IABlog

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IAB’s Make Mobile Work initiative was a great success for us and for our members last year. Launched at the 2014 IAB Annual Leadership Meeting, we started the Make Mobile Work program to foster adoption of HTML5 and cross-screen creative, but it quickly became the Mobile Center’s lynchpin for marketer outreach as interest in the program accelerated. We’ve had support from both the IAB and Mobile Center Boards, and member participation from Google, Millennial Media, Celtra, Tremor Video, Conversant, AOL, Time Inc., Foursquare and many others. Make Mobile Work brought hundreds of marketers to the IAB in 2014 as the definitive source for information on how to Make Mobile Work. 

For 2015, we’re excited to bring back Make Mobile Work for another round of educational, insightful, and practical conversations for brand marketers, to help them succeed in our increasingly mobile-first world.  

The importance of HTML5 for digital marketing continues to be a cornerstone of the Make Mobile Work message, and it’s great to see IAB members promote it as well. For example, Google declared last week “HTML5 Week,” with a series of events focused on tactics for using the standard.  

For our part, IAB’s Tech Lab is updating our standard ad units to reflect the file size needs of HTML5-based ads. This is a timely effort as connectivity technologies have changed along with the rise of HTML5 and it’s vital that we realign buyer and seller expectations around ad file weights that will enable engaging ads, while not harming webpage or ad-load performance.  Make Mobile Work will help to spread the word about this process and its outcomes and implications.

Make Mobile Work webinars will address three important topics over the remainder of 2015. These webinars are curated with marketer business decision-makers in mind—they will keep the jargon to a minimum and focus on sharing practical examples and learning.

Along with the members of the Mobile Center, we’re looking forward to continuing to help brands large and small, novice and experienced, get the know-how they need to make mobile work for them.


About the Author

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Joe Laszlo

Joe Laszlo is Senior Director, Mobile Marketing Center of Excellence, at the IAB.

 


 
Why did IAB prepare an In-Feed Ad Unit Deep Dive?

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While the IAB Native Advertising Playbook (12/14) did a great job at identifying the six different types of native ad formats, the IAB Native Advertising Playbook V2 working group* felt it was time to take a deeper dive into the In-Feed Ad Unit Type given the growth and evolution of this ad unit type since the Playbook was written. We wanted to help marketers and agencies understand the variety of creative options available today. Senior industry leaders in the native space were surprisingly consistent in their feedback and recommendations about what should or shouldn’t be included in the Deep Dive Document. The entire Native Advertising and Content Marketing Task Force groups, totaling over 200 companies, were invited to comment on the initial working group draft document. 
 ~ Kayla Wilson, Senior Partner Manager, Global Alliances & Programmatic at InMobi, who served as the lead of the IAB In-Feed Deep Dive Working Group

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Why focus on in-feed ads by feed type?

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We focused on exploring the most commonly used in-feed ad types found on the three dominant feed types: Content Feeds, Social Feeds, and Product Feeds. Focusing on feed types helps buyers and sellers to have a common framework to assess existing and future opportunities for current and emerging new in-feed ad types on both web and mobile based on their goals. We felt this was important so that marketers and agencies know their creative options for in-feed advertising, particularly as more in-feed ads are served programmatically.
~ Dan Greenberg, Founder and CEO of Sharethrough and co-chair of the IAB Native Advertising Task Force  




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This is about best practice guidance and principles, not about being prescriptive.

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As both feed and ad formats continue to evolve, this deep dive helps provide a framework for evaluating the in-feed ad opportunities available today. Rather than dictating the exact ad experience, this document is meant to provide example implementations and guidelines on how to remain native within the feed context, ensuring the form and function of the ad align with the feed type to provide the best possible experience. 
~ Graham Harris, Sr. Director, Advanced Creative at Yahoo, co-chair of the IAB Native Advertising Task Force





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IAB In-Feed Deep Dive Summary
The below infographic summarizes the possible combinations of the three main feed types and the four main ad types. Again, this is not meant to be prescriptive, but rather a view of potential combinations of the most common feeds and ad types used today. Additional wireframe examples are found in the Deep Dive document.
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The IAB Native Advertising Evaluation Continuum 
IAB Native Advertising Task Force members continue to recommend that marketers and agencies evaluate native advertising options, in-feed or other types, on the IAB five-point criteria as outlined in the original IAB Native Advertising Playbook and included in the Deep Dive.  

