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.

New York – September 13, 2023 – Retail Media was one of the fastest growing U.S. advertising channels in 2022, according to a new report by the Interactive Advertising Bureau (IAB) titled “Retail Media 2023: Operational Strategies to Meet the Growth Potential.”

“It’s a sea change in how the biggest advertisers are planning to reach customers,“ said Jeffrey Bustos, VP, Measurement, Addressability, Data Center, IAB. “Retailers have a treasure trove of first-party data that enables advertisers to reach high intent audiences and provide closed loop-measurement, and budgets are shifting accordingly.”

The study, released today at the IAB Connected Commerce Summit: Retail Reimagined, was created in partnership with BWG Strategy, and surveyed 200 RMN ad buyers at brands and agencies, as well as conducted over 30 interviews with senior decision-makers at retailers, brands, agencies, and intermediaries, including demand side platforms (DSPs), supply side platforms (SSPs), and data providers.

“At IAB we have a unique perspective given our experience over the past three decades of digital development, and the ecosystem-wide impact that RMNs are having,” said David Cohen, CEO, IAB. “In some ways, we are reliving the formative years of the ad-supported internet and developing solutions for brands, buyers, ad tech and retailers to grow their businesses responsibly. We can, and are, helping RMNs realize their full potential which is very gratifying.”

Key Findings: Greater Growth Ahead

RMN ad buyers are projected to increase spend by 11% year-over-year in 2023. These are defined as buyers at brands and agencies spending at least $5M on RMNs annually.

• Among those increasing spending on RMNs, investments are expected to rise by nearly 20%.
• Top reasons to buy: reach incremental audiences (55%); leverage retailer first-party data (52%); drive performance (48%); and leverage customer data (45%).
• The Endemic Brand “Spend Tax” Grievance is a myth. Only 28% of buyers cite the requirement to spend as a top reason for buying.
• To fund increased RMN investment, more than half (52%) are reallocating funds from across digital platforms, including social, search, and digital video/CTV while more than one-third (36%) are reallocating funds from linear TV, print and out-of-home.
• Cross-RMN measurement standards and transparency around attribution windows, incrementality, and viewability, for consistent RMN comparisons will significantly help propel ad spend.

Key Findings: Areas of Opportunity

• Retail media can grow even faster, but must first address key ecosystem-wide issues.
• Improving measurement and data collection is the #1 opportunity area identified by buyers.
• Over two-thirds of RMN ad buyers (69%) cited the need to resolve complexity in the buying process. While many RMNs operate in silos and lack automated buying and cross-RMN performance capabilities, some have begun to provide self-service and managed-service activation platforms. Private marketplaces (PMPs) have also begun to emerge.
• Nearly 2-in-3 buyers (62%) cited the lack of measurement standards as a top challenge to continued growth, followed by nearly 60% wanting greater transparency.
• 60% of ad buyers want better collaboration and communication with RMNs. Tellingly, only one in ten (12%) ad buyers are “very satisfied” with their RMN partner relationships and communication.

“Everyone notes a lack of alignment of stakeholders across shopper marketing, performance marketing, brand marketing and beyond” said Jeffrey Bustos, VP, Measurement, Addressability, Data Center, IAB. “There’s a big opportunity for brands to leap ahead of their competition if they do the work to align everyone’s interests and provide a unified point of view and clarity around goals.”

Click here to download “Retail Media 2023: Operational Strategies to Meet the Growth Potential” study.

IAB/MRC Release Retail Media Measurement Guidelines for Public Comment

As found in the IAB Retail Media Network study, there is a lack of consistent measurement across different RMNs that has emerged as a significant challenge.

The wide array of retailer offerings and metrics has led to difficulties in evaluating campaign performance across platforms. The industry is actively addressing this issue, with IAB and Media Rating Council (MRC) working together to establish measurement guidelines through cross-industry collaboration. The working group’s guidelines will be presented for public comment at the IAB Connected Commerce Summit: Retail Reimagined on September 13, 2023, and will be open for 30 days until October 13, 2023.

“Everything we’ve learned in this study points to the fact that the continued growth and success of retail media hinge on achieving measurement standardization,” said Bustos. “That’s why IAB and MRC are working together to identify existing standards, define common metrics, and create guidelines to ensure consistent measurement across platforms, promoting transparency and confidence in retail media investment.”

IAB and MRC developed retail media measurement guidelines, covering numerous aspects including audience measurement, in-store digital placed-based measurements, ad delivery, viewability, incrementality, reporting, and transparency. This methodical approach ensures all key areas are addressed to achieve comprehensive standardization.

To review the IAB/MRC Retail Media Measurement Guidelines and provide feedback, visit http://iab.com/retailmeasurement.

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 More than Half of Retail Media Networks Advertisers Are Reallocating Budgets To RMNs, According to New IAB Study appeared first on IAB.