Scott CunninghamFounder, IAB Tech LabSVP, IAB

“Making Measurement Make Sense”: An Industry-Wide E ffort

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Brand Metrics

that Matter

DigitalGRP

Viewable Impression

Five Guiding Principles of Measurement

Define Impression1

Establish Audience Currency2

Standard Classification of Ad Units3

Brand Ad Performance Metrics4

Brand Attitudinal Measures5

Standard Classification of Ad Units3

Brand Ad Performance Metrics4

Brand Attitudinal Measures5

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Viewability: Why We Started H ere

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Viewability is the core metric needed to develop sta ndard metrics and measurement systems for all media, digital and lega cy

Viewability assures that an ad served is delivered a nd rendered

Viewability provides opportunity to see, putting dig ital on par with traditional media

The current environment for Publishers

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Campaigns requiring either viewability guarantees o r billing are growing as a proportion of total revenue

… but, there are still concerns within most publishe rs around:

Discrepancies counts with vendorsThe viewability of existing ad placements on pagesPotential revenue lost from changing business model s

IAB Viewability Support

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Viewability Primer for Publishers• Developed for revenue and ad ops professionals by m ember company executives• Covers measurement testing and site redesign for vi deo and display• Written by ad ops leaders• Released 2016

Viewability Measurement Benchmarking• Simple test to benchmark viewability across multiple vendors• Particularly important as vendors adopt new guideli nes (2.0)

3MS Educational Forums

Find out more at IAB.com and MeasurementNow.net

A Primer on Improving Viewability for Publishers

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Reflects collective wisdom, investment and sweat eq uity of publishers who have successfully implemented viewability

New currency and multiple vendors both underscore t he need for testing and iterating

Accumulated knowledge takes time

Developing a roadmap takes time

Implementing and iterating takes time

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Parallel Tracks

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Test Vendors and changes

Measure• Decision

Criteria• Test Plan

Outline Vendor

Parameters

• Measure• Iterate

Run Multiple Tests

Choose Vendor(s) for Display

& Video

Finalize Vendors

Establish Source of

Truth (SOT)

Internal System

3rd Party Partner(s)

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Sample Template

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Site Re-Design

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Ad LatencyImprovements

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Ad Tech Strategy & Policy

Example options to improve viewability

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1. Only serve below-the-fold ads when they become view able. Share this signal with your partners in the bid request (as an ATF unit).

2. Limit existing creative weight on specific sites, a nd on 3 rd party creatives

3. Change existing processes, e.g. site-serving in ste ad of 3 rd party serving certain types of creatives if you have that option

4. Establish creative-size limits on RTB calls

5. Adjust ad-refresh configuration and methodologies. Experimentation will guide the optimal ad refresh configurations. Please note that auto-refreshing ads can improve viewability in certain instances but can also negat ively impact the user experience.

In Short…..

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Viewability should be treated as an evolutionary jo urney by publishers (not binary or revolutionary)

Constant iteration and revision of approach

Focused resources, but coordination across Sales, A d Products, Publisher Products and Revenue Management

Requires investment in many of the other LEAN princ iples to be successful

3MS Next Steps

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Mobile Viewable Impression Measurement Guideline in public comment NOW• You are the commenters – Review, comment, shape the future

Digital and cross-media platform audience based GRP in 2016

Making Mobile Measurement Make Sense(4MS): A robust mobile measurement agenda aligned with 3MS that goes beyond viewabilit y

Ad Fraud, Malware, Piracy....and T.A.G.!

TAG: Increasing Trust in the Digital Supply Chain

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The Cost of a Corrupted Supply Chain

• Estimated total cost: $8.2 billion� Invalid/Fraudulent traffic: $4.6 billion and 56%� Internet Piracy: $2.5 billion and 31%� Malvertising+: $1.1 billion and 13%

• Estimated cost by type� Incurred costs: $4.8 billion and 59%� Lost revenue opportunity cost: $3.4 billion and 41%

Source: IAB/EY Study Released on December 1st, 2015Estimates are for U.S. Market Only

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A joint marketing-media industry program created to fight criminal

activity in the digital supply chain; TAG is organized around four core

areas:

- Eliminating fraudulent digital advertising traffic

- Combating malware

- Fighting ad-supported Internet piracy to promote brand

integrity

- Promoting brand safety through greater transparency

TAG Mission

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TAG Leadership

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Major Programs Launched in 2015

• Brand Integrity Program Against Piracy – Introduced in February;

operationalized in December

• Fraud Threat List (Domain-based) – May

• Data Center Fraud List (IP-based) – July

• Transparency Program (Registration and Payment ID) – November

• Malware Information Sharing Platform – December

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information on fraud threat

domains

information on fraud threat

domains

TAG aggregates and shares list of

fraud threat domains with

industry

TAG aggregates and shares list of

fraud threat domains with

industry

Tool #1:Fraud

Threat List

Digital Advertising Industry

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TAG Certified: Multi-Layered Approach

=

Fraud Threat List+

Data Center IP List+

Publisher Sourcing Audit+

Independent Fraud Vendor+

Internal Controls, Policies, and Reporting Mechanisms

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Costs of Malware

• Lost Revenue and Additional Expenses: $1.1b

� Lost revenue from malware-related ad blocking: $781m

17% of ad blocking due to security concerns

� Costs from direct incidents: $204m

� Most importantly, consumers forced to spend $2.3b

� What’s the damage to your brand???

