IAB Annual Report 2011


Published on

IAB Annual Report 2011 reporting 2010 (April 2011)

Published in: Business
  • Be the first to comment

  • Be the first to like this

IAB Annual Report 2011

  1. 1. annualreport2010
  2. 2. Our MissiOnThe inTeracTiveadverTising Bureauis dedicated to the growth of the interactiveadvertising marketplace, of interactive’sshare of total marketing spend, and of itsmembers’ share of total marketing spend. engagement showcase to marketing influencers interactive media’s unique ability to develop and deliver compelling, relevant communications to the right audiences in the right context. accountability reinforce interactive advertising’s unique ability to render its audience the most targetable and measurable among media. operational effectiveness improve members’ ability to serve customers—and build the value of their businesses—by reducing the structural friction within and between media companies and advertising buyers.
  3. 3. a leTTer FrOM BOB carriganThe state of iaB and Our industryA t the end of 2010, as my Members offered their first year as Chairman of time and expertise to advance the IAB Board of Directors IAB endeavors by participat-opens, I am pleased to report that ing in councils and committeesthe state of the IAB, like the state of and joining nonmember indus-the industry, is strong and growing. try thought leaders on stage to In 2010, IAB focused more educate the larger communitythan ever on evangelizing and at renowned events like the IABunleashing the power of interac- Annual Leadership Meeting, MIXXtive media, reaching across all Conference & Expo, and the newparts of the media-marketing value Case Study Road Show.chain to find the common groundon which to advance our industry. Focused on the FutureSimultaneously, the organization In 2011, IAB recognized theheld true to its long-term mission of strength of its executive teamengagement, accountability, and by promoting Patrick Dolan tooperational effectiveness. Executive Vice President and As we move into the organiza- Chief Operating Officer, Davidtion’s seminal 15th year, we have Doty to Senior Vice President andplans for remarkable accomplish- ership gatherings for the indus- ment across all digital media. Chief Marketing Officer, and Mikements, many of which you will read try. Twenty-ten was also a year of Throughout the year, IAB Zaneis to Senior Vice Presidentabout on the following pages. internal growth, in which the IAB dedicated its resources to mini- and General Counsel. After a decline in 2009 expanded its presence by opening mizing friction in the buying and I look forward to leading theand a slowing pace of growth a West Coast office. selling of online media. In June, organization into 2011. IAB isin 2008, our industry is flourish- Indeed, 2010 saw IAB IAB released the Networks & poised to deliver the most excit-ing again. While full-year figures enhance its centrality to the entire Exchanges Quality Assurance ing and results-focused year in itsare not yet available as we go to marketing and advertising eco- Guidelines to ensure transparency history. You can see on the follow-press, the industry’s 2010 third- system. The organization stood and consistency in ad network and ing pages the six-point strategy,quarter revenue of $6.4 billion in Washington, D.C., to cham- exchange operations, which 16 entitled Digital Everywhere, thatset a new record high, accord- pion consumer privacy protec- member companies have already IAB will pursue. Among the mosting the IAB Internet Advertising tion and defend our businesses pledged to adopt, and issued the exciting adventures for the yearRevenue Report conducted by against deleterious legislation final version of Standard Terms & are the launch of the IAB Ad Lab,PricewaterhouseCoopers. and regulation. The IAB Privacy Conditions 3.0 to expedite con- a new industry meeting ground Matters public education cam- tractual negotiations for the most where creatives and technolo-Tracking Broader Growth paign and the implementation of common types of interactive gists, device manufacturers andTrends the Advertising Option Icon pro- media buys. software developers, publish-IAB itself joined the industry in gram—developed and supported IAB efforts to overcome sup- ers and agencies, marketers andexperiencing a year of gratify- by a vast, cross-industry alli- ply-chain friction and boost the thought leaders, start-ups, anding upswing, in membership, in ance—demonstrated our indus- marketplace extended to the media titans can come together todues revenues, and in revenues try’s ability to work together to burgeoning mobile platform. In discuss, debate, demonstrate, andfrom its events business, enabling protect consumer privacy and collaboration with the Mobile network under the banner of IAB.the organization to pursue its stra- ensure the vitality of the interac- Marketing Association (MMA), You have my pledge that IABtegic mission of supporting the tive advertising market. we released standards for mobile will continue to foster growth forgrowth of interactive media. IAB marketing measurement. IAB all its member companies, and forended the year with 426 gen- Change Through deepened its commitment to the the industry at large, in 2011. I lookeral and associate members, Collaboration space by launching the IAB Mobile forward to working with the Boardan increase of 15 percent from IAB worked closely with many Marketing Center of Excellence, of Directors, IAB members, and the2009. Small-publisher participa- trade organizations through- whose mission is to drive the industry to advance our commontion surged, with 388 new Long out the year, and most recently development of mobile advertis- interests—and to having a lot ofTail members. cultivated the support of the ing through research, best prac- fun in the