam Strategy+Business Ad-iD Cuebiq Infinitive PMG Worldwide TurboTax PGA TOUR Stuff Media ADLOOX Deloitte Digital Integral Ad Science PMX Agency Unilever Philo Sublime Skinz Advertiser Perceptions Dentsu Aegis IPG Mediabrands PremiumMedia360 Universal Parks & he IAB mission is to empower the media and marketing Experian Marketing Kochava Pinterest SundaySky Affinio DeviceAtlas Ipsos Pricewaterhouse- Resorts Services Leaf Group Pixability SuperAwesome AIG Dieste Johnson & Johnson Coopers Varick Media industries to continue to thrive in the digital economy, and Extreme Reach Legacy.com Pixalate Swoop Alliance for Audited DoubleVerify Kantar Millward Brown Prohaska Consulting Management Eyeota helping you—our members—is how we strengthen those Libsyn PlaceIQ Synacor Media (AAM) Dun & Bradstreet Local Media Pumpt Veritone One T eyeReturn Marketing LinkedIn Platform Inc Taboola Anheuser Busch InBev Consortium Redbooks VidMob DWA Media industries. IAB membership includes more than 650 leading Eyeview Liquidus Marketing PlayBuzz Tapad Anura Solutions Ebiquity Magna Global Research Now SSI Visual IQ Facebook media and technology companies, including 99 that joined in Live Nation Pluto TV Tapgerine Archer Advisors Ericsson Marketing Architects ResponsiveAds VSA Partners Factual 2018. The Long Tail Alliance—our body representing smaller LiveIntent PodcastOne Tapjoy Baker & Hostetler LLP Ernst & Young MarketStar RiskIQ White Ops Fandom powered by LiveRamp Podtrac TargetSpot Bionic Advertising Maru/Matchbox RPA Winterberry Group Wikia Essence developers of original digital content, including bloggers and Lo70s Polymorph Taunton Interactive Systems Media Japan Network Sales Athlete, Inc. Zentrick Feature Forward Evidon other sites with less than $1 million in annual revenues and fewer Los Angeles Times POPSUGAR Teads Bonzai Forensiq MediaLink Specialists Marketing zVelo Flashtalking Media Group Powerinbox Tech Mpire BPA Worldwide FusionSeven Media Management Services/d3 than five full-time employees—now includes 1,190 members. Flipboard Lotame Solutions PowerLinks Media Telaria BrightLine GeoEdge Inc. SQAD Fluent LumenAd Together, they account for 86 percent of online advertising in Prisa Digital The Inquirer Burt Geopath Media Rating Council Standard Media Index Forbes Media Mansueto Ventures Pub Ocean The New York Times CDK Digital Marketing GfK North America Merkle Taco Bell the United States. We thank all of our members for their support Foursquare Market Enginuity Company Public Media Marketing Cisco Gregory Welteroth Mixpanel Television Bureau of FreeWheel Media.net PubMatic The Trade Desk Advertising IAB MEMBERS throughout the year. Coalition for Innovative Advertising Monotype FuelX MediaAlpha PubNative GmbH TheStreet.com Media Measurement GroupM News Media Alliance The Center For Sales Future US (CIMM) Strategy n = New Member MediaMath PulsePoint Thinknear by Telenav Havas Media Nielsen Fyber Comscore The Media Trust MediaOcean PushSpring Throtle HCL technologies Pebble Post Gameloft MediaShift Qriously TiVo Company GENERAL MEMBERS GeistM Medicx Media Solutions Quantcast Topix Genius Monkey Merchant Resource Rakuten Marketing Torrential 21st Century Fox Altice USA Cheddar Giant Media Group RawVoice Tremor Video DSP 33Across Amazon Chocolate Gimbal Meredith Digital Realvu TreSensa 4C Insights AMC Networks Cignal.io Gimlet MeritDirect Refinery29 Tribune Publishing STARTUP MEMBERS 4INFO American City Business Clear Channel Outdoor Goodway Group MGID ReTargeter TripAdvisor A+E Networks Journals Clipcentric Google Microsoft Advertising Reuters TripleLift AARP American Media, Inc. Collective Bias Groundtruth Midroll Media RevContent Triton Digital Acast Stories USA BeAlive KERV Interactive Mobcrush Teemo Acast Stories USA American Public Media Comcast Spotlight Group Nine