This document provides an overview of the IAB (Interactive Advertising Bureau) and trends in digital advertising. Some key points: - The IAB represents over 600 member companies and aims to empower the media and marketing industries. - Mobile advertising now accounts for 25% of digital ad revenue and grew over 75% in 2014, with global mobile ad revenue tripling from 2012-2014. - Video viewing is rising rapidly, with a 31% increase in unique streamers from 2014-2015 and time spent with digital video up 22% in that period. - Programmatic buying is growing quickly but challenges remain around terminology, opacity, and complexity. - Native advertising is a form of paid content

1. IAB & Digital Advertising Growth:
Further and Faster
Alexandra Salomon
Senior Director, International, IAB
October 15, 2015

2. Agenda
2
 IAB Overview
 Mobile’s Moment
 Video Rising
 Programmatic Potential
 Native Advertising
 Building a Trustworthy Supply Chain
 Making Measurement Make Sense
 Looking Toward the Future
 Creativity

3. 3
IAB Overview

4. 4
IAB empowers the media
and marketing industries to
thrive in the digital economy.
IAB Mission

5. Global Scope + Local Operations: 44 IABs Around the World
5
Europe
Europe
Regional
Africa
Asia
Pacific
South America North America
• IAB Austria
• IAB Belgium
• IAB Belarus
• 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
• IAB Norway (INMA)
• IAB Poland
• IAB Portugal
• IAB Romania
• IAB Russia
• IAB Serbia
• IAB Slovakia
• IAB Slovenia
• 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 Argentina
• IAB Brazil
• IAB Chile
• IAB Colombia
• IAB Ecuador
• IAB Peru
• IAB Uruguay
• IAB (United
States)
• IAB Canada
• IAB Mexico

6. Over 600 Members Acts as Digital Media’s Biggest Tent
6
600+ leading media companies responsible for selling 86% of U.S. digital advertising

7. IAB Powered the Modern Digital Ad Industry
7
IAB UK launched first
international IAB
First XMOS Study
IAB Universal Ad
Package Updated
IAB MIXX Awards Celebrate
Digital Creativity
Video Ad
Creative
Guidelines
Published
Digital Video
Measurement
Guidelines Released
IAB Long Tail Alliance
Formed
Video Ad Serving
Template Released
IAB Defines the
“Impression”
First IAB Privacy
Guidelines Issued
Impression Measurement
Standards Released
IAB Launches
Training
Program
Public Policy Office
Opened
IAB Publishes Mobile
Buyers Guide
Privacy Matters,first
Consumer Privacy
Campaign Released
Ad Ops Council
releases QAG
Creation of MMCOE
(Mobile Marketing
Center of Excellence)
MRAID, or “Mobile Rich
Media Ad Interface
Definitions” released
3MS initiative
launch
First Digital Media
Sales Certificant
Creation
of Ad Technology
Council
1996 1997 1998 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
IAB Rising
Stars
launch
IAB Oversees Digital
Content NewFronts
SafeFrame Release
IAB/JIAA
working
collaboration
First Internet Ad
Revenue Report
First Universal
Ad Standard
Portfolio
Released IAB China joins
the IAB Global
Network
Revenue Growth Trends 1996–2014
IAB Uruguay joins the
IAB Global Network

8. IAB Five Enduring Priorities
8
Industry Change Management
Training & Development
Marketing & Thought Leadership
Consumer & Market Research
Public Policy & Lobbying
International Relations
Mobile
Advertising & Data Technology
Trustworthy
Digital
Supply Chain
MakingMeasurement
Make Sense
Publisher
Transformation
Building Brands
Digitally
MovingMobile
Mainstream

9. Digital Is Now the Largest Ad Medium in the U.S.
9

10. 10
Mobile’s Moment

11. Mobile now 25% of digital ad revenue growing over 75% in 2014
11
Source: IAB Internet Advertising Revenue Report, FY 2014
Inbillions
12,5
16,9
21,2 23,4 22,7
25,4
30,1
33,2
35,7 37,0
0,6
1,6
3,4
7,1
12,5
12,5
16,9
21,2
23,4 22,7
26,0
31,7
36,6
42,8
49,5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mobile
Non-Mobile
110%
Mobile
CAGR
10%
Non-mobile
CAGR
* CAGR: Compound Annual Growth Rate

12. Global Mobile Ad Revenue Tripled in 2 years
12 Source: “Global Mobile Adex – The State of Mobile Advertising Around the World”2014
0
5
10
15
20
25
30
35
2012 2013 2014
+65%
+92.0%
$10.1B
$32B
$19.3B

13. More Time is Spent Consuming Digital Media on Mobile Devices Among 18-54 Year olds
13
Source: ComScore MMX multi-Platform US March 2015
31% 37%
51%
61% 50%
30%
8% 13% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Adults 18-34 Adults 35-54 Adults 55+
Share of Time Spent by Platform
Computer Smartphone Tablet
• Smartphones and tablets account for most digital media time among 18-54 year olds
• Adults 55 and older still spend about half of their digital media time on computers
IAB Digital Usage Trend Report Mid Year 2015

14. Top Mobile Challenges:
Fragmentation, Privacy, Metrics
14
What do you see as the key challenges for mobile advertising
from a brand/buyer perspective?
7 8 7 9
26 26 25
34
44 43
55
42
23 22
13 15
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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, IABStudy conducted by Ovum, for release Sept. 2013, n=301

15. IAB Mobile Marketing Center
15
Helps marketers extract the full value of mobile
Fixes mobile creative
Establishes reliable mobile measurement
Reduces friction in the mobile ad supply chain
Creates a conducive public policy environment

