Digital Winners 2014: Randall Rothenberg, IAB

1. Digital
Advertising
& the Case for
Global Standards
Randall Rothenberg
President & Chief Executive Officer
IAB
Digital Winners Conference
Oslo, Norway
October 21, 2014

2. Norway in the World
2

3. Norway: Extraordinary Per
Capita Digital Ad Spend…
3
Note: *Source: eMarketer 2013
ONLINE AD SPEND PER CAPITA (EURO)
141
135
115
57 55
28
160
140
120
100
80
60
40
20
0
Norway USA* UK Germany France Italy
Source: Adex Benchmark 2013 European Online

4. … In a Slowing Scandinavian
Digital Ad Market
4
SCANDINAVIAN INTERNET ADVERTISING:
OVERVIEW
1.6 1.6
2.1
2.3
2.6
3.0
3.3
3.6
3.9
4.1
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F
Video
Mobile
Search
Classified
CAGR:
12.9%
CAGR:
9.5%
CAGR:
[2012-
2017E]
50.0%
19.4%
9.2%
6.6%
8.4%
Source: PWC Global Media Outlook 2013-2017

5. U.S. Digital Advertising Has
Grown ~5x the Rate of GDP
5
IAB/PwC Internet Ad Revenue Report, 2004-2013
*Source for GDP growth: U.S. Bureau of Economic Analysis, “Table 1.1.5. Gross Domestic Product,” (accessed March 31, 2013)
10-year
compound
annual
growth rate
for Internet
advertising
= 18%. U.S.
GDP for
same
period =
4%.

6. To Seize Growth, You Must
Embrace Global Standards
6

7. The Mobile Moment
7

8. Global Mobile Ad Revenue
Nearly Doubled in 2013
Global mobile ad revenue ($m)*
10,072
19,341
25,000
20,000
15,000
10,000
5,000
0
+92.0%
2012 2013
SOURCE: “GLOBAL MOBILE ADEX – THE STATE OF MOBILE ADVERTISING AROUND THE
WORLD”

9. Norway’s Mobile Ad Growth Is
Powerful…
100%
80%
60%
40%
20%
0%
-20%
9
Note: The figures reflect net invoiced media sales
Source: Media Agency Association Media Barometer
-15% -15%
-20%
2% 3%
30%
16%
86%
95%
39%
2%
-40%
Jan to Sept (2014)
MONTHLY ADVERTISING STATISTICS

10. …But Lags U.S. Growth
10
Advertising formats - 2013 results and growth rates
$18.4
$2.6
$1.7
$7.1
$2.8
$7.9
$0.8
$1.3
8.6% 6.9% 3.6%
110.2%
19.5%
2.9%
-9.3%
19.3%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$-
Search Classifieds &
Directories
Lead
Generation
Mobile Digital Video
Commercials
Ad Banners /
Display Ads
Sponsorship Rich Media
2013 Revenue 2013 vs. 2012 % Growth
In billions
Source: IAB/PwC Internet Advertising Revenue Report, 2013

11. Top Mobile Challenges:
Fragmentation, Privacy, Metrics
What do you see as the key challenges for mobile advertising from a brand/buyer perspective?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
11
23 22
44 43
13 15
55
26 26 25
42
34
7 8 7 9
0%
High importance
Important
Fairly important
Low importance
Device/OS
Fragmentation
Lack of
Standard
Metrics
Lack of
Agency
Expertise
Privacy
Issues
Source: Marketer Perceptions of Mobile Advertising—2013, IAB Study conducted by Ovum, for
release Sept. 2013, n=301

12. Video Rising
12

13. Online Video Advertising:
• Consumers viewed nearly three times more video ads than a year ago
38,673,322
52,374,583
Total Content Videos Viewed (000)
11,322,657
35,235,361
Total Video Ads Streamed (000)
181,717
188,249
Propulsive Growth
% YoY
Change
12/12-12/13
+35%
+211%
+4%
Total Video Viewers/Unique Streamers (000)
Source: IAB Digital Usage Trend Report 2013: The Year in Review, Feb. 2014 (ComScore VideoMetrix Dec. ‘12 –Dec.’13, Computer only.)