process. Dues hit just over $6M, a 6 per- American Association of tices, and evangelism.cent increase from plan, and events Advertising Agencies (4A’s) This year IAB also engagedcontributed $5M, up 37 percent and the Association of National agency creatives on its Agencyfrom plan. The IAB’s events busi- Advertisers (ANA) for the Making Advisory Board and in the Risingness also cemented its reputation Measurement Make Sense initia- Stars competition, asking them to Bob Carriganfor producing conferences that tive. That venture is charged with tell us which ad formats they’d like Chairmanserve as the central thought lead- devising a business solution to to see standardized in 2011—for- one of the most perplexing metrics IAB Board of Directors mats that will inspire effective and issues: how to create consistent, breakthrough brand advertising Chief Executive Officer transparent, and reliable measure- within interactive media. IDG Communications A n n u A l R e p o R t 2 01 0 1
  4. 4. 2010: The year aT iaBFinancial growth as the“great recession” subsidesF ollowing two years of strong Revenue from membership is $1.350M, or 37 percent, over for our nonprofit trade organiza- economic headwinds, IAB in dues came in 6 percent over plan. This expansion in event tion and represents an increase 2010 experienced a period budget. This gain came from the attendance required greater of $500,000 from the reserve’sof growth. A broad, albeit uneven, broadening of our Associate tier, expenditures, which is visible size at the end of 2009. IAB hasrecovery in the advertising mar- with 57 new industry-supportive in the difference between our dedicated the remaining balanceketplace and the expansion of members, and our Long Tail mem- planned and actual expenses. of the surplus to the developmentad-supported digital media com- bership category for small pub- At the end of the year, our of the IAB Ad Lab, the formationpanies allowed for growth in lishers, which saw skyrocketing revenues exceeded our bud- of the IAB Mobile Marketingcross-industry membership and participation and ended the year get to produce a surplus of Center of Excellence, and otherour events business. This allowedus to strategically invest in initia-tives and projects that would raise financial Key indicators for 2010membership value and add a level (‘000)of much-needed financial security 2010 2010 Var from Var Fromto our operations. Actual Budget Budget $ Budget % We planned our 2010 bud-get cautiously, aware that the dues revenue $ 6,175 $ 5,825 $ 350 6%financial turbulence of the period evenTs revenue $ 5,000 $ 3,650 $ 1,350 37%might not have been ready to sub-side. We trimmed our planned TOTal expenses $ 10,814 $ 9,759 $ 1,055 11%expenses and our expected rev-enue from events, while slightly gain (lOss) $ 859 $0 $ 859 658%upping our budget for membershipdues revenue. But as the year pro- with 388 members, up from 92 in $859,000, bringing our net asset strategic investments that willgressed, our performance began 2009. Our general membership, total to $968,000. Of this fig- increase our utility to membersto outpace those conservative dedicated to sellers of advertis- ure, $609,000 is being held in a and help us maintain our cen-expectations. ing inventory, showed a minor reserve. This is a prudent measure tral position in encouraging the decrease of 2 memberships. advancement of the interactive Our events business bene- advertising industry in 2011 and fitted from the brighter economic beyond. outlook and our proven track record of must-attend, high- quality events. Attendance and sponsorship income contributed $5M of top-line revenue, which
  5. 5. 2010: The year aT iaBiab membership by type: 2010 / 2009 Total Members: 2010 236 190 388 814 2009 238 133 92 463 0 200 400 600 800 General Associate Long Tailiab membership by revenue: 2010 General 88% Associate 11% Long Tail 1%events record yearAll Events FY 20102010 Events 5,000 Revenue (Dollars 3,497 ‘000) 2010 6,173 EventsAttendance 5,032 0 2,000 4,000 6,000 2010 2009 3
  6. 6. 2010 highlighTs2010: The year at iaB B y identifying and leveraging the common Self-Regulatory Principles for Online threads that connect all segments of the media Behavioral Advertising marketing ecosystem, IAB in 2010 redoubled The year’s work culminated on October 4, when its resolve to make significant advancements for all the Digital Advertising Alliance (DAA)—a collab- its member organizations and the interactive indus- oration among IAB, the American Association of try as a whole. Advertising Agencies (4A’s), the Association of National Advertisers (ANA), and the Direct Marketing Public Policy Association (DMA), with support from the Council In 2010, IAB strengthened its stance on the front of Better Business Bureaus (CBBB)—released the lines to protect consumer privacy, its member com- Advertising Option Icon, which is to be present in or panies, and the interactive industry as a whole around online behaviorally targeted ads, and cre- in Washington, D.C. Our aggressive efforts ated a site the advertising community could visit: to be heard on Capitol Hill and across fed- www.AboutAds.info. There, the industry could find the eral departments and agencies helped tools necessary for adopting the cross-industry coali- them understand that they should strike tion’s Self-Regulatory Principles for Online Behavioral a balance in their oversight, allowing Advertising. Those principles, issued in 2009, define for greater industry innovation and seven industry-wide standards designed to build con- growth, while amply protecting pri- sumer trust by calling on advertisers and ad networks vacy and intellectual property. IAB to operate with transparency and to empower con- advocated for policies that incen- sumers with knowledge and choice. tivize effective, legitimate business The interactive