And, as always, disclosure remains of paramount importance. As outlined in the IAB Recommended Native Advertising Disclosure Principles, simply put: Regardless of context, a reasonable consumer should be able to distinguish between what is paid advertising vs. what is publisher editorial content.

Conclusion
In-feed ad unit adoption is growing across publisher sites with different ad unit types introduced and/or retired quickly.In addition, feed types are also evolving beyond the three main types (content, social and product), to mixed feed types that have variable aesthetics/content which don’t fall clearly into one bucket. But even with these changes over time, it is important that one thing remain the same and that is the need to evaluate the in-feed ads from the consumer perspective to ensure that they remain native, meaning that they are so cohesive with the page content, assimilated into the design, and consistent with the platform behavior that the viewer simply feels that they belong.

It is our hope that publishers, marketers and agencies will find this deep dive into in-feed advertising options on different types of feeds to be helpful, particularly as more in-feed ads are served programmatically.  

*IAB acknowledges the Native Advertising Playbook V2 working group members from AdsNative, Bidtellect, Bloomberg, Demand Media, Disney Interactive, Disqus, GumGum, InMobi, Meredith Digital, Mixpo, my6sense, Nativo, OneSpot, Polar, PowerLinks Media, PubMatic, Salesforce Marketing Cloud, Selectable Media, Sharethrough, The Daily News, Time Inc., TripleLift, Tumblr and Yahoo, plus the many IAB members of the Native Advertising Task Force who provided thought leadership leading to the final document.  

About the Author
 

Programmatic Advertising: Fact or Fiction

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IAB’s Head of Brand Initiatives, Peter Minnium talks with Diaz Nesamoney, author of Personalized Digital Advertising: How Data and Technology Are Transforming How We Market, about this new media darling.

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The “right message, right person, right place and time” is the oft-cited Holy Grail for digital advertising. While the industry has made great strides in the latter two, driven by an avalanche of tech and data resources, innovation has sorely lagged in the “right message” area. Until recently, brands have been serving 1990s-style ads with 2015 technology. Today, the capabilities exist to raise programmatic media to its full potential with tech-enabled creative - digital ads that pivot away from restrictive ad formats to become data-driven, dynamic canvases. Diaz Nesamoney, CEO and Founder of Jivox, feels so strongly about the potential that he wrote a book on the topic, and we convinced him to share his views.

IAB: As the founder and CEO of a rapidly growing company, you seem to be busy enough; why did you decide to write a book on personalized digital advertising? 

Diaz: For the eight years I’ve been in the digital advertising business, I’ve obsessed about the nearly complete lack of automation and technology applied to creativity. Over the years, there’s been more and more technology coming in to play in some parts of digital advertising, such as media, and woefully missing in others—particularly in the area of creative and delivery of creative. When I was approached by a publisher to publically address this issue, it was too good to be true. I jumped at the chance.

IAB: The first part of the holy trinity for digital advertising - Right Message, Right Person, Right Time - has been neglected for a long time. Why is the emphasis changing now? 

Diaz: The industry’s focus on programmatic buying and selling yielded critical strides forward in terms of scale and efficiency, but took us significantly backward in terms of creativity, suggesting that scale and content were inversely related. Big Data is proving that proposition to be patently false. We now have phenomenal amounts of data to play with as marketers. Two years ago, there was no such thing as a wearable health band, the iWatch, or Nest but now here we are and users are engaging with a plethora of devices that generate all sorts of data. People are willingly offering it in exchange for personalized experiences. So, in one fell swoop, we can change the value proposition of digital advertising and deliver 21st Century creativity at 21st Century scale.

IAB: I am very interested in the second part of this, around the plethora of data that is now available. How do marketers turn this Big Data into actionable signals that tangibly drive creative decisioning and serving? Isn’t that a missing link today? 

Diaz: It is. It’s almost to a point where you can’t listen to a marketing presentation that doesn’t have the words “Big Data” in it. It’s as though data alone will somehow magically make marketing better. That couldn’t be further from the truth. It’s not really the data, in itself, that has value but rather the ability to harness data to create personalization. The missing piece has been data applications — how to tap into data to use it as a trigger. 

IAB: Help me understand the definition of “personalized digital advertising” and how it differs from DCO (Dynamic Creative Optimization)?

