Transcript Digital Advertising 2012

Seizing
the
Digital Moment
IAB Chile
Seminario Internacional de Marketing Digital
Santiago
July 18, 2012
I.
Digital Advertising
On the Move
~500 members
The IAB Is the Digital Publishing Industry’s Biggest
Tent
2 4/12/2017
IAB Invented the Modern Digital Ad
Industry
1996: First
1997: IAB UK
Internet 2008: IAB
2005: Video1998: IAB
1996: First 2005: IAB MIXX
Long Tail launched –
Awards Ad
Ad Creative
Banner Ad
Defines the
first
Revenue Alliance
Guidelines
Standards Celebrate
“Impression”
Digital Report Formedinternational
Published
IAB
Creativity
1998: IAB
2000:
2008: IAB Kills
2007:
Convenes
Mobile
2001: IAB
Browser2009: IAB
2006:
Digital
2001: First
Public
Privacy
2005:Europe
First IAB
Issues
Based Ad
Publishes
Video
Industry
Policy
Membership
Guidelines
Ad Operations Mobile
Interactive
Blocking
Measurement
T’s & C’s
Office
Meeting
Issued
Summit
Advertising
Buyers
Guidelines
Opened
Glossary
Guide
Issued
2007: IAB
2008:
Video
2006:
2007: Rich
Launches
2002: First
Ad
Serving
2004:
Mobile
Media
Training
XMOS
2002:Template
IAB
Impression
Committee
Measurement
Program
Study
Universal
Ad
Released
Measurement
Formed
Guidelines
Set
Package
Standards
Released
Released
3 4/12/2017
Digital Advertising 2012: Bubble-like
Growth Without a Bubble
Annual Revenue, In billions
Breaks
the $30
billion
barrier
Up
22%
Mobile:
+149% to
$1.6bn
4
Source: IAB 2011 Full Year and Q4 2011 Digital Advertising Revenue
Report
Search:
+27%
Display:
+15%
Digital Is Now U.S.’s Second Largest
Ad Medium
US Advertising Market by Media Revenue – 2011 (In billions)
5
Source: IAB 2011 Full Year and Q4 2011 Digital Advertising Revenue
Report
Digital Is the Fastest Growing Ad
Medium
Cross-Media Advertising Revenue, 2005-2011 (billions)
Only media with
positive CAGRs
2005-2011:
Cable TV (4%)
Internet (16.7%)
6
Source: IAB 2011 Full Year and Q4 2011 Digital Advertising Revenue
Report
Consumers Habituated to Interactive
Media…
Home broadband
penetration is ~9%
greater than
household cable
penetration
7
Source: Pew Internet & American Life Project Survey 2000-2011;
National Cable Television Association
…Voraciously Consuming Online
Video…
Up
43%
8
Up
44%
Up
37%
… Connecting Socially &
Incessantly…
Nearly 4 in 5
active Internet
users visit
social
networks &
blogs
9
Source: ComScore MediaMetrix Trend (Home and Work Unique Users) Jan. 2009 - Jan. 2012; Nielsen State of the Media Consumer, Jan. 2012
10
Percent of US Population
Using Mobile Internet
Number of Mobile US
Mobile Internet Users
…And Accessing Everything
On-the-Go
Source: eMarketer August 2011, http://www.emarketer.com/Article.aspx?R=1008553
II.
The Digital Advertising
Challenge
Our Goal: To Build Our
Customers’ Brands
A brand is the collection of assets
and capabilities that allow one
company to realize premium
prices versus like competitors in
the same category through time.
12
But Most “Display” Advertising
Is Not for Brands
Internet Ad Revenues by Pricing Model
Performance
CPM
Hybrid
13
Source: IAB 2011 Full Year and Q4 2011 Digital Advertising Revenue
Report
How Much Online DR Is There?
U.S. Monthly Standard Mail Volume,
2010
6.8 billion
U.S. Monthly Display Ad Impressions, 2011
400 billion
14
Sources: U.S. Postal Service, ComScore
Marketers Consider Digital a
Below-the-Line Medium
Media "Value"
(5 = Excellent, 1 = Poor)
NATIONAL ADVERTISERS
"Reach" vs.