icon was developed in conjunction models, value consumer education, with the Network Advertising Initiative (NAI) and and give the industry the freedom to powered by CLEAR (Control Links for Education self-regulate where necessary. and Advertising Responsibly) Ad Notice Technical The IAB supported these calls by making Specifications, and when consumers click on the steady progress on three existing initiatives: icon, they are directed to information about which a brief history of the iab 1996: Online advertising revenue 15 years of a media revolution reported for the first time 1996: Internet Advertising Council formed with 25 members. Mission: Increase revenue 1997: Value of brand for sellers of online media advertising proven with the IAB Online Advertising 1996: The Proposal for Voluntary Model Effectiveness Study Banner Sizes defines 8 standard ad units 1997: Metrics and Methodology 1996: The organization document establishes guidelines for changes its name to the Internet the measurement of comparable online Advertising Bureau advertising data across websites $267M* * nteractiveadvertising I revenues $906.5M 1996 1997 A n n u A l R e p o R t 2 01 0
  7. 7. 2010 highlighTs iaBorganization served the ad, where to find its adver- Entitled “Privacy Matters,” the campaign linked recommendedtising policies, and how to opt out of such targeting to a site that helped consumers manage their pri-in the future. The site itself also provides consum- vacy online and invited them to roll over its tagline, ways forwarders with information about how online behavioral “Advertising Is Creepy,” in order to reveal a lon-advertising works and gives them a choice to sim-ply opt-out of some or all participating companies’ ger message that demystified key online advertis- ing practices. The latest figures as we went to press that incentivizeonline behavioral ads. show that in the first 11 months of the campaign, con- sumers initiated more than 29 million rollovers to dis- effective,In 2011, compliance with this program will be man- play the more in-depth educational messaging. Indated and monitored. IAB is releasing a first-everCode of Conduct, making adherence to the prin- total, the campaign had already delivered 460 mil- legitimate lion impressions.ciples a condition of membership. The CBBB alongwith the DMA will be responsible for monitoring and Second Annual Long Tail Alliance businessenforcing compliance as well as for managing con- Washington Fly-Insumer complaint resolutions. In June, 46 small publishers joined IAB in the nation’s models, valueConsumer Education through Privacy Matters capital to address their elected representativesCampaign and impress upon them the critical role that online consumer advertising plays in small business growth. Over theIn December 2009, IAB launched its first-ever con-sumer education campaign to promote consumer two-day event, these Long Tail publishers from 14 different states met with 35 House Districts and 12 education, andtrust and confidence in interactive advertising. Senate Offices, including members of the SenateThe campaign was fueled by the donation of cre- Commerce Committee. They also took part in IAB give the industryative from WPP digital creative agency Schematic, training sessions and presentations tailored to theirmedia planning from GroupM’s Mediaedge:cia, adserving from Atlas, and the commitment of more business interests. These small publisher constitu- the freedom to ents play an increasingly prominent role at IAB.than 500 million impressions from 32 online pub-lishers and ad networks. self-regulate continued 2001: IAB and 4A’s release the first-ever Terms 1999: IAB launches Professional Conditions for Internet advertising to ease buying and Development Series selling negotiations 2001: To increase the accuracy of audience Founding 2001: Standard banner ad unit measurement, IAB with ABCi IAB Chairman, guidelinese updated with larger launches initiative to publish 1999: Membership policy Rich LeFurgy Interactive Marketing Units and maintain a master list of revised to include adoption and spiders and robots posting of privacy policies1998: Standard definition of an 2001: Internet Advertising Bureau changes itsimpression established by IAB name to the Interactive Advertising BureauImpression Guidelines $4.62B$1.92B $8.2B $7.2B1998 1999 2000 2001 5
  8. 8. 2010 highlighTs The IAB also actively responded to actions of legisla- tive and regulatory bodies: IAB emphatically voiced the online advertis- ing industry’s deep concerns about the Federal Trade Commission’s call for a Do Not Track list. Influencers in Washington, D.C., and the general pub- lic learned about the detrimental effects of the FTC’s recommendation through extensive direct quotes Friction in the from IAB in major national media and political outlets including The New York Times, Wall Street Journal, supply chain Politico, National Journal, The Hill, USA TODAY, U.S. News World Report, and PBS NewsHour, all of which highlighted our strong opposition. is a direct Long Tail Fly-In participants gather on the steps of IAB testified before the U.S. Congress to the Capitol express the advertising industry’s serious reser- inhibitor of vations about two legislative proposals on con- on Copyright Policy, Creativity, and Innovation in the sumer privacy that both jeopardized the health of Internet Economy. revenue growth the Internet and the interactive advertising industry: HR 5777, the BEST PRACTICES Act introduced by IAB met with Obama Administration Executive Branch staff to discuss IAB’s efforts in in interactive Rep. Bobby Rush (IL), and the discussion draft bill on copyright protection. consumer privacy introduced by Rep. Rick Boucher (VA), Chairman of the House Energy and Commerce advertising Committee’s Subcommittee on Communications, IAB