New York Media Credit Group March 2017
Hello my name is: Patrick Dolan Executive Vice President, Chief Operating Officer, IAB Advance Open Water Diver Say hi on Twitter - @patrickdolan @iab 2
We Are Digital Media’s Biggest Tent 650+ LEADING MEDIA COMPANIES RESPONSIBLE FOR SELLING 86% OF U.S. DIGITAL ADVERTISING 3
What we do Industry Research Develop Technical Public Policy Standards Education ..as well as Events 4
2017 IAB Events 5
Certification, Training, and Development Established benchmarks for digital advertising knowledge across your organization and programs for improvement in sales and operational effectiveness CERTIFICATIONS TRAINING AND PROFESSIONAL DEVELOPMENT +10,000 PARTICIPANTS IN 40 COUNTRIES 6
IAB and Our Partners PARTNERS LEADERSHIP IAB Board IAB Mobile Marketing Center of Excellence IAB Digital Video Center of Excellence IAB Data Center of Excellence 7
Digital Advertising Supply Chain 8
Digital Advertising Supply Chain 9
Digital Advertising Supply Chain 10
Programmatic 11
Programmatic Advertising 12
It’s Not New, Just Evolution Search – Since the early 2000’s, search has been transacted in bid based automated environment Display, Video, Mobile – More recently programmatic has offered new flavors – shifting away from traditional ad networks - making bid based automated buying of display, video and mobile more desirable for brands Social – Over time, social has shifted to sPMD (ie, SocialCode) bid-based automated environments Native, OOH, Radio, TV – although not originally part of the digital media ecosystem, digitization of traditional channels is opening up this advertising space to the same automated tools
Programmatic = Efficiency + Efficacy Streamlining Targeting Segmentation Use technology to manage Maximize accuracy in Identify different user types And refine relationships reaching users with and speak to them differently minimal waste Automation Scale Buy and optimize campaigns effectively at Reach users at volume, scale Across the web
Popular Use Case: Retargeting 15
Popular Use Case: Tailored message 16
Why it is important – Programmatic is the New Normal • 2015 is the first year that the majority of digital investment ($15.8B, 59%* ) is estimated to be programmatic • Growth is undoubtedly being driven by mobile and video investments • In 2014, 70% was Open Exchange / 30% PMP • 75% of spend is with the top 10 publishers • … BUT we’re still in our infancy *Excludes search, lead gen, and classifieds 17
Digital Trends 18
20 Years of Tracking Internet Ad Revenue Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015 2016 Formats $59.6B Added to Report: Banners, Sponsorships, Interstitials, Email, Other In billions First Internet Mobile Ad Revenue Search Video Mobile Report Subformats Added Added Added Added 1999 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20142015 Rich Media, Social Media Lead Gen& Added Classifieds 1996 Added $267M ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 19 IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
First Half 2016 Year-Over-Year Ad Revenue Growth Digital Ad Revenue Growth (HY 2015 vs. HY 2016) $35 19% $32.7 $30 $27.5 Total Media Ad $ Billions Revenue Growth $25 (HY 2015 vs. HY 2016) $20 The Nielsen Company $15 estimates total media revenues for HY 2016 $10 decreased by -2% from HY’15 to $57.9B* $5 $0 HY 2015 HY 2016 *Source: The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), 20 FSI Coupons), Oct. 2016
Highlights: Mobile Surges to Nearly Half All Revenue… Video and Social Also Up Mobile ad revenue, up 89% to $15.5 billion, now accounts for nearly half (47%) of internet ad revenue for the first half of 2016 Total video ad revenue (mobile + desktop) is up 51% to $3.9 billion Total social media revenue (mobile + desktop), across all formats and platforms, is up 57% to $7 billion, growing by over 50% every half year since 2012 21
First Half 2016 Ad Revenue Growth: Digital vs. Top Non-Digital Media Total Ad Revenue First Half 2015 vs. First Half 2016 ($ Billions) Percent YoY Change * $32.7 Internet 19% $27.5 $27.0 Broadcast TV -1% $27.1 $13.0 Cable TV $12.6 4% $4.4 Newspaper $4.9 -10% $3.0 Radio $2.9 3% First Half 2016 $6.9 Magazine First Half 2015 $7.3 -5% Note: The total US advertising market includes other segments not charted here. Broadcast TV includes Network, Syndicated, Spot, and Spanish Language Network TV advertising revenue. Cable TV includes National Cable Networks, Local Cable, and Spanish Language Cable TV advertising revenue. Radio includes Network, and Spot Radio advertising revenue. Newspaper includes Local, National, and Sunday Supplement. Magazine includes Local and National. 22 Source: Nielsen HY 2016, Oct. 2016 *Source: IAB Q2 and First Half Year 2016 Internet Advertising Revenue Report IAB First Half Year 2016 and Q2 2016 Internet Advertising Revenue Report
Industry Challenges
2017 Trend: Cross Channel - Data Driven - Programmatic 24
Attribution – Who gets the credit? 25
Cross Channel Attribution – increased complexity 26
Consumer Privacy – The Ad Choices Program 27
Fraud Opportunity $8.2 Billion * * IAB EY Study “What Is An Untrustworthy Supply Chain Costing the Digital Advertising Industry?” Dec 2015 28
Ad Blocking – the LEAN DEAL Type of Ad that Motivates Ad Blocking Usage Video ads (not in a video player) that automatically AutoStart Rich Media Ads 23% start playing somewhere on the page Intrusive Ads Takeover Ads 19% Large, high quality ads that take over the screen temporarily 18% Blinking ads Blinking Ads Targeted ads that are relevant to your 14% Creepy Ads browsing habits (ads that 'follow' you from site to site) Video ads in a video player 8% Standardized Ads Many small ads that are in the usual places on a page 6% Low quality ads (cheap looking) 5% 29
Measurement 30
Wind At Our Backs - Marc Prichard from P&G 31
Thank You patrick@iab.com @patrickdolan 32
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