Media MiQ RevJet Trivver, Inc Ad Lightning Beeswax Konduit NYIAX Ternio AccuWeather Amobee Condé Nast GumGum Mirriad rewardStyle true[X] Admiral Adblock Botworx.ai LogoBar Enterprises Placements.io Throtle Publisher Solutions AcquireWeb Ampush Media Connatix Native Hanley Wood Mobilewalla RhythmOne TruEffect Codewise LotaData Pod Digital Media Traffic Steer Ad Persistence Activision Blizzard Media AnchorFree Exchange Harvard Business Review MONSTER RockYou Media Trusted Media Brands Cognitiv Lucidity Premion Unacast Albert Acxiom Aniview Conversant Media HealthiNation Morningstar Roku Tubular Labs FORTVISION Lucid Sight Reveal Mobile, Inc. Verse Amino Payments Ad Lightning Anura Solutions Cox Enterprises Healthline mPlatform Rooster Teeth / The TuneIn Inspo Madhive Sourcepoint Vertebrae Adacado Anyclip Crain Communications Hearst Magazines Digital Multiview Roost Podcast Turner Broadcasting Apomaya Instreamatic, Inc. MightyHive Spaceback YourTango ADARA Anzu Virtual Reality Criteo Media Music Audience Network System AppSamurai Invisibly Mixpanel SpringServe AdBidCentral Appodeal DailyMail.com HIRO-Media Exchange Rovio Twitter AdBrilliant Arrivalist Dailymotion Homes.com my6sense Rubicon Project UberMedia AdColony Art19 dataxu Hulu NASCAR Digital Media RUN Ubimo Addapptr AudienceX DAX U.S. IBM Watson Advertising National Football Sabio Mobile Undertone Adform Audioboom DeepIntent iHeartMedia League (NFL) Salesforce Marketing Unity Technologies IAB TECH LAB MEMBERS AdGear Backbone PLM Defy Media IHS Markit National Public Media Cloud Univision AdKernel BBC Worldwide Dianomi Index Exchange Nativo Samsung Electronics Unlockd AdLarge Media Americas Digital First Media Influential NBCUniversal America US News & World Report All IAB U.S. general members are automatically members of the Tech Lab. Additional members include: adMarketplace Beachfront Media Digital Remedy Infogroup NCC Media SAS Institute USATODAY.com Atlas Protocol Consensys Intowow PIVnet StormX Inc. Admiral Adblock Bidease Diray Media INFORM Netmining Screen6 V12 AdBank, Inc. Cyberagent, Inc. JCDecaux Pokkt Survata Publisher Solutions Bidtellect Discovery InMobi Netsertive Semcasting Valassis AdEx Cyber Communications Inc. Ligatus Publicis Groupe TenMax Adobe Bigabid Communications Innity Neustar ShareThis Vertebrae AdMaster Dabbl Line Publicis Health Media Twine Data AdRizer Blippar DISH Innovid New York Public Radio Sharethrough Vertoz Apomaya Deepline LiquidThread Publicis Media Underscore CLT AdRoll Blis Disney Interactive Instart Logic News Corporation SheKnows Verve Axel Springer Deloitte Digital L’Oreal Publicis New York Videonow Adslot BlogTalkRadio District M Instinctive Nexstar Digital Signal VEVO Group, Inc. Didomi Lucidity Razorfish Health Vivaki AdSpirit Bloomberg DMD Marketing Corp. Intel Nexstar Media SimpleReach Viacom Baidu Digital Advertising Mediasmith Razorfish New York VM1 Adstream Bounce Exchange Drawbridge Intersection NextVR Simpli.fi Viant BARC India Consortium Inc. MetaX Regium Operations Weborama Adswizz Brightcove Dstillery Inuvo NGL Media Simulmedia Vibrant Media Bartle Bogle Hegarty Display.io Miaozhen Systems Rosetta X-Mode Adtegrity BroadSign eBay Investor’s Business Daily NinthDecimal SITO Mobile Vice Bitposter Digitas LBI Modem Media, Inc. RTBAsia Yeahmobi Adtelligent BuzzFeed Electronic Arts IPONWEB Nucleus Marketing Sizmek VideoAmp Blockchain4Media FRECKLE IoT Momentum S4M Yahoo Japan AdTheorent C3 Metrics eMarketer IRI Nudge Slate Vidillion Blue 449 GMO AD Movable Ink SafeGraph Corporation Adversal.com Cable One Advertising Emodo, Inc. Jivox NYIAX Smaato ViralGains Browsi Marketing, Inc. NEXD Shieldsquare YOSPACE Adyoulike Cadent EMX Jukin Media Oath Smart AdServer Visa Advertising Solutions CHEQ Improve Digital PageFair Spark Foundry Zenith Media Adzerk Captivate Entravision Jun Group Ogury SmartyAds Visto International B.V. Civic Papyrus Starcom Worldwide ZenithOptimedia Affinity Express CBS Interactive Equifax JW Player Ooyala Smithsonian Media Group Vivoom, Inc. Inside Secure CPEx Platform161 (Publicis) Australia ALC Cedato Technologies Ltd Equinix Kantar Media OpenSlate Snapchat VIX Insticator Alliant Celtra Evite Inc. Kargo OpenX Sonobi VRTCAL Alphonso Inc Centro Expedia Media Solutions Kiip Optimatic Sony Pictures Television IAB MEMBERS 23 24 ANNUAL REPORT 2018