applauded the FTC’s timely and necessary request for inquiry on how to empower parents and Technology, and the Internet; and Subcommittee protect children, and offered guidance on the FTC’s Ranking Member Cliff Stearns (FL). review of the Children’s Online Privacy Protection Rule. IAB increased engagement with the Department of Commerce by welcoming a report Supply Chain that acknowledged the key role of advertising in the Friction in the supply chain is a direct inhibitor of rev- global information economy and the value of self- enue growth in the online advertising industry. That’s regulation, and by commenting on the DOC’s inquiry why for the last 15 years, IAB has been consistently a brief history of the iab continued from page 5 2002: IAB and 4A’s release Terms Conditions15 years of a media revolution Version 2.0 2004: The first-ever global media measurement guidelines agreed-on by key industry bodies establish a detailed definition for measuring online ad impressions 2002: First cross-media optimization study completed $9.6B by IAB with a coalition of organizations proves an increase in online advertising in a CPG’s media mix can significantly impact effectiveness $7.3B $6B* * nteractiveadvertising I revenues 2002 2003 2004 A n n u A l R e p o R t 2 01 0
  9. 9. 2010 highlighTs dedicated to alleviating pain-points from all stages of address the way the marketplace has evolved since the buying and selling processes. In 2010, IAB pursued the publication of the last iteration in 2002. IAB com- those objectives through various programs: mits its resources to the Standard TsCs in order to relieve unnecessary drags on day-to-day operations Networks Exchanges Quality Assurance of its members. sixteen Guidelines More than 1 million websites carry advertising, and First-Ever Ad Verification Summit member ad there are reports of more than 300 ad networks and IAB hosted marketers, agencies, publishers, ad net- exchanges populating them with ads. To demystify works, and technology companies in March 2010 networks and for advertisers and agencies this flourishing mar- for a candid and productive discussion of ad verifi- ket, integral to our industry’s health, and to ensure cation tools at Ad Verification Day: An Introduction networks and exchanges maintain a high quality of and Discussion of Methodologies. Ad verification exchanges inventory, IAB released the finalized Networks tools are an increasingly important and potentially Exchanges Quality Assurance Guidelines in June. valuable component of the ecosystem, as they hold pledge to adopt The document outlines standards that ad networks the promise of reassuring advertisers and agencies and exchanges should abide by to homogenize that their ads were delivered where intended in a the networks operations enough for advertisers and agencies brand-safe environment. Currently, however, there’s to know what to expect when making transactions, some confusion about these tools, and there has and to reassure marketers that their brands won’t been a proliferation of companies offering services exchanges be aligned with unsavory content. Two months after based on different technologies, some of which may these guidelines were published, 16 member ad net- not be aligned with industry standards of measure- Quality works and exchanges pledged to adopt the new ment. The result can be an unjustified increase in the standards of practice in early 2011. operational costs associated with the investigation assurance of measurement discrepancies. This ecosystem-wide Standard Terms and Conditions Version 3.0 summit kicked off a must-heed call for transparency and standardization in ad verification methodology. guidelines in In early 2010, IAB and the 4A’s issued the final ver- sion of the third update of the Standard Terms Conditions, intended for use by media companies, Impression Exchange Solution: Tested and early 2011 Updated agencies, and advertisers to expedite contractual negotiations for the most common types of interac- Publishers and third-party ad servers, which regu- tive media buys. It includes critical components that larly provide metrics to advertisers, manage their continued 2007: Washington, D.C.,2005: First-ever creative $21.2B 2006: First-ever measurement office openedguidelines for video ads published guidelines for video ads launched 2005: IAB SmartBrief All Access starts 2007: Creative Specs Database launched with sending daily emails with news highlights ad specification units for 88 major publishers $16.9B 2007: Booz Co.’s $12.5B 2007: Third-party measurement companies challenged Marketing Media to submit to an audit of their measurement process Ecosystem 2010 identifies how to 2006: IAB tackles click 2007: Guidelines for ad impression measurement optimize the value fraud with commitment to in Rich Internet Application environments issued chain produce Click Measurement 2005: The first Best in Show MIXX Guidelines 2007: Rich Media Measurement Award presented to McKinney for 2007: IAB commends FTC for release of Audi’s Art of the H3ist campaign proposed principles to guide development of Guidelines determine at which point a rich self-regulation in behavioral advertising media ad impression is counted 2005 2006 2007 7
