ANNUAL REPORT 2014 A LETTER FROMA LETTER RANDALL ROTHENBERG

IAB empowers helping companies implement global industry technical the media standards and solutions; the establishment of the IAB Education Foundation to promote an increasingly skilled and and marketing THE STATE OF diverse workforce; and the establishment of the Trustworthy IAB AND THE Accountability Group (TAG), a first-of-its-kind, cross-industry industries to thrive accountability program launched in collaboration with the INDUSTRY American Association of Advertising Agencies (4A’s) and the in the digital Association of National Advertisers (ANA), and designed to fight ad fraud, malware, and the theft of intellectual economy. property, as well as increase marketplace transparency.

wenty fourteen was a transformative These changes were made to support the IAB year for the interactive advertising five-year plan, The Path to Digital Dominance, ecosystem—and IAB. Over the which we unveiled at the end of 2013 as a years, IAB has consistently adjusted road map for our industry. This plan ensures the use of our resources and our that we consistently and systematically Tinfluence to best support the growth of progress in a direction that will safeguard this expansive market for our members. In and propel the lasting success of our 2014, we evolved our membership criteria, members’ businesses. organization structure, and key processes to recognize and help drive dramatic changes in The plan outlines five challenges that must be the digital marketing and media sectors. resolved for the long-term health of the interactive advertising industry: The original IAB mission focused solely on growth; it was • Trustworthy Digital Supply Chain adopted eight years ago when digital advertising revenues severely lagged consumer consumption of digital media. • Making Measurement Make Sense (3MS) Clearly, the sole focus on growth seemed increasingly • Publisher Transformation limited in an environment where digital is now the second • Building Brands Digitally largest advertising medium in the U.S.—and in some • Moving Mobile Mainstream national markets, the largest. The more pressing challenge for so many of our members and partners is realizing the The new mission and five critical areas of focus directed benefits of this growth in their own companies. all IAB endeavors in 2014. We have made great strides toward addressing these urgent challenges. This new primacy of digital in the media ecosystem prompted IAB to promulgate a new mission statement for I’m extremely proud of IAB accomplishments in 2014 and the the organization, unveiled in early 2014: remarkable IAB team that has brought them to life. I am also “IAB empowers the media and marketing industries to thankful for the ongoing support from our members and the thrive in the digital economy.” community that has made these strides possible. By carefully managing our finances, IAB has been able to propel the This new mission positions IAB as the central supporter of industry forward and continues to invest in our digital the media and marketing industries in the digital age—a future. I am extremely grateful for the dedication of all our role that reflects the expansion of interactive technology constituents—and I am confident that, as an industry, we are and experiences across the vast media and marketing well-positioned today for a prosperous 2015 and beyond. landscape, including beyond borders into global markets. Sincerely, To fulfill this mission, IAB made several bold and essential structural changes in 2014. The important achievements that support this mission are covered in the following pages and include changes in our membership criteria to empower a greater representation among industry leaders; Randall Rothenberg the creation of the IAB Technology Lab, a nonprofit research President and Chief Executive Officer and development consortium charged with producing and Interactive Advertising Bureau

2014 ANNUAL REPORT 1 TABLE CONTENTS OF 2 ANNUAL REPORT 2014

2,000 1,848 1,898 1,696

TABLE OF CONTENTS 1,500

993 1,000 823

500 IAB FINANCIAL REPORT ...... 4 0 2010 2011 2012 2013 2014 IAB TRANSFORMATION ...... 6 12 4 TRUSTWORTHY DIGITAL SUPPLY CHAIN ...... 8

PUBLIC POLICY ...... 10

EDUCATION AND DIVERSITY ...... 12

MAKING MEASUREMENT MAKE SENSE ...... 14

PUBLISHER TRANSFORMATION ...... 18

18 IAB MEMBERS ...... 22 32 MOVING MOBILE MAINSTREAM ...... 26

IAB RESEARCH ...... 30 36 BUILDING BRANDS DIGITALLY ...... 32 40,000 THOUGHT LEADERSHIP: EVENTS ...... 36

30,000 GLOBAL NETWORK ...... 38 38 EXPANDING INFLUENCE ...... 40 20,000

WHO IS IAB? ...... 42

10,000 2014 Executive Committee and Board of Directors ...... 42

IAB Staff ...... 43 0 40 2014

2014 ANNUAL REPORT 3 IAB FINANCIAL REPORT 4 ANNUAL REPORT 2014

SOUND FINANCIAL FOOTING*

(‘000)

$12,000

2014: THE YEAR AT IAB $6,000

$4,000

$0 2010 2011 2012 2013 2014 ike the industry it represents, the financial health Another bright spot in IAB revenue growth came from DDUDUES REVENUE EVVENTS REVENUE CCASH BALANCE SSUSURPLUS of IAB is strong. Under the fiscal leadership of IAB the IAB Certification Programs. In just two years, these Executive Vice President and COO Patrick Dolan and programs have already exceeded $1 million in revenue. according to unaudited 2014 financial statements, The rapid growth of the certification programs is a IAB finished the year with a projected topline revenue validation of how important certifications and training are Lof $23.2 million, up from the record $20.3 million in 2013 for the industry. and 6.8 percent more than budgeted. IAB closed the year with a record $6.3 million in the bank IAB REVENUE STREAMS* Other programs, including the Quality Assurance and a surplus of $1.6 million. Dues revenue reached a record high of $11.2 million for Guidelines and the Spiders and Bots List, performed either 2014, approximately $615,000 more than budgeted. IAB on or above budget. IAB raised additional revenue through IAB invested these additional funds in new programs also saw growth in events income, projected to bring in initiatives such as sponsored research, rental of the Ad Lab, aimed at helping member businesses excel. They include $7.2 million or $640,000 more than budgeted, largely and international licensing fees. the IAB Technology Lab, the IAB Education Foundation, and because of the tremendous growth in the IAB Annual the Trustworthy Accountability Group (TAG). Additional $7.2M Leadership Meeting in Palm Desert in February 2014. In a Expenses totaled $22.9 million in 2014 and, as projected funding was directed toward developing the cross-screen EVENTS positive sign for the relevance of our mobile efforts, the IAB at the outset of the year, IAB ended the period just above marketplace, including mobile marketing and digital video Mobile Marketing Center of Excellence is projected to see breakeven with an unrestricted surplus of $65,000 and advertising; encouraging a seamless global network for $11.2M interactive advertising; forging innovations in advertising MEMBERSHIP $1.3 million in revenue in 2014 or five percent more than $230,000 restricted to digital video research. In addition, DUES originally budgeted. technology; producing valuable insights into building $1.3M brands in digital; and hiring key staff to support the newly $4.8M IAB MOBILE MARKETING CENTER OF EXCELLENCE formed organizations and expanded mission of IAB to OTHER empower the media and marketing industries to thrive in the digital economy. IAB FINANCIAL KEY INDICATORS FOR 2014* The continued financial well-being of IAB is a testament (‘000) to the prosperity of the industry it supports and the 2014 2014 VAR FROM VAR FROM confidence our members PROJECTED BUDGET BUDGET $ BUDGET % have invested in us. IAB is DUES REVENUE $ 11,215 $ 10,600 $ 615 5.80% well-positioned financially IAB MEMBERSHIP GROWTH 2010–2014 to deliver on its ambitious EVENTS REVENUE $ 7,214 $ 6,574 $ 640 9.74% agenda for 2015 and beyond. 2,000 1,848 1,898 OTHER REVENUE $ 4,792 $ 4,559 $ 233 5.11% 1,696

TOTAL REVENUE $ 23,221 $ 21,733 $ 1,488 6.85% 1,500

COGS EXPENSES $ 5,600 $ 4,748 $ 852 17.94% 993 1,000 823 OPERATING EXPENSES $ 17,326 $ 16,985 $ 341 2.01%

TOTAL EXPENSES $ 22,926 $ 21,733 $ 1,193 5.49% 500

1 NET INCOME $ 295 $ 0 $ 295 N/A 0 2010 2011 2012 2013 2014 1 Net income reflects 2014 DCNF restricted net profit (GM) of $230K. * Projections based on unaudited actuals through November and estimates for December LONG TAIL AASSSOCIATE GGEENERAL

2014 ANNUAL REPORT 5 IAB TRANSFORMATION IAB 6 ANNUAL REPORT 2014

2014: A TRANSFORMATIVE These changes were made to support the IAB five-year plan,The Path to Digital Dominance, which ensures that we consistently and systematically progress in YEAR AT IAB a direction that will safeguard and propel the lasting success of our members’ businesses. The plan outlines five challenges that must be resolved for the long- term health of the interactive advertising industry and defines the new capabilities that must be acquired to keep pace with members.

ith great change comes great opportunity, and IAB was well-positioned to embrace both in 2014. To deliver on our mission to empower the media and marketing industries to thrive in the digital economy, IAB implemented some bold structural changes to the organization and made big Winvestments to help member businesses excel over the next five years. 2014–2018 The new IAB organizational model includes four areas: FIVE ENDURING PRIORITIES

OWNED BY IAB INDUSTRY-OWNED

Making IAB IAB TRUSTWORTHY Trustworthy Moving Building Measurement Publisher IAB EDUCATION TECHNOLOGY ACCOUNTABILITY Digital Supply Mobile Brands Make Transformation FOUNDATION LAB GROUP Chain Mainstream Digitally Sense

STAFFED AND MANAGED BY IAB Data Science Economic Analysis New Membership IAB Education IAB Technology Trustworthy Video Criteria Foundation Lab Accountability Consumer Protection, Compliance & Self-Regulation Group Advertising & Data Technology One of the most vital IAB launched the IAB IAB announced the Mobile and substantial shifts Education Foundation, formation of the IAB The American Association International Relations at IAB in 2014 was the a new nonprofit Technology Lab, a of Advertising Agencies Public Policy & Lobbying widening of the criteria organization dedicated to nonprofit research and (4A’s) and the Association Consumer & Market Research for full-voting General increasing racial, ethnic, development consortium of National Advertisers Marketing & Thought Leadership Membership, extended to gender, and economic charged with producing (ANA) joined with IAB Training & Development include companies that diversity, and improving and helping companies to create the Trustworthy Industry Change Management “sell, deliver, or optimize skills in the digital implement global industry Accountability Group interactive advertising media and advertising technical standards and (TAG), a cross-industry I A C K B C T A inventory.” See page 22 industries. See page 12 solutions. See page 8 for accountability program A P A B I L I T I E S S for more for more more to increase marketplace transparency. See page 9 for more

2014 ANNUAL REPORT 7 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making TRUSTWORTHY DIGITAL SUPPLY CHAIN Digital Supply Measurement Publisher Moving Mobile Building Brands 8 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

Good ads flowing into TAG bad inventory (marketers) TRUSTWORTHY DIGITAL PRINCIPAL TAG SEAL MONITORING ARBITRATION/

