Creator Economy Helps Spark Social Media Rebound

New York – April 16, 2024 – Internet advertising revenues reached a record-high of $225 billion, increasing by 7.3% year-over-year overall (YoY) between 2022 and 2023, according to the newly released “IAB Internet Advertising Revenue Report: Full Year 2023,” conducted by PwC. The report found that Q4 saw the highest growth rate of 12.3% from the year prior (4.4%), with revenues rising to $64.5 billion.

“Despite inflation fears, interest rates at record highs, and continuing global unrest, the U.S. digital advertising industry continued its growth trajectory in 2023,” said David Cohen, CEO, IAB. “With significant industry transformation unfolding right before our eyes, we believe that those channels with a portfolio of privacy by design solutions will continue to outpace the market. For 2023, the winners were retail media, CTV, and audio which saw the highest growth.”

Growth Channels
Retail Media revenues showed 16.3% YoY growth in advertising revenues, reaching $43.7 billion in 2023. Key e-commerce players are all expanding their retail media platforms to enable future growth.

Video advertising revenue experienced double digit (10.6%) YoY growth, rising to $52.1 billion in 2023. Forty-two percent of this revenue was generated from CTV (Connected TV) and OTT (over the top/streaming). While growth was less than last year, the combination of CTV/OTT media is expected to be the fastest growing media channel in 2024, especially as the ad-supported tiers of major streaming services continue to capture a growing share of consumer attention.

Audio advertising also saw a robust expansion, growing 18.9% to reach $7 billion. It is still the fastest growing channel, albeit at a slower pace than last year.

After a slowdown in 2022, social media advertising revenues have rebounded with 8.7% YoY growth in 2023, increasing to $64.9 billion in 2023. This can in part be attributed to the continued proliferation of social media and creator marketing growth across multiple platforms and new social media forms. Revenues in the second half of 2023 accounted for $4.1 of the $5.1 billion total increase over 2022.

While advertising revenues for search ($88.8 billion) and display ($66.1 billion) remain high, both show relatively modest annual growth rates, with search at 5.2% and display at 4% YoY growth respectively.

Outlook for 2024: Privacy Regulation, Innovation, and Generative AI
The trends identified in last year’s report made an impact in 2023 and will continue to grow stronger in 2024:

• Privacy-preserving advertising practices should not be viewed as a temporary trend, but as a permanent change. The industry’s adaptability and innovation will be crucial in thriving within the privacy-by-design ecosystem.
• Social media platforms are pursuing innovations that merge social commerce, reality tech, and influencer marketing to drive higher engagement and conversions.
• Generative AI is optimizing various advertising elements through insight-driven idea generation, personalized content, and real-time optimization. Leading companies are aggressively adopting AI to replace the lost signals that power personalization and measurement, like Google’s Performance Max and Meta’s Advantage+. The challenge now for advertisers and publishers is to find and hire the right talent to thrive in a fast-paced future.

Advertising is undergoing a rapid transformation, driven by channels that offer addressable audiences at scale and personalized messaging in privacy-compliant ways. These channels, equipped with large first-party data sets, sophisticated contextual models, and native measurement capabilities, have gained a competitive edge in the industry.

“Looking ahead, while there are no shortage of challenges, there are also strong opportunities in sports streaming, creator-based marketing, retail media networks, and beyond,” said Jack Koch, Senior Vice President, Research and Insights, IAB. “2023 is proof that the industry can stay resilient in the face of change.”

You can view the full report, “IAB Internet Advertising Revenue Report: Full Year 2023” here. Experts from IAB, PwC, and MAGNA Global will discuss key findings and trends from the report during a webinar today, April 16th, at 2pm ET. Register here.

Methodology
Commissioned by the IAB and conducted by PwC Advisory Services LLC (“PwC”) on an ongoing basis, with results released quarterly, the “IAB Internet Advertising Revenue Report” was initiated by the Interactive Advertising Bureau (IAB) in 1996. This report uses data and information reported directly to PwC from companies selling advertising on the internet as well as publicly available corporate data. The results reported are considered to be a reasonable measurement of internet/online/mobile advertising revenues because much of the data is compiled directly from information supplied by companies selling advertising online. The report includes data reflecting desktop and mobile online advertising revenues from websites, commercial online services, ad networks and exchanges, mobile devices, and email providers, as well as other companies selling online advertising. The report is conducted independently by PwC, including research by their in-house market research team, on behalf of the IAB. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information. Only aggregate results are published and individual company information is held in strict confidence with PwC. Further details regarding scope and methodology are provided in the appendix of this report.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com/mvaughan@kcsa.com

The post 2023 U.S. Digital Advertising Industry Hits New Record, According to IAB’s Annual Internet Advertising Revenue Report appeared first on IAB.

New York – January 29, 2024 –Today IAB, the digital media and marketing trade association, released its first-ever, comprehensive Consumer Privacy Study titled “The Free and Open Ad-Supported Internet: Consumers, Content, and Assessing the Data Value Exchange.” 

The research aimed to gain insights into consumer thoughts, preferences, and concerns regarding their personal data and digital advertising overall.

Consumers Agree a ‘Free And Open’ Internet Is Important To Democracy And Free Speech

The study found that 80% of consumers agree the free and open internet is a social good; 79% feel that it would be unfair to lower-income consumers if websites/apps were not “free and open.”

Consumers Understand the Internet Is Ad-Supported and Are Willing to Watch More Ads for More Free Services

• A significant majority (80%) of consumers agree that websites/apps are free because of advertising.
• Almost 70% agree that it’s fair to receive ads in exchange for free services.
• Nearly 80% of consumers would prefer to get more ads in turn for having to pay nothing for websites/apps.
• Nearly all (91%) of consumers would react negatively, including being frustrated, disappointed, angry, confused, or sad if they had to start paying for the websites/apps they currently use for free. When it comes to personalized ads, the study found that almost 90% of consumers prefer them and 87% are more likely to click on ads for products they’re interested in or shopping for.

