New York Media Credit Group March 2017 Hello my name is: Patrick - - PowerPoint PPT Presentation

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New York Media Credit Group March 2017 Hello my name is: Patrick - - PowerPoint PPT Presentation

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 Medias Biggest Tent 650+


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New York Media Credit Group

March 2017

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Hello my name is:

Patrick Dolan Executive Vice President, Chief Operating Officer, IAB Advance Open Water Diver Say hi on Twitter - @patrickdolan @iab

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We Are Digital Media’s Biggest Tent

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650+ LEADING MEDIA COMPANIES RESPONSIBLE FOR SELLING 86% OF U.S. DIGITAL ADVERTISING

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What we do

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Public Policy Develop Technical Standards ..as well as Events Industry Research Education

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2017 IAB Events

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Certification, Training, and Development

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Established benchmarks for digital advertising knowledge across your

  • rganization and programs for improvement in sales and operational effectiveness

CERTIFICATIONS

+10,000 PARTICIPANTS IN 40 COUNTRIES

TRAINING AND PROFESSIONAL DEVELOPMENT

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IAB and Our Partners

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LEADERSHIP

IAB Board IAB Mobile Marketing Center

  • f Excellence

IAB Digital Video Center

  • f Excellence

IAB Data Center of Excellence

PARTNERS

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Digital Advertising Supply Chain

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Digital Advertising Supply Chain

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Digital Advertising Supply Chain

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Programmatic

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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

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Programmatic = Efficiency + Efficacy

Targeting

Maximize accuracy in reaching users with minimal waste

Segmentation

Identify different user types and speak to them differently

Streamlining

Use technology to manage And refine relationships

Scale

Reach users at volume, Across the web

Automation

Buy and optimize campaigns effectively at scale

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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

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20 Years of Tracking Internet Ad Revenue

In billions

’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 2011 2000 2001 2002 2003 2004

Mobile Subformats Added

Mobile 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

19 IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report ’15
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First Half 2016 Year-Over-Year Ad Revenue Growth

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$ Billions

*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%

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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 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

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SLIDE 22 IAB First Half Year 2016 and Q2 2016 Internet Advertising Revenue Report

$27.5 $32.7 Internet

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

Percent YoY 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
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Industry Challenges

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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
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Ad Blocking – the LEAN DEAL

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23% 19% 18% 14% 8% 6% 5%

Video ads (not in a video player) that automatically start playing somewhere on the page Large, high quality ads that take over the screen temporarily Blinking ads Targeted ads that are relevant to your browsing 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

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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