"Call-to-Action" Ratio
30%
4.0
3.7 3.7
20
+21
3.5
10
3.0
3.0 3.0
3.0
+2
Average
2.8
2.8
0
-4
2.7
2.6
-10
2.5
-20
Di
sp
l
Se a y
M ar
c
N aga h
et z
w in
or e
Ca k T
N ble V
ew
sp T V
ap
M er
ob
il
Ra e
Sp dio
ot
TV
Reach/
brand building
15
-10
-17
-19-20
-23
-24
N
et
w
o
M rk
ag T
V
Ca azi
bl ne
S eT
Na p ot V
t'l T
ra V
M dio
D obi
is le
pl
N Sea ay
ew r
Lo sp ch
ca ap
l r er
ad
io
-30
2.0
-7
Source: Bain ad buyer survey (02/2009); Bain analysis
Call-to-action
Major Brand Categories Are
Underrepresented
Internet Ad revenues by Major Industry Category*, 2010 vs. 2011
16
Source: IAB 2011 Full Year and Q4 2011 Digital Advertising Revenue
Report
Brand Marketers Face a
Consumer-Pursuit Crisis
Time Spend vs. Ad Spend, by Media Type (%)
U.S., 2009
0
10
20
30
Share of Internet Ad Spend of
Total Ad Spend (%)
Leading Brand Advertisers, U.S. 2009
($ millions)
Total Ad
Spend
Internet
Ad
Internet
Total
P&G
$4,189
$100
7%
AT&T
$2,797
$148
5%
Verizon
$3,020
$242
8%
Ford
$1,517
$142
9%
GSK
$1,395
$32
2%
J&J
$2,061
$59
3%
Unilever
$1,294
$33
3%
GE
$1,575
$69
4%
Sears
$1,700
$24
1%
40
TV
Radio
Print
Internet
US media ad spending on
Time US households spend with
17
Source: Bain, Forrester, AdAge, KPCB
III.
The Digital Advertising
Opportunity
We Must Build a Better
Branding Medium
“Make it easier
to engage, al
“Cambiate
easier to
amarillo”
measure, and
easier to
transact.”
19
Step 1: A Digital Advertising
Creative Revolution
20
The IAB Portrait by AKQA
21
Users Spend Twice as Much
Time With Rising Stars Ads
Rising Stars vs Standard IAB Units
Universal Interaction Time*
18.00
16.00
15.84
200% More
Interaction for
Rising Stars
14.00
12.00
10.00
7.89
8.00
6.00
4.00
2.00
0.00
Rising Stars
Standard
*Universal Interaction Time is defined as the average length of a time that a user’s mouse enters frame of ad and is active (not
parked) for 0.5 seconds or longer and ends when the mouse leaves the ad frame, or 60 seconds, whichever happens first.
22
Source: IAB Rising Stars Research with IPG MediaLab, Feb. 2012
IAB Rising Stars Ad Units
Marketer Early Adopters
23
…Step
Around
“Brand
Performance”
2: Unify
Our
Industry…
Standards
“Performance”/
Direct Response
CFO
ROI/Controllin
g input costs
Clicks
CPC/CPA
Formatted advertising
Procurement
Media agency
Objective
“Branding”
Growth
With Premium Price Realization
End Client
Company LeadershipCMO/CEO
ROE/Controlli
Sales & Return on Brand
Equity
ng output
Investment Measure
value
Interactivity Beyond Awareness
the Click
Pricing Scheme
Blended Brand Currency
CPM/Fees
Ad Metric
Primary Medium
Primary Client
Intermediary
Social Media,
Sponsorships,
Custom
Marketing/Advertising
Dept.
Creative agency, digital agency
Digital+
Marketing-Media Ecosystem
Publishers Have Fostered
Brand-Agnosticism
Which metrics are most valuable for brand-building campaigns?