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Information on Attack

Information on Attack

TAG aggregates and shares

malware information with ad

industry

TAG aggregates and shares

malware information with ad

industry

Anti-Malware Information

Sharing Platform

Digital Advertising Industry

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Anti-Malware Information

Sharing Platform

Digital Advertising Industry

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Costs of Digital Piracy

• Lost ad and pay-for-content revenue: $2.4b� An estimated $456m in lost ad revenue to publishers; $2b

in lost subscription revenue to content owners

� Foregone marketing opportunities - P2P, streaming, direct

downloads and linking sites

� An estimated $209m goes directly to pirate sites; also the

biggest purveyors of malware

� What’s the harm to your brand???

Ad Blocking, User Experience, and a LEAN DEAL

Ad Blocking Adoption Growth

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Research on ad blocking has been inconsistent, with conflicting statistics

In the U.S., ad blocking adoption rates range from 5% to 45% , depending on methodology, publisher, and content type

Adobe and PageFair research indicates substantial growth in 2015:

There are 198 million active ad blocking users around the wor ld*Ad blocking grew by 41% globally in 12 monthsU.S. ad blocking grew by 48% YOY to reach 45 million active users through June 2015 Ad blocking estimated to cost publishers $22 billion during 2015In 3-4 years present trends predict that ad blockers usage will surpass 50% for many sites.**

* PageFair and Adobe’s 2015 Ad Blocking Report : “The cost of ad blocking,” updated on August 26, 2015

** Jed Hartman, CRO, Washington Post

International Ad Blocking Adoption: 22 - 30% of User s

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In the United Kingdom, 22% of British adults online ² are currently using ad blocking software – a rise from 18% in October

In France, 30% of French internet users³ are using a n ad blocker

In Spain, 26% of internet users block advertising ⁴ and more than half have used ad blockers for less than two years

In Germany, the ad block rate ⁵ was close to 22% in July 2015 , and disruptive advertising is the main reason for ad blocking

² IAB UK’s Ad Blocking Report, conducted online by YouGov, latest wave from March 1, 2016³ IAB France and Ipsos France released the first report about ad blocker usage in the French market, March 9, 2016⁴ IAB Spain, Elogia, and Ligatus, data collected in January 2015 ⁵ BVDW (IAB Germany), July 2015, OVK’s B2B Ad Blocker Study, October 2015

Awareness, Infections, and Low Quality Are Top Trig gers for Ad Block Downloads

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Why consumers downloaded ad blockers

12%

12%

14%

22%

28%

Don't like seeingbehavioral targeted

ads

A friendrecommended an

ad blocker

Got tired of lowquality ads

Got a virus fromclicking on an ad

Found out adblockers exist

Source: IAB Research Using Vision Critical’s Springboard America Online Panel, Representative of General US Adult 18+ Online Population, September 2014

Viruses and Performance Are Top Triggers for Ad Blo ck Usage

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13%

27%

30%

31%

40%

40%

42%

45%

Visuallyunappealing ads

Don't trust adtechnology

Too many ads onsome sites

Blocking ads givesmore privacy

Ads are distracting

Hate ads

Improving deviceperformance

Virus protection

Source: IAB Research Using Vision Critical’s Springboard America Online Panel, Representative of General US Adult 18+ Online Population, September 2014

Why consumers continue to use ad blockers

Annoying Ads Are a Source of Ad Blocker Usage

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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)

Q: There are many different types of ads online. Which of the following features of ads motivates you most to use an ad blocker?Base: Adults 18+ who have used ad blocking technology (N=260)

Type of Ad that Motivates Ad Blocking Usage

Source: IAB Research Using Vision Critical’s Springboard America Online Panel, Representative of General US Adult 18+ Online Population, September 2014

AutoStart Rich Media Ads

Takeover Ads

Blinking Ads

Intrusive Ads

Standardized Ads

Creepy Ads

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The Digital Ad Industry and User Experience

“We Messed Up”: Why and How?