DEVELOPMENT PROGRAM SOLUTION PENALTY BOX

SUPPLY CHAIN Bad LAB TECH inventory TECH LAB flowing into the supply chain All participants, When participants TAG will monitor for TAG will publicly call (publishers) marketers, agencies, follow the requirements compliance using out noncompliance trading desks, and are certified by technological solutions. and “bad actors.” publishers, networks, third-party auditors, he digital advertising industry needs a transparent, the foundation for interoperability and profitable growth in and exchanges in the they receive recognition liquid, and safe marketplace for digital advertising the digital advertising supply chain. TAG program agree to as a “good actor.” This and marketing transactions if it is to thrive in the follow all of its recognition differenti- requirements to root out ates them from other long term—and IAB is uniquely positioned to lead At the core of the IAB Technology Lab are protocols, tools, fraud, malware, and companies in the this charge. and certification. This includes the CodeBank, an open- theft, and operate with ecosystem. T source code repository that contains the resources needed to transparency in all To accomplish this, in 2014 IAB expanded its capabilities implement the specifications and guidelines that IAB currently business dealings. with the launch of the IAB Technology Lab. In addition, the produces. These materials include templates, implementation American Association of Advertising Agencies (4A’s) and guidelines, code examples, tutorials, quick-start guides, the Association of National Advertisers (ANA) joined IAB unit testing harnesses, and validation tools. The CodeBank to create a first-of-its-kind, cross-industry accountability launched with two protocols for inclusion: a template that program called the Trustworthy Accountability Group supports the Digital Audio Ad Serving Template (DAAST) Trustworthy Accountability Group (TAG), designed to increase marketplace transparency. and materials to aid in the adoption of SafeFrame. BUILDING TRUST AND ACCOUNTABILITY incentives for broad industry participation and Also at the IAB MIXX Conference in September, the consequences for untrustworthy actors. IAB Technology Lab Other IAB Technology Lab objectives include: 4A’s, the ANA, and IAB announced a first-of-its-kind, • Saving time and money for member companies by INDEPENDENT R&D: TECHNICAL STANDARDS cross-industry accountability program designed to fight TAG is led by Linda Woolley as President and CEO. providing industry certification for technology vendors FOR RAPID IMPLEMENTATION ad fraud, malware, and the theft of intellectual property Woolley was a member of the Advertising Self- head on, and to increase marketplace transparency. Regulatory Council’s Board of Directors from 2012 to Announced at the IAB MIXX Conference in September • Streamlining processes through the reduction of 2014. Her extensive leadership experience includes 2014, the IAB Technology Lab is a nonprofit research and compatibility issues by providing tools for multiple The Trustworthy Accountability Group (TAG) is the first nearly six years in executive roles at the Direct Marketing development consortium charged with producing and profiles of workers in the supply chain accountability program to create transparency in the Association (DMA), where she most recently served helping companies implement global industry technical • Driving industry standards in video, mobile, the Internet business relationships and transactions that undergird as CEO and President, and before that as head of the standards and solutions. The goal of the consortium is to of Things, and other emerging areas from definition the digital ad industry, while continuing to enable association’s public policy office in Washington, D.C. simplify and reduce the costs associated with the digital through distribution and certification astonishing levels of innovation. advertising and Promoting brand safety through transparency and marketing supply The IAB Technology Lab is governed by an independent TAG was created to spur an industrywide change in accountability were the principal goals of the IAB chain, as well as for board of directors and an executive committee, which behavior at an unprecedented scale. The objectives Quality Assurance Guidelines (QAG) program, which The IAB Technology Lab’s governance structure individual companies’ oversees its agenda and funds allocation. The IAB are to: was established in 2011 as a self-regulatory program allows“ it to become a truly global body and accept businesses. Scott Technology Lab’s governance structure allows it to become by which networks and exchanges could self-attest. member companies from outside the U.S. Cunningham, who a truly global body and accept member companies from • Promote brand safety through transparency and The compliance part of the QAG program will now be joined IAB as outside the U.S. Marketers and agencies, as well as accountability Marketers and agencies, as well as other companies a foundational element of TAG, which will develop an Vice President for other companies with interests in the digital advertising with interests in the digital advertising and marketing • Eliminate fraudulent traffic active monitoring system to detect noncompliance. Technology in April and marketing supply chain, are encouraged to join. supply chain, are encouraged to join. • Combat malware 2014, heads the IAB Companies that are already IAB General Members will ” Companies continued to join the QAG program, with a Technology Lab. automatically become members of the IAB Technology Lab, • Fight the theft of digital content net increase of 16 companies in 2014, which brought at no cost beyond their IAB dues. the total number of companies in the program to 55. The primary responsibility of the IAB Technology Lab is to These objectives are a road map toward a more New members that joined include key technology spearhead the development of technical standards and In a nutshell, the IAB Technology Lab will guide the trustworthy digital supply chain, one that will increase players Chango, DataXu, Quantcast, Tapad, and to assist in rapid, cost-effective implementation of these conversation and cooperation necessary for the emergence, the entire industry’s value and worth. The group will TubeMogul, and top publishers Time Warner Cable standards. In addition, it establishes a test platform for implementation, adaptation, and interoperability of operationalize principles around these critical issues, Media and Ziff Davis. companies to evaluate the compatibility of their technology global standards for the collective industry—and puts IAB monitor the ecosystem for compliance, and develop solutions with IAB standards, which for 18 years have been in position to evolve in step with the constantly shifting interactive landscape.

2014 ANNUAL REPORT 9 PUBLIC POLICY 10 ANNUAL REPORT 2014

FACIAL RECOGNITION However, increasing pressure in the EU has threatened to IAB is representing the industry before the Department of derail the agreement. In response, IAB and IAB Europe Commerce as it attempts to establish rules governing the partnered to develop the industry’s first cross-border policy use of facial recognition technology and has developed an position on data governance issues, which has served as A YEAR OF ADVOCACY AND initial set of use cases in consultation with IAB members to guidance for U.S. and EU Safe Harbor negotiators. SELF-REGULATION focus on legitimate consumer concerns. MODERNIZING INTERNATIONAL TRADE Beyond the Beltway and International AGREEMENTS IAB is committed to supporting the modernization of With Washington, D.C., in recess during much of the international trade agreements to serve the needs of the summer and in reelection mode in the fall, the IAB Public industry. Current trade agreements fail to adequately amping up its direct lobbying efforts at all levels, BIG DATA WORKING GROUP Policy Office had some breathing room to turn its attention protect the digital ecosystem from anticompetitive policies. the IAB Public Policy Office, under the leadership of The issue of big data continues to drive the debate in to a number of venues and locations. IAB also doubled IAB has been working with lawmakers to include language Mike Zaneis, Executive Vice President, Public Policy Washington, D.C., and IAB organized a meeting between down on investments to grow capabilities in key state in future trade agreements that would prevent unfair & General Counsel at IAB, focused on several a diverse group of digital advertising companies and the capitals and internationally. legal environments intended to penalize U.S.-based major legislative initiatives. White House’s Big Data and Privacy Working Group in businesses. To help IAB members navigate the complex March. IAB helped formulate the Working Group’s scope R ADDRESSING REGULATION IN THE STATE OF global legal environment and more easily comply with Washington, D.C. of inquiry to focus on actual consumer harms rather than a CALIFORNIA international laws, the IAB Global Network developed a set of largely hypothetical concerns surrounding marketing California continues to present a serious regulatory threat site that details international legal The IAB Political Action Committee actively supported databases. Armed with the well-proven success of the to the digital advertising industry. Several state bills and environments, outlining local key elected officials who have traditionally championed Digital Advertising Alliance’s self-regulatory program, public initiatives would severely limit the way the industry regulatory structures, recent the digital advertising industry and also hosted several IAB has redoubled efforts on Capitol Hill, within the is able to collect and use data. In response, IAB has legal developments, and contact fundraising events. administrative agencies, and across global and state policy invested in the creation of a California office. Based in San information for international venues to protect the responsible use of data by the digital Francisco and staffed by an IAB lead state lobbyist, the IABs that can provide PRIVACY AND SECURITY IN DIGITAL ADS advertising industry. new office provides the industry with a major advocacy further assistance to those Sen. John McCain (R-AZ) is leading a bipartisan platform. Coupled with a major communications and seeking to expand business investigation into privacy and security issues related to LONG TAIL ALLIANCE FLY-IN grassroots program funded jointly by the 4A’s, ANA, and in new markets. digital advertising, with an emphasis on the proliferation of In June, IAB brought more than 50 small publishers from IAB, the organization is bringing a voice to key decision malvertising on publisher sites. IAB secured a witness slot 20 states to Capitol Hill for the IAB Sixth Annual Long makers and delivering the same positive self-regulatory and for the May 15, 2015, hearing in the Senate Permanent Tail Alliance Fly-In. The publishers were able to engage economic growth agenda that has proven so successful in Subcommittee on Investigations, which McCain chairs. in learning sessions and were given a direct platform Washington, D.C. The Trustworthy Digital Supply Chain Project will be key to to express to legislators the challenges, concerns, and presenting the industry’s response to these difficult questions. impact that adverse legislation and regulation may EXPANDING THE INTERNATIONAL AGENDA have on their businesses. The Long Tail Alliance now Digital knows no borders and there continue to be a CRIMINAL LIABILITY includes 1,145 members. By convening members, IAB can number of regulatory priorities at the international level. IAB is leading a multi-industry effort to eliminate provisions show policymakers the real difference that these small The IAB Public Policy Office has continued to expand its in a package of bills in the U.S. Congress that would businesses are making in the national economy and in international agenda as more of the policies affecting establish for the first time criminal liability for publishers and employment levels. the future of the internet and the digital advertising third-party intermediaries industry originate in foreign legislative bodies and that may happen to display intergovernmental agencies. One important example of or deliver advertisements this work has been IAB involvement in the renegotiation for certain criminal of the U.S.-EU Safe Harbor activities. These ads almost Framework. Today, the Safe always use subtle codes Harbor framework helps developed by the criminal more than 100 IAB underworld and would be members operate difficult, if not impossible, in Europe. for IAB members to detect.

Fifty small publishers from 20 states visited Capitol Hill for the IAB Sixth Annual Long Tail Alliance Fly-In.

2014 ANNUAL REPORT 11 EDUCATION DIVERSITY AND 12 ANNUAL REPORT 2014

IAB: DRIVING LEARNING, DIVERSITY, AND DEVELOPMENT

Tim Armstrong, ust as a healthy industry needs a trustworthy supply Chairman and Chief Executive Officer chain, it also needs a talent pipeline that reflects the of AOL Inc. and audience it serves. In 2014, IAB took an important Chairman of the IAB step toward this goal by launching the IAB Education Education Foundation JFoundation, expanding certification programs in sales Board, helped kick off and ad operations, and championing efforts dedicated to the first stop on the Voices United Diversity increasing racial, ethnic, gender, and economic diversity Roadshow in New York. and to improving skills in the digital media and advertising industries. within digital media and advertising companies, including Diversity Workshops Sales and Digital Ad Operations Certification programs, with IAB Education Foundation digital advertising sales, advertising operations, and data 705 candidates applying to take the exams. The number of analytics. Courses will be provided at little or no cost to In December, at the AOL offices in downtown New York, certification holders is now nearly 2,800, with 2,324 sales The IAB Education Foundation formally launched at the IAB qualified training partners, such as community colleges and IAB hosted Voices United, a diversity workshop dedicated certificants and 450 ad ops certification holders. With the MIXX Conference, and Tim Armstrong, Chairman and Chief workforce development programs. The foundation will be to addressing this rising challenge in the industry. This was November testing window, the total number of certified Executive Officer of AOL Inc., agreed to serve as Chairman funded from a variety of sources, including corporate and the first of several stops along the Diversity Road Show professionals for 2014 surpassed 3,000. of the Board and set the vision for the foundation. individual supporters, foundation donations, workforce tour, spearheaded by the IAB Education Foundation. IAB development grants, and IAB itself. aims to meet the challenge head on, working in partnership Recertification and Train-the-Trainer The foundation is a 501(c)(3) with numerous organizations—companies, schools, and Programs nonprofit corporation, enabling it Under the leadership of Michael Theodore, Vice President, nonprofits—to create a landscape where talent can be to take tax-deductible contributions. Learning and Development at IAB, the foundation will also grown from within to ensure business success for the future. Recertification is now a top priority as credential holders It is developing curricula and serve as a professional society open to the hundreds of near the end of their original certification. There are certification programs in fast- thousands of men and women now employed in the U.S. At the first event, Tim Armstrong, Chairman and CEO of two paths toward recertification: retaking the exam or growing areas of employment digital media and advertising industry. AOL and Chairman of the foundation, noted that town halls earning 24 continuing education credits that demonstrate such as these equate to passion meeting a problem. Freada ongoing learning. IAB has a goal of 80 percent retention, Kapor Klein, Ph.D., Founder of the Level Playing Field which follows industry best practices. The train-the-trainer IAB CERTIFICATION GROWTH 2012–2014 Institute and Co-Chair of the Kapor Center for Social Impact, program has also expanded, offering a two-day digital also addressed both the recruiting part of the pipeline media fundamentals class as well as its original one-day preparatory class for sales certification. Companies that 3,500 problem as well as the “leaky pipeline” of talent retention. 3,111 have participated include Condé Nast, Rodale, Wall Street 3,000 The foundation’s first partner is the Year Up program, a Journal, New York Times, and Meredith. national nonprofit organization that provides skills training 2,500 to disadvantaged young adults and places them in Fortune The Road Ahead 2,000 500 companies. Year Up will work with the IAB Education Foundation to develop an entry-level ad operations Other opportunities for learning have grown as well, with 1,500 training program. an eye toward expanding beyond the usual New York- based audience. A fee-based, multipart, live webcast on 1,000 The total number of IAB certified Certification Programs in Sales and Ad native advertising launched this summer. IAB also took its 500 professionals Operations successful Advanced Programmatic training program on the surpassed 3,000 road, playing to packed classrooms in Chicago and San 0 in 2014. IAB certification programs in sales and ad operations Francisco. IAB anticipates many more road shows and much Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 more training in 2015. 2012 2013 2014 continue to show solid growth. The third quarter of 2014 saw the highest number of applicants yet for the Digital Media CUMULATIVE 2014 ANNUAL REPORT 13 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making SENSE MEASUREMENT MAKE MAKING Digital Supply Measurement Publisher Moving Mobile Building Brands 14 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