Diaz: The idea of creative optimization itself is not new. In the beginning of web advertising, we knew absolutely nothing about users. In fact, the web was all about being anonymous back then; A/B testing was king, i.e., trying different variations of creative, seeing how users respond, and then picking the one that works best. Next, we went to a cookie world in which there was a potential to do something more interesting. This was the birth of DCO. Today, however, we are seeing a significant inflection point: we’re data rich and have a much more complete view of the user, not just “they went to my website and I can re-target them” or optimize creative somehow to perform better—but now I actually know their preferences, where they are and what they’re likely to respond to. So I can craft and scale very precise messaging to them. That is the difference between personalization and DCO: personalization is about having the 360º view of every user, using a broad set of data, and creating unique ad experiences for each of them.

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IAB: In your book, you put forth what I think is a very provocative point of view that tailoring your audience to your advertising is less efficient than targeting your media very broadly and tailoring the message to the individual? 

Diaz: Audience targeting is useful up to a point, but the audience segments available today still require a “spray and pray” approach — throwing a lot of stuff out there and hoping something sticks. If you take a single product, such as an automobile for example, you and I could be considering the same car, but end up buying it for entirely different reasons that have to do with our personal tastes, what kind of sports we engage in, and where and how we drive. There are many different things that lead up to our decision to buy, so why should we be marketed to in the exact same way? We both belong to the same audience segment broadly speaking: professional men of a certain age group, but what does that really tell us? If you don’t have any other choice, certainly audience targeting is better than nothing, but I think technology and data are coming together to do better, to say, “This is specifically what we want to tell Peter because we know what Peter likes and what he doesn’t like.” It’s not unlike walking into your favorite restaurant where the maître d’ knows you, knows that you like to sit at the back of the restaurant, knows your favorite drink. You like that. People like that. People these days almost expect it. Technology is allowing us to do it at scale.

IAB: From a practical standpoint, what three things does a marketer or agency need to do, or start doing tomorrow, to take advantage of the capability to truly personalize digital advertising? 

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Diaz: First, start small. Yes, you can use many, many data sources and create intricate logic trees, but rather than get caught up in analysis paralysis, first take a small step forward by using whatever you have that’s easily available and go from there. 

Second, embrace technology. Without the automation and the scale, it will end up being an incredibly frustrating experience for everybody involved. This has been the past experience with DCO, which is probably why it hasn’t really come together the way it obviously should have. 

Third, be careful what you measure. DCO was optimized for direct-response and clicks. Personalized advertising can have an impact well beyond these rudimentary actions that have led many to underestimate the value of a relevant, well-timed ad to register in somebody’s mind. Personalized advertising has a broader impact, changing attitudes and perceptions as well as behavior over time. These impacts are harder to measure. I am not saying that they can’t be measured, but rather that we should not be using traditional click metrics to measure the success of personalization.

IAB: Thanks, Diaz, and good luck with your book.

For more information and a deeper dive into programmatic creative, register for “Programmatic Creative: Fact or Fiction,” to be held in the IAB Ad Lab on July 15, 2015, 5-7PM.

About the Author
peter-minnium-headshot.jpgPeter Minnium 

As the Head of Brand Initiatives at IAB, Peter Minnium leads a series of initiatives designed to address the under-representation of creative brand advertising online. He can be reached on Twitter @PeterMinnium.








 
TV and video media consumption no longer looks quite the same way it did when we tuned in to catch Friends, ER, or Seinfeld (that is…Seinfeld on Thursday nights on NBC, 20 years before Hulu could stream all 9 seasons on demand!). You know this with one glance around your own living room or at the other commuters waiting on the train platform.

Television content consumption that is unmoored from the living room and liberated from a specific broadcasting schedule is quickly becoming the new normal. Advanced TV advertising channels and solutions are playing an increasingly valuable and important role in this new world of VOD, OTT, time-shifting DVRs, connected TV, interactive television (iTV), IPTV, and myriad enhanced cross-device viewing experiences.

As the IAB’s 2015 Advanced TV Industry Primer outlines, now is also a time of unprecedented opportunity and new sources of value for advertisers, for media companies, and even for consumers of digital video and “Advanced TV” content. The technology that underlies Advanced TV content and advertising distribution also affords unheard-of levels of control for advertisers looking to locate and re-aggregate specific audiences, for media publishers looking to derive the highest premiums for their inventory, and for consumers who just want to watch what they like when and where they like… and maybe have a little fun with interactivity or even make a purchase.