16. 16
Video Rising

17. 44.374.651
53.955.008
Total Content Video Streams (000)
176.782
231.110
Total Video Minutes (MM)
Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15
186.913
193.580
More Streamers Are Watching
More Videos for Longer
% YoY Change
6/14-6/15
ComScore VideoMetrix Jun. ‘14 – Jun.’15, Total Audience. Doesn’t include mobile.
ComScore VideoMetrixJun.’14 – Jun. ‘15
+31%
+4%
+22%
Total Unique Streamers (000)
21
ComScore defines a videoas any streamedsegmentof audiovisual content,(bothprogressive downloadsand live streams).For long-form, segmentedcontent,(e.g.TV episodeswith ad pods in the middle) each 8 min. segment of the contentis counted as
a distinct videostream. Video Ads are separate fromContentVideos.
IAB Digital Usage Trend Report Mid Year 2015

18. 2/3 of Marketers Plan to Grow Digital Video Spend
18
Respondents who say they will increase, maintain, or decrease spending
in the next 12 months.
TV
Digital Video
47% Maintain
34% Maintain 1% Decrease
65%
to Spend
More
in Video
39%
to Spend
More
in TV
14% Decrease
7 of 10 agencies expect their digital video ad spend to increase.
Source: IAB Digital Content New Fronts Video Ad Spend Study, April2014

19. Digital Content NewFronts 2015 Lineup
19

20. Biggest Hurdles to Buying Original Digital Video Ads:
Measurement & Scale
20 Source: IAB Digital Content New Fronts 2014 Attendee Survey
15%
3%
3%
8%
11%
15%
22%
23%
Other (Specify):
Complexity of Executing a Buy
Viewability
Nothing
Quality of Content
Price
Scale
Audience & Campaign Measurement
Buy Side Attendees

21. 21
Programmatic Potential

22. Several Themes Have Converged
22
Technology can deliver benefits through automation
The object of “engagement” should be the audience—not
the channel
Rich datasets can fuel the identification and engagement
of target audience

23. Despite Growth in Programmatic Buying, Uncertainties Remain
23
• Confusion over terminology
• Opacity
• Complexity of tech stack
• Channel conflict
• Lack of clear technical standards & guidelines
• Discrepancies over size & growth of market
• Lack of liquidity
Significant growth Obstacles profound
• 85% of advertisers buy programmatically
• 91% plan to over the next two years
Source: IAB/Winterberry Group Programmatic Everyw here? White Paper, November 2013

24. Programmatic and Real-Time Bidding
24
http://www.iab.net/programmatic

25. 25
Native Advertising

26. Native Advertising looks BIG

27. A suiteofadproducts
Aspiration

28. 28
A paid ad that is so cohesive with
the page content, assimilated
with the design, and consistent
with the user experience that
the viewer simply feels it belongs.
What Is Native
Advertising?

29. Thesixcategories

30. Evaluatingtheadtypes...

31. Online Advertising Appeal Quadrant Analysis
31
Banner Ads
In- Feed Sponsored
ContentVideo Ads
Expandable Ads
(i.e., expand on click or
rollover)
Pop Up Ads
Most Appealing/
Interesting
Least Appealing/
Interesting
Least Annoying/IntrusiveMost Annoying/Intrusive
Business
Entertainment
News
(Mean Ranking)
Source: Getting In-Feed Sponsored Content Right: The Consumer View by IAB& Edelman Berland, July 2014

32. Native: 3 Must-Haves
Relevant
Match
editorial in
style/quality
Authoritative
Share your
expertise
vs. sell
Authentic
Be yourself
in a
transparent
fashion

33. Disclosure is Important
Regardless of native advertising unit type, the IAB
advocates that, for paid native ad units, clarity and
prominence of the disclosure is paramount.
Simply Put:
Regardless of context, a reasonable consumer should be
able to distinguish between what is paid advertising vs.
What is publisher editorial content.

34. 34
Building the Trustworthy Digital
Supply Chain

35. The Worst Problem in Internet Advertising?
35

36. The Trustworthy Accountability Group
36
Monitoring program to assure reliability of marketers, agencies, media,
tech companies, measurement companies, and other service providers
Compliance program to encourage faulty business partners to
improve performance
A trusted environment for businesses and consumers

37. 37
Making Measurement
Make Sense (3MS)

38. 3MS Consensus:
Five Guiding Principles of Measurement
38
Define Impression1
Establish Audience Currency2
Standard Classification of Ad Units3
Brand Ad Performance Metrics4
Brand Attitudinal Measures5
FacilitateCross-PlatformComparison

39. Viewability Today
39
Some publishers report higher prices for viewable ads
Better brand lift for viewable campaigns
Standard viewable impression with duration measurement brings us close to cross-platform GRPs
The Good…
Confusion in the marketplace
Too many “viewability” vendors add cost and complexity
Some buyers, who were participant all along in 3MS, have tried to rewrite the agreed-upon industry standard
The Bad…
Lack of clarity around the differences between viewability and fraud, unmeasurable and fraudulent…
www.MeasurementNow.net

40. 40
Looking Towards the Future

41. ICE BUCKET CHALLENGE
Digital Continues to Revolutionize the World

42. A New IAB Model to Increase Participation & Impact
42
Trustworthy
Accountability
Group
Staffed and managed by IAB
Owned by IAB
Industry-owned
IAB
IAB
Education
Foundation
IAB
Technology Lab
501c (6)501c (3)501c (6)

43. 43
Creativity

44. Showcasing the Best Digital Work
www.iab.net/mixxawards

45. 45

46. 46

47. Look What is Possible…
Display Rising Stars

48. 48

49. Thank You
49
Alexandra Salomon
IAB
Alexandra@iab.net
@AlexandraIntl