2018 COMMITTEES AND VIDEO CENTER Advanced TV Committee Doug Fleming, Hulu, Co-Chair VIDEO BUYER ADVISORY BOARD COUNCILS Chris Falkner, Cuebiq, Co-Chair Adam Lowy, Telaria, Co-Chair Advanced TV Attribution Working Group AR/VR Glossary Working Group Digital Video Committee Matthew Corbin, Facebook, Co-Chair Jarred Wilichinsky, CBS Interactive, Co-Chair AB helps drive the industry forward through the efforts of committees and councils in various industry Digital Video Glossary Working Group segments. These groups include the brightest minds in the industry and work together to develop solutions Esports Working Group Ithat improve the interactive advertising and marketing ecosystem for everyone. Committee and council Seth Ladetsky, Turner, Co-Chair participation is open to any eligible staff at an IAB member company. Brian Matthews, NFL, Co-Chair Mike Sepso, Activision Blizzard, Co-Chair Terms & Conditions Working Group DATA CENTER Automation Committee Identity & Audience Data Committee Jason Fairchild, OpenX, Co-Chair Alissa Borsa, Meredith Corp, Co-Chair Jason White, CBS Interactive, Co-Chair Greg Williams, MediaMath, Co-Chair Julie Bernard, Verve, Co-Chair Data Benchmarks & Activation Committee OTHER COMMITTEES & COUNCILS Valentina Marastoni-Bieser, Cuebiq, Co-Chair Measurement and Attribution Committee Data Consumer Journey Working Group Sable Mi, NinthDecimal, Co-Chair Daryl McNutt, Visto, Co-Chair Andrew Covato, Snapchat, Co-Chair Brand Council Public Policy Council Margit Kittridge, Critical MIX, Co-Chair Data Measurement Research Working Group Todd Thorpe, News Corp, Chair CFO Council Defining the Data Stack Working Group Measurement Perspective Working Group Research Council Valentina Marastoni-Bieser, Cuebiq, Co-Chair Reconciliation of MMM & MTA Working Group CRO Council David Ludica, Facebook, Co-Chair Ian Rubenstein, GroupM, Co-Chair Stephanie Fried, Conde´ Nast Co-Chair Chris Emme, Eyeota, Co-Chair Sable Mi, NinthDecimal, Co-Chair Peter Minnium, Ipsos, Co-Chair Diversity & Inclusion Task Force Ad Effectiveness Studies Working Group GDPR Business Best Practices Working Group (Consumer Privacy Working Group) Multicultural Council Legal Affairs Committee Cross Platform Measurement Issues Working Group Diego Antista, Google, Co-Chair Improving Ad Revenue Reporting Working Group Digital Out of Home (DOOH) Committee Stacy Grahanm, BET Networks, Co-Chair Learning & Development Council Adrian D’Souza, Intersection, Co-Chair Rainbow Kirby, Clear Channel Outdoor, Co-Chair

MOBILE CENTER IAB TECH LAB Ad Product Portfolio Working Group OpenRTB (Real-Time Bidding) Commit Group Audio Committee Mobile Advertising Committee Carrie Lieberman, iHeartMedia, Co-Chair Deng Kai Chen, Verizon Media Group, Co-Chair Blockchain Working Group OpenRTB Native Working Group Les Hollander, Spotify ,Co-Chair Matt Kaplan, Univision, Co-Chair Data Transparency Standards Working Group OpenRTB Working Group Gina Garrubbo, National Public Media Co-Chair Affiliate Marketing Working Group Digital Video Technical Standards Working Group OTT (Over-The-Top Video) Technical Working Defining an Audible Impression Working Group Nilla Ali, Buzzfeed, Co-Chair DigiTrust ID Working Group Group Podcast Business Working Group Julie Van Ullen, Rakuten Marketing, Co-Chair Augmented Reality (AR) for Marketing