MAKING MEASUREMENT MAKE SENSE

AB aspires to have all media allocated and valued using The research showed that of all major media, only digital The Shift to Viewable Impression Currency • Nonmeasured impressions should not be assumed to be common metrics, empowering marketers to create powerful failed to require viewability in measuring advertising, a nonviewable impressions. cross-screen branding campaigns based on educated critical deficiency as consumers increased their media In 2014, 3MS and the marketing-media ecosystem reached • Duration is part of the viewability standard because the decisions and accountable investments. In 2011 the consumption on digital channels, and a major impediment a major milestone: The Media Rating Council (MRC) marketing and advertising industry needs standards- American Association of Advertising Agencies (4A’s), the to cross-platform advertising planning, buying, and issued final Viewable Impression Guidelines, and viewable based interactive advertising metrics that are comparable IAssociation of National Advertisers (ANA), and IAB jointly optimization. The goal of this process has always been impressions for display and video were declared ready for to those of legacy media. launched the “Making Measurement Make Sense” (3MS) a robust digital measurement currency that can act as transactions. IAB strongly supports the use of the industry • As the transition to viewable impression currency initiative because the absence of a consistent approach to a “digital GRP,” leading us to understand cross media standards, developed with oversight by the MRC, for the continues, measurement will improve. measuring and assessing the effects of digital media had behavior. But to get there, we first had to understand what measurement of a viewable ad impression for display and resulted in a cacophony of competing and contradictory makes an impression viewable. video. That standard is 50 percent of pixels in view for measurement systems, contributing to a complex and costly a minimum of one second for display and 50 percent of supply chain for the industry. The transition to a viewable- Progress in the Making Measurement Make Sense (3MS) pixels in view for a minimum of two seconds for video. The impression currency was the first recommendation of the initiative, a multiyear investment, moves the industry closer industry arrived at this standard through quantitative testing groundbreaking June 2011 3MS study done for the three to this goal. and months of meetings where consensus was built around associations by Bain & Co. and Medialink LLC. the definitions.

For its members’ needs, IAB invested in a number of resources including a publisher-specific viewability FAQ released in March when the MRC lifted the advisory against transacting on viewable impressions. IAB also convened a research council meeting with an update on viewability and answered questions from the digital advertising research community. Many of the questions were also addressed over the course of the year in MediaPost Metrics Insider columns authored by Sherrill Mane, Senior Vice President Research, Analytics and From left, George Ivie, Media Rating Council; Joe Barone, Measurement at IAB. Mane also led the creation and GroupM; James Deaker, Yahoo; Bryan Simkins, Starcom; launch of a new educational series, the 3MS Educational and Dan Murphy, Univision, discussed viewability at the IAB Forum, to foster knowledge-sharing and measurement Ad Operations Summit. change and to support IAB members’ implementation of viewability. In an ongoing knowledge-sharing effort, IAB 100 Percent Viewability Is Not Yet Possible hosted four 3MS educational forums in 2014, which were attended by 600 professionalss. In October, the MRC issued a summary of considerations for implementation of viewable impression measurement to Overall, IAB was involved in ongoing communication assist advertisers, agencies, and publishers as they move through multiple channels with the goal to set the entire to transition from a digital advertising currency based on industry on a path toward collaboration and consensus served impressions to one based on viewable impression for the best possible outcomes for the greatest number of measurement. Among other things, the MRC stated that participants in the shortest amount of time. Through these 100 percent viewability is an “unreasonable” expectation. efforts, IAB has emphasized the following points: The complete set of considerations is available on the IAB For more information on 3MS, visit website, on measurementnow.net, and on the MRC website. www.measurementnow.net. • A nonviewable impression does not equal a fraudulent impression.

2014 ANNUAL REPORT 15 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making SENSE MEASUREMENT MAKE MAKING Digital Supply Measurement Publisher Moving Mobile Building Brands 16 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

ENGAGEMENT CONTINUUM METRICS It is ‘unreasonable for advertisers, agencies, and“ publishers implementing viewable impressions as measurement currency to expect to observe viewable rates of 100 percent in analyses of their campaigns.’”

IAB took steps to address concerns in the marketplace paper was presented at a webinar with nearly 450 people role in standards to make cross-media regarding viewability guarantees that are unreasonable in attending live, illustrating just how important this topic is to development, planning, buying, light of MRC guidance. In December 2014, IAB released members and the digital advertising ecosystem. also reconvened and evaluating State of Viewability Transaction 2015, a position paper the 3MS steering comparable so that offering the digital media and advertising industries For all the progress that publishers, agencies, marketers, committee, the brand dollars can guidance on how to manage the shift of digital media’s and tech companies are making toward implementing 3MS Blue Ribbon flow to digital media. “audience currency” to 100 percent viewability. The viewability, there are still challenges as well as a strong Task Force, so that Viewability paves the paper heralds the collaboration among the digital trade need for more education. To remedy this and arm IAB agency, marketer, and way for the work that association, the 4A’s, and the ANA; labels 2015 a “year of members with the best information to remain competitive, publisher leaders can needs to be done to make transition;” and calls on advertising agencies, publishers, IAB has taken additional steps, such as assembling several discuss pressing issues mobile measurement make marketers, and advertising technology companies to work organizations representing a cross-section of different together. sense as well. together to ensure that the new currency can be implemented disciplines, including a Board Subcommittee, a Data by all companies in the digital advertising ecosystem. Leadership Advisory Board, and the IAB Measurement Defining Metrics for Core Engagement Metrics Leadership Advisory Board. The IAB Measurement Comparable Cross-Media The paper reiterates the statement made in October by Leadership Advisory Board is composed of sales leaders Planning In addition to formidable progress on the MRC that it is “unreasonable for advertisers, agencies, from member companies, including several board viewability in 2014, IAB announced a comprehensive and publishers implementing viewable impressions as members. This group is charged with advising IAB Of course, 3MS is about much more than viewability, and new definition of advertising engagement and identified measurement currency to expect to observe viewable leadership on measurement issues that are affecting their all the talk about that one aspect may occasionally obscure core metrics for digital and legacy ad engagement across rates of 100 percent in analyses of their campaigns.” The businesses. The MRC, which has assumed the leadership an important fact: The initiative is about defining metrics platforms. While acknowledging that there can be no one- size-fits-all approach, for the first time both buy and sell sides THE SEVEN PRINCIPLES FOR VIEWABILITY TRANSACTION IN 2015 agreed on recommendations for metrics in the three categories of newly defined continuum To foster stronger collaboration and build trust, IAB recommends that marketers, agencies, and of engagement—both online publishers adhere to the following seven principles during 2015: and off: cognitive, emotional, and behavioral/physical. The report, titled The Advertising A buyer and a seller All billing should continue to If a campaign does not All make-goods should be in For large-format ads Engagement Spectrum: Defining should agree on a be based on the number of achieve the 70 percent the form of additional (defined as 242,500 pixels and Measuring Digital Ad single measurement served impressions during a viewability threshold for viewable impressions, not or larger), a viewable Engagement in a Cross-Platform vendor ahead of time. The campaign, and these should be measured impressions, publishers cash, and should be delivered in a impression is counted if 30 percent World, builds on the concepts industry aspires to variances of separated into two categories: should be willing to make good with reasonable time frame. Make-good of the pixels of the ad are viewable around engagement and takes no more than 10 percent measured and nonmeasured. additional viewable impressions until impressions should be both viewable for a minimum of one continuous the industry from measuring between viewability measures the threshold is met. Such a and generally consistent with second, as noted in the “MRC thousands of metrics to focusing Given the limitations of provided by different vendors. All guarantee ensures that all paid inventory that was purchased in the Viewable Ad Impression on 30 core ones. current technology and the stakeholders must avoid costly, measurable ad impressions will be original campaign. Determination of Measurement Guidelines.” publisher observed variances labor-intensive, error-prone viewable at a threshold that exceeds threshold achievement is based on in measurement of 30 percent to 40 All transactions between manual processes of reconciling the minimum standard and falls within total campaign impressions, not by percent, it is recommended that in this buyers and sellers should different sets of viewability observed variances. each line item. In other words, some year of transition, measured use MRC accredited numbers, hence the benefits of line items may not achieve threshold, impressions be held to a 70 percent vendors only. agreeing on a single vendor. but others can compensate. viewability threshold.

2014 ANNUAL REPORT 17 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making TRANSFORMATION PUBLISHER Digital Supply Measurement Publisher Moving Mobile Building Brands 18 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

Within just three to five years, media buyers anticipate that original digital video will be as important to their businesses as TV. That was just one of the findings from the Digital Content NewFronts Video Ad Spend Study, PUBLISHER conducted on behalf of IAB by Advertiser Perceptions early TRANSFORMATION in 2014, quantifying the momentum in the video market among agencies and advertisers. Findings from the report about the convergence of interactive and TV also led to a Digital Video Committee joint meeting with the Advanced TV Advisory Board. Leaders from over 50 companies came together in the IAB Ad Lab to review recently completed key challenge for the long-term vitality of the and in-progress digital video initiatives at IAB and to set interactive advertising industry is supporting the direction for initiatives in 2015, including measurement publisher transformation in the fast-changing and metrics, programmatic video, mobile video, creative digital advertising ecosystem. The value best practices, ad-serving compliance and standards, and of publishers’ audiences must be realized, marketplace/buyer research and education. Aand diversified publisher revenue streams must become commonplace. These goals require publishers to continue For digital video to be successful, consumers need to have to adjust to new technologies, new business processes, and a privacy experience in video advertising similar to what new economics. In 2014, IAB conducted and led a wide they enjoy for display and mobile. To meet that need, the Ad range of activities and initiatives to help publishers gain the Technology group, in partnership with the Digital Advertising knowledge and tools they need to transform. Alliance, launched the DAA AdChoices In-Stream Video Supporting Exponential Digital Video Icon Working Group with the mandate to offer viewers a Growth consistent “opt-out” experience with the DAA “Forward I” icon and to create consistency across corresponding texts and links to policies and preference centers. A big area of focus in 2014 was digital video. Fueled by escalating consumer adoption, digital video advertising Jordan Levin, Executive Vice President of Xbox Building Native Advertising and Content is one of the fastest-growing advertising mediums in the Entertainment Studios, at the 2014 Digital Content NewFronts Marketing Guidelines United States. digital video advertising—all of which are part of the plan for the Digital Video Center of Excellence. In 2014, IAB focused on two major areas for addressing To address key issues and the challenges for fulfilling native advertising: understanding how consumers perceive digital video’s long-term promise of delivering powerful Peter Naylor, Senior Vice President of Advertising Sales at and feel about in-feed sponsored content and how to serve brand advertising at scale, IAB announced the launch of Hulu and former Chairman of the IAB Board of Directors, thought leadership, innovation, research, and guidance appropriate disclosures for native advertising. a Digital Video Center of Excellence, devoted to promoting agreed to head the Digital Video Center of Excellence for the digital video industry. The Video Center took over the development of the digital video medium within the Board of Directors, leading the organization’s inaugural stewardship of the Digital Content NewFronts, which will marketing, advertising, and media ecosystem. It will agenda. next take place in 2015 over two weeks in late April and produce original research projects, digital video advertising early May. case studies, technical standards, creative showcases, and While continuing to supervise the IAB Mobile Marketing overall best practices in the arena of digital video. Center of Excellence, Anna Bager, Senior Vice President, Mobile and Video, will lead the Video Center. The Video Recognizing Excellence in Video To ensure digital video’s future, the interactive advertising Center will focus on tying together various IAB video Programming industry needs to coalesce around standards, conduct activities, including Advanced TV, Digital Video, and the The 2014 Digital Content NewFronts, an eight-day event in-depth research, and examine what works and why in Digital Content NewFronts, providing a one-stop shop for spotlighting the best in original digital video programming for marketers and media buyers, was a huge success. Attendance and attention reached an all-time high, with more than 12,000 attendees at 23 separate events. It DIGITAL CONTENT NEWFRONTS FOUNDING PARTNERS was a historic event demonstrating and supporting the ascendance of digital video as a mainstream entertainment and information medium, increasingly on par with cable Actress and writer Mindy Kaling on stage at the and broadcast television and with unique capabilities that Hulu NewFront will drive continued growth in ad revenues for this segment for the foreseeable future.