  10. 10. 2010 highlighTs campaign data differently, and this causes chal- broadly realized and the technology used to accu- lenging discrepancies. The goal of this program is mulate and monetize data has become more sophis- to empower publishers by providing them with auto- ticated, contractual and competitive challenges mated, daily reports from ad servers that allow them to have arisen across the online advertising ecosys- seamlessly compare line items. In 2010, IAB updated tem. In May 2010, the IAB Data Usage and Control the functional requirements for the automated trans- Taskforce—a group entrusted with the responsibil- actions and tested the Impression Exchange Solution ity of defining and producing best practices for the at scale at a major third-party ad server. collection and use of data—released its first prod- David Moore, Chairman uct, the Data Usage Control Primer: Best Practices E-Business Interactive Standards and Founder, 24/7 Real Definitions. Media, and immediate This initiative aims to reduce a vast number of inefficien- cies and errors in the media buying workflow caused Measurement past Chair of IAB Board of Directors, unveils by the manual creation and management of RFPs, pro- Standardizing and simplifying key audience mea- the IAB Data Usage posals, and insertion orders. The tactical objective is surements in order to make it easier for market- Control Primer to develop a streamlined and automated buying pro- ers and agencies to advertise online has long been cess based on standards in one of the pillar commitments of IAB to the industry. communication and data. In Fifteen years in, it’s still a core focus. In 2010, that 2010, IAB hired developers commitment continued to take a front seat on our to build an e-business reg- agenda as shown by these steps forward: istry that allows buyers to Making Measurement Make Sense identify sellers with com- plementary transactional The objective of this ambitious initiative, spear- materials so they can work headed by the IAB with the full partners hip of the 4A’s together efficiently and and the ANA, is to form an ecosystem-wide consen- automatically. sus at the business management level on the metrics and measurement systems that will make transac- Data Usage and tions—from planning through buying to post-buying Control and evaluating—go smoothly across all types of dig- As the value of collecting, ital media. In 2010, IAB, 4A’s, and ANA jointly eval- aggregating, and analyz- uated proposals from major consulting firms to lead ing data has become more a course of action for standardizing the ways digi- a brief history of the iab continued from page 7 $23.4B* * nteractiveadvertising I 2009: In-Game Advertising Measurement revenues 2009: IAB releases VAST 2.0 Guidelines announced15 years of a media revolution 2008: Digital Video In-Stream Ad 2009: Advertising Format Guidelines Definitions released $22.7B Agency Advisory Board formed 2008: New interactive advertising privacy guidelines issued 2008: Digital Video Ad Serving 2009: First Long-Tail Fly-In, Washington, D.C. Template (VAST) Released 2009: IAB and Bain Co. release Building Brands 2009: Impression Exchange Online study, revealing six steps media companies 2008: IAB extends membership Solution launched must take to meet marketers’ needs to Long Tail publishers 2009: “Privacy Matters” 2008: Ad Campaign Measurement Process Guidelines address 2009: Cross-industry coalition public education campaign the process of a publisher’s or advertising agency’s use of a embraces Self-Regulatory Principles kicks off third-party ad server and its application service provider for Online Behavioral Advertising 2008 2009 A n n u A l R e p o R t 2 01 0
  11. 11. 2010 highlighTs tal media are measured and to build the governance processes for determining those standards. be between 1.6x and 2.2x the percentage of the bud- get originally allocated to interactive in the scenarios. iaB drives Project TAXI Mobile the evolution IAB is a full partner in a complementary program IAB welcomes the responsibility to support the dedicated to investigating the feasibility of universal growth of interactive advertising, whether it lives on of mobile data codes to allow for the tracking and identifying a PC, interactive television, video game, smartphone, of content and advertising across media platforms. or tablet. In 2010, IAB stepped up to this call by ded- advertising Project TAXI, which stands for “trackable asset cross icating unparalleled resources to the development platform identifier,” is led by the television industry’s own Committee for Innovative Media Measurement of mobile advertising, a move that mirrors the grow- ing importance of mobile in the marketing-media with the new in collaboration with the 4A’s and the ANA. The pro- ecosystem. gram was begun to produce a significant first step for iaB Mobile Launch of the IAB Mobile Marketing Center providing an operational solution to many of today’s of Excellence measurement problems. Marketing center In December, IAB announced the creation of the IAB ignited a debate about the utility and qual- ity of ad effectiveness research with the release Mobile Marketing Center of Excellence, an indepen- dently funded and staffed unit inside IAB, charged of excellence of “An Evaluation of Methods Used to Assess the Effectiveness of Advertising on the Internet.” It was the industry’s first independent review of the meth- IAB Mobile Marketing Center of Excellence odology behind site intercept studies, which are sometimes misused and often create significant sup- Board of Directors ply chain friction. Another major release was the Cameron Clayton, The Weather Maria Mandel, ATT “Interactive Advertising and the Optimal Marketing Channel Mix,” a study conducted for IAB by MarketShare Randall Rothenberg, Time Inc. Partners, the leading cross-marketing optimization Kevin Conroy, Univision Jamie Wells, Microsoft company. The report evaluated three brand scenar- Bobby Figueroa, Yahoo! ios in three different verticals to determine oppor- Michael Zimbalist, The New York tunities for optimizing marketing spend. It found the Chris LaSala, Google Times optimal allocation of interactive media spend should $12.1B Half Year Record Final 2010 results not available at press time 2009: First-ever Mobile Buyer’s 2010: IAB and 4A’s publish Standard Guide published 2010: Data Usage and Control Primer published Terms Conditions Version 3.0 2009: Economic Value of the Advertising-Supported 2010: Mobile Marketing Internet Ecosystem study shows ad-supported Internet 2010: West Coast office opened Center of Excellence formed contributes $300B to the U.S. economy 2010: On-demand training 2010: Networks Exchanges Quality 2009: Reimagining Interactive made available Assurance Guidelines published Advertising Task Force meets to develop roadmap for evolving ad formats 2010: IAB works 2010: Rising Stars Competition launched2009: IAB Certificate in Interactive collaboratively with industry toAdvertising program launched release Advertising Option Icon 2010 9