Percent of respondents
60%
What brand
marketers want
#3
40
What brand
marketers get
#2
20
#1
0
25
Brand
awareness
Likelihood to
Conversion
recommend
rates
Purchase
Favorability
Recall
intent
Click
through
Message
association
Unique
visitors
Time spent
View
on page
through
Ad
Interaction
Engagement
impressions/
rate
time
views
Sources: Bain/IAB “Building Brands Online,” 2010, Morgan Stanley,
ComScore
Making Measurement Make Sense
IAB leadership update
May 2011
FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
3MS Phase 1 Developed Five Principles
for Digital Metrics
Facilitate cross-platform comparison
1
2
3
4
Define
impression
Shift from a “served” to a “viewable” impression standard
Establish
audience
currency
Introduce an online Gross Ratings Point (GRP) metric, providing
reach and frequency reporting of viewable impressions
Standard
classification of
ad units
Implement classification system and taxonomy for banner, rich
media and streaming video ads
Brand ad
performance
metrics
5 Brand attitudinal
measures
Define standard and transparent metrics for view-through
reporting and cumulative social activity
Establish standards and vendor accreditation to improve
methodology for online brand attitudinal studies
Step 3: Go Mobile With the IAB
Mobile Marketing
Center of
Excellence
•
•
•
•
•
•
Market & consumer research
Mobile advertising case
studies
Executive training &
education
Supply chain standardization
Creative showcases
Best practices
28
Key 2012 IAB Mobile Initiatives
CREATIVE: Mobile Rising Stars; Creative of the
Month/Showcase; Mobilizing the Web Program
and Vendor Database
OPERATIONS: MRAID 2.0; Work on discrepancies
(with MMA, MRC)
MEASUREMENT: Mobile In-App Ad Measurement
Guidelines; metrics definitions for mobile/tablets,
X-Media Ad Effectiveness Research
PUBLIC POLICY: Self-regulatory program for
mobile; economic impact of mobile internet
29
Step 4: Embrace the Ad Technology
Sector & Create Scale…
•
•
•
•
•
Addresses and helps resolve
contractual and competitive
challenges surrounding data
usage and collection
Outline interactive
advertising and data
collection mechanics
Identifies the parties currently
participating in the industry
Introduces industry best
practices for data usage and
control
Comprehensive lexicon of
interactive advertising data
definitions
30
…With IAB Data Quality Standards…
31
… Transaction Standards…
32
…And Distribution Standards
Protocol
Function
Benefits for the Advertiser
VAST
• Universal XML schema for
serving ads to digital video
players
•
•
•
VPAID
•
•
•
VMAP
33
•
Common interface between
video players and ad units
Enables a rich interactive instream ad experience
Allows a single “executable
ad”
•
Template that content
owners can use to describe
the structure for ad inventory
delivery when first-party does
not control the video player
or the content distribution
outlet
•
•
•
•
•
Enables critical functionality to open the in-stream
digital video advertising marketplace
Allows greater reporting capabilities as per publishing
platform tools
Eliminates guess work behind format compatibility
Reduces supply-chain friction through ease of creative
acceptance from any agency or network ad server
Provides common specifications for advertisers to
develop against, thereby decreasing the cost of
creative production and increasing ROI
Improves video ad supply liquidity; decreases cost of
integration with each publisher.
Allows content owner to control podding, ad breaks,
and cadence
Enables a cleaner ad experience for viewers
Provides mechanism to honor ad control rights
Step 5: Protect Consumers
DIGITAL ADVERTISING ALLIANCE
34
Step 6: Train Our Teams
Current capabilities
• Marketer knowledge and relationships
Television
Networks
Online portals/
search
• Product integration, creative support
• Consumer insights
• Deep category expertise, customer
understanding
• Consumer insights
• Customization, creative support
• Demographic expertise (e.g., women)
Magazines
Online
publishers
35
• Ability to deliver cross-title packages
through corporate sales
• Transactional sales model, focused on
buying agencies
• Limited marketing/creative support
Online capability needs
• Relationships with marketers,
creative agencies
• Category-specific offerings and
insights
• Creative services and customization
support
• More comprehensive targeting
options
Source: IAB and Bain & Co., “Building Brands Online,” 2009
IAB’s Sales Certification Program

Computer-based exams will be administered through a global footprint
of Pearson VUE testing centers
● 212 Pearson-owned testing centers in US & 200 in 20 international countries
● Plus an additional 4,300 Pearson-authorized (3rd party) global testing centers

Computer-based exams in testing sites
● Credential carries more weight if given in a professional testing center, where
other candidates go to take the Series 7 or GMATs, thereby increasing the
prestige of the credential and fees the IAB can charge for it.
