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2013 IAB Annual Report

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2013 IAB Annual Report 2013ANNUAL REPORT IAB facilitates a vibrant cross-screen marketplace in which brands have the resources they need to thrive —including metrics that drive well- informed decisions, a trustworthy supply chain, and tools that nurture creativity across devices. A LETTER FROM RANDALL ROTHENBERG ANNUAL REPORT 2013 self-regulatory measures such as the Quality Assurance Guidelines, the industry-wide brand safety compliance program. Just 10 days later, the Guidelines were updated to address the mass adoption of programmatic buying, mobile marketing, and digital video advertising. We also launched the Traffic of Good Intent Task Force to help remedy the plague of non-human and non-intentional traffic that’s poisoning marketer trust, and nearly 50 participating member companies have joined in to help. Today, marketers are propelling their brands across digital screens, THE STATE and IAB is helping them do it. Breakthrough canvases such as the OF IAB AND IAB Mobile and Digital Video Rising Stars give agencies dynamic and scalable canvases on which to tell their stories across screens. OUR INDUSTRY Technology solutions like the IAB Video Ad Serving Template (VAST) and Mobile Rich-Media Ad Interface Definitions (MRAID) are at work behind the scenes enabling ads to move easily between video players and across apps. Valuable insights about what works and why in digital marketing have risen to the surface through the first- ever IAB MIXX Awards Insights Report. For all that’s new to learn, we have bolstered the opportunities for education. The IAB Digital Media Sales Certification and the new IAB Ad Ops Certification programs establish standards of expertise that wenty-thirteen was an historic year for IAB. The big ideas and practitioners can use to stay up to date and employers can rely on to monumental achievements brought to life by our members and T evaluate the skillset and professionalism of new talent. our staff will secure the future prosperity of our industry and of this organization. All media and marketing is becoming digital, and IAB Support from our members and the greater community have made is the only organization prepared to support this expansion. these tremendous strides possible. In 2013 IAB was able to devote more resources than ever to the industry, due to record revenues of IAB is actively facilitating the development of a viable cross-screen more than $20 million for the year. I am extremely grateful for the marketplace in which brands have the resources they need to thrive, dedication of our constituents and for the continued hard work of the including but not limited to metrics that drive accountable and well- IAB staff, and I am looking forward to an inspirational, productive, informed decisions, a trustworthy supply chain, and tools that nurture and prosperous 2014. creativity and storytelling across devices. Sincerely, In 2013, the Making Measurement Make Sense (3MS) initiative, founded by IAB, the Association of National Advertisers (ANA), the American Association of Advertising Agencies (4A’s), and led by the Media Rating Council ended the year just months away from debuting revolutionary viewable impressions standards for transacting in display and video advertising. This new currency standard enables the first-ever common-ground measurements with television and other “traditional” media—without compromising the Randall Rothenberg benefits of interactivity—and will be the foundation of the cross- President and Chief Executive Officer platform Gross Rating Point. Interactive Advertising Bureau We built up our munitions to combat fraud and protect marketer brands, and our efforts were applauded by none other than the leaders of this country. In July, the White House praised IAB for its ongoing efforts to fight copyright piracy and counterfeiting through 1 2 2013 REPORT ANNUAL IAB JANFEB MARAPR MAYJUN JULAUG SEPOCT NOVDEC 0 5,000 10,000 15,000 40 32 20,000 2011 2012 2013 28 24 10 14 4 TABLE OF CONTENTS OF TABLE NG T NG LO AT ASSOCI L GENERA AIL E ANNUAL REPORT 2013 IAB FINANCIAL PROGRESS ...................................................... 4 IAB AND ADVERTISING TECHNOLOGY ....................................... 6 GROWING THE VALUE OF DATA ............................................... 8 IAB MOBILE MARKETING CENTER OF EXCELLENCE ......................10 IAB AND DIGITAL VIDEO ........................................................14 MAKING MEASUREMENT MAKE SENSE .....................................16 PUBLIC POLICY .....................................................................18 IAB MEMBERS ..................................................................... 20 BUILDING BRANDS ACROSS SCREENS ..................................... 