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Marketers wanted more while spending less and publi shers needed to deliver to stay competitive

Ever-heftier advertisements have slowed down the in ternet and become a drain on batteries and mobile data plans

Agencies, brands, and publishers took advantage of more ad technology leading to more tags and more cross-domain server calls

All categories within the digital supply chain lost sight of the social and ethical responsibility to provide a safe, usable experience for anyone wanting to consume the content of their choice

The Supply Chain Is Out of Control

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Consumer

PublisherAgencyAdvertiser DSP Exchange SSP Network

Anti-Fraud Vendor

Anti-Fraud Vendor

Brand Safety Tools

Pub-Side Files for Rich Media

Anti-Fraud Vendor

Anti-Fraud Vendor

Brand Safety Tools

Brand Safety Tools

Viewability Vendor

Viewability Vendor

Viewability Vendor

Viewability Vendor

Viewability Vendor

More vendors = more data callsMore data calls = longer load times + increased sec urity vulnerabilityThe consumer is getting pummeled

Mobile Web Page Load Times Are Dominated by Ad Cont ent

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0 5 10 15 20 25 30 35 40 45

New York Post

Examiner.com

Chicago Tribune

The Independent

The Daily Beast

The Blaze

Boston.com

Seconds to Load Mobile Homepage

seconds to load ad content seconds to load editorial

Source: New York Times “The Cost of Mobile Ads on 50 News Websites” October 1, 2015

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Making a LEAN DEAL

Recent IAB Anti-Ad Blocking Activity

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User Experience takes center stage at IAB’s ALM;

Ghostery unveils data around user experience

issues

Ad Blocking goes to IAB MIXX: Scott

Cunningham, IAB Tech Lab, holds a

press conference to discuss Ad Blocking

impact on SMBs

The IAB Tech Lab hosts three subsequent Ad Blocking Town Halls

IAB President Randall Rothenberg pens Op Ed; Ad Blocking: The Unnecessary Internet Apocalypse

“We Messed Up” Op Ed by Scott Cunningham & announcement of the launch of the IAB Tech Lab’s LEAN Ads Principles

The IAB Tech Lab’s Ad Blocking Working Group is seated

March 7: IAB Tech Lab releases DEAL for Publishers

Global Digital Media Supply Chain Needs New Standar ds

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• Light. Limited file size with strict data call guidelines.

• Encrypted. Assure user privacy with ads delivered over HTTPS. Protect server-to-server communication.

• Ad Choices Support. All ads should support DAA’s consumer privacy programs.

• Non-Invasive. Ads that supplement the user experience and don’t disrupt it. This includes covering content and sound enabled by default.

IAB Tech Lab LEAN Ads Principles: Account for user experience when delivering adverti sing

IAB Tech Lab LEAN Road Map

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OpenRTB Skippability and Encryption Support – Released • OpenRTB 2.4 supports skippable in-stream video advertisements and recommends the support of both HTTP &

HTTPS

Digital Video Ad Serving Template (VAST) 4.0 – Relea sed • Support Universal ID

“Initial Market Guidance for UX” – April 28• Provide simple criteria aligned with LEAN principles (Lightweight, Encrypted, Ad Choices, and Non-intrusive) • Criteria include guidance on file size, encrypted delivery, and skippability for example.

Consumer Research Study – Early May

Flex / Dynamic Ads – will be in review for public co mment by end of Q2 • These new ad units will have the LEAN criteria applied and will create leaner “rising stars”

LEAN Scoring and Additional Consumer Research – bein g developed throughout 2016

Publishers Are DEALing With Their Users

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• Detect ad blocking, in order to initiate a conversation and deliver notice

Open technology for publishers and other website content providers to consistently and reliably determine whether ad blocking is occurring on a page.

• Explain the value exchange that advertising enables

• Ask for changed behavior in order to maintain an equitable exchange

• Lift restriction or Limit access in response to consumer choices

Consumers are expressing a desire for an updated deal. A primer has been published on what options are available when it is determined that a visitor is blocking ads.

DEAL Strategies Are Taking Off

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“If you want to read The Washington Post's coverage of the newly discovered human species Homo naledi this morning but you're using ad blocking software, you're out of luck: The paper is experimenting with blocking access to readers who give ads the stiff-arm.” – Ad Age

“On Monday morning, some visitors to the Times’ website who had ad blocking tools enabled were greeted with a message stating “The best things in life aren’t free.” To access the Times’s content, they were prompted to either purchase a subscription or “whitelist” the site to allow its ads to appear.” – Wall Street Journal

“We believe in the fair value exchange. If someone wants content from CBS Interactive, we will deliver it to them happily for free in exchange for them watching an ad,” said CBS Interactive EVP and CRO David Morris at a joint IAB/dmexcoevent held during the Mobile World Congress in Barcelona on Tuesday. “We think we can strike a fair balance between advertising and content that consumers will be very happy with.” – AdExchanger

• Condé Nast’s GQ Tells Readers to Turn Off Ad Blockers or Pay Up – December 2015

• Inside Forbes : From ‘Original Sin’ To Ad Blockers — And What The Future Holds – January 2016

• The Guardian to try tougher messaging to ad blocker users – March 2016

• New York Times Experiments With Ways to Fight Ad Blocking – March 2016

• How Slate , The Huffington Post , Bloomberg fight ad blocking – January 2016

• The Washington Post Tests Blocking People Who Ad-Block – September 2015

• How WIRED is going to Handle Ad Blocking – February 2016

• Sweden’s publishers are joining forces to simultaneously block ad-block users – March 14, 2016

Better Solves Blocking, Fraud, and Friction

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Better creative

Better targeting

Better ad placements

Better technology

Better education

Better formats

Better user experience

Source: David Morris, EVP and CRO, CBSi

Thank You Scott@iab.com

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