Although Laws Exist to Protect Consumers Around Sharing Their Data, Most Are Unaware of Them

While about 85% feel it’s important when websites/apps tell them the specific data they share, allow them to see and delete that data, and provide choices regarding the types and levels of tracking they will allow, few realize that most of those protections already exist in some form or other. The study found that 74% of consumers are unaware of data privacy laws in some of the U.S. states (California, Connecticut, Colorado, Virginia, Utah and others) and Europe (GDPR).

“Contrary to what some believe, this research unequivocally shows that consumers are aware of the value exchange between their data and personalized content and ad experiences.” said David Cohen, CEO, IAB.  “The ad-supported internet is good for consumers, it’s good for society, and it democratizes access to information and entertainment.”

Still, nearly half (49%) think websites/apps do not give enough information regarding how their data is used. “The ad industry must reinforce to consumers that sharing their data is both safe and beneficial to them”, continued Cohen, “including the fact that by default, advertising is not selling consumers’ data”.

Gen Z Values The Ad-Supported Internet Nearly Twice as Highly as Boomers

Overall, when asked what someone would have to pay them to stop using it, consumers said they value the total internet at $38,000 a year: for perspective, that’s more than half of the real median U.S. household income.

But while Boomers value the internet at $29,000/year, the value to Gen Z was nearly double, at $54,000 a year.

“As an industry, we need to speak together with one voice,” continued Cohen. “We need to make it clear that consumers — especially Gen Z — understand the value of the ad-supported internet and wouldn’t want to live without it. We’re committed to giving consumers the free and open internet experiences they want while protecting their privacy.”

The Ad-Supported Free and Open Internet: Consumers, Content, and Assessing the Data Value Exchange report can be downloaded here.

About IAB
The Interactive Advertising Bureaue mpowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com/mvaughan@kcsa.com

The post Nearly 8 in 10 Consumers Would Rather Receive More Ads Than Pay for Digital Content and Services, According to IAB Research appeared first on IAB.

New York – December 7, 2023 – Today, IAB released its first-ever research report on the creator economy advertising opportunity. The report titled, The Creator Economy Opportunity: Where Authenticity Meets Impact and conducted in partnership with Talk Shoppe, offers a deep examination of the evolving consumer purchase journey, how buyers can leverage the creator economy in their media budgets, and where creator content fits in the media mix alongside studio-produced content.

“Creator content marketing is a powerful vehicle for driving full-funnel impact, and advertisers are finding tremendous success adding it to their marketing mix alongside studio content advertising,” said Jack Koch, SVP, Research & Insights, IAB. “This report helps marketers more deeply understand the opportunity, and how best to activate campaigns leveraging creator content. As more advertisers see real success with creator marketing, those who haven’t invested yet risk falling behind.”

Creator Content Inspires Action

• After tracking over 1,000 consumer purchase journeys, the report found that advertising alongside creator content can accelerate the purchase funnel – collapsing the awareness, interest, and consideration stages.
• 39% of consumers are watching more creator content than a year ago vs. just 22% watching more studio content.
• Creator content sparks action: compared to studio-produced content, after watching consumers were significantly more likely to search for additional content about the topic and interact with the content by liking, commenting, or subscribing.

Advertisers: Quality Is in the Eye of the Beholder 

• 89% of advertisers feel positive about creator content advertising, and 92% consider it a high quality channel.
• 86% of advertisers say it’s easy to move ad budgets to creator content, and this trend is on the rise. 44% of advertisers plan to increase their investment in creator content in 2024, with an average increase of 25%.
• Nearly 90% of advertisers use the same KPI metrics across both creator content and studio content, and 86% of advertisers have confidence in the ability to measure the effectiveness of creator content campaigns.

“The creator economy, valued at $250B this year by Goldman Sachs, is expected to nearly double to $480B by 2027. Savvy marketers know that they need to reach their customers in content that resonates with them,” said David Cohen, CEO, IAB. “There is no doubt – creator content is now a vital part of the mix.”

IAB’s The Creator Economy Opportunity: Where Authenticity Meets Impact report can be downloaded here.

Join “The Creator Economy Opportunity” webinar to discuss results from the report, as well as unpack the trends and strategies that will help marketers tap the creator economy to elevate their brands and reach their campaign goals. The webinar will be held on Thursday, December 7 from 1 pm – 2 pm ET. Click here to register.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

About Talk Shoppe

Talk Shoppe is an award-winning, female-owned research agency founded in 2010 and based in Los Angeles. They reject the one-size-fits-all approach, focusing on delivering the 10% of data that truly matters to clients’ businesses. Talk Shoppe’s foundation lies at the intersection of strategy and consumer market insights, providing exceptional service and innovative solutions.

Celebrating over a decade in business, Talk Shoppe is certified by the Minority Supplier Development Council and the Women’s Business Enterprise Council. They specialize in serving world-class brands across various industries, including media and entertainment, consumer packaged goods, and technology, helping them confidently navigate growth and innovation.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com/mvaughan@kcsa.com

The post IAB Releases First-of-Its-Kind Research Report on the Creator Economy Advertising Opportunity appeared first on IAB.

Due to Industry Demand, IAB Connected Commerce Summit Returns bigger than ever with a Two-Day Event Experience Addressing the Rise of Retail Media

NEW YORK, November 30, 2023 – The Interactive Advertising Bureau (IAB), the digital media and marketing trade association, today unveiled its 2024 thought leadership and marketplace events schedule. Aiming to excite, inspire, and motivate, the event lineup addresses key issues across marketing, AI, streaming, gaming, retail, and public policy, as well as responsible media and data use. 

“IAB’s mission is to gather the industry together, and provide insights and tools to help buyers, marketers, and the entire digital ecosystem navigate these shifts,” said David Cohen, CEO, IAB. “The only constant in the digital marketplace is change, and there is probably no time in recent memory where there has been so much in flux at one time. Opportunity and growth are born out of this dynamism, which is incredibly exciting.”