Released during today’s IAB Video Marketplace event in NYC, the Advanced TV Industry Primer aims to provide a grounding for both buyers and sellers in what Advanced TV is, why the evolution from linear to Advanced TV is good for everyone, who the players are in the space, and specific opportunities and challenges.

As a teaser, here are some tips to keep in mind when venturing into the world of Advanced TV advertising:

  1. For now, think of Advanced TV as supplemental to the standard broadcast plan. The current scale and capabilities of Advanced TV advertising opportunities are a great supplement to, but not yet a replacement for, your traditional TV buy.
  2. Take advantage of precision targeting, but don’t get too excited about this capability and take it too far. While there is great audience targeting and re-aggregation possible, scale audiences at this time can’t get too specific - e.g. club-footed home-office radiologists in Michigan - or you will lose the ability actually to impact your brand.
  3. The currency of the space is largely impressions-based, for now. But watch this space, so to speak, for evolution in that area. And channel any feedback you have to the IAB regarding currency and measurement needs, as many of these standards and best practices are being worked out at this time.
  4. Multiple modes of distribution mean multiple channel contacts are necessary for planning and buying. It’s still worth it, but be prepared to manage this process.
  5. Agencies should be prepared to allocate additional resources to address the technical needs of Advanced TV and have specific workflow in place.

Download the IAB Advanced TV Industry Primer: http://www.iab.net/ATVPrimer

The IAB would like to thank the member companies of the Advanced TV Advisory Board for contributing their perspectives to the primer.

Learn about other Digital Video Advertising subjects at the IAB Digital Video Center: http://www.iab.net/videocenter


About the Authors

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Elaine Boxer

Elaine Boxer is the Director, IAB Digital Video Center of Excellence.




 

Empowered to Say No - The Role of a Compliance Officer

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At the recent Advertising Technology Marketplace conference, I chatted about bad friction and good friction. The IAB Tech Lab was established to reduce friction by enabling standards creation, tools, and standards certification. At the same time, ironically, we also need to manufacture healthy friction to strengthen the barrier of entry.   

Standards do not just create interoperability for growth and shape markets. Standards create layers of transparency that lead to a healthier supply chain. This includes programs supported by IAB, Digital Advertising Alliance, and Trustworthy Accountability Group (TAG).  

This year, I am asking for every company to identify a compliance officer who is an inventory quality and audience specialist.  He or she should have executive powers with the support of the executive committee of the organization. 

Publishers, your compliance officer should know your traffic sources. Organic search, social, and purchased are all forms of sourcing.  The compliance officer should be reviewing the marketing, advertising operations yield management, and audience growth strategies and tactics. For example, if a partnership is growing audience at an unnatural rate for you in the off hours, it is time to find a new partner.  

Platforms, some of you have a compliance officer identified in the TAG programs. He or she should keep weeding out the wolf selling sheep’s wool to create further transparency that we all need and want in business transactions. This individual must be empowered to deny new inventory, recruited by the supply team, that goes against your internal controls and checklist of quality supply. 

Buyers, viewability is the new currency we’re striving toward. Low cost CPMs, even to refresh your audience pool, can harm the efforts to move to the new currency if not executed appropriately. Your compliance officer can help weigh the pros and cons.  

Small companies, take note. You are entering a market with ideas and innovation—a market with growing resources to provide guidance for best business practices and tools. I encourage you to use them.    

If you don’t have a compliance officer, get one. And in your organization, this individual needs to be empowered to say no.  This is not about growing business for the sake of top line revenue alone, it is about growing business the right way, which leads to the health of the bottom line and supply chain. Human Resources departments should support this executive with transparent, educational dialogue to the staff. The compliance officer is visible, public, and a trusted internal source for personnel.  

Finally, if your company uses standards, it’s important to declare your version centrally and keep it up to date with the latest issued in the market. Legacy versions of a standard, or enhancements to a current standard, need to be declared upfront in the pre-sales process. The compliance officer can help with these internal operations and language in your market transactions.  

IAB has a portal for your declaration. I encourage your company to keep this record up to date.  

For more information about the IAB Tech Lab, please visit http://www.iab.net/techlab, and to understand more about IAB Compliance programs, visit http://www.iab.net/guidelines/compliance_programs.