2014 ANNUAL REPORT 19 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making TRANSFORMATION PUBLISHER Digital Supply Measurement Publisher Moving Mobile Building Brands 20 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

is the top factor that drives consumer interest in reading Demystifying Programmatic today’s gamers, core game types, and advertising options. in-feed sponsored content, with the consumer’s view of the The Committee had a presence at such major industry brand itself determining the success of this type of native Programmatic buying and selling is revolutionizing how events as Social Media Week and SXSW, and hosted a advertising. Brand familiarity and trust, as well as subject the industry does business by providing a powerful town hall with the Mobile Committee and Zynga in San matter expertise, were also identified as critical in driving combination of efficiency and effectiveness. A key concern Francisco called The Future of Mobile Games. consumers’ interest in sponsored content. however, is the lack of understanding and lack of dialogue among all stakeholders on resolving challenges in making Digital audio programming is another rapidly expanding In December, the Content Marketing and Native programmatic work for publishers. To help members navigate market segment for digital advertisers. While still relatively Advertising Task Force groups held a Native Advertising this fast-changing landscape, the newly formed Programmatic small, this market segment looks much the way digital video Disclosure Workshop. More than a dozen companies Council focuses on bringing together publishers, buyers, and looked five to seven years ago—full of promise for growth. shared how they are evolving their disclosure practices to ad technology providers to discuss the major business issues It’s also fragmented, with no standardized way to track ensure that consumers understand where the editorial on in the evolving programmatic marketplace. the delivery of audio ad units, whether an audio ad has the page ends and advertisements begin. Laura Sullivan, Senior Staff Attorney, Division of Advertising Practices at One of the key areas of focus for the the Federal Trade Commission, provided her insights during Programmatic Council in 2014 was MAPPING PROGRAMMATIC TERMINOLOGY a fireside chat with Mike Zaneis, Executive Vice President, education. IAB created educational Public Policy and General Counsel at IAB. As evidenced videos and blogs that achieved some by the more than 200 registrants, the industry as a whole of the highest views across all content PUBLISHER TRANSFORMATION has a strong desire to be proactive to ensure industry self- in 2014 and held many town halls regulation in this area. to educate members and share best Invitation-Onlnly practices. Topics ranged from video Auction

programmatic and retargeting to how T Open Auction Relevancy is the top factor that drives consumer interest programmatic was being used for

specific audience segments such as uction-Based in“ reading in-feed sponsored content, with the consumer’s Hispanic consumers. view of the brand itself determining the success of this type of native advertising. The council expanded its geographic

” outreach by hosting the first dA Automated Unreserved HOW PRICE IS SE Programmatic Summit in Los Angeles, Guaranteed Fixed Rate Fixe User-generated content (UGC) is becoming another key which was attended by more than 500 component of content marketing. The Content Marketing members. It also held and published an Task Force, in conjunction with the Social Media and international webinar in June involving Native Advertising groups, held a User-Generated Content IAB members from across the globe to ReservedUnreserved Town Hall at the IAB Ad Lab to discuss the various ways update them on activities in the U.S. and T YPE OF INVENTORY publishers, marketers, and agencies are deploying UGC in in areas for cross-border collaboration. their marketing efforts and addressing some important legal considerations. Finally, the council also reached a wide audience played, or how much of that ad was played. In September, through a Programmatic 101 webinar, which was the Digital Audio Committee released the Digital Audio Ad IAB and Edelman Berland conducted a study, Now that nearly every social media platform offers paid later expanded into a full one-day advanced training Serving Template (DAAST), a vital ad delivery standard that Getting Sponsored Content Right: The Consumer content options, the IAB Social Media Committee, led program on programmatic for direct sellers, which was allows audio ads to be served across an array of players View, to understand how consumers perceive and feel about in-feed sponsored content. by co-chairs Carine Roman of LinkedIn and Christine run across the country in New York, Chicago, and San in environments that include mobile devices and in-car Cuoco of Twitter, published the IAB Social Media Buyer’s Francisco. The training was designed to give publishers a radios where access to a browser is limited or doesn’t exist. Guide. It provides the industry with a framework for practical, hands-on understanding of how to implement In addition to DAAST, the Audio Committee is working IAB partnered with Edelman Berland to conduct a buying advertising on the leading social media platforms: programmatic. The program also included demos by to build awareness of digital audio’s potential for impact comprehensive study of 5,000 U.S. online news users to Facebook, Foursquare, Instagram, LinkedIn, Pinterest, Tumblr, technology platforms and interviews with buyers. on marketing objectives. In addition to best practices and explore consumer perceptions of in-feed sponsored content and Twitter. This one-stop resource is intended for agencies, standards development, the Digital Audio Committee hosted ads. Titled Getting In-Feed Sponsored Content Right: The marketers, and any company seeking to advertise on one Leading the Way on Emerging Platforms events to educate marketers and agencies on why digital Consumer View, the groundbreaking report, the first large- or more of the major social media networks. The document audio should be included in media buys. scale study of its kind, was presented to a packed audience will serve as the basis of future initiatives to help educate the To promote games as an advertising medium driven by at the Edelman Berland offices in New York City in July. industry on the social media ecosystem. engaging content and cross-platform solutions, the IAB It showed that native advertising needs to be relevant, Games Committee published the Games Advertising authoritative, and trustworthy in both the brand and the Ecosystem Guide in December. Targeted to marketers surrounding content to appeal to consumers. Relevancy and agencies, this guide provides a concise overview of

2014 ANNUAL REPORT 21 Audio Committee Ad Ops Council Mike Agovino, Triton James Deaker, Yahoo MEMBERSIAB 22 ANNUAL REPORT 2014 Digital Zach Putnam, ABC TV Doug Sterne, Pandora Network

B2B Committee Advertising Technology Frannie Danzinger, eXelate Council Hugh Wiley, Bloomberg Jonathan Bellack, Google Businessweek Jay Sears, Rubicon Project 2014 Working Groups, Task Forces, and Native Advertising Playbook - V2 Digital Video Committee CFO Council Working Group Suzie Reider, YouTube Leah Rogerson, PulsePoint Advisory Boards IAB MEMBERS Joey Trotz, Turner Bennett Theimann, Mocean Native Advertising Task Force Broadcasting System Mobile Working groups, task forces, and advisory boards directly Native Advertising Working Group address issues facing the industry. They provide solutions, Games Committee Data Council influence, and thought leadership necessary to take on specific NewFronts Agency and Marketer Jack Koch, Electronic Arts Khurrum Malikm, Advisory Board Kym Nelson, Twitch Facebook challenges from across the advertising ecosystem. Open RTB & Real Time Exchanges Local Committee Legal Affairs Council Working Group 2014 Committees and Councils JB Sugar, AOL Steve Hicks, Ziff Davis, LLC Mary Eileen Weber, Podcast Working Group Multicultural Council Accounts Receivable Working Group Digital Audio Buyers Guide Working IAB helps drive the industry forward through the efforts Tribune Company Borja Perez, Telemundo Group Professional Development Advisory Ad Effectiveness Studies Working of nine committees and ten councils in various industry Board Mobile Advertising Group Digital Out of Home Task Force segments. Tapping into the brightest minds in the Committee Programmatic Council Programmatic - Making Programmatic industry, these groups work together to develop solutions Anne Frisbie, InMobi Bob Arnold, Google Ad Engagement Working Group Digital Video Ad Format Standards Work for Brands Working Group that improve the interactive advertising and marketing Sol Masch, Time Inc. Working Group Public Policy Council Ad Ops Advisory Board Programmatic - Marketplace ecosystem for everyone. Dave Morgan, Simulmedia Digital Video Emerging Tech Focus Performance Marketing Education & Training Working Ad Ops Certification Advisory Board Group Committee Group IAB committees are based on specific platforms within John Busby, Marchex Research Council Stephanie Fried, Discovery Ad Technology Advisory Board Digital Video Standards Working Dave Tan, Google Programmatic - Standardization of the digital advertising medium. Committee members work Communications Group together to prove platform value or simplify the processes Advanced TV Advisory Board Definitions, Terminology, and Best Social Media Committee Dan Murphy, Univision Practices Working Group with buying, selling, and creating interactive advertising. Communications Inc. Display Creative Guidelines Working Christine Cuoco, Twitter Agency Advisory Board Group Carine Roman, LinkedIn Programmatic Direct Task Force Sub Sales Executive Council IAB councils are based on a specific role within members’ Attribution Research Working Group Group Brian Quinn, Triad Retail Emerging Innovation Task Force Tablet Advertising organizations. Council members share best practices Media Research Advisory Board Committee Audio Events Working Group Facial Recognition Privacy Task Force and develop tools to improve efficiency, provide Ned Newhouse, Condé SafeFrame Implementation Working thought leadership and grow digital advertising. Compensation Working Group Flex Ad Formats Task Force Nast Group Connected TV Technical Standards Games Platform Status Report Update Sub-Working Group Working Group Social Media and Sports “Agency Event” Planning Working Group New Membership Criteria: Empowering Digital to Thrive Consumer Perception of Data HTML5 Best Practices Task Force Working Group Social Media Buyers Guide Update Mobile Ad Ops Working Group Working Group Since IAB launched in 1996, the structure, processes, and businesses that power the interactive advertising industry an Consumer Protection Task Force relationships that make up the digital advertising industry increased role in setting the vision and strategy of IAB. Mobile Location Data Working Group Social Media Guidelines / WOMMA have shifted radically. The line between buyers and sellers Content Marketing Advisory Board and MRC Working Group “The modifications to IAB governance put IAB in position Mobile Measurement Task Force is dissolving and technology companies now play a vital Content Marketing Task Force Trustworthy Digital Supply Chain Task to evolve in step with the constantly shifting interactive role serving both interests. Mobile Programmatic Buying Force landscape,” said Patrick Dolan, Executive Vice President Creative Specs Database Revamp Working Group To reflect these changes in the ecosystem, IAB announced and Chief Operating Officer of IAB. “The General Working Group TSC: Anti-Fraud Working Group Mobile Research Working Group a key change to the membership criteria: A widening Members ratified this restructuring to ensure that IAB can Cross Platform Ad Effectiveness TSC: Anti-Malware Working Group of the criteria for full voting or General Membership, take the long view of industry needs and tackle challenges Research Working Group Mobile Richmedia Ad Interface from only “sellers of interactive advertising inventory” to in support of the IAB mission to empower the media and Definitions (MRAID) Working TSC: Education Working Group Data Certification Working Group Group include companies that “sell, distribute, or optimize digital marketing industries to thrive in the digital economy.” TSC: Legal Working Group advertising or marketing programs.” As a result, a number Data Measurement Research Working Mobile Video Task Force of current nonvoting or Associate Member companies Lisa Milgram, who has overseen the IAB conference Group User Generated Content Town Hall - Multicultural Communication Working Planning Working Group will now be eligible to vote, serve on the IAB Board of portfolio for the past five years, most recently as Vice Data Primer 2.0 Working Group Group Directors, and chair IAB committees and councils. President of Events, accepted the position of Senior Vice President of Membership Programs. In this new role, she will Digital Advertising Automation Task Multicultural Research Compilation The IAB Board of Directors voted unanimously in favor of leverage that expertise, supervising the requirements of the Force Working Group this change in IAB membership criteria, and the IAB General more than 650 IAB member companies and organizing IAB Digital Audio Ad Serving Template Multicultural Research Working Group Members then overwhelmingly approved the expansion. work to fill those interests and fulfill those needs with a close Working Group This shift in membership structure will give many of the key eye on the programs the bureau develops for its members.