  12. 12. 2010 highlighTs press coverage soars 2,000 Number of Stories 1,500 1,000 500 0 Jan feb mar april may June Jul aug sep oct nov dec 2010 2009 2008 2007 Source 2007-2009 = Burrell’s Luce. Source 2010 = Vocus. In 2010 we bagan to use Vocus for increased accuracy in measuring online media. with driving the growth of the mobile marketing, Prevailing Mobile In-Application Advertising advertising, and media marketplace. With its own Formats Board of Directors, vice president and general man- The market for mobile advertising expands beyond ager, as well as councils and committees, the new the browser, as does IAB’s engagement with this seg- mobile center will actively develop market and con- ment of the industry. In July 2010, IAB released the sumer research; provide mobile advertising case ecosystem’s first benchmark for ad formats offered studies; offer executive training and educational in mobile applications. The document summarizes opportunities; issue standards and guidelines to the results of a survey of IAB member companies increase accountability, reduce costs, and stream- and showcases the current trends in in-app ad units line the supply chain; showcase creativity in mobile and sizes spanning the seven major mobile/porta- advertising; and identify best practices in the bur- ble application platforms: Android, Blackberry, iPad, geoning field. The intention is for the center to serve iPhone/iPod Touch, Palm, Symbian, and Windows as the industry-wide resource for innovation in Mobile. This first installment of a resource to be reg- mobile advertising. Mobile Web Advertising Measurement Guidelines Measuring the ad impressions delivered by the mobile web can be quite different from counting the impres- sions generated by PC-based online ads, particu- larly if the advertisement is accessed from a feature phone rather than a smart phone. These operating differences, amplified by the growth of mobile web advertising, required that measurement guidelines be tailored for the mobile advertising industry. In November, IAB, with the MMA and the Media Rating Council (MRC), released the industry’s first Mobile Web Advertising Measurement Guidelines for pub- lic comment. These guidelines are based upon but distinct from the 2005 pioneering IAB Interactive Audience Measurement and Advertising Campaign Reporting and Audit Guidelines. The objective is to define a mobile ad impression, establish a standard methodology for counting these impressions, and ulti- mately provide advertisers with a clear way to quan- tify the value of their investment in mobile advertising. A n n u A l R e p o R t 2 01 0
  13. 13. 2010 highlighTsularly updated by IAB provides guidance to the bur- Interactive TV Committeegeoning mobile in-app marketing community. ● Interactive Television Advertising OverviewEducation Training for Members Legal Affairs Council with the Ad Operations CouncilIn 2010, the IAB Professional Development Program ● Standard Terms and Conditions Version 3.0launched a new online, on-demand portal for distancelearning; completed its first full year providing in-per- Local Committeeson classes to more than 500 employees of agen- ● Targeting Local Markets: An IAB Interactivecies, marketers, and publishers; and awarded its first Advertising GuideCertificates in Interactive Advertising. To qualify for Mobile Advertising Committeethe certificate, each student had to accumulate 40 ● Prevailing Mobile In-Application Advertisinghours of instruction. Courses included Advertising Formats documentEffectiveness 101, Professional Presentations: Turn ● Mobile Web Advertising MeasurementInformation Into a Story That Sells, Secrets to Success Guidelinesin Social Media, and The Right Ad for the Right ● Mobile Marketplace EventConsumer at the Right Time: Data-enabled AdvertisingThrough Exchanges and DSPs, among others. Multicultural Council ● U.S. Latinos Online: A Driving Force documentCouncil Committee Highlights Networks Exchanges CommitteeIAB Committees and Councils ● Networks Exchanges Quality AssuranceIAB Committees and Councils dedicate their signifi- Guidelines ● Networks Exchanges Marketplace Eventcant resources toward turning IAB’s objectives intoaccomplishments. Here are just some highlights of Public Policy Counciltheir contributions in 2010: ● IAB and the NAI released the CLEAR Ad NoticeAd Operations Council Technical Specifications ● Launch of Advertising Option Icon● Ad Operations Summit ● Long Tail Alliance Washington Fly-In● Ad Verification DayDigital Audio Committee Research Council ● Seller’s Guides, kicked off with Autos● Digital Audio Advertising Overview ● Interactive Advertising and the OptimalDigital Video Committee Marketing Mix study● Digital Video Agency Day ● An Evaluation of Methods Used to Assess theGames Committee Effectiveness of Advertising on the Internet● Updated Games Advertising Overview Report Social Media Committee ● Social Media Buyer’s Guide iab.net trends stabilize but full-year numbers increase year over year 120,000 Unique Visitors 100,000 80,000 60,000 20,000 Jan feb mar april may June Jul aug sep oct nov dec 2010 2009 2008 2007 Note: 2007 data not available prior to 7/1/2007 11