 
Programmatic is the way business is done today. 2014 was a momentous year for programmatic advertising with a large amount of advertisers shifting their budgets into programmatic, as well as continued growth in mobile and video automation. According to eMarketer, automated advertising is expect to reach $20.41 billion, or 63.0% of US digital display ad spending by 2016. Programmatic-technology enabled automation and RTB-auction based internet ad buying are gaining market share, driving the need for universally adopted standards. 

Even with the all the stats supporting the dramatic shift to automation, adoption of the latest version of OpenRTB, a common protocol that enables buy and sell side platforms to talk to each other, has been slow. Many DSPs are still only supporting OpenRTB 2.1, and are shying away from upgrading to OpenRTB 2.3 because they don’t have any immediate plans to break into the Native space. OpenRTB 2.3 isn’t just an industry shaping measure that provides a framework for Native to be transacted on programmatically -  the latest version of OpenRTB also provides significant support in other areas of Real Time Bidding. 

Upgrading to the latest model or software for our phones is a compulsion for many of us. We can’t wait to see what new features and improvements are being offered. It’s very unlikely for one to hesitate upgrading to the latest version of iOS because it has some features you may not have need of at this very moment in time. These upgrades provide more than just an increased feature set, they include bug fixes, improve battery life, and offer a wide variety of quality of life improvements. Yet when it comes to tech specifications, many companies make the mistake by waiting too long to update thinking it’s not relevant or valuable to them. You wouldn’t think twice about upgrading your phone, why would you stall on upgrading to the latest version of OpenRTB? Inventory that could be made available or made more valuable isn’t. Deals that could be made aren’t.  

When it comes to open standards in programmatic, it’s important to think of the bigger picture. As Nitin Gupta, Director, Product Management at Millennial Media puts it, “OpenRTB 2.3 isn’t just about native, it includes native.” In addition to native, the latest version of OpenRTB provides:

  • Significant upgrades that improve the programmatic workflow buyers and sellers
  • An indicator for mobile optimized sites, helping to ensure the right creative is available
  • Support for signaling supported image dimensions/resolutions, allowing bidders to make smarter buying decisions

Bidders should upgrade to OpenRTB 2.3 to take advantage of all the features and clarity brought, in addition to the support for Native.  

In fact, many SSPs are having to put extension options in place to support OpenRTB 2.1. Gupta explains, “Whether you are looking for parameters in 2.3 or extensions objects of 2.2, it requires the same amount of work from a development standpoint.” Regardless of whether or not a DSP has native aspirations in the immediate future, it’s important to note that all the additional fields that have been added in OpenRTB are optional. If you are interested in pixel ratio, you don’t have to go around looking for extensions and partners, it’s supported in OpenRTB 2.3. You can reap the benefits of 2.3 at the same short term cost as making 2.1 support features the marketplace demands - and be better positioned to adopt future iterations.

So if you already planned on upgrading your existing version of OpenRTB, take a note from your personal life. I encourage your product and engineering team to go that extra mile; skip OpenRTB 2.2 and upgrade to OpenRTB 2.3 - you’ll be surprised at all the improvements you didnt even know were there!



About the Author

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Melissa Gallo

Melissa Gallo is Director of Product, Programmatic Automation and Data in the IAB Technology Lab, at the IAB.

 



 

Reaching Dads on Devices: A High Income Segment Prone to Mobile Purchases

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The media industry has paid a great deal of attention to the role of mobile as an important medium for moms. With Father’s Day nearly upon us, IAB’s Mobile Center and Millennial Media thought it was an opportune time to look at the other half of the parenting equation: dads. We examined how dads use mobile and where marketers should seek them out in app and on the mobile web. Our findings (drawn from comScore data) are detailed in the below infographic, and we summarize some highlights here.

There are 52 million mobile dads in the U.S., and they make up 21% of the total U.S. mobile audience. Eighty-two percent of dads own a smartphone, and 40% own a tablet. Dads spend slightly less of their interactive time on mobile than moms do: while moms spend 71% of their total online time on mobile devices, dads spend about 57% of their online time on mobile. This difference is even more pronounced for millennial moms and dads.

So what makes mobile dads an important demographic segment? Spending power for one thing: 58% of mobile dads have a household income over $75,000 per year, which is 33% higher than the mobile average income. That’s because almost three in four mobile dads work full time. And they are willing to spend some of that money via their mobile devices. Thirty-seven percent of all mobile dads make mobile purchases, and that number jumps to 45% of millennial dads. Dads are twice as likely to spend over $500 on mobile purchases compared to the average consumer; and millennial dads are three times more likely. They are not just buying things for themselves: dads are four times more likely to buy things for their families via mobile devices than the average consumer.