24 A GLOBAL NETWORK ........................................................... 28 IAB—A CENTER FOR LEARNING .............................................. 30 THOUGHT LEADERSHIP ......................................................... 32 EXPANDING THE INFLUENCE OF IAB ....................................... 40 WHO IS IAB? 2013 IAB Board of Directors ..................................................... 42 IAB Staff ......................................................................... 43 2014 Operating Agenda ......................................................... 44 3 FINANCIAL REPORT 2013THE YEAR AT IAB ealthy and growing—that is the financial status of IAB and the number of new members. The financial goals of the events business Hdigital media and marketing industry in 2013. IAB was there to were reduced to account for the business’ maturity, and additional support all facets of this progress, expanding investment in member investment was dedicated to help invigorate this area. The efforts services and industry-building innovations to propel the ecosystem to have shown early signs of success, as 2013 events revenue will be even greater heights. slightly over budget at $6.3 million. We raised additional revenue through initiatives including sponsored research, professional The 2013 budget was planned conservatively, but with ambition. Our development and certification programs, rental of the Ad Lab, estimates were informed by years of IAB marketplace research and international licensing fees, and other fundraising programs. first-hand knowledge of the field, as well as by our drive to boost industry performance, maturity, and security. We increased our In 2013, IAB invested heavily in programs to help member expected topline revenue, dues revenue, and expenses, and planned businesses excel, and IAB planned and executed a contribution to its to build our financial reserve. financial reserve. It is the first time since the recession that we were comfortable enough with the health of the industry and IAB to budget According to financial projections based on the first 11 months of for both. The initiatives which received the greatest financial support the year, topline revenue will break $20 million for the first time in during the year included the Quality Assurance Guidelines program IAB history, representing an increase of 4 percent from the budget and other trust-building endeavors; Making Measurement Make of $19.3 million. For 2013, dues revenue will reach a record high of Sense which accomplished major advancements toward launching $9.8 million, approximately $500,000 over budget. This landmark the viewable impression standard; and IAB Certification Programs was achieved through minimal member attrition and a greater which evolved professionalism and expectations of expertise across FINANCIAL KEY INDICATORS FOR 2013* (‘000) 2013 2013 VAR FROM VAR FROM ACTUAL BUDGET BUDGET $ BUDGET % DUES REVENUE $ 9,804 $ 9,300 $ 504 5.42% EVENTS REVENUE $ 6,323 $ 6,095 $ 228 3.74% OTHER REVENUE $ 4,070 $ 3,915 $ 155 3.95% TOTAL REVENUE $ 20,197 $ 19,310 $ 887 4.59% COGS EXPENSES $ 4,959 $ 4,301 $ 658 15.3% OPERATING EXPENSES $ 14,981 $ 14,757 $ 225 1.52% TOTAL EXPENSES $ 19,940 $ 19,057 $ 883 4.63% NET INCOME $ 257 $ 253 $ 4 1.43% IAB ANNUAL REPORT 2013 4 ANNUAL REPORT 2013 IAB REVENUE STREAMS* SOUND FINANCIAL FOOTING* (’000) $0 $2,000 $4,000 $6,000 $8,000 $10,000 2007 49% Revenue growth MEMBERSHIP 31% allowed IAB to DUES EVENTS 2008 invest in industry initiatives and the future of the 2009 marketplace at a time of rapid change 2010 2011 6% IAB MOBILE 2012 14% MARKETING OTHER CENTER OF (Professional Development & Certification, EXCELLENCE 2013 International Licensing Fees, Spiders & Bots List, Ad Lab Rentals, and other sources of revenue) DUES REVENUE CASH BALANCE EVENTS REVENUE SURPLUS the industry. Additional funding was directed toward developing In 2013, the financial well-being of the IAB is a testament to the the cross-screen marketplace—including mobile marketing and prosperity of the industry it supports. The contribution to the financial digital video advertising, developing a seamless global network for reserve upgrades the stability of the IAB as an organization and interactive advertising commerce, forging innovations in advertising reinforces its ability to support member needs as they arise. technology, producing valuable insights into brand-building digitally, and new staff hires. IAB MEMBERSHIP BY TYPE 2009-2013 GENERAL ASSOCIATE LONG TAIL 2009 2010 2011 2012 2013 463 786 985 1,655 1,818 * Projections, based on unaudited data from the first 11 months of the year 5 ADVERTISING TECHNOLOGY IAB AND ADVERTISING TECHNOLOGY echnology is the backbone of the interactive advertising and Tmarketing industry. IAB strives to produce transparent and standardized mechanisms and
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