  14. 14. 2010 highlighTscreativity in interactive advertising G reat advertising is emotionally resonant ers and media companies, and to industry experts in and culturally significant, builds powerful ad operations to develop new ad formats that would and memorable brands, and inspires con- inspire the creation of premium online experiences sumers to welcome marketing messages into their with the audience as first priority. We dubbed this initiative Rising Stars. Rising Stars Emerge Rising Stars began with an unprecedented call for the submission of new, brand-hospitable display ad formats to enhance the existing list of standard ad units. Submissions came from more than two dozen forward-thinking companies across the ecosys- tem, and winners were chosen based on criteria, including how the ad format positively impacts user experience, how well it empowers brand messag- ing, and how easily the new unit could be adopted within the marketplace. This wisdom-of-the-crowd approach—involving creatives, technologists, pub- lishers, sales executives, and marketers—represents the first time in IAB history that we asked represen- tatives of the entire value chain to work together to innovate new ad formats specifically for brand marketers. The select ad formats will be evaluated in-market, and if adopted by the industry, will be officially included as part of the IAB’s standard ad unit guidelines. Already, seven of the IAB standard ad units comprise approximately 80 percent of all Best in Show campaign daily lives. The innovative interactivity available in online ads served in the U.S. called “Hacking Reality” by online media enhances advertisers’ opportunities Digital Kitchen for HBO’s hit for striking creative that deeply engages consumers. IAB MIXX Awards Expand show True Blood In 2010, IAB reached out to its Agency Advisory The MIXX Awards celebrated, and by extension nur- Board—composed of elite creatives from top adver- tured, creativity in online advertising industry by tising agencies—to thought leaders at major market- honoring the forces behind brilliant ad executions Winner of the Rich Media Display Ad, a single Winner of the Experimental and Innovative execution entitled “Call Woody” by Digitas and category, the iPhone app-based Real Racing GTI Publicis for T.G.I. Friday’s campaign by AKQA for Volkswagen A n n u A l R e p o R t 2 01 0
  15. 15. 2010 highlighTs IAB Agency Advisory Board The IAB Agency Advisory Board, consisting of some of the best-known creative agency executives in the U.S. as well as media agency leaders and executives rep-and campaigns. The all-star panel of judges—span- resenting earned media, reinforces the importance of premium online experiencesning the most influential advertising agency execu- by infusing the conversation about online advertising with a clear call for creativetives, top-tier marketers, and major media company excellence. In 2010, the board lent great support to the Rising Stars campaign andleaders—advanced the MIXX Awards’ reputation as the MIXX Awards.the leading interactive accolade. Three new catego-ries in 2010 acknowledged groundbreaking, evolv- IAB Agency Advisory Board 2010 Quentin George, Chief Digitaling creative possibilities in interactive—Rich Media Officer, Mediabrands Brad Brinegar, Chairman CEO,Display Ad, Experimental and Innovative, and VOD McKinney, Founding Chair, IAB Agency Nick Law, EVP Chief Creativeand Interactive Television. The prestigious Best in Advisory Board Officer, R/GAShow award was presented to HBO and the agencyDigital Kitchen for their creation of the True Blood Julie Atherton, Worldwide Director Michael Lebowitz, Founder CEO,campaign called “Hacking Reality.” Digital, Hill Knowlton Big Spaceship Tom Bedecarré, Chairman, AKQA Jean-Philippe Maheu, Worldwide CEO, Publicis Modem Jeff Benjamin, Interactive Creative Director, Crispin Porter + Bogusky Ty Montague, Co-Founder, co collective Emma Cookson, Chairman, BBH New York Benjamin Palmer, Co-Founder CEO, Barbarian Group Colleen DeCourcy, Founder, Socialistic Steve Wax, Co-Founder, Campfire Brian DiLorenzo, Director of Bryan Wiener, CEO, 360i Integrated Production and Executive Director of Content, BBDO Maria Luisa Francoli, Global CEO,Winner of the VOD and Interactive Television MPGaward, a campaign called “Cold Sore Confessions”for Abreva by BrightLine iTV iab social media reach continues to grow Facebook 9,586 LinkedIn 1,764 Fans Group 5,575 1,073 0 500 1,000 1,500 2,000 Twitter 10,587 Followers 4,386 2010 2009 0 2,000 4,000 6,000 8,000 10,000 13
  16. 16. 2010 highlighTsiaB events at a glanceP owerful decision makers and the brightest minds in the ecosystem addressed sold-out audiences at IAB events—the center of gravity for the interactive industry. In 2010, IAB events attracted more of our mem- bers’ clients than ever before, with 40 percent of audiences composed of marketers and agency executives. Blake Irving, Chief Product Officer, Yahoo!, MIXX 2010 Faris Yakob, Chief Innovation Officer, MDC Partners, IAB Mobile Marketplace 2010 Dick Costolo, Tina Sharkey, Chief Executive Officer, Chairman and Global Twitter, President, MIXX 2010 BabyCenter, Innovation Days@ Internet Week 2010 Jeff Levick, President, Global Advertising and Strategy, AOL, MIXX 2010 A n n u A l R e p o R t 2 01 0
  17. 17. 2010 highlighTsSheryl Sandberg,Chief Operating Officer,Facebook,MIXX 2010 Randall Rothenberg, Tyra Banks, Founder, Bankable Productions, Joanne Bradford, Chief Revenue Officer, Demand Media, MIXX 2010 Susan Wojcicki, Vice President, Product Management, Google, Annual Leadership Meeting 2010 Darren Huston, Frank Cooper , Corporate Vice Senior Vice President, President, Chief Consumer Global Consumer Engagement Officer, and Online, PepsiCo Americas, Microsoft, Annual Leadership MIXX 2010 Meeting 2010 15