2014 ANNUAL REPORT 23 IAB MEMBERSIAB 24 ANNUAL REPORT 2014

Pinsight Media+ Trulia Podtrac Deloitte & Touche, LLP Moat V12 Group Membership PodcastOne TubeMogul Refinery29 Dennoo Mobilewalla Varick Media POPSUGAR Tumblr Roku DeSilva + Phillips Mocean Mobile Management Prisa Digital TuneIn SK Planet Dieste Monotype Vdopia PROXi Digital Turner Broadcasting SmartyAds Digilant MoPub Verizon Wireless We thank all our members for their support Publishers Clearing House System StartApp Disqus Morpheus Media Viant Inc. throughout the years. With their leadership and Digital (PCHdigital) Twitch Supersonic DoubleVerify Nanigans Videology PulsePoint Twitter Taunton Interactive Drawbridge NetSeer Visible Measures IAB MEMBERS participation, the influence of IAB on the industry Purch UberMedia Tego Media Dstillery NetSuite Visual IQ Q1Media Undertone The Daily News Dynamix Neustar Voltari will continue to grow. To learn more about IAB Radar Online Univision Communications The Madison Square Ebiquity Newspaper Association of Webspectator membership opportunities, please visit RadiumOne Inc. Garden Company EngageClick America White Ops Rakuten Marketing LLC Unruly Thinknear by Telenav Enliken Nexage Wiland iab.net/member_center. Reader’s Digest US News & World Report Titan Outdoor Epom Nielsen Winterberry Group Association Interactive USATODAY.com URX Epsilon Nuance Worldata Real Media Group Valassis Utah.com Equinix Ooyala xAD Realtor.com VertaMedia Vidcoin Ernst & Young OpenX Yext Remezcla Verve Mobile Virool eXelate Operative YieldEx Resonate Insights VEVO Watchwith Experian Marketing Paradysz ZEDO GENERAL BuzzFeed Fast Company MailOnline Revision3 Viacom Media Networks X-Web Inc. Services Persado Zenovia Buzznet Firefly Video Major League Gaming Rhythm NewMedia Vibrant Media Extreme Reach PIVnet MEMBERS Cablevision Media Sales Flipboard Maker Studios RMG Networks Videogum eyeReturn Marketing Pixalate Rodale Viewster AG ASSOCIATE Eyeview PlaceIQ NEW ASSOCIATE 33Across Cablevision Systems Flurry MamasLatinas Corporation Food & Wine Mansueto Ventures Rovi Viggle MEMBERS Factual PointRoll MEMBERS 4INFO Samsung Electronics VISIT FLORIDA FatTail Polar 5min Media CafeMom Forbes Media Marchex [x+1] Cars.com Fortune Martha Stewart Living Scripps Networks Vungle Fiksu PricewaterhouseCoopers Adaptive Audience A&E Television Networks Interactive Warner Bros. Media Accordant Media Flashtalking Proximic Adaptive Media Aarki Casale Media Foursquare Omnimedia ActionX CBS Interactive FOX News Channel Martini Media Selectable Media Research Flite PubMatic Adbase AARP SessionM Washington Post Digital Active International Forensiq Qualia Media Adcade Abacast CBS Local FOX Sports Interactive Mashable AcuityAds Celebuzz Media Matomy Media ShareThis WatchTime FreakOut Quantcast ADLOOX ABC News She Knows Westwood One Acxiom FreeWheel ReactX AdYapper ABC TV Network Channel Factory Fyber Media Rating Council ADARA, Inc. Chegg Gamut MediaCrossing Shiny Ads WEtv GfK North America Realvu AerServ About.com Shopping.com Whitepages Addroid Ghostery Research Now Altitude Digital Absolute Punk Chicago Tribune Gawker Media Mediative AdFin Chitika Genome from Yahoo Medula Network Showtime WildTangent GLO Gaming ResponsiveAds Are You a Human AccuWeather.com Slacker WIRED Ad-iD Goldspot Media Revolution Messaging Billups Ad4Game CIO Goodway Group Meebo Inc. AdJuggler CMG Digital Google Meredith Digital Slate WorldNow Gridley & Company, LLC Rich Relevance Bonzai Adap.tv SN:Xchange WWE AdLarge Media GroupM Rocket Fuel BORN AdColony CNN.com Grab Media MeritDirect, LLC AdNation News Collective Gravity Microsoft Advertising Socialite Life WWTDD HIRO-Media Rubicon Project Bounce.IO AddThis Solve Media XappMedia, Inc. Adobe iCrossing RUN Carambola Adform Comcast Spotlight GSN Games Midroll Media Adometry Comedy Central GumGum Millennial Media Sony Pictures Television Xaxis IHG Sales Athlete Media Clearstream.TV adMarketplace sovrn Yahoo AdRoll ImServices Group Network Demandbase AdNear Complex Media GunBroker.com MLB.com AdsNative Computerworld Hanley Wood Mobile Theory Specific Media Yahoo Contributor Incisent Labs Group LLC Salesforce Marketing DeviceAtlas by dotMobi AdoTube Spiceworks Network AdSpirit Infinitive Cloud Distil Networks Adslot Concrete Loop Harvard Business Review MODE Media Adswizz Condé Nast Health.com Moguldom Media Group SpinMedia Yahoo en Espanol Innovid SapientNitro DistroScale AdSupply Spotify YP ADTECH inPowered SAS Institute Dun & Bradstreet Adtegrity Connexity HealthiNation Moko Social Media AdTruth Conversant Media Hearst Magazines Digital MONSTER SpotXchange YuMe InsightExpress Scarborough Research DWA Media AdTheorent STEEL MEDIA Ziff Davis, LLC Advertiser Perceptions Integral Ad Science SeaChange engage:BDR Advanstar Communications Coupons.com Media Morningstar Adzerk Cox Media Inc. HIMSS Media Move, Inc. Stereogum Zillow Integrate Semcasting Essence Advertising Age Strategy+Business ZUMOBI Affinity Express Intel SET Fetch Adweek CPXi Hipcricket MTV Ahalogy Crackle Hotels.com Multiview StubHub.com Zynga Invite Media Sharethrough Fraudlogix Airpush Studio One Akamai Technologies Iponweb Signal Fred & Associates Aisle A Crain Communications Hotwire MySpace Alliance for Audited CSO Online Hulu MyWebGrocer Summit Professional IPS Simpli.fi Fuisz Media Allrecipes.com Networks NEW GENERAL Media (AAM) IRI Simulmedia Futuresmedia Allvoices Dailymotion HyprMX Mobile Namo Media Amobee Dealer.com I-Behavior NASCAR Sundance Channel MEMBERS isocket Sizmek GeoEdge ALM Swoop AppNexus Jordan, Edmiston Group, Smaato GET IT Mobile Amazon Defy Media IDG National Geographic AdFormics Archer Advisors Delivery Agent IDG Consumer & SMB National Public Media Synacor Inc. Smart AdServer Havas Media AMC Taboola Advance Digital Media AudienceScience JW Player Sociomantic Haystagg Demand Media IDG Enterprise Nativo Group AMC Networks Digital Tafi Media Bartle Bogle Hegarty Kantar Media North Sojern Hitokuse American City Business Departures IDG Entertainment Nature Publishing Group Adversal.com BIA/Kelsey Details Magazine IDG TechNetwork NBCUniversal Tapjoy America Speed Shift Media Huddled Masses Journals TargetSpot Aniview Big Fish Games Ketchum Spendsetter INVISION Inc. American Express deviantART Idolator NCC Media Audience Entertainment Bionic Advertising Systems Digital First Media IFC Netmining Targetwise Kilpatrick Townsend & spider.io IPG Mediabrands Publishing Technorati Media BBM BlackArrow Stockton LLP Spongecell Manage.com American Media, Inc. Digital Photography IGN Entertainment Network World Beachfront Media BlueCava Review iHeartMedia New York Post Telemundo Klout SQAD Media Thirst Amobee* (formerly Terra Networks USA Bidtellect Bluekai Krux Sticky MediaAdx Adconion Direct) Discovery Communications IMDB New York Public Radio The Associated Press Blue Ant Media Booz & Company Lijit Networks StudioNow MediaLink Anyclip DISH Impremedia Digital News Corporation The Christian Post BlueLink Marketing BPA Worldwide Liquidus Supercell NEC VUKUNET AOL Disney Interactive Inc.com News Distribution Network The Economist BuySellAds Briabe Mobile LiveIntent Szabo Associates, Inc ONEcount AOL Platforms Dominion Digital Media InfoWorld Newsday The Huffington Post DIRECTV Brightcove LivePerson Tapad Outsourced Ad Ops Appia Dow Jones & Company InMobi NextNewNetworks The New York Times Electric Sheep BrightLine LiveRail TapCommerce PadSquad Apple Inc. (iAd) (Wall Street Journal) Innity NorthStar Company EyeSee, Lda Burt LiveRamp Teads Technology Pfizer Appsnack Earth Networks Interactive One NTENT The Superficial Financial Times CDK Digital Marketing Loeb & Loeb LLP Telemetry Pixability appssavvy eBay Investor’s Business Daily OneSpot First Look Media Celtra eBay Enterprise IZEA Opera MediaWorks The Wall Street Journal Lotame The Center For Sales PowerLinks Media AT&T AdWorks Digital Network GasBuddy.com Centro Magnetic Strategy Rokkan Media LLC Audience Partners Ebuzzing Jivox Optimatic Heyzap Chango Editorial Projects in Jumpstart Automotive Optonline The Weather Channel MarketShare The Estee Lauder RTBTECH Autotrader.com TheStreet.com I-5 Publishing Chartbeat Markit On Demand Companies S4M USA BabyCenter Education Media Orange Advertising Live Nation ChoiceStream Electronic Arts Jun Group Network Thomson-Reuters MarkMonitor The Integer Group Social Reality Batanga Media Time Inc. Lonely Planet Cisco Maxifier The Media Trust Company Sonobi Bazaarvoice eMarketer Just Jared Outbrain Match Media Group Cleveland Clinic e-Miles Just Jared Jr. OWN: The Oprah Winfrey Time Out America MaxPoint The Trade Desk Sorenson Media BBC Worldwide Time Warner Cable Media Mezzobit Clipcentric MdotLabs Theorem The Exchange Lab BBN Solutions Entertainment Weekly Kargo Network MGID clypd ESPN.com Kelley Blue Book OwnerIQ Townsquare Media Mediabrix Time Warner Cable VideoAmp Bizo Transpera Mirriad Cognitive Match Medialets TreSensa Videoplaza blinkx Essence Magazine Kontera Pandora MobileFuse comScore Everyday Health LIN Media Patch Media Tremor Video MediaMath TripleLift Vidible BlogHer Triad Retail Media MobPartner ConvertMedia MediaOcean TruEffect Vistar Media Bloomberg Expedia Media Solutions LinkedIn PC World my6sense Core Audience Exponential Local Corporation People Tribal Fusion Medicx Media Solutions TruSignal VivaKi Bloomberg Businessweek Tribune Company Nexstar Digital Crisp Merkle TRUSTe XUMO BrandAds Facebook Los Angeles Times People En Espanol NinthDecimal Criteo FaceCake Marketing LSN Mobile PGA TOUR TripAdvisor Metamarkets Turn Inc. Zentrick Brides Magazine Triton Digital Onswipe Crowdtap Millward Brown Digital UBM Tech Zocalo Group BrightRoll Technologies Luminate Phunware Advertising Outfront Media Datalogix FanIQ Machinima Pictela triviaBids Mirror Image Internet Unilever zVelo Burst Media Corporation true[X] media PK4 Media DataXu Mixpo

2014 ANNUAL REPORT 25 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making MAINSTREAM MOVING MOBILE Digital Supply Measurement Publisher Moving Mobile Building Brands 26 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