● Prevents cheating, group exam completion, and question sharing possible in a
web-based testing scenario.
● Paper-based delivery incongruent with digital subject matter.

Off-site exams
● Pearson VUE can provide paper-based and computer-based delivery outside of
the testing site environment at IAB events, meetings, or other specific purposes.
36
Digital Marketing Sales Certification | Overview
IV.
Global Collaboration
IAB Is a Global Organization…
International IABs
National IAB organizations are found across the world. We encourage publishers, marketers,
agencies and all others in the marketing-media ecosystem to visit their Web sites, learn about
their agendas, and take advantage of IAB membership. National IABs are independently
organized and operated on behalf of their member companies.
National IABs are not owned, operated or controlled by
the Interactive Advertising Bureau Inc. All trademarks
and names are used under license.
With 36 National IABs + One
Regional
Europe
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Austria
Belgium
Bulgaria
Croatia
Denmark
Finland
France
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Romania
Russia
Serbia
Slovakia
Spain
Sweden
Switzerland
Turkey
UK
South America
●
●
●
●
●
●
North America
●
●
●
Canada
Caribbean
Mexico
South East Asia
●
●
●
●
Australia
New Zealand
Singapore
Vietnam
Regional
●
39
Argentina
Brazil
Chile
Colombia
Peru
Uruguay
IAB Europe
Most National IABs Have Small
Budgets…
40
…And Tiny Staffs
41
2012 IAB Budget: $16mm
Staff: 44
IAB ORGANIZATIONAL CHART –
Proposed 2012
CEO & President
Randall Rothenberg
Marketing & Events: 11 FTEs
Member Services: 11 FTEs
Advertising Technology: 6 FTEs
Mobile Marketing Center of Excellence: 5
FTEs
Public Policy: 4 FTEs
Social Media & Marketing: 2 FTEs
Research & Analytics: 2 FTEs
Training & Development: 2 FTEs
Brand Initiatives: 1 FTE
Office Manager
Molly Flynn
SVP & CMO
David Doty
SVP Industry Services
Sherrill Mane
SVP & General
Council
Mike Zaneis
EVP & COO
Patrick Dolan
Admin Assistant
Lauren Harris
VP Events
Lisa Milgram
Research Director
Kristina Sruoginis
Director Marketing
& PR
OPEN
Director
IAB.net
Chris Glushko
Sr. Director,
Events & Sponsor
Relations
Virginia Rollet
Manager
Suzanne Hogan
PR Coordinator
Shira Orbach
Manager
Tracy Keller
Manager Social
Media
Manager Events
Programming
Rebecca Nuss
Sr. Director
Finance & HR
Mark Goldman
Coordinator
Jenna Martinez
Director of Bus
Ops
Julie Hamilton
Director Industry
Initiatives
OPEN
Director Industry
Initiatives
Seneca Mudd
Director Industry
Initiatives
CRM Manager
Kevin Blouin
Director
International
Sr. Director Public
Policy
Alison Pepper
Director Public
Policy
Sarah Hudgins
Director Brand
Initiatives
Peter Minium
VP Supply Chain &
Revenue Solutions
Steve Sullivan
Director Of Digital
Supply Chain
Solutions
Chris Mejia
Manager DAA
Sr. Manager
Sabrina Alimi
Sr. Manager
Luke Luckett
Manager Ad Lab
OPEN
Director Events
Sales & Business
Development
Phil Ardizzone
VP Member
Services
Michael Theodore
Coordinator
Jessica Ramirez
VP/GM MCoE
Anna Bager
Manager
Corie Blumstein
Professional
Development
Jessica Deutsch
Deputy Director
Joe Laszlo
CRM Coordinator
Manager
OPEN
42
Our Proposal: A New Collaboration
With Our International Partners
 Participate in our 18 Committees and Councils
These Benefits
Are
Free
for
 Bring IAB Sales Certification training and accreditation to your
markets
IABs & Your
 Partner on market-making research and thought-leadership
Most Involved
publishing
Members
 Market your successes
through the new, curated IAB Global
 Help establish critical technical standards and operating best
practices
Website and App
 Assert leadership through an enlarged IAB International Steering
43 Committee
Thank You!
[email protected]