Overview of 2024 Tentpole Events

IAB ALM 2024: On January 28-30, the 2024 IAB Annual Leadership Meeting will gather digital pioneers and business leaders in Marco Island, Florida to discuss critical topics for the industry, and, with its returning theme “It Starts Here,” will set the agenda for the year to come. With nearly 100 speakers including more CMOs than ever before, attendees will hear from leading executives through keynotes, insightful panel discussions, and curated networking experiences covering the most important topics in the digital advertising space such as generative AI, responsible media, commerce, creativity, the evolution of streaming, and much more.

“ALM kicks off the year gathering leaders, thinkers, and builders to tackle the biggest industry issues from the creator economy, cookie deprecation, consumer privacy, policy regulation, and more,” added Cohen. “We also couldn’t have a conference without discussing the state of measurement. Returning to the ALM stage are the CEOs of Comscore, iSpot, Nielsen, and VideoAmp who will participate in the “Great Measurement Debate Part 2” to address measurement opportunities, challenges, and what we, as an industry, can do better to effectively measure campaign effectiveness.”

Some of this year’s featured speakers thus far include:

• Ime Archibong, Vice President, Product Management, Meta
• Bob Bakish, President and CEO, Paramount Global
• Marsha Blackburn, U.S. Senator (R-TN)
• Alysia Borsa, Chief Business Officer and President, Lifestyle, Dotdash Meredith
• Jen Brace, Chief Futurist, Ford
• Jon Carpenter, Chief Executive Officer, Comscore
• Jeffrey Cole, Director of the Center for the Digital Future, USC Annenberg School
• Stephanie Dobbs Brown, Chief Marketing Officer, Intercontinental Exchange (ICE)
• Esi Eggleston Bracey, Chief Growth and Marketing Officer – Effective January 1, 2024, Unilever
• Nancy Hall, Chief Executive Officer, Mindshare North America
• John Halley, President, Paramount Advertising
• Tariq Hassan, Chief Marketing & Customer Experience Officer, McDonald’s USA
• Diana Haussling, Senior Vice President, General Manager, Consumer Experience & Growth, Chief Marketing Officer, Colgate-Palmolive
• Debora Kantt, Executive Director, Futurist, Strategic Foresight & Future Studies Lead, JP Morgan
• Jenna Lebel, Chief Marketing Officer, Liberty Mutual
• Ross McCray, Founder and Chief Executive Officer, VideoAmp
• Andrea Mitchell, NBC News Chief Foreign Affairs Correspondent and Chief Washington Correspondent; Host, MSNBC’s “Andrea Mitchell Reports”
• Sean Muller, Founder and Chief Executive Officer, iSpot.tv
• Peter Naylor, Vice President, Advertising Sales, Netflix
• Katie Neil, Head of Connected Commerce Marketing and Investments, The Coca-Cola Company
• Amie Owen, Global Chief Commerce Officer, UM Worldwide
• Shelly Palmer, Chief Executive Officer, The Palmer Group
• Karthik Rao, Chief Executive Officer, Nielsen
• Jenny Rooney, Chief Experience Officer, Adweek
• Susan Schiekofer, Chief Digital Investment Officer, GroupM U.S.
• Jessica Sibley, Chief Executive Officer, TIME
• Resh Sidhu, Global Director Arcadia Creative Studio, Snap Inc
• Aaron Sorkin, Screenwriter, Playwright, and Director
• Jonathan Stringfield, Vice President, Global Business Research & Marketing, Activision Blizzard Media
• Jennie Weber, Chief Marketing Officer, Best Buy Co. Inc.

For the latest on ALM speakers, please visit: iab.com/alm 

Over the course of three days, attendees will hear discussions around critical issues including:

• Generative AI, the Creativity Revolution, and Ethical Crossroads in the Digital Economy
• Navigating the Convergence of Omni-Channel Experiences, Retail Media, Shoppable Ads, and Content
• Privacy in Practice: From Policy to Implementation
• The March Towards a ‘Streaming-First’ Future
• Ethical Pulse: Steering the Digital Industry Towards Responsible Media and Inclusive Best Practices
• A New Era of Creativity: Attention, Innovation, and Personalization

Full agenda can be accessed here: iab.com/alm 

“Attendees come to ALM to hear firsthand from brands and marketers on how they’re adapting to industry change and moving the needle for their companies to thrive in the digital advertising ecosystem,” said Carryl Pierre-Drews, EVP, Chief Marketing Officer, IAB. “This year, we have more CMOs and marketing executives taking the stage at ALM, including Best Buy, Liberty Mutual, McDonald’s, Unilever, and more. In addition to the various sessions, IAB will host a CMO-centric breakfast addressing the critical role of marketers in leading AI efforts.” 

On January 29 at ALM, IAB will host with Adweek the Marketing Vanguard CMO breakfast, an invitation-only gathering of leading marketing executives plus their rising stars. They’ll meet to explore AI’s impact on advertising, marketing, and business strategy. Moderated by Jenny Rooney, Chief Experience Officer at Adweek, the panel discussion at the breakfast, titled “Steering the AI Ship: Exploring the CMO’s Role and Responsibility,” will dive into the CMO’s role in driving company-wide AI efforts, implementation, and usage that is customer-first, on-brand, and responsible.

IAB PlayFronts 2024, March 26-27, 2024, New York City, In-person & Virtual 

The third annual IAB PlayFronts makes its return bigger than ever before, taking place over two days in New York City as well as live-streamed. IAB PlayFronts is dedicated to showcasing advertising and partnership opportunities in the gaming industry. Leading game publishers, streaming platforms, and ad tech partners will demonstrate creative opportunities for brands in the gaming landscape, and present opportunities to elevate the effectiveness of gaming.

IAB Public Policy & Legal Summit 2024, April 2, 2024, Washington, D.C., In-person

With new regulations and state privacy laws taking effect, the digital media landscape is constantly evolving. Hear from experts to stay ahead of all the legal, policy, and technical challenges impacting businesses today. The annual IAB Public Policy & Legal Summit will bring together leaders in advertising, media, technology, and the government to address how to continue to build a sustainable consumer-centric media and marketing ecosystem.