IAB, Mobile, and the Cannes Lions Festival of Creativity MOVING MOBILE IAB put the spotlight on mobile and creativity for its starring role at the Cannes Lions International Festival MAINSTREAM of Creativity in 2014. Christine Cook, Head of Ad Definition (MRAID) Working Group released a first set of Partnerships at Flipboard, was joined by David Doty, MRAID Best Practices, guidance for creative designers and Executive Vice President and CMO at IAB, to present Art vendors supporting MRAID. It also finalized the IAB suite & Advertising—Small Size, Big Impact: When Beautiful of official MRAID v2 Compliance Test Ads. These five ads, Creative Meets Mobile Screens to a packed house in the hosted on IAB.net, offer an objective yardstick for vendors to he mobile marketplace is growing at full tilt, Palais des Festivals as part of the Art Meets Advertising test and verify that their MRAID implementations are correct. with triple-digit revenue growth for the third year Remix sessions. Randall Rothenberg, IAB President and in a row. Central to this growth are the many Establishing Reliable Mobile Measurement CEO, hosted a cocktail party for members, agencies, contributions of the IAB Mobile Marketing Center of IAB Mobile Road Show for Agencies & Brands spotlighted and marketers to honor Silicon Valley visionary and Excellence, which placed emphasis on projects and location data. investor Ron Conway. Also at Cannes Lions, IAB Mobile Discrepancies are not anything new to digital advertising. initiatives to educate marketers and agencies: make mobile Center head Anna Bager moderated Tech Talk sessions T These still occur on the desktop, and IAB guidance is easier to buy, sell, and measure; reduce friction in the mobile in Chicago and made stops in Austin, New York, and in the Palais on mobile and video. Adding another that players in the ad-serving process should be able to supply chain; create a conducive public policy environment; San Francisco to reach the local agency and marketer dimension to the IAB presence in Cannes, we released manage to a 10 percent discrepancy rate between the and otherwise make mobile an increasingly mainstream and communities. Each show featured an all-star lineup of the IAB Digital Mixology Playbook, a report on digital parties counting. In mobile, however, we have not yet integrated part of the overall media landscape. presenters offering specific examples of mobile and cross- and mobile advertising for the alcoholic beverages achieved a predictable or reliably low discrepancy rate. To media campaigns that leveraged location to reach relevant industry, providing insight for beverage marketers, and address this, the Mobile Ad Ops working group continued Under the leadership of Anna Bager, the IAB Mobile Center audiences and track success. building on the previous year’s session by IAB at Cannes its investigation into mobile discrepancies in an effort to has continued its steady membership growth and now Lions on Liquid Creativity, which highlighted ad creative has 21 distinguished members on the Board of Directors. To cut through the varied and intricate mobile video that spanned across media channels, using a variety of Further underscoring media industry interest in mobile, the landscape, the IAB Mobile Center released the Mobile canvases to tell brand stories. IAB 2014 Mobile Marketplace Conference on April 7 was Video Buyer’s Guide: Practical Advice for Video Advertising completely sold out. on Smartphones and Tablets early in 2014. A simple and straightforward overview of the ins and outs of mobile video, At the Cannes International Festival of Creativity in 2014, it explains how mobile video is similar to and how it differs Realizing the Full Value of Mobile Christine Cook, Head of Ad from desktop based digital video ads. This guide served as a Partnerships at Flipboard, and Inspired by the premium publishers, ad sellers, and ad foundation for mobile digital video activities throughout 2014, David Doty, Executive Vice technology members we serve, the IAB Mobile Center is on including an Agency Day focused on taking advantage of President and CMO at IAB, a mission to help advertisers unlock the full value of mobile increasing video viewership on smartphones and tablets. presented to a packed house in the Palais des Festivals. advertising. Many advertisers are missing opportunities to connect with their audience by Pushing Improvements in Mobile Creative using desktop-only ad formats The IAB Mobile Center is on a or skipping mobile buying Furthering its mission of educating the marketplace about mission“ to make mobile an increasingly altogether. Make Mobile Work the power of mobile advertising—and improving mobile is an IAB initiative that aims to creative—the IAB Mobile Center organized several industry mainstream and integrated part of the foster adoption of HTML and events in 2014, including a town hall at the IAB Ad Lab overall media landscape. ” the facilitation of cross-screen titled Dispatches from the Leading Edge of Mobile Creative, creative campaigns. Over the which featured an update on IAB Mobile Rising Stars ad course of 2014, IAB hosted a units as well as specific examples of creative executions series of four webinars aimed at educating marketers and that pushed the envelope for engaging and effective mobile agencies on the importance of integrating mobile into the advertising. The IAB Mobile Center is also taking an active creative, planning, and buying phases. The events featured role in shaping Rising Stars Next to determine future-proof presentations from IAB, AOL, and Google, and attendees IAB ad format standards in a world where content is fluid received an HTML5 research study from Google. across screens.

Helping marketers understand how to use mobile To help mobile-rich media advertising scale more effectively, the IAB Mobile Road Show for Agencies & successfully and reduce friction in the mobile ad supply Brands, Spotlight on Location Data kicked off last summer chain, the IAB Mobile Center’s Mobile-Rich Ad Interface

2014 ANNUAL REPORT 27 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making MAINSTREAM MOVING MOBILE Digital Supply Measurement Publisher Moving Mobile Building Brands 28 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

Washington, D.C., for the third annual Mobile Fly-In. IAB MOBILE MARKETING CENTER OF EXCELLENCE 2014 BOARD OF DIRECTORS IAB was the sponsor of the Congressional Internet Caucus Advisory Committee’s State of the Net—Wireless meeting. Members of the IAB Mobile Center Board were panelists at the event, and the conference was widely

attended by congressional staff and key industry policy ® provide guidance to the market on how to properly manage representatives. them. The working group also surveyed members to gauge how the industry is dealing with this issue. The result was Members of the IAB Mobile Center also convened on the updated paper Mobile Discrepancies 2.0, which outlines Capitol Hill to advocate on behalf of the mobile marketing the major causes of mobile discrepancies and provides industry. Members met with the U.S. Senate Judiciary IAB MOBILE MARKETING CENTER OF EXCELLENCE 2014 SUPPORTING MEMBERS extended guidance on how to manage, troubleshoot, and Committee’s counsels to discuss S. 2171, the Location prevent discrepancies in campaigns. Privacy Protection Act sponsored by Senator Al Franken (D-MN), and with members of the House Privacy Working To look at the current science of mobile metrics and identify Group to discuss mobile self-regulation and privacy. The how the industry can deliver more reliable data to buyers Working Group included Reps. Marsha Blackburn (R-TN), and sellers of advertising, the Mobile Center hosted town Peter Welch (D-VT), Joe Barton (R-TX), Pete Olson (R-TX), halls on both the East and West Coasts on the State of Mike Pompeo (R-KS), Janice Schakowsky (D-IL), Bobby Rush

MOVING MOBILEMOVING MAINSTREAM Mobile and Cross-Media Audience Measurement. Most (D-IL), and Jerry McNerney (D-CA). important, the IAB Mobile Center has begun working with the 3MS and the Media Rating Council (MRC) on Making Quantifying the Global Mobile Market Mobile Measurement Make Sense (4MS), which was a big theme at the IAB Mobile Marketplace Conference in 2014 Mobile knows no borders, and the IAB Mobile Center continued to bolster IAB as a global organization. In and is likely to be top of mind in 2015 as well. Working with IAB Europe and IHS, the Mobile Center Finally in November 2014, IAB and IAB China uncovered the summer of 2014, the IAB Mobile Center released a published the third annual analysis of global mobile ad a mobile “drive time” opportunity important to advertising comprehensive look at mobile’s role in the 2014 FIFA World Creating a Conducive Public Policy revenue, finding that, on a global basis, mobile advertising success on smartphones and tablets with Chinese Cup. The report examined mobile’s role in helping soccer Environment yielded $19.3 billion in 2013. The IAB Mobile Center consumers. The IAB U.S. & China Mobile Report 2014 fans keep up with and share their excitement about the published The State of the Mobile World, the largest annual demonstrated how consumers’ mobile use while commuting games across 11 countries. Legislation and regulation continue to have the potential anthology of global perspectives from the network of in China can be paralleled with premium commuter time to impede the growth of the mobile advertising ecosystem. global IABs, looking at the state of development, market radio in the U.S. In May, members of the Mobile Center traveled to opportunities, and needs in 30 countries.

2014 MOBILE RESEARCH KEY FINDINGS

2014 U.S. VERTICAL WORLD CUP: HISPANIC INSIGHTS: RAISING THE A GLOBAL MOBILE MILLENNIALS AND MOBILE CURTAIN ON MOBILE, ENTERTAINMENT IAB PERSPECTIVE – MOVIES, AND LIVE SPORTING EVENTS • Hispanic Millennials sometimes like—and even U.S./CHINA • Half of smartphone-owning soccer fans welcome—ads, as long as they are on their terms MOBILE DATA • 90% of live entertainment seekers turn to mobile after and their preferred timing. 66% say that they pay across Australia, Brazil, China, Colombia, France, Ireland, USAGE STUDY seeing ads for entertainment events on other channels. Italy, Japan, Mexico, the United Kingdom, and United States attention to at least some ads on their phones. plan to use mobile devices to follow the World Cup. • Chinese smartphone users • 85% of mobile sports fans turn to mobile after seeing ads for • 21% of Hispanic Millennials say that they have are three times as likely as their entertainment events on other channels and 87% of moviegoers turn to mobile • 37% of soccer fans already positively interact with mobile followed a brand on social media after seeing an ad American counterparts to interact after seeing ads for movies on other channels. ads daily and 68% are willing to pay for video of (27% have done a search, and 23% have tapped or with mobile ads on a daily basis. game-related content on their phones. clicked on a mobile ad). • One in three mobile sports fans and moviegoers purchases tickets Conducted by GfK and produced directly through a phone or tablet. Conducted by OnDevice Research and commissioned and Conducted by Pacific Ethnography in partnership with IAB China sponsored by IAB, IAB Australia, IAB Brazil, IAB China, IAB Conducted by Pacific Ethnography Colombia, IAB France, IAB Ireland, IAB Italy, IAB Mexico, IAB U.K., and D.A. Consortium (Japan)

2014 ANNUAL REPORT 29 2014 RESEARCH IAB 30 ANNUAL REPORT 2014

DIGITAL TRENDS

IAB INTERNET ADVERTISING REVENUE REPORT DIGITAL VIDEO IAB RESEARCH • Internet advertising revenues in the U.S. climbed to a historic high of $12.4 2014 ORIGINAL billion for the third quarter of 2014— DIGITAL VIDEO STUDY growth of 17% over the same quarter in 2013. • More than one in five American adults AUTO he research produced by IAB helps guide watches original digital video each month, a Quarterly report prepared SHOPPERS and advance the digital media and 15% increase from 2013, bringing the audience to by PwC U.S. AND DIGITAL advertising industry by delivering information 52 million per month. • Auto purchase intenders are more likely to that our members and partners need to do online research for products before buying build brands and business. • Flexibility of viewing is cited as the top (96%), and are twice as likely to be influenced T driver for watching “made for digital” content and is considered a key reason for consumers by sponsored search results than the logging onto digital rather than tuning general population. into traditional television shows. VIDEO • Auto intenders are 71% more likely to be Produced by GfK AD SPEND STUDY swayed by internet ads for autos, 87% more likely by email ads, and 71% more • 65% of agencies and marketers likely by social media. planned to increase spending on digital video advertising in 2014. IAB report based on data from IAB ProsperInsight • Three out of four advertisers foresee DIGITAL original digital programming starting to become MIXOLOGY PATH TO PURCHASE as important as TV programming within PLAYBOOK the next three to five years. • Drinking consumers are heavier Conducted by Advertiser users of mobile devices than the HOLIDAY Perceptions general population, and more than SHOPPING IN A half of those consumers (55%) are CROSS-SCREEN WORLD also Millennials. • Almost two thirds of U.S. smartphone PUBLISHER TRANSFORMATION Whitepaper by IAB owners have already or will research, shop for, or purchase products via their smartphone this MOBILE FIRST AND REACHING holiday season. CONSUMERS ACROSS SCREENS GETTING IN-FEED SPONSORED CONTENT • 68% of 18-to-34-year-olds and 62% of parents with children MEDIA MULTITASKERS RIGHT: THE CONSUMER VIEW under 18 make purchases on their smartphones. AND PURCHASE INFLUENCE • 90% of consumers feel “relevancy” is • Men are much more likely than women to go • 44% of U.S. adults go online a top factor in sparking interest in beyond browsing and research on their mobile devices regularly while watching TV and 82% do in-feed sponsored content. to make actual purchases via smartphones so at least occasionally. • Criteria such as brand familiarity and trust (56% versus 45%).