Similar to the general population, dads’ most frequently accessed content categories are weather (their number one category for smartphones) and social media (their number one category for tablets). In terms of mobile categories where they outstrip mobile moms, the top content categories are predictable: dads access sports content 28 percentage points more, financial news 23 more, and technology news 19 more than moms do. More surprisingly, dads also access horoscopes, share photos, use shopping apps, and access maps more often than mobile moms. The stereotypical dad may still have trouble asking for directions in the real world, but he is prepared to ask his phone.

Moms get much attention for being heavy mobile users, as they are. But we think that dads deserve greater attention from marketers as well, and not just around Father’s Day. Seeking out these big mobile spenders can help ensure that family-oriented marketing campaigns reach both parental partners, and increase their likelihood of having an impact.

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About the Authors

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Joe Laszlo

Joe Laszlo is Senior Director, Mobile Marketing Center of Excellence, at the IAB.

 



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Stephen Jenkins

Stephen Jenkins is VP, Global Marketing & Communications, at Millennial Media.

 


 
The digital advertising ecosystem has often been portrayed with excessively complex diagrams featuring hundreds of logos and arrows indicating multiple flows and directions.

Yes, it is complicated — significantly more so than analog media — but it is not so foreign as to be unrecognizable to the trained marketer. Each additional capability merely adds new tools to help agencies, publishers, and marketers apply their skills more effectively.

As part of our Digital Simplified series we set out to, well, simplify the depiction of this valuable system with The IAB Arena. The resulting “Arena” illustration is designed to portray, from a marketer’s perspective, how advertising messages are delivered to consumers in the vibrant and ever-expanding ecosystem of digital advertising.

We just launched an interactive video of the Arena powered by Rapt Media, created for professionals and students of all levels to learn how the different players, parts and technology work together to create, sell, distribute and measure digital advertising. Users can easily navigate around the six Arena rings to select the parts of the ecosystem they’d like to learn more about. There is also an interactive diagram that explains the Arena at a higher level.  
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As all media is increasingly delivered in on-demand, digital formats, the concepts and businesses that form the rings of the IAB Digital Advertising Arena will apply throughout the industry.

In a very short while, television will include addressable advertising elements, and ads will be served by computer systems that track interaction with the ads rather than just reach. Functions and capabilities developed for what was then known as “digital” will just be “media.”

The IAB Arena serves as a roadmap to the future of how all advertising will ultimately reach and impact consumers. Smart marketers, agencies, and publishers that are investing today to ensure their teams are experts across the Arena will reap benefits far into the future.

View the IAB Arena and video: iab.net/iabarena

Learn about other Digital Advertising subjects with IAB’s Digital Simplified: iab.net/simplified


About the Author
peter-minnium-headshot.jpgPeter Minnium 

As the Head of Brand Initiatives at IAB, Peter Minnium leads a series of initiatives designed to address the under-representation of creative brand advertising online. He can be reached on Twitter @PeterMinnium.







 

U.S. Hispanics - 8 Things All Marketers Should Know

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American demographics have shifted in the last 15 years, with growth in the U.S. population being led by Hispanics Millennials. By sheer size and upward mobility, Hispanics are influencing the American mainstream through pop culture, music, fashion, sports and politics. That influence is only just starting to translate into media and marketing attention, with Multiculturalism declared the new mainstream.

quote#1.pngTo help better understand the emerging Hispanic mainstream, here are the top 8 takeaways on marketing to US Hispanics from AHAA’s 2015 Conference in Miami April 27-29th. 
 
1.    Millennials are Multicultural. Millennials are the marketing ‘flavor of the month,’ but many forget that this population is also the most diverse generation in American history, with 43 percent of them (Pew Research Center, 2014) identifying as non-White. Of those, 21 percent identify as Hispanic, in the words of Peter Hall, Senior Vice President of Marketing, Heineken Americas, Millennials=Multicultural. 