IAB NewFronts 2024, April 29-May 2, 2024, New York City, In-person & Virtual 

IAB NewFronts hosts some of the biggest names in media and entertainment fostering valuable partnerships between brands and native digital video content. Across New York City and streamed virtually, IAB NewFronts is a one-stop shop for media buyers eager to get a first look at the latest digital video content and advertising solutions. For the second year in a row, IAB will have its stage again on Wednesday, May 1st to feature a selection of presenting companies. 

IAB Podcast Upfront 2024, May 9, 2024, New York City, In-person & Virtual

Following IAB NewFronts, IAB Podcast Upfront is designed for brands, agencies, and media buyers to preview the latest in innovative podcast programming. Join leading audio and podcast companies as they showcase the power of podcasts and announce brand new shows and content opportunities for advertisers to align with their brand. IAB Podcast Upfront will take place in New York City and be streamed virtually.

IAB Connected Commerce Summit 2024, September 17-18, New York City, In-person

Back by popular demand, and for two full days, IAB Connected Commerce Summit will dive into where the future of retail commerce is heading and how it could improve business operations. Attendees will hear from thought leaders in e-commerce and retail media about the most impactful strategies that will help brands stay ahead of the game. 

IAB Privacy Compliance Salon, September 22, 2024, Los Angeles, In-person

For the first time, IAB will host the Privacy Compliance Salon bringing together senior privacy leaders in the digital advertising industry for thought-provoking and practical discussions around today’s most challenging privacy compliance issues. Attendees will learn about managing sensitive personal information, the use of data clean rooms, and legal considerations in leveraging AI in marketing campaigns.

IAB State Privacy Law Summit 2024, November 2024, New York City, In-person 

With additional state privacy laws taking effect every year, the third IAB State Privacy Law Summit will convene privacy lawyers and cross-functional privacy professionals to make sense of the latest state privacy law changes. In particular, this event involves interactive deep-dive discussions between panelists and the audience and leverages data flows to give industry participants a clearer understanding of the industry’s challenges and provide pathways for compliance.

For more information and updates regarding IAB’s events, visit: www.iab.com/events. 

About IAB

The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts

Brittany Tibaldi / Michael Vaughan

347-487-6794 / 813-210-1706

btibaldi@kcsa.com / mvaughan@kcsa.com

The post IAB Announces Robust ALM Speaker Lineup and Themes Addressing Evolving Digital Advertising Marketplace: Organization Also Unveils Events Schedule appeared first on IAB.

New York – March 8, 2023 – Two out of every three Americans play video games through various platforms (ESA, 2022), and gaming is third only to TV and social media in terms of where audiences spend their time–yet gaming captures less than 5% of advertiser budgets.

A new IAB study of over forty brands, agencies, ad tech companies, game developers, and publishers conducted in partnership with MediaScience revealed that investments in gaming are not nearly at the levels they should be due to five lingering misperceptions. The reality is that the industry has built an ecosystem that makes it easier to buy at scale and measure than ever before. The study is being released at the IAB PlayFronts today, March 8th.

“The success stories we heard from buyers about gaming were striking — and all the more so because they don’t align at all with the misperceptions of the industry at large,” said Zoe Soon, Vice President, Experience Center, IAB. “Advertisers are missing a prime opportunity to reach and persuade consumers in these dynamic environments.”

Misperception 1: It’s too expensive for brands to get started. 

When advertisers think of gaming, they tend to think of high-end, one-off custom integrations. Yet there are many more affordable and undervalued opportunities. While the first generation of in-game advertising media was fragmented and hard to buy, today’s programmatic channels make it easy to buy, are comparable in cost to other digital media, enable marketers to test and learn, and are cost-effective, efficient, and scalable.

Misperception 2: In-game advertising is too hard to activate with quality inventory. 

Some advertisers feel that ease of activation and quality is only possible in well-known, premium game titles. “Quality inventory and serious reach are possible,” Soon continued. “With new ad networks and technology, it’s easy for advertisers to get both the scale and brand-safe reach they need.”

Misperception 3: Gaming cannot deliver on key objectives throughout the funnel.

“Buyers want to make good quality buys that align with their brands and drive all the way through to purchase,” said Jack Koch, SVP, Research & Insights, IAB. “And while that is absolutely possible in gaming today, perception lags reality.”

While in-game advertising often mimics real-world awareness media — for example, billboards in a driving game or stadium signage in a sports game — gaming offers much more. You can drive mid-funnel objectives by letting gamers feel and interact with your product. Gamers can drive a branded vehicle in a war game, or get a “power-up” from a healthy drink in a running game and become associated with energy. There’s also ample inventory that is lower funnel and clickable, so advertisers can track through to conversions.

Misperception 4: In-game advertising is too difficult to measure.

AdTech and publishers have brought measurement standards and capabilities up to a level that will meet the needs of most advertisers. However, there is still progress that needs to be made. In some cases, the data is not fully consistent and comparable to other media, and in-game advertising doesn’t yet offer the same level of granularity buyers expect in digital marketing. In a joint collaboration between IAB, IAB Tech Lab, and the Media Rating Council (MRC), in July 2022, IAB released its Intrinsic In-Game (IIG) Measurement Guidelines to establish updated measurement guidelines for ads that appear within gameplay.

Misperception 5: In-game advertising is not brand safe and not welcomed by players.

There’s still a lingering misperception that buyers can’t get brand-safe reach at scale and that in-game advertising is unwelcome.

In reality, with proper planning and through third-party monitoring services and/or AI-based keyword blocking, brand safety issues can be easily mitigated. Programmatic makes it possible to reach brand-safe audiences at scale.

Also — just as in any medium — attitudes about advertising depend on an acceptable value exchange. On a free mobile game, players fully expect to see ads in exchange for getting the game for free. The interviewees for IAB’s research shared that ad formats that provide tangible in-game value such as in-game playables, rewards, currency boosts, and skins are well-received by gamers. Where there are billboards in a driving game, gamers enjoy it more if it adds realism to the game. AdTech and publishers are keenly aware of the need for a strong value exchange and develop ad formats that deliver on that promise.