• Regular media multitaskers are more likely (81%) and subject matter expertise (82%) are Conducted by Harris Poll and produced in to notice and be influenced by media also critical in driving news reading consumers’ interest partnership with Precision Market that they are taking in on either screen. in sponsored content. Insights from Verizon

IAB report based on data from Conducted in partnership with ProsperInsight Edelman Berland

2014 ANNUAL REPORT 31 2014–2018 FIVE ENDURING PRIORITIES

Trustworthy Making DIGITALLYBUILDING BRANDS Digital Supply Measurement Publisher Moving Mobile Building Brands 32 ANNUAL REPORT 2014 Chain Make Sense Transformation Mainstream Digitally

BUILDING BRANDS DIGITALLY

AB continued its focus on enabling brand advertisers to interact with a Mobile Rising Star ad than a standard rates improve. The to embrace the new digital media mix enthusiastically, mobile ad and have significantly higher brand perceptions cumulative effect of the but the challenge of measuring, executing at scale, and after interacting with a Mobile Rising Star ad. The digital four pieces of research building great creative is still causing under-investment in video data shows that when interactivity is added to video on Rising Stars added to digital. To address these issues, IAB is helping members ads, interaction rates rise more than three times higher, a growing awareness of Ion a number of fronts to lead brands through programs there are significant increases in brand lift, and completion the effectiveness of these designed to make it easier to buy, create, deploy, and ad units, as evidenced measure engaging digital advertising. by eMarketer’s April report IAB Rising Stars A Cross-Screen Canvas: Rising Stars Ads Outperform Standard Banners, complete with The Rising Stars program, designed to offer brand charts culled from IAB marketers canvasses across screens that enable creativity primary research. at scale, reached a key milestone when, at the 2014 IAB Annual Leadership Meeting, the Digital Video Rising Stars IAB also sought ways to were added to the engage in meaningful IAB Standard Ad Unit discussions and The IAB Standard Ad Unit Portfolio is now 70 Portfolio. This marked collaborate on specific percent“ new, with over half of the legacy units the completion of an initiatives in strategic intense, multiyear markets such as Japan. As retired and replaced with new formats designed to process of rapid strong advocates for IAB allow for rich interaction ‘on the page’ in display, innovation. The standards and guidelines, IAB Rising Stars provide the canvas for the next generation of brand mobile, and digital video. portfolio is now D.A. Consortium announced its launch of IAB Mobile advertising. ” 70 percent new, Rising Stars in Japan and conducted research into their with over half of effectiveness in that marketplace. the legacy units retired and replaced with new formats content at member companies and agencies. This board designed to allow for rich interaction “on the page” in IAB Ad Unit Portfolio: The Evolution is influencing the industry broadly, setting the IAB ad display, mobile, and digital video. Continues product road map, including the ad product work of the Native Advertising Task Force and Programmatic for Brands During the first quarter, IAB added to the growing body of IAB Rising Stars are proving their worth to brand marketers Working Group. In addition to key member participation, research on the IAB Rising Stars ad units, publishing the every day by creating new desire and demand, increasing digital leaders from GroupM, IPG, Publicis, and WPP are results of the Mobile Rising Stars Ad Effectiveness Study engagement and loyalty, and ringing the cash register. active partners. as well as a survey of the evidence of effectiveness of Despite this, the evolution of the standard ad unit portfolio Digital Video Rising Stars. The mobile findings mirror those is essential to keep pace with the expectations of consumers of display, showing that consumers are twice as likely for ad experiences as natural and meaningful as the content they enjoy in the digital realm. Rising Stars Next is working to solve the new challenge and determine what’s next for IAB standards in a world where content is fluid across screens and increasingly within ads. Leading this The Digital Video Rising Stars were effort is the newly formed Ad Products Advisory Board, added to the IAB Standard Ad Portfolio, composed of buy- and sell-side executives who drive augmenting sight, sound, and motion with meaningful ad experiences as heads of ad products or ad interactivity at scale.

2014 ANNUAL REPORT 33 BUILDING BRANDS DIGITALLYBUILDING BRANDS 34 ANNUAL REPORT 2014

IAB MIXX Awards: Recognizing Krasselt, Goldman Sachs, Grey, GroupM, Leo Burnett, Outstanding Achievement McCann Erickson, Ralph Lauren, Showtime, Saatchi & Saatchi, Wieden+Kennedy, and more. Recognizing For 10 years, the IAB MIXX Awards have been a beacon outstanding creative of where the industry is going. IAB leveraged the learnings Recognizing outstanding creative and technical and technical achievements, the from the most recent set of winners in a publication, achievements, the IAB MIXX Awards 2014 were held on IAB MIXX Awards sponsored by Microsoft Advertising, called What Works September 30 during Advertising Week and marked the 2014 marked the 10th and Why in Digital Advertising: Insights from the IAB 10th anniversary of this prestigious and highly anticipated anniversary of this BUILDING BRANDSBUILDING DIGITALLY MIXX Awards. In May 2014, IAB MIXX Awards judges event. Leading interactive advertising professionals from prestigious event. Jeff Benjamin, formerly Chief Creative Officer of JWT brands and agencies from around the world attended. North America, Laurie Koehler, Consumer Campaigns The creative honored in 2014 pushed the boundaries of Senior Marketing Manager of Intel Corporation, Nick Law, interactive, illustrating the endless potential that digital Global Chief Creative Officer at R/GA, and Lou Paskalis, offers marketers. The most prestigious IAB MIXX Award, in the history of the awards program. In addition, three Silicon Valley/Silicon Alley Tours Senior Vice President, Enterprise Media Executive of Bank the Best-in-Show prize, went to Chipotle Mexican Grill new categories were added to the IAB MIXX Awards of America, joined Randall Rothenberg and Stephen Kim, and Creative Artists Agency for their campaign “The competition to put the spotlight on critical trends emerging On the mission to encourage and influence leading agency Vice President for Global Agencies at Microsoft, in the IAB Scarecrow.” The event featured an additional honor to in the interactive marketplace: Data-Inspired Creative, creatives, media professionals, and brand marketers to Ad Lab to lead a conversation that went under the hood to celebrate ongoing creativity among brands and agencies, Native Advertising, and IAB Rising Star Digital Video Ad. engage with publishers, technologists, and venture capital look at award-winning campaigns for a packed house of recognizing American Express as the Most-Awarded firms, IAB brought 24 brand marketers and members of the brand marketers and agency executives from AIG, Cramer- marketer and DigitasLBi as the Most-Awarded agency IAB Agency Advisory Board to the West Coast in March for the Madison Avenue Meets Silicon Valley Tour. During the trip, the group met with Facebook, Pinterest, Salesforce, and Twitter, as well as Kleiner Perkins and Comcast Ventures, IAB MIXX AWARDS JUDGES 2014 and took part in a discussion and dinner with angel investor Ron Conway. Mary Meeker, a legendary internet analyst and partner at Kleiner Perkins, presented her much-admired Jeff Benjamin – formerly of JWT North America Michael Lebowitz – Big Spaceship insights about the present and future of digital advertising. Lincoln Bjorkman – Wunderman Robert Lund – The Barbarian Group Representatives from several companies in which Kleiner Brad Brinegar – McKinney Andy Markowitz – General Electric Company Perkins has invested—including Flipboard, Shazam, InMobi, Ed Brojerdi – kbs+ New York Richelle Parham – eBay North America and Pixlee—talked to the group about their place in the Andreas Combuechen – Atmosphere Proximity Lou Paskalis – Bank of America ecosystem. IAB continued its bridge-building in November Emma Cookson – BBH North America John Piontkowski – Microsoft Advertising by hosting a two-day Silicon Alley Tech Tour of NYC with John Costello – Dunkin’ Brands Elizabeth Pizzinato – Four Seasons Hotels and Resorts venture capitalists, startups, and incubators for ad world Alberto Ferrer – Alberto Ferrer Consulting Suzie Reider – Google~ YouTube chiefs and brand marketers. Based on the Silicon Valley Jane Grenier – Condé Nast Media Group David Roman – Lenovo tour in March, the trip included deep dives with BuzzFeed, Christian Haas – Silverstein & Partners Antonio Ruiz – The Vidal Partnership RebelMouse, MakerBot Industries and other portfolio Jack Haber – Colgate-Palmolive Company Ciro Sarmiento – Dieste companies from seed investment studio Lerer Hippeau Jon Jackson – Huge Alan Schulman – SapientNitro Ventures. Both events were extremely well-attended, and Kim Kadlec – AOL Baba Shetty – DigitasLBi IAB expects to curate more of these in the years ahead. Joyce King Thomas – McCann XBC Shiv Singh – Visa Laurie Koehler – Intel Corporation Marla Skiko – SMG Multicultural The Pinterest offices were one of the first stops Natalie Lam – Razorfish Jim Therkalsen – Facebook Creative Shop on the Madison Avenue Meets Silicon Valley Nick Law – R/GA Steve Wax – Ladies & Gentlemen and Cooke&Co. Tour.

2014 ANNUAL REPORT 35 Sheryl Sandberg Facebook 2014 EVENTS IAB 36 ANNUAL REPORT 2014 IAB MIXX

Katie Couric Yahoo Jared Leto IAB MIXX THOUGHT IAB MIXX LEADERSHIP: EVENTS

Vivek Shah Ziff Davis Maurice Lévy IAB Ad Technology Publicis Marketplace IAB MIXX

Natalie Lam Uniting Big Ideas with the People Razorfish Who Bring Them to Life IAB MIXX Awards

AB events are convening platforms for industry thought leadership. In 2014, more than 7,000 media executives and digital influencers from around the globe attended more than 80 IAB Ben Phillips Ann Lewnes Dawn Ostroff events and conferences. MediaCom Adobe Condé Nast Entertainment I IAB Mobile Marketplace IAB Annual Leadership Meeting IAB MIXX

Tim Armstrong Kevin Spacey AOL IAB MIXX IAB MIXX

Bob Pittman iHeartMedia IAB Annual Leadership Meeting

Meredith Kopit Levien The New York Times Co. IAB Annual Leadership Meeting Randall Rothenberg IAB IAB Annual Leadership Meeting

Angelina Eng Elizabeth Ross Merkle BPN IAB Ad Operations Summit IAB Cross-Screen Marketplace