14. Yet Most Online Video
Money Is Still on the Table
• More consumers are streaming more videos for longer, creating more inventory.
• While digital video revenue has grown, it lags growth in consumer usage.
14
Video Usage Growth vs. Video Ad Revenue Growth
4%
35%
211%
Potential
For
Growth
19%
2013 Growth in Video
Viewers*
2013 Growth in Videos
Streamed by
Consumers*
2013 Growth in Video
Ads Streamed by
Consumers*
2013 Growth in Video
Ad Revenue**
Source: IAB May 2014, *IAB Trend Report, 2013: The Year in Review, Feb. 2014 (ComScore VideoMetrix Dec. 2013),
**IAB/PWC 2013 Full Year and Q4 Internet Ad Revenue Report, Apr. 2014

15. Buyers Say Metrics Will Drive Digital
Video Growth
15
Source: An Inside Look at Demand Side Perceptions of Digital Video Advertising, prepared for IAB by Advertiser
Perceptions, 2013

16. Programmatic Potential
16

17. Auctions Have Been Widely
Panelists: Has your
organization pursued an
auction based approach to
media buying/selling? Are you
likely to do so within two
years?
85%
72%
Advertisers
Publishers
Today
91%
83%
Advertisers
Publishers
In Two Years
Adopted
Source: IAB/Winterberry Group Study “Programmatic Everywhere” Nov 13
17 www.iab.net/programmatic

18. Programmatic Transactions =
20% of U.S. Display Market
18
• 85% of advertisers buy programmatically
• 91% plan to over the next two years
Programmatic Everywhere? IAB White Paper 11/13

19. The Programmatic Tsunami
Has Yet to Hit Norway
19
8%
18.5%
29%
36%
92%
82%
71%
64%
120%
100%
80%
60%
40%
20%
0%
Norway* Europe US UK
Programmatic Non-Programmatic
Source: Tomorrow’s programmatic landscape & how publishers can claim control 2014
*The State of Programmatic in Norway 2014

20. Despite Growth, Uncertainties
Remain
 Confusion over terminology
 Opacity
 Complexity of tech stack
 Channel conflict
 Lack of clear technical standards &
20
guidelines
 Lack of liquidity

21. As the World Turns
21

22. The Case for Global
Standards
 IP is the world’s only global medium
 Global marketers are demanding global
distribution infrastructure
 International demand for “metrics that
matter”
 More media & tech companies are
going cross-border
22 IAB PowerPoint | PowerPoint Tips | Best Practices

23. IAB Standards Built the
Digital Ad Industry
IAB UK launched
first international
23
IAB
First XMOS
Study
IAB Universal
Ad Package
Updated
IAB MIXX Awards
Celebrate Digital
Creativity
Public Policy
Office Opened
Digital Video
Measurement
Guidelines
Released
Video Ad
Creative
Guidelines
Published
First
Industry
Ts and Cs
IAB Long Tail
Alliance
Formed
Video Ad
Serving
Template
Released
First
Internet Ad
Revenue
Report
First Universal
Ad Standard
Portfolio
Released
IAB Defines the
“Impression”
First IAB
Privacy
Guidelines
Issued
Impression
Measurement
Standards
Released
IAB
Launches
Training
Program
IAB Publishes
Mobile Buyers
Guide
MRAID, or
“Mobile
Rich Media
Ad Interface
Definitions”
is released
Creation of
MMCOE (Mobile
Marketing
Center of
Excellence
Privacy Matters, first
Ever Consumer
Privacy Campaign
Released
Ad Ops
Council
releases
QAG
3MS
initiative
launch
First Digital
Media Sales
Certificant
Creation
of Ad
Technology
Council
Quarterly Revenue Growth Trends, in Billions 1996–2012
1996 1997 1998 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
IAB Rising
Stars
launch
IAB Oversees
Digital
Content
NewFronts
SafeFrame
Release

24. IAB Standards Synch With 3x Online Video
• Video ad revenue continues its double-digit annual growth
$0.7
$1.0
Growth
US Digital Video Ad Revenue ($ Billions)
Full Year and % YoY Growth
VPAID 1.0
(Video Player
Ad In Stream
$1.4
$1.8
$2.3
$2.8
2008 2009 2010 2011 2012 2013
Source: IAB/PwC Internet Advertising Revenue Reports, Full Year 2008 - 2013
24
39%
FY
Growth
19%
YoY
Growth
40%
FY
Growth
27%
FY
Growth
29%
FY
Growth
Video Ad
Creative
Guidelines
Published
Digital Video
Measurement
Guidelines
Released
VAST 1.0
(Video Ad
Serving
Template)
Released
Serving)
Released
VSUITE
(VAST 3.0,
VPAID 2.0,
VMAP 1.0)
Released
Video
Rising Stars
Ads
Released
Digital Video
In-Stream Metric
Definitions
Updated