What the Industry Needs To Do Next

• Educate and collaborate
  Sellers need to make clear that in-game advertising has evolved, and can be as easy and cost-efficient to activate as other digital media. Education is needed about the range of buying opportunities and ad formats across custom integrations and dynamic network media buys, and measurement/brand safety capabilities available. The buy-and-sell side should collaborate to reduce friction and boost investment, while publishers and ad tech providers partner to open new player-centric inventory.

• Demonstrate unique value
  Ad tech companies and publishers need to show the quality of their reach and inventory through audience insights and channel profiles, and provide case studies about driving full-funnel success leveraging measurement that’s similar to other digital media.

• Build for interoperability
  Ad tech companies and publishers should help advertisers understand how to efficiently leverage first and third-party data, and how data can be interoperable so brands can make smart cross-platform decisions. Standards, like IAB’s Intrinsic In-Game Measurement Guidelines, are vital to helping align in-game metrics to other digital media for consistency and comparability.

• Quantify why gaming, and why now
  Empirical effectiveness research is needed to illuminate how the engagement and context of in-game ads can drive significant impact, and how to ensure that in-game advertising is brand-safe. Gaming offers sizable audiences and can be a future-forward leader with strong engagement, creative, contextual alignment, and performance.

Koch concluded, “High quality audiences at serious scale, brand safety, easy buying, and defensible measurement are all finally in place. As the misperceptions dissipate, we expect spending on in-game advertising will begin to catch up to the opportunity.”

The report was released at IAB PlayFronts 2023 and can be downloaded here.

About IAB

The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com / mvaughan@kcsa.com

The post New IAB Study Reveals Five Misperceptions About Video Game Advertising appeared first on IAB.

NEW YORK – January 24, 2023 – The continuing wave of inconsistent state level privacy legislation, coupled with increased signal loss, has set the stage for data clean rooms (DCRs) to become an indispensable privacy-preserving technology.

However, the significant investments in talent, technology, and data setup required to implement DCRs create significant challenges for smaller agencies, brands, and publishers.​

These are among the conclusions from IAB’s annual State of Data report from the Measurement, Addressability & Data Center, titled “State of Data 2023: Data Clean Rooms & the Democratization of Data in the Privacy-Centric Ecosystem.”

The report, conducted on IAB’s behalf by Ipsos, features insights gleaned from over 200 completed surveys and 20 in-depth interviews among data decision-makers at brands, agencies, and publishers/retailers about how privacy-preserving technologies are being managed and activated.

DCR Adoption Investment is Significant

Unveiled during IAB’s Annual Leadership Meeting, the report found that DCRs are typically used with other privacy-preserving technology. As a result, compounded annual costs can soar above $2M. ​​For example, while more than 80% of DCR users are using CDPs (customer data platforms) and DMPs (data management platforms), roughly half are using identity solutions and CMPs (consent management platforms).

Investing to Unlock The Next Level of Functionality

“So far, most companies are using DCRs for privacy controls, matching data for collaboration, and data activation,” said Jeffrey Bustos, Vice President, Measurement, Addressability & Data, IAB. “But that only scratches the surface of what’s possible.” Less than a third of users are using DCRs’ advanced measurement capabilities, including attribution, return on investment (ROI) / return on ad spend (ROAS) measurement, media or marketing mix modeling, and propensity modeling and predictive analysis.

“Companies expect to invest 29% more in 2023 to make the most of their DCRs, and that’s really encouraging,” added Bustos. “There is growing demand due to loss of signals, and wanting to share data with partners without sharing sensitive data. This may show that companies are understanding what’s required and ramping up their investments accordingly.”

Some Growing Pains

The report reveals that while DCRs offer innovative, privacy-preserving capabilities, they are far from being turnkey technology. They require steep and ongoing investments in talent, cost, and setup, spanning everything from data infrastructure and connectivity to onboarding. More than half of DCR users (52%) cite leveraging results / proving ROI as a challenge. About one third of DCR users are also facing data interoperability / customization (39%), internal resource (38%), and privacy (32%) challenges when using DCRs.

• Nearly half of DCR users (49%) have 6+ employees dedicated to the technology—nearly one-third (30%) have a minimum of 11 people.
• Respondents cited time-frames of months to up to two years to get up and running with the technology.
• Nearly two thirds (62%) of users spent a minimum of $200K on the technology in 2022, with a quarter (23%) spending upwards of $500K.

The cost and talent requirements to successfully implement DCRs creates a tremendous market disadvantage for small agencies, brands, and publishers that don’t have the resources to invest at those levels—and may weaken the trend toward in-housing.

Calling on All Advertising Participants (including Walled Gardens)

The report also includes detailed information about what advertisers, brands, and publishers need to know as they begin their journey, including hurdles and opportunities for growth; privacy-preserving technology considerations and best practices; and understanding the benefits and use cases of DCRs.

“To make the most of DCRs, the industry needs all data providers to make their data interoperable so that advertisers can measure full campaign effectiveness and ROI,” said David Cohen, Chief Executive Officer, IAB. “There should be no exceptions. It’s in everyone’s interests for closed ecosystems to provide access so that advertisers can effectively analyze their campaign activity. Advertisers need a window into the data.”

Through industry collaboration, innovation, and education, IAB and IAB Tech Lab strive to make it easier for advertisers to understand and use DCRs. In Q1, IAB Tech Lab will announce its first DCR specification to support and define interoperable clean room interactions for digital advertising. Developed within IAB Tech Lab’s Rearc Addressability Working Group, it will be the first of a library of purpose-built, DCR specifications to support and define interoperable clean room interactions for digital advertising.

For more information, please visit https://iab.com/state-of-data and to download the “State of Data 2023: Data Clean Rooms & the Democratization of Data in the Privacy-Centric Ecosystem,” click here.

About IAB

The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts

Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com / mvaughan@kcsa.com  

The post Data Clean Rooms Are Now Essential for Audience Insights, Measurement, and Data Activation According to IAB State of Data Report appeared first on IAB.