2014 ANNUAL REPORT 37 GLOBAL NETWORK 38 ANNUAL REPORT 2014

campaign case studies from 14 countries, spotlighting lessons reform of the EU’s data protection rules, and to open up a on marketing and brand-building in the digital world. new work track on intellectual property protection issues. IAB also worked with IAB Europe to deepen its working IAB INTERNATIONAL: IAB also released the Global Legal Summaries, the first online relationships with like-minded industry associations, EXPANDING THE DIGITAL resource offering information and insights about regulatory including the World Federation of Advertisers and EU-level and policy issues from countries. The report provides a agency association EACA on ad misplacement, the UNIVERSE qualitative picture of mobile diversity country by country, Industry Coalition for Data Protection (ICDP) on the current and is one of the most comprehensive views yet of the global data protection reform, and the European Publishers’ mobile marketplace for publishers and advertisers. Council and magazine and newspaper publishing associations on ad blockers and online behavioral Underscoring the importance of mobile on the global advertising (OBA) self-regulation. Finally, IAB was verall, 2014 was a year of growth for the stage, the 2014 IAB State of the Mobile World report was instrumental in the formation of a transatlantic policy issues IAB Global Network, which is now 43 also unveiled at the Global Summit, with participation from task force, led by IAB and IAB France, and including IAB countries strong, across six continents, and 30 countries. The report provides a qualitative picture of Europe and various national IABs in the European network. serves to further the needs of hundreds of mobile diversity country by country, and is one of the most It kicked off with the drafting of common principles on data corporate members in such critical areas as comprehensive views yet of the global mobile marketplace transfer and how these could be applied usefully in the policy, research, and education. O for publishers and advertisers. updating of the “Safe Harbor” regime. IAB South Africa: First IAB on the African The international team, led by IAB Executive Vice President Continent IAB Europe: Promoting Policy In 2014, IAB Europe experienced a reinvigoration with the and CMO David Doty and Senior Director of International appointment of Townsend Feehan as Chief Executive Officer Alexandra Salomon, aimed to further the overall mission Marking its first entry onto the African continent, in IAB worked closely with IAB Europe in 2014 to broaden and a strong growth in membership, with 17 companies and priorities of IAB globally through: February, IAB announced that the Digital Media & and deepen its policy engagement to address heightened joining in the past 12 months. The future looks bright. • Expansion of the IAB brand in strategic markets Marketing Association (DMMA) had signed a license regulatory scrutiny on privacy, including a broad agreement to rebrand and establish itself as IAB South • Thought leadership Japan, South Korea, India, and the Africa. Based in Johannesburg and headed by Jarred Middle East • Self-regulation and public policy Cinman, former Chair of the DMMA, the new IAB South • Promotion of the IAB certifications program Africa kicked off, already representing more than 96 local Finally, as the IAB brand continues to gain value globally, internationally online publishers and 93 creative, media, and digital the organization is actively exploring the establishment agencies. With the launch of IAB South Africa, there are of an IAB presence in strategic markets such as Japan, IAB China: Increasing Access now IABs on all the world’s continents except Antarctica. South Korea, India, and the Middle East. In August, IAB entered into a working collaboration with the Japan With the number of web users in China reaching a IAB Global Summit Internet Advertising Association (JIAA) to strengthen the staggering 618 million, IAB formally licensed the Interactive ties between the Japanese digital marketing community Internet Advertising Committee of China (IIACC) to launch The annual IAB Global Summit in October at the IAB Ad and the worldwide interactive ecosystem. IAB China in February 2014, furthering its long-standing Lab in New York City brought together more than 100 This cooperation will extend to exchanges relationship with Chinese internet companies and IIACC participants from 33 countries for a global town hall. IAB on self-regulation, public policy, and Secretary General Chen Yong, a veteran of the Chinese leaders and influential members from creative agencies, privacy, as well as IAB ad format and internet marketplace. This new organization is an important ad tech companies, publishers, and media agencies from technical standards. It will also open the new member of the global IAB network, leveraging the IAB China, Europe, the Americas, and beyond converged for door to co-branded research projects and brand and best practices to advance the industry’s interests two days of discussions and idea-sharing on growing discussion on a major thought leadership in a critical marketplace. This agreement sets the foundation businesses in the age of disruption. Nick Law, Global event in Tokyo. for stronger ties between Chinese internet businesses and Chief Creative Officer of R/GA; Linda Gridley, Partner and those across the globe, providing increased access in Co-Head of Digital Media Group at AGC Partners; and IAB distilled what IAB expects increased international activities multiple directions. Amanda Richman, President of Investment and Activation works and why in digital advertising in all these countries in 2015 and beyond at Starcom USA, were among the luminaries who spoke at around the world in to help consumers and advertisers have In November, Doty travelled to China and was the sole the two-day event. The conversation set the agenda for the the IAB Global Insights a reliably positive experience—and to non-Chinese judge of the China Advertising Great Wall global network over the following months. Report, featuring help government entities understand which Awards at the China International Advertising Festival, the 18 campaign case regulations can be good for the industry and country’s leading ad festival. He addressed an audience At the IAB Global Summit, several public announcements were studies and insider perspectives from to help promote responsible growth. of advertising professionals and government officials about made. IAB: What Works & Why—Global Insights Report, 20 top interactive privacy, measurement, technical standards, and other topics second in the What Works & Why series that IAB launched creatives, marketers, critical to IAB. last year, provided insider perspectives from 20 top interactive and publishers. creatives, marketers, and publishers about 17 advertising

2014 ANNUAL REPORT 39 EXPANDING INFLUENCE 40 ANNUAL REPORT 2014

TWITTER FOLLOWERS, FACEBOOK FAN STORYTELLING THROUGH VIDEO LIKES, AND LINKEDIN MEMBERS ALL IABTV VIDEO VIEWS UP IN 2014 UP IN 2014 40,000 70,000 35,189 EXPANDING INFLUENCE Ad blockers get ad-group exec’s blood 60,000 boiling (Q&A) 30,000 50,000

40,000 FACEBOOK 20,000 30,000

20,000 TWITTER • So Close, You Can Almost See it: 10,000 Viewability 10,000 LINKEDIN MEMBERS • The Future of Mobile Ad Sales: Change, 0 0 As Usual 20012 2013 2014 2013 2013 2014

THOUGHT LEADERSHIP ON PRESSING ISSUES TOP IAB BLOG POSTS 2014 RANK TITLE VIEWS • How the IAB Plans to Stamp Out Online Ad Fraud 1 Viewability Has Arrived: What You Need to Know to See Through This Sea Change 18,704 • Most Major U.S. Publishers Now Sell Ads Programmatically 2 Top 10 Things You Need to Know about Programmatic but Were Too Afraid to Ask 5,042 3 Randall Rothenberg, IAB President & CEO, Sets Record Straight on Digital Banner Ads 3,537 Digital-Video Ad Spending to Keep Eating into TV 4 The Future of Mobile Game Advertising 2,745 Budgets: Survey 5 Successful Strategies for Using Mobile Location Data 2,363 6 Yahoo & 23 Rich Media Vendors Leading the Way on SafeFrame Globally 2,308 • Study: Auto Shoppers 71% More Influenced by Digital Ads­­­—Mobile and video make big impact, says IAB TOP-LINE PRESS RESULTS • Spirits Brands Have a Big Opportunity With Mobile Ads—IAB finds TOTAL MONTHLY PRESS STORIES IN 2014 SET NEW RECORDS IN SIX OF THE 12 MONTHS that drinkers are digitally savvy IAB: Search And 3,000 Display Fuel $19.3B In Worldwide Mobile Ad 2,500 Revenue

2,000

Digital Players Buy into the Brand-Building Power 1,500 of the Newfronts (But Are Brands Buying?)

1,000

New IAB Study Rates 500 Native Advertising: Fashion Brands’ News readers want good Mobile Sites 0 storytelling in advertisements JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

202012 202013 202014

2014 ANNUAL REPORT 41 WHO IS IAB?WHO 42 ANNUAL REPORT 2014

EXECUTIVE COMMITTEE 2014 STAFF

Randall Rothenberg Bill Todd Rik van der Kooi PRESIDENT & CHIEF EXECUTIVE OFFICER SENIOR VICE PRESIDENT AND GENERAL IAB President and Chief Conversant Media Microsoft Advertising MANAGER MOBILE & VIDEO CENTERS Executive Officer Randall Rothenberg — [email protected] WHO IS IAB? David Moore Curt Hecht Anna Bager — [email protected] Vivek Shah Xaxis The Weather Channel EXECUTIVE VICE PRESIDENT & CHIEF Ziff Davis, LLC, Chairman Neal Mohan OPERATING OFFICER SENIOR VICE PRESIDENT, RESEARCH, David Morris Google Patrick Dolan — [email protected] ANALYTICS & MEASUREMENT CBS Interactive, Vice Chair Sherrill Mane — [email protected] EXECUTIVE VICE PRESIDENT & CHIEF MARKETING OFFICER SENIOR VICE PRESIDENT MEMBERSHIP David Doty — [email protected] PROGRAMS Lisa Milgram — [email protected] BOARD OF DIRECTORS 2014 EXECUTIVE VICE PRESIDENT & GENERAL COUNSEL Mike Zaneis — [email protected] Joe Apprendi Joan Gillman Jim Norton Collective TWC Media AOL ADMINISTRATION & EVENTS LEARNING & MEMBERSHIP Michael Barrett Eric Harris Penry Price FINANCE Virginia Rollet Moore DEVELOPMENT Nicole Horsford Millennial Media BuzzFeed LinkedIn Mark Goldman Vice President Events Michael Theodore Director Member Services David Brinker Mark Howard Scott Schiller Senior Director Finance & [email protected] Vice President Learning & [email protected] News Corporation Forbes Media NBCUniversal Administration Development [email protected] Phil Ardizzone [email protected] Kevin Blouin Ned Brody Eric Johnson Drew Schutte Senior Director Sales Senior Manager Business Yahoo ESPN Condé Nast Steven Eheart [email protected] Meredith Ian Operations Manager Human Resources Director Learning and [email protected] Paul Caine Neil Johnston Tad Smith [email protected] Christine Coq Development Bloomberg Cox Media Group Madison Square Garden Manager Events [email protected] Corie Levy Luz Brito [email protected] Senior Manager Membership Kevin Conroy Meredith Kopit Levien John Trimble Coordinator Finance Christa Babcock & Sponsorship Sales Univision Communications Inc. The New York Times Company Pandora [email protected] Zhana Edmonds Account Director Learning & [email protected] Manager Events Jory Des Jardins Seth Ladetsky Jacob Weisberg Development Diana Negron [email protected] [email protected] Fiona Moriarty BlogHer, Inc. Turner Digital Sports The Slate Group Executive Assistant Coordinator Member Services [email protected] Skylar Hogan Lauren Freeman [email protected] Mark Ford David Lawenda Mike Welch Coordinator Events Time Inc. Facebook AT&T Adworks Manager Learning & Rachel Silverman [email protected] Development MOBILE & VIDEO Executive Assistant CENTERS Eric Franchi Jean-Philippe Maheu Lauren Wiener IAB AD LAB [email protected] Undertone Twitter Tremor Video [email protected] Joe Laszlo Laura Baker Jimmy Maldonado ADVERTISING Senior Director Mobile Center Michael Friedenberg Suzanne McDonnell Troy Young Manager IAB AdLab Coordinator Learning and [email protected] IDG Communications US Discovery Communications Hearst Digital Media TECHNOLOGY [email protected] Development Scott Cunningham [email protected] Elaine Boxer Vice President Technology & INITIATIVES & Director Video Center EX OFFICIO Ad Operations COMMITTEES MARKETING & PUBLIC [email protected] RELATIONS Rich LeFurgy Joe Rosenbaum John Toohey [email protected] Peter Minnium Head of Brand Initiatives Chris Glushko Kenya Reynolds Archer Advisors ReedSmith LLP, Secretary Time Warner Cable Media, Alan Turransky Manager Mobile & Video Founding Chairman Treasurer [email protected] Senior Director Marketing Senior Director Technology & [email protected] Centers Ad Operations Carl Kalapesi [email protected] [email protected] Vice President Industry Tina Shih Initiatives Director Marketing PUBLIC POLICY Brendan Riordan-Butterworth [email protected] [email protected] Alison Pepper FOR GENERAL INFORMATION ABOUT THE IAB, PLEASE CONTACT US AT: Director Technical Standards Senior Director & Assistant [email protected] Susan Borst Jana Friedman Interactive Advertising Bureau General Council Public Policy Director Industry Initiatives Senior Manager Events [email protected] 116 East 27th Street, 7th Floor Jessica Anderson [email protected] Marketing New York, New York 10016 Senior Manager Advertising [email protected] Brad Weltman Technology Belinda Smith 212 380 4700 Senior Director Public Policy [email protected] Senior Manager Industry Shira Neren [email protected] Initiatives Senior Manager Marketing www.iab.net Colleen Shields [email protected] & PR Alex Propes Coordinator Advertising [email protected] Senior Manager Public Policy The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Technology Jessica Ramirez [email protected] It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, [email protected] Manager Industry Initiatives Noel Wagner and optimizing digital advertising or marketing programs. Together, they account for 86 percent of online advertising [email protected] Manager Social Media & RESEARCH in the United States. Working with its member companies, the IAB evaluates and recommends standards and practices Marketing and fields critical research on interactive advertising. The organization is committed to professional development, INTERNATIONAL Kristina Sruoginis [email protected] Director Research elevating the knowledge, skills, and expertise of individuals across the digital marketing industry. The IAB also Alexandra Salomon educates marketers, agencies, media companies and the wider business community about the value of interactive [email protected] advertising. Founded in 1996, the IAB is headquartered in New York City. Senior Director International [email protected]

2014 ANNUAL REPORT 43 In 2014, IAB propelled the industry forward and continued to invest in our digital future. We are extremely grateful for the dedication of all our constituents. As an industry, we are well positioned today for a prosperous 2015 and beyond.