  18. 18. a lOOk ahead TO 20112011 Operating agenda: digital everywhere maKing measurement building brands protecting maKe sense online privacy ● Drive process, with cross-industry ● Unveil new Rising Star ad formats to ● Monitor compliance with Self- partners, to develop standardized inspire creativity Regulatory Principles for Online digital metrics that will work across Behavioral Advertising platforms ● Reveal marketer “eureka moments” with the Case Study Road Show ● Enforce these principles within the ● With cross-industry partners, recom- IAB through Code of Conduct mend structure and process for the ● Showcase stunning industry creative creation of a measurement gover- through new online creative gallery ● Educate consumers through Phase II nance body that will manage change of public service campaign ● Cultivate creativity online with the and quality of metrics as media marketer boot camp ● Assemble CEOs in front of Congress evolve to support industry initiatives ● Increase efficiency through rich ● Formulate best practices for brand media toolkit ● Define mobile and social media impact studies privacy practices ● Gain insights from consumers about ● Engage the industry in debate brand engagement through IAB Blog ● Enrich sales presentations with online ● Educate about and advocate the sales kit lessons from the audits of third-party measurement companies data mobile marKeting supply chain demystification center of excellence simplification ● Train the data ecosystem in the cur- ● Promote the expansion of mobile ● Develop guidelines that can be rent, overarching practices of usage marketing through research, training, used as audit criteria for companies and control and evangelism engaged in ad verification ● Define the more intricate details of ● Foster industry consensus on common ● Increase awareness of, adoption business models that are based on technical specifications for mobile of, and compliance with Networks data usage and control and deter- rich media ad serving Exchange Quality Assurance mine best practices Guidelines ● Showcase exciting and inspira- ● Streamline data transfers with data tional creative executions of tablet ● Establish process to better moni- interoperability standards advertising tor member compliance with IAB guidelines ● Issue a clause about data control ● Publish buyer’s guide to tablet for the existing Terms Conditions advertising ● Encourage adoption of Impression Version 3.0 Exchange Solution and the Standard TsCs ● Ensure the integrity of data and the practices of the behavioral advertis- ● Build functionality to E-Business ing ecosystem with a quality assur- Interactive Standards’ specifications ance program A n n u A l R e p o R t 2 01 0
  19. 19. iaB cOMMiTTees, cOuncils WOrking grOupsCommitteesIAB Committees are each based on a specific platform within the interactive advertising medium. Committeeswork together to prove value in the marketing mix or simplify the processes associated with buying, planning,and creating interactive advertising within their platform segments.CouncilsIAB Councils are each based on a specific role within General Members’ organizations. Council membersshare best practices and periodically develop tools to improve efficiency and thought leadership within theirrespective companies, and to grow interactive advertising.Working GroupsWorking Groups are sponsored by Committees or Councils in order to directly address issues facing the indus-try. They are tasked with creating the initiative’s deliverables and presenting them for review to the sponsor-ing Committee or Council. Working Groups are seeded with members from the sponsoring body and have theability to invite guests from non-member companies to participate on a regular basis.2010 Committees Councils and their Co-ChairsAudio Committee Mobile Advertising CFO CouncilAndy Lipset, Targetspot.com Committee Lisa Campbell, Cars.comBrian Benedik, Katz360 Sharon Knitter, Cars.com Michael Cohen, Yahoo! Cameron Clayton, Weather.com Contributor NetworkDigital Video CommitteeJoey Trotz, Turner Broadcasting Networks Exchanges Legal Affairs Council System Committee Jason Ryning, MicrosoftGeoffrey Coco, Microsoft Advertising David Moore, 24/7 Real Media Advertising Stephen Hicks, Ziff Davis Jay Sears, CONTEXTWEBGames Committee Multicultural Council Search CommitteeJJ Richards, Microsoft Borja Perez, Telemundo Daniel Schock, GoogleDave Madden, WildTangent Mark Lopez, Terra Networks Saleel Sathe, MicrosoftInteractive TV Committee Public Policy Council Social Media CommitteeChris Falkner, NBC Dave Morgan, SimulMedia Chris Cunningham, AppssavvyJared Iwata, Time Warner Cable Research Council Seth Goldstein, SocialMedia.comLead Generation Email Beth Uyenco Shatto, Ad Ops CouncilCommittee Microsoft AdvertisingLana McGilvray, Datran Media Adrian D’Souza, Google Stephanie Fried, NBC Universal Dan Murphy, UnivisionLocal Committee Sales Executive CouncilEd Darmanin, Weather.com Sheila Buckley, Weather.comVictor Wong, PaperG Brian Quinn, Triad Retail Media2010 Working GroupsAd Verification Working Group Email Creative Best Practices Networks Exchanges Self-Audio Platform Status Report Working Group Certification Guidelines Working Group Email Ts Cs Working Group Working GroupCFO Benchmarking Survey Games Platform Status Report Networks Publishers Ts Cs Working Group Working Group Working GroupCode of Conduct Working Group Hispanic Working Group Nomenclature Working GroupData Usage Control Taskforce Impression Exchange Solutions Rising Stars TaskforceDigital Video TV Synergies Working Group Sales Recognition Working Group Research Working Group ITV Platform Status Report Social Media Buyers GuideDigital Video Evangelism Working Working Group Working Group Group Local Targeting Working Group Tablets TaskforceE-Business Working Group Mobile Ad Measurement Working Ts Cs Working Group Group 17