Speakers include Professional Baseball Player and Entrepreneur Alex Rodriguez, Netflix’s Jeremi Gorman, Meta’s Erin Egan, TheSkimm’s Danielle Weisberg and Carly Zakin, Writer, Television and Podcast Host Baratunde Thurston, and more

NEW YORK, January 12, 2023 – Interactive Advertising Bureau (IAB), the digital media and marketing trade association, today unveiled the final schedule for its Annual Leadership Meeting (ALM), taking place from January 22-24 in Marco Island, Florida.

“ALM has been and continues to be the epicenter of the digital economy, surfacing hotly-debated topics facing the ecosystem at large. IAB is the association that brings together the full digital ecosystem. ALM is where we set the year’s agenda, driving the direction of the industry,” said David Cohen, Chief Executive Officer, IAB. “Attendees will gain critical insight and perspective on important topics including measurement, privacy, the streaming revolution, sustainability, and the emerging metaverse. ALM is the time for alignment, consensus, and action from all stakeholders.”

The 2023 conference theme, “It Starts Here,” explores a vision for the industry, and will uncover opportunities, paths forward, new connections, and meaningful ideas for the future. The three-day event will be held in-person at JW Marriott Marco Island Beach Resort, gathering industry leaders to address significant regulatory changes, challenges around consumer privacy and data use, the explosion of retail media networks, the evolving Metaverse/Web3, trust and transparency, and a host of new ad-supported opportunities.

Speakers will include:

• Matthew Ball, Pioneering Tech Authority, Venture Capitalist, and Bestselling Author, The Metaverse
• Krishan Bhatia, President and Chief Business Officer, NBCUniversal
• Jeffrey Cole, Director and Chief Executive Officer, Center for the Digital Future, USC Annenberg
• Sean Corcoran, U.S. Chief Executive Officer, Mediahub
• Soumya Donkada, Head of Digital, Media, and E-Commerce, Beauty and Well-being, Unilever
• Sean Downey, President, Americas and Global Partners, Google
• Erin Egan, Chief Privacy Officer, Policy, Meta
• Michele Fino, Head of Branded Entertainment, Crackle Plus
• Jeremi Gorman, President, Worldwide Advertising, Netflix
• Scott Howe, Chief Executive Officer, LiveRamp
• Jay Livingston, Chief Marketing Officer, Shake Shack
• Andy Monfried, Chief Executive Officer and Founder, Lotame
• Ryan Moore, Global Chief Revenue Officer, SuperAwesome, an Epic Games Company
• Ian Orefice, President and Chief Operating Officer, TIME and TIME Studios
• John Osborn, U.S. Director, Ad Net Zero
• Christena Pyle, Chief Equity Officer, dentsu
• Alex Rodriguez, Chairman and Chief Executive Officer, A-Rod Corp
• Athan Stephanopoulos, Executive Vice President and Chief Digital Officer, CNN
• Baratunde Thurston, Host, America Outdoors and How To Citizen Podcast
• Deborah Wahl, Global Chief Marketing Officer, General Motors Company
• Kevin Warren, Executive Vice President and Chief Marketing Officer, UPS
• Danielle Weisberg and Carly Zakin, Co-founders and Co-Chief Executive Officer’s, TheSkimm
• Andrea Zapata, Executive Vice President, Head of Ad Sales Research, Measurement and Insights, Warner Bros. Discovery

All times are in EST; Speakers and timing are subject to change, refer to the website for up-to-date information. Note the event will not be live streamed this year, ALM has prioritized the value of in-person connections. 

IAB does not require proof of vaccination to attend events. However, it is strongly recommended that in-person attendees be vaccinated, and that you stay home if symptomatic. IAB’s Event and COVID-19 Policy and Code of Conduct.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com / mvaughan@kcsa.com

The post IAB Announces Full Agenda for its Annual Leadership Meeting Jan. 22-24 in Marco Island, Florida appeared first on IAB.

NEW YORK, December 14, 2022 – The Interactive Advertising Bureau (IAB), the digital media and marketing trade association, today announced two new additions to its senior team – Pam Zucker joined IAB as Senior Vice President, Chief Strategy Officer, and Jack Koch joined as Senior Vice President, Research & Insights. In addition, IAB announced the evolution of Chris Bruderle’s role as Vice President, Industry Insights and Content Strategy.

Pam will oversee the evolution of the IAB point of view through the creation of industry guidelines, standards, and marketplace education by protecting and enabling growth for an open, ad-supported digital ecosystem. Pam will be responsible for connecting and building relationships with members across the advertising landscape to elevate IAB as the center of discussion, information, and advice to address the greatest challenges of our industry. Pam will be reporting to Sheryl Goldstein, EVP, Chief Industry Growth Officer, IAB.

Leading into the New Year, IAB is enhancing the Centers of Excellence, Research & Insights programs as well as re-launching the Measurement, Addressability & Data (MAD) Center, previously known as the Programmatic+Data Center. This Center provides essential industry guidance and education on changes in underlying technology and privacy regulations in a constantly evolving ecosystem. Under its new name, the center will provide guidance and education on new addressability and measurement solutions to enable revenue growth, efficiency, and scale, with a focus on retail media networks and Advanced TV.

Additionally, Pam will be responsible for directing the other IAB Centers of Excellence (COE):

• Experience Center which focuses on evolving consumer behavior and emerging technologies (AR, VR, Voice and Games/Esports) to help define the advertising experiences of tomorrow.
• Media Center which creates the thought leadership, advocacy, and forums that make and shape the video and audio marketplace; help improve efficiency, consistency, and relevance in how media companies and marketers engage with audiences across all forms of digital video and audio (including CTV and podcasting).

“As the industry evolves, so must our Centers of Excellence to meet member needs,” said Pam Zucker, SVP, Chief Strategy Officer, IAB. “Once a former IAB member, I have benefited greatly from the research, networking, and reports that these centers provide. Now, as their leader, I am looking forward to ensuring that center participants and IAB members at large receive the tools and guidance they need to navigate changes in technology and responsible data use amid a shifting privacy landscape.”