25. IAB Standards Align With Triple-Digit
Mobile Ad Growth
IAB Publishes
$0.6
$7.1
US Mobile Ad Revenue ($ Billions)
and year over year growth
Mobile Ad Revenue ($ Billions)
MRAID 1.0
(Mobile Rich
Media Ad
Interface
Definitions)
released
Mobile
Buyers
Guide
2010 2011 2012 2013
Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2013
25
150%
FY
Growth
111%
FY
Growth
110%
FY
Growth
$1.0
$2.2
IAB Digital Usage Trend Report 2013: The Year in Review
MRAID 2.0
(Mobile Rich
Media Ad
Interface
Definitions)
released
HTML 5
Guidelines
for Digital
Advertising
released
Mobile
Creative
Guidelines
released

26. IAB Seller Certification Grows Industry
101
275
423
Knowledge
Positive Impact of Sales Certification 81%
592
Certifications
958
…on my
company's
sales team
1429
74%
1824
2257
2689
3500
3000
2500
2000
1500
1000
500
0
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Total New Certificants Cumulative
Source: IAB internal data
26
262%
YoY
Growth
in New
Certificants
…on my
confidence about
61% digital advertising
say sales certification
has had a positive
impact on my
career growth
66%
…on the
digital advertising
industry as a whole
156%
YoY
Growth
in New
Certificants

27. IAB Standards Improve Business
“We expect the IAB Video Suite to benefit the
entire online video ecosystem, providing
better experiences for users while
incentivizing creative agencies to develop
more engaging ads.”
Payam Shodjai
Product Manager, Google/YouTube
“Now, with these new specs in place, I think
we will increasingly see advertisers using them
to create innovative new ad experiences for
consumers, and distribute and measure them
27 IAB Standards
across partners and devices.”
Teg Grenager,
Founder and VP Product, Adap.tv
“Although the breakneck pace of
mobile evolution continues, these
guidelines are a foundation for
creative and media companies
to build on, even as devices and
software continue to transform.”
Michael Becker,
Managing Director, MMA
“As marketers we are all going to be
more efficient in maximizing our
production resources by having
more structure around rich digital
advertising units”
Christi Gettinger,
Senior Director Brand Management,
Westin Hotels & Resorts
“DAAST is a major breakthrough for digital audio
advertising that is a crucial first step toward
creating a truly universal standard that covers
audio, video, and all other digital advertising,”
Chris Doe
VP Emerging Media Products, Vindico

28. Only IAB Can Globalize Standards
28
Europe Europe
Regional
Africa Asia
Pacific
South
America
North
America
• IAB Austria
• IAB Belgium
• IAB
Bulgaria
• IAB Croatia
(INAMA)
• IAB
Denmark
(FDIM)
• IAB Finland
• IAB France
• IAB
Germany
(BVDW)
• IAB Greece
• IAB
Hungary
• IAB Ireland
• IAB Italy
• IAB
Macedonia
• IAB
Netherlands
• Norway
(INMA)
• IAB Poland
• IAB Romania
• IAB Russia
• IAB Serbia
• IAB Slovakia
• IAB Spain
• IAB Sweden
• IAB
Switzerland
• IAB Turkey
• IAB UK
• IAB
Europe
• IAB South
Africa
• IAB
Australia
• IAB China
(IIACC)
• IAB New
Zealand
• IAB
Singapore
• IAB
Vietnam
• IAB
Argentina
• IAB Brazil
• IAB Chile
• IAB
Colombia
• IAB
Ecuador
• IAB Peru
• IAB
Uruguay
• IAB (United
States)
• IAB Puerto
Rico
• IAB Canada
• IAB Mexico
25 1 1 5 7 4

29. 2014
IAB’s Five Enduring Priorities
Advertising & Data Technology
Mobile
International Relations
Public Policy & Lobbying
Consumer & Market Research
Marketing & Thought Leadership
Training & Development
Industry Change Management
The
Trustworthy
Digital
Marketing
Supply
Chain
Making
Measurement
Make Sense
Publisher
Transform-ation
Moving
Mobile
Mainstream
Building
Brands
Digitally
29 IAB 2014

30. IAB Tech Lab
 Global tech standards body
 Operationalize IAB standards through
open source code library
 Technical certification programs
 Industry test bed
 Industry knowledge base
30

31. Thank You!
Randall@iab.net