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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
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650+ LEADING MEDIA COMPANIES RESPONSIBLE FOR SELLING 86% OF U.S. DIGITAL ADVERTISING
What we do
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Public PolicyDevelop Technical
Standards
..as well as Events
Industry Research
Education
2017 IAB Events
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Certification, Training, and Development
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Established benchmarks for digital advertising knowledge across your organization and programs for improvement in sales and operational effectiveness
CERTIFICATIONS +10,000 PARTICIPANTS IN 40 COUNTRIES
TRAINING AND PROFESSIONAL DEVELOPMENT
IAB and Our Partners
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LEADERSHIPIAB Board
IAB Mobile Marketing Center of Excellence
IAB Digital Video Center of Excellence
IAB Data Center of Excellence
PARTNERS
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Digital Advertising Supply Chain
Digital Advertising Supply Chain
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Digital Advertising Supply Chain
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Programmatic
Programmatic Advertising
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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
TargetingMaximize accuracy in reaching users with
minimal waste
SegmentationIdentify different user types
and speak to them differently
StreamliningUse technology to manage
And refine relationships
ScaleReach users at volume,
Across the web
AutomationBuy and optimize campaigns effectively at
scale
Popular Use Case: Retargeting
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Popular Use Case: Tailored message
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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
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Digital Trends
20 Years of Tracking Internet Ad RevenueIn
bil
lion
s
’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14’96 ’97
First Internet Ad Revenue
Report
1996 1997 1998 2005 2006 2007 2008 2009 2010 20112000 2001 2002 2003 2004
Mobile Subformats
AddedMobile Added
1996$267M
Video Added
Formats Added to Report: Banners,
Sponsorships, Interstitials, Email, Other
Social Media Added
Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015
1999
Search Added
Rich Media, Lead Gen& Classifieds
Added
2012 2013 20142015
2016$59.6B
19IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
’15
First Half 2016 Year-Over-Year Ad Revenue Growth
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$ Bi
llions
*Source: The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Oct. 2016
Total Media Ad Revenue Growth
(HY 2015 vs. HY 2016)
The Nielsen Company estimates total media revenues for HY 2016 decreased by -2% from HY’15 to $57.9B*
$27.5
$32.7
$0
$5
$10
$15
$20
$25
$30
$35
HY 2015 HY 2016
Digital Ad Revenue Growth (HY 2015 vs. HY 2016)
19%
Highlights: Mobile Surges to Nearly Half All Revenue… Video and Social Also Up
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Mobile ad revenue, up 89% to $15.5 billion, now accounts for nearly half (47%) of internet ad revenue for the first half of 2016Total video ad revenue (mobile + desktop) is up 51% to $3.9 billionTotal 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
IAB First Half Year 2016 and Q2 2016 Internet Advertising Revenue Report
$27.5 $32.7Internet
First Half 2016 Ad Revenue Growth: Digital vs. Top Non-Digital Media
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Total Ad Revenue First Half 2015 vs. First Half 2016 ($ Billions)
$7.3
$2.9
$4.9
$12.6
$27.1
$6.9
$3.0
$4.4
$13.0
$27.0
Magazine
Radio
Newspaper
Cable TV
Broadcast TV
First Half 2016
First Half 2015
PercentYoY Change
19%
-1%
4%
-10%
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.
*
Source: Nielsen HY 2016, Oct. 2016 *Source: IAB Q2 and First Half Year 2016 Internet Advertising Revenue Report
Industry Challenges
2017 Trend: Cross Channel - Data Driven - Programmatic
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Attribution – Who gets the credit?
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Cross Channel Attribution – increased complexity
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Consumer Privacy – The Ad Choices Program
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Fraud
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Opportunity $8.2 Billion*
* IAB EY Study “What Is An Untrustworthy Supply Chain Costing the Digital Advertising Industry?” Dec 2015
Ad Blocking – the LEAN DEAL
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23%
19%
18%
14%
8%
6%
5%
Video ads (not in a video player) that automaticallystart playing somewhere on the page
Large, high quality ads that take over the screen temporarily
Blinking ads
Targeted ads that are relevant to yourbrowsing habits (ads that 'follow' you from site to site)
Video ads in a video player
Many small ads that are in the usual places on a page
Low quality ads (cheap looking)
Type of Ad that Motivates Ad Blocking Usage
AutoStart Rich Media Ads
Takeover Ads
Blinking Ads
Intrusive Ads
Standardized Ads
Creepy Ads
Measurement
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Wind At Our Backs - Marc Prichard from P&G
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Thank You
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patrick@iab.com@patrickdolan
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