Joining IAB’s leadership team, Jack is responsible for all research related initiatives and overseeing strategic direction and output of products such as the annual IAB PWC Advertising Spend and Revenue Research. He will continuously identify new research areas for IAB, helping future-proof the digital ecosystem and supporting the COE’s strategic priorities.

In 2023, the IAB Research & Insights team will focus on initiatives including ad spending related to gaming, podcasting, and video, as well as IAB’s coveted “State of Data” report. State of Data will be released during IAB’s Annual Leadership Meeting in January 2023. This report is designed to help the industry prepare and navigate changes in privacy legislation, the deprecation of third-party identifiers, and platform policies affecting data collection, addressability, measurement, and optimization.

After nearly four years at IAB, Chris Bruderle takes on an expanded role as Vice President, Industry Insights and Content Strategy. In his new role, Chris will work closely with the Centers of Excellence and IAB Tech Lab to create industry education for brands, agencies, publishers, and ad tech participants. Chris will help educate the marketplace by leading member education meetings on various research-based discussions.

“At IAB, we’re focused on addressing industry issues most important for driving growth, educating all stakeholders, and mitigating risks by offering high quality solutions and relevant research to the entire advertising ecosystem,” said Sheryl Goldstein, EVP, Chief Industry Growth Officer, IAB. “Pam, Jack, and Chris each bring unique perspectives to the IAB team. With their years of experience and insights, we are excited to feel their impact – bringing our industry together and continuing to create solutions and educate the marketplace in this highly dynamic time.”

About Pam Zucker
With more than 30 years of experience, Pam comes to IAB as a highly regarded industry veteran across digital, programmatic, and traditional platforms. She’s known for her innovative approaches to media and marketing challenges that turn the complex media ecosystem into understandable ideas for both the C-Suite and day-to-day tacticians. Pam spent her first 25 years on the agency side at Publicis Media leading clients such as Procter & Gamble, Microsoft, Activision, Yahoo, and others. During her time at Publicis Media, Pam built new practices for the agency, including Advanced TV and Experience Design. Pam also spent part of her career leading Media for Starcom Mediavest Group in Russia when that market first opened to media in the mid-1990s. Following her work on the agency side, Pam spent five years consulting for media and technology companies (NBCU, Fox, Viacom, Double Verify) helping them design custom programs and market their digital assets for growth. Most recently, Pam has been at Amobee leading their marketing and sales strategy efforts to bring new identity, performance, and new targeting techniques to the DSP and cross channel planning marketplace. Pam received her BA at Carleton College and resides in Hastings on Hudson, NY.

About Jack Koch
Jack joins IAB with more than 20 years of experience at platforms, brands, and agencies leading global research and insights initiatives that foster smarter business decisions. As an enthusiastic data-driven storyteller, Jack’s passion for pushing the boundaries of research and inspiring action through insights is paramount to elevate industry intelligence. Prior to joining IAB, Jack led and scaled global research, insights, and measurement teams at rapidly emerging digital media platforms including Microsoft, EA, LinkedIn, and Spotify. Most recently, Jack was at Reddit, where he established the Marketing Sciences organization responsible for advancing ad measurement capabilities and partnerships, producing research amplifying industry awareness, and understanding of online communities, uncovering contextual insights, and identifying audience trends that tell the world about their world. Jack earned his BSBA and BFA degrees from the Olin School of Business and the Sam Fox School of Design & Visual Arts at Washington University in St. Louis.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com / mvaughan@kcsa.com 

The post IAB Hires Industry Veteran Pam Zucker as SVP, Chief Strategy Officer, to Lead IAB’s Thought Leadership Engine Including Centers of Excellence and Research Team appeared first on IAB.

NEW YORK, September 13, 2022 – The state of data will be significantly impacted by new state privacy laws coming into effect in 2023 and legislation that may be enacted in other states in the near future. Given the current trajectory of state-level privacy legislation, and federal legislation now being debated in Congress, managing these different legal standards will be challenging.

That’s among the conclusions revealed in IAB’s State of Data 2022 Part II: Preparing for the New Addressability Landscape report, commissioned by IAB and executed by MediaScience, which included qualitative, in-depth interviews with 30 senior-level, data decision-makers at brands, agencies, and publishers.

The report, to be released at IAB Audience Connect on September 13, 2022, highlights new privacy legislation, the deprecation of third-party cookies and identifiers, and platform policies that affect data collection, addressability, measurement, and optimization for digital advertising and marketing.

2022 marks the fifth year and sixth installment of this research, which aims to understand market readiness for rapid shifts around data use, privacy and addressability, and provide an overview of scalable solutions brands, agencies, publishers and ad tech firms can adopt today while protecting consumer privacy.

“While Google’s decision to postpone the deprecation of third-party cookies until 2024 may feel like a reprieve, the industry is far from off the hook,” said David Cohen, CEO, IAB. “The industry is already operating with significantly less signal given the changes by Apple, Firefox, and others. Consumers need transparency and control. We need addressability and measurement solutions that are privacy-by-design and fully compliant with state, Federal, and international standards.”

Companies are struggling to keep up — and facing compromises

Creating consistent measures and protocols that work inside their companies and with external partners has become a major issue. In the face of rising complexity, the majority of respondents agree a “one size fits all” approach spanning multiple jurisdictions is probably necessary. But there is a significant trade-off: failing to leverage data that is fully permitted in certain states means lost opportunities.

We can advance privacy and enable advertising to reach the right consumers at the same time, but misguided legislative efforts risk harming both. The IAB Legal Affairs Council plans to roll out an MSPA (Multi-State Privacy Agreement) and Global Privacy Platform through the IAB Tech Lab as solutions.

The goal is a practical multi-jurisdictional approach to compliance that creates consistency where state laws are similar and options when requirements are unique to a state. IAB is ensuring that the essential functions of the ad-supported internet — measurement, frequency capping, engaging in programmatic and contextual ads and utilizing publisher’s first party segments when consumers opt-out — still work.