Working Dynamic Content Ad Standards Working Group Podcast Technical Working Group B2B Committee Group GDPR Commit Group Programmatic Practices Task Force Jim Riesenbach, Ziff Davis, Co-Chair Joelle Mefford, Meredith Digital, Co-Chair SafeFrame Implementation Working Group Anudit Vikram, Dun & Bradstreet, Co-Chair Tony Parisi, Unity Technologies, Co-Chair GDPR Mobile Technical Sub-group Tusar Barik, LinkedIn, Co-Chair Badi Badkoube, Snap Inc., Co-Chair GDPR Technical Working Group Taxonomy & Mapping Working Group COMMITTEES AND COUNCILS The LEAN, DEAL, and Experiences Working Group Games Committee Social Media/Native/Content Committee Identity Standards Working Group Agatha Bochenek, Unity Technologies, Co-Chair Judy Lee, Pinterest, Co-Chair Mobile Rich Media Ad Interface Definitions TV Convergence Technical Task Force Jonathan Stringfield, Activision Blizzard Media, Co-Chair Melissa Diaz, Meredith Digital, Co-Chair (MRAID) Working Group Video Tools & Best Practices Subgroup Ari Lewine, TripleLift, Co-Chair Local Committee Asher Rapkin, Facebook, Co-Chair MRAID Ads SDK Tester Working Group Kristen Berke, Los Angeles Times Media Group, Co-Chair Native Advertising Playbook Working Group OpenData Task Force IAB Tech Lab Council Jeanne Brown, Verve, Co-Chair Ari Lewine, TripleLift, Co-Chair Brian Czarny, Factual, Co-Chair OpenDirect Working Group Social/Native Measurement Working Group Open Measurement Working Group Commit Group User Generated Content (UGC) for Advertising Open Measurement Working Group Participant Working Group Group David Elkins, TripAdvisor, Co-Chair Clay Webster, Vivoom, Inc., Co-Chair

COMMITTEES AND COUNCILS 25 26 ANNUAL REPORT 2018

ESSENTIAL INVESTMENTS IN IAB MEMBER SUCCESS AND GROWTH

ccelerating the safe and sustained growth IAB organizations are also delivering on revenue. directors, new revenue streams like the OM SDK and of the interactive industry and delivering The IAB Mobile Marketing Center of Excellence is GDPR Commit Groups, and the first annual Tech Lab Avalue to our members are our top priorities projected to end the year just below $1 million in industry event. IAB REVENUE STREAMS at IAB, and the financial state of IAB, like the revenue, which is a positive sign for the relevance With Board approval, IAB closed the industry we represent, once again started and and success of our Mobile Always efforts. The Video underutilized San Francisco satellite office. Due to ended the year strong. Center of Excellence is expected to see revenue of the strength of our tight expense control we were $1M According to unaudited 2018 financial $1.3 million, finishing slightly above budget. The able to accelerate the depreciation and take a one- Mobile Marketing statements, IAB is projected to finish 2018 with Data Center of Excellence expects a revenue jump time $1.4 million non-cash expense. This move will Center of Excellence topline revenue of $33.9 million, up from $30.9 to $1 million, a significant 30 percent year-over-year free up over a million dollars in rent and depreciation $7.2M million in 2017. growth thanks to more active board participation. each year going forward. Events Membership dues revenue is projected to be $16 The IAB Tech Lab brought in $4.9 million in its Additional ongoing revenue streams in 2018 $1.4M million for 2018, up 2 percent from $15.7 million fourth year of operation (up from $2.6 million in included initiatives such as sponsored research, Learning & Certification last year. Events at IAB in 2018 are expected to 2017) to develop tools, standards, and best practices member services, international licensing fees, and bring in $7.1 million, 15 percent higher than 2017 that simplify and reduce costs associated with the other fundraising programs. and slightly above the projected $6.5 million, thanks digital advertising and marketing supply chain. In 2018, IAB invested these revenues received to a dynamic and newly created events portfolio While revenue is expected to be slightly lower than towards helping member businesses grow and excel. including the successful NewFronts West and the the $5.3 million budgeted, it still saw a significant Funding was directed toward producing valuable Direct Brand Summit. 