Consumers know what they’re giving up, but don’t know what they’re getting

The senior-level, data decision-makers at brands, agencies, and publishers interviewed for this study agree that consumer trust is paramount. Yet the value proposition for consumers remains unclear. While the industry is better about disclosing what data it will use, it is not doing enough to help consumers understand why gathering their data delivers real benefits.

Myopia about first party data ignores up to 80% of consumers

Investing in deterministic first party datasets (data from their logged-in, “known” audiences) remains vital. Yet, in most instances this only represents about 20% of potential consumers. Marketers need proven, probabilistic solutions to target and measure the 80% of consumers who are not part of their first party data.

The publishers interviewed were optimistic about the use of Seller Defined Audiences (e.g., custom cohorts) as one solution for addressability. Still, for this to succeed, publishers must do more to drive buy-side awareness and adoption.

Can smaller publishers afford to keep up?

Ironically, privacy legislation may benefit platforms and publishing giants while inadvertently punishing smaller publishers who have small but intensely loyal audiences. While there are a range of third-party tools that can help power data collection and enrichment, only a handful of interviewees have the budgets to test these new approaches. The consensus is that there are too many tools and not enough resources to test or manage them all — particularly among smaller publishers.

“With third-party cookies, the sky has been falling for more than a decade. No wonder there’s a deepening disconnect between how prepared senior-level, data decision-makers feel, and how prepared they actually are,” said Angelina Eng, Vice President, Programmatic+Data Center, IAB. “But no matter what happens with cookies, the rising tide of patchwork regulation is already here.”

Please visit iab.com/state-of-data-2022 for more information about the IAB’s 2022 State of Data: Preparing for the New Addressability Landscape report.

And don’t miss our in-depth discussion on the findings from the report with the State of Data Town Hall Series on October 18 (State of Data Town Hall: The New Privacy Landscape) and November 15 (State of Data Town Hall: Data Collection and Addressability).

About IAB

The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Kate Tumino / Brittany Tibaldi
212-896-1252 / 347-487-6794
ktumino@kcsa.com / btibaldi@kcsa.com

The post The Looming Peril Isn’t Cookies. It’s Legislation. appeared first on IAB.

New York — October 19, 2021 – A new study commissioned by the Interactive Advertising Bureau (IAB) and led by a researcher from Harvard Business School, found that the internet economy grew seven times faster than the total U.S. economy during the past four years, and now accounts for 12 percent of the U.S. gross domestic product (GDP).

Specifically, the internet economy’s contribution to the U.S. GDP grew 22 percent per year since 2016, in a national economy that grows between two to three percent per year. In 2020 alone, it contributed $2.45 trillion to the United States’ $21.18 trillion GDP. Since IAB began measuring the economic impact of the internet in 2008, the internet’s contribution to GDP has grown eightfold, from $300 billion to $2.45 trillion.

The study, “The Economic Impact of the Market-Making Internet – Advertising, Content, Commerce, and Innovation: Contribution to U.S. Employment and GDP,” also discovered that:

• More than 17 million jobs in the U.S. were generated by the commercial internet, 7 million more than four years ago.
• More internet jobs, 38 percent, were created by small firms and self-employed individuals than by the largest internet companies, which generated 34 percent.
• There are 200,000 full-time equivalent jobs in the online creator economy.  This number is just short of the combined memberships of craft and labor unions SAG-AFTRA (160,000), the American Federation of Musicians (80,000), the Writer’s Guild (24,000), and the Authors Guild (9,000)
• Every congressional district depends on internet-dependent jobs:
  • • Seven congressional districts have at least 10% of their residents working directly in the internet ecosystem, accounting for 9% of total U.S. internet employment.
    • The remaining 91% of internet employment is spread across 425 congressional districts.
    • Of those, 272 districts have at least 10,000 internet-dependent jobs.

“Over the eight years since our last two studies, the internet has made business formation a much more democratic process,” said John Deighton, the Harold M. Brierley Professor of Business Administration Emeritus, Harvard Business School. “Not only large firms, but also large numbers of small firms and individuals, now have the platforms and tools to find customers, engage with them, and transact. And founders don’t need to bring large amounts of capital to the table. Investors have shown great willingness to supply the capital, confident that advertising, sale of subscriptions and licenses, and freemium options will get them an attractive return on their investment.”

“It’s clear that the U.S. economy is undergoing a radical transformation driven by the market-making power of the internet,” said David Cohen, Chief Executive Officer, IAB. “Not only are the barriers to entry lower, but the power of interactive advertising allows businesses to connect with consumers faster and more efficiently than ever before. It’s now possible for a business located anywhere in the U.S. to reach a global market.  As regulators continue to examine online and digital data policies, they must understand how the internet powers economic growth and how proposed regulations could slow or even stop that growth.”

The 17.6 million direct and indirect jobs generated by the internet mark a dramatic increase compared with just three million jobs when IAB began measuring employment growth in 2008. Specifically, the research estimated that 850,000 people are self-employed and 450,000 work for small businesses in jobs that could not exist without the internet. The study also showed that the commercial internet directly generated seven million jobs and indirectly provided jobs to another 10.65 million people fulfilling service needs created by internet-based companies.

The study is the fourth in a series of reports that measure the economic value of the commercial internet, published every four years since 2008.

For more information and the full report, visit here.

Please join us tomorrow, Wednesday, October 20, from 11:00 AM to 12:00 PM ET for a virtual presentation of the highlights from “The Economic Impact of the Market-Making Internet” study by Dr. John Deighton and the point of view of our IAB experts, followed by a panel discussion about “Harnessing the Power of Digital for Growth & Innovation” with three business founders sharing their stories and insights. Learn more about the webinar and register here.

About IAB

The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Its membership is comprised of more than 650 leading media companies, brands, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

For media inquiries please contact:

Lindsay Walters
Senior Vice President, Edelman
202.867.8014
Lindsay.Walters@Edelman.com

The post Study Finds Internet Economy Grew Seven Times Faster Than Total U.S. Economy, Created Over 7 Million Jobs in the Last Four Years appeared first on IAB.