90 percent growth thanks to a growing board of third-party research and tools for building brands in FINANCIAL REVIEW digital media. $4.9M Overall, IAB managed expenses closely in 2018, Tech Lab* FINANCIAL KEY INDICATORS FOR 2018 $16M which are projected to total $28 million and to close Membership Dues the year with a surplus of slightly more than $1 million. PROJECTED 2018 VAR FROM VAR FROM With our members’ support, IAB is well positioned REVENUE (‘000) YEAR END** BUDGET BUDGET $ BUDGET % $1.3M financially to deliver on an ambitious agenda for Video Center of Excellence championing industry growth in 2019 and beyond. $1M MEMBERSHIP DUES $ 16,097 $ 16,068 $ 29 0% Data Center of Excellence

EVENTS $ 7,188 $ 6,505 $ 683 10% $.4 MOBILE CENTER $ 987 $ 1,080 $ (93) -9% Other VIDEO CENTER* $ 1,383 $ 1,340 $ 43 3% DATA CENTER $ 1,047 $ 1,000 $ 47 5% LEARNING & CERTIFICATION $ 1,418 $ 3,322 $ (1,904) -57% TECH LAB* $ 4,993 $ 5,353 $ (359) -7% EDUCATION FOUNDATION* $ 446 $ 1,010 $ (564) -56% OTHER REVENUE $ 411 $ 230 $ 181 79% TOTAL REVENUE $ 33,969 $ 35,908 $ (1,938) -5% COST OF GOODS SOLD $ 4,674 $ 5,917 $ (1,242) -21% GROSS PROFITS $ 29,295 $ 29,991 $ (696) -2% TOTAL EXPENSES $ 28,196 $ 29,698 $ (1,503) -5% NET INCOME /(LOSS) $ 1,099 $ 293 $ 806 275%

*Excluding Revenue Share ** Final unaudited financials for 2018 – as of 1/15/2019

2018 FINANCIAL REVIEW 27 28 ANNUAL REPORT 2018

Chanel Pazda Sharon Scoble Senior Manager, Marketing Director of Operations (CRM) WHO WE ARE [email protected] [email protected] THE IAB OFFICES Myrna Perez Julian Soler Nicole Horsford Staff Accountant Director, MMCOE NEW YORK OFFICE Senior Director, Investment & [email protected] [email protected] Interactive Advertising Bureau CHIEF EXECUTIVE OFFICER Relations 116 East 27th Street, 6th Floor Randall Rothenberg — [email protected] [email protected] Daniel Phelan Kristina Sruoginis New York, NY 10016 Staff Accountant Director, Research Eric John 212 380 4700 PRESIDENT & CHIEF OPERATING OFFICER [email protected] [email protected] Deputy Director, Video COE WASHINGTON, D.C. OFFICE Patrick Dolan — [email protected] [email protected] Joseph Pilla Brooke Stevens Interactive Advertising Bureau Director, Data & Automation Business Analyst & Salesforce Brawner Building EXECUTIVE VICE PRESIDENT, INDUSTRY INITIATIVES James Linney [email protected] Administrator Senior Manager, Marketing 888 17th St., NW Suite 312 Anna Bager — [email protected] [email protected] [email protected] Alexander Propes Washington, DC 20006 Senior Director, Public Policy Michael Texidor EXECUTIVE VICE PRESIDENT, PUBLIC POLICY Stacey Lyons [email protected] Vice President, Learning & PRESENCE ON WEST COAST Executive Assistant to CEO/COO Dave Grimaldi — [email protected] Development Los Angeles IAB STAFF [email protected] Koriszan Reese [email protected] San Francisco Manager, Events Operations Seattle SENIOR VICE PRESIDENT, GENERAL COUNSEL Maggie Maxwell [email protected] Carmen Walkershaw Manager, Learning & Michael Hahn — [email protected] Coordinator, Mobile & Data COE IAB empowers the media and marketing industries to Development, D&I Programs Kenya Reynolds [email protected] [email protected] Senior Manager, Business thrive in the digital economy. It is comprised of more SENIOR VICE PRESIDENT, RESEARCH & MEASUREMENT Operations Charise Williams Kathleen McKay than 650 leading media and technology companies Susan Hogan — [email protected] [email protected] Finance Coordinator that are responsible for selling, delivering, and Director, Events [email protected] [email protected] Orchid Richardson optimizing digital advertising or marketing campaigns. Vice President & Managing Melody Zimmer Together, they account for 86 percent of online Evan Mei Director, Data COE Director, Learning & Development advertising in the United States. Working with its Coordinator, Certification [email protected] [email protected] Joe Aunce Dylan Chang Operations member companies, IAB develops technical standards Coordinator, Marketing Senior Manager, Business Data [email protected] [email protected] Investment & Relations Soizic Sacrez and best practices and fields critical research on [email protected] Senior Director, Marketing interactive advertising, while also educating brands, Haley Milch [email protected] Ranjeeta Baijnauth Manager, Events agencies, and the wider business community on the Director, Account Management, Sara Childs [email protected] importance of digital marketing. Founded in 1996, IAB Learning & Development Manager, Events Brian Schwartz [email protected] [email protected] Director, Video COE is headquartered in New York City. Twafiqa Mohinuddin [email protected] Coordinator, Industry Initiatives Amanda Baldwin Rosemary Cipriano [email protected] Manager, MMCOE Coordinator, Learning & [email protected] Development Virginia Moore [email protected] Vice President, Events Autumn Black [email protected] IAB TECH LAB Executive Assistant, Industry Craig Coleman Initiatives Vice President, Marketing Nina Munoz [email protected] [email protected] Director, Video COE SENIOR VICE PRESIDENT AND GENERAL MANAGER [email protected] Dennis Buchheim — [email protected] Kevin Blouin Lauren DellaFave Senior Manager, Business Director, Human Resources Hannah Nardone Operations [email protected] Coordinator, Investment & SENIOR VICE PRESIDENT, MEMBERSHIP AND OPERATIONS [email protected] Relations Jordan Mitchell — [email protected] Christopher Elias [email protected] Susan Borst AV & IT Support Technician Jennifer Derke Dharmik Patel Colleen Shields Vice President, Mobile, Industry [email protected] Diana Negron Initiatives Director, Product Management Software Engineer Senior Manager, Business Manager, Administration [email protected] [email protected] Operations & Events Marketing [email protected] John Grifferty [email protected] Director, Investment & Relations [email protected] Erika Bradbury [email protected] Benjamin Dick Sam Payne-Tingleff Breda O’Reilly Director of Product, Data VP, Engineering (CTO) Shailley Singh Director, Conference Programs Vice President, Investment & [email protected] Natalie Hamingson [email protected] [email protected] Head of Product Management Relations [email protected] Manager, Investment & Relations [email protected] Luz Brito [email protected] Courtney McDermid Alexandra Salomon Executive Assistant Senior Director, Head of Global Kelsey Sorenson Director, Financial Operations Andie Odynski [email protected] Megan Hauck [email protected] Business Development Database Coordinator Coordinator, Marketing [email protected] [email protected] Senior Director, Marketing, D&I [email protected] Deborah Carrara Programs Mayank Mishra Senior Director, Engineering Amit Shetty Jarrett Wold Director, Investment & Relations [email protected] Shira Orbach [email protected] [email protected] Senior Director, Product, Director, Compliance Programs Senior Manager, Marketing Video & Audio [email protected] Conor Healy [email protected] Jeanie Carstensen Senior Director, Operations Mina Pajevic [email protected] Vice President, Finance & [email protected] Manager, IAB Tech Lab Edwin Orta [email protected] Operations Senior Facilities Manager [email protected] [email protected]

IAB STAFF 29