2.    Authenticity is essential. If you want to reach this Multicultural Millennial, adding a cultural symbol or a Spanish word on an ad is no longer effective. Hispanic Millennials seek authentic and transparent interactions with brands.  They are comfortable with advertising being a part of their media experience, but are critical of intrusive or insincere messaging.  Hispanic Millennials aren’t bound by one language or culture.  Therefore, the challenge for marketers is to reach them in an authentic way, as well as speak to their multi-faceted identities as consumers. 
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3.    Language is not as important as culture.  Hispanic culture is becoming part of and transforming the mainstream.  While Spanish is the 2nd most spoken language in the US, language is not as relevant as culture!  According to Pew, Millennials and younger generations are increasingly bilingual. They do not choose one language over the other, but fluidly transition between two or more in their daily lives. Highly successful and creative campaigns by Target, Heineken, and Comcast that were shared at the conference all demonstrated how cultural connections trumped language.

4.    Hispanics contribute to growth in the population and economy. A collaborative study by IAB and BabyCenter in 2015 shows that 23 percent of all U.S. births are to Hispanic Millennial women, and the average age of a first time mom in the US is 25.8 years old.  They are drivers of US population growth, by virtue of being Millennials themselves but also by influencing the lives, language and culture of the next generation.  

5.    Hispanic moms decide on family spending. In addition to contributing to this unprecedented growth in native Hispanic population, according to Nielsen (Latina Power Shift, 2013), Latinas outpace their male counterparts in educational achievement, decision making on household spending, and cultural adaptability— maintaining both Hispanic and American cultures and languages.

quote#3revised.png6.    Hispanics have spending power—yet are under-represented in marketing budgets.
 “While 84 percent of Marketers believe Multicultural marketing is ‘critical to my business,’ almost 40 percent said they don’t know the financial value of Multicultural groups to their companies.” - 1+1=3, Dieste, 2014
 
 Nielsen predicts that by the end of this year, Hispanics will have $1.5 trillion in buying power. Hispanic women, 86 percent of whom say they are primary financial decision makers of their households, spend more time and budget online buying products for their families, including food, beverages, health, and beauty products.
 
7.    Hispanics are Mobile and Digital power players. Studies by Nielsen, Specific Media, and Pew all point to greater percentages of smartphone use and multiple screen engagement in the Hispanic population.  Smartphone ownership is higher for Hispanics (77%) than non-Hispanic whites (70%).  Millennials lead with 81 percent penetration.
 
They spend more time than non-Hispanics streaming music, watching videos, reading, and shopping via their mobile devices.  Add to that their greater receptivity to advertisers and brands, and marketers and agencies are presented with a prime opportunity.
 
8.    Audio as a medium to reach Hispanics.  In fact, major audio platforms like Pandora and iHeart Media (both keynote presenters at AHAA’s conference) recognize the importance of creating content and advertising that is relevant to their consumers—with 17 million Hispanics on Pandora, 3 of the top genre stations are Latin.  The genre is in fact #2 in terms user time spent. iHeart Media shared similar audience data, pointing out that most of what we consider English language stations are dominated by Hispanic listeners.

Marketers need to take risks

Industry research and demographic data is in agreement on an emerging Hispanic majority that will define the mainstream— the age of the Multicultural Millennial.  So how do marketers and agencies grow their business and leverage this audience?

Marketers understand that whether it’s an aversion to risk or resistance to change, ‘playing the short game’ is not going to bring the industry forward or foster innovation that feeds growth and impact.  The data above is a start to understanding and marketing to Hispanics.  They are the most technologically driven, mobile, and socially present population, changing the profile of our consumer landscape.  An important step forward for marketers and advertisers is to create content that speaks to them, in a respectful and authentic way.

IAB’s Multicultural Council aims to inform the digital industry on the value of advertising to Multicultural audiences, and to promote the advantages that digital provides in reaching them—through education, events, and content.  Join IAB on May 27th in NYC, for the Multicultural Creative Town Hall, where members and partners will showcase their best creative work, sharing insights on strategy and audiences. 

And don’t forget to submit your best to the IAB MIXX Awards. The IAB MIXX Awards recognizes and celebrates the year’s best interactive advertising. Winning work ultimately serves to educate the marketplace about what works and why in digital, as well as inspire the industry by pointing to future trends. You can read more about the IAB MIXX Awards at
www.iab.net/mixxawards.


 








 

U.S. Hispanic Millennial Moms Maximize Mobile

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In February 2015, IAB and BabyCenter published 2015 State of Modern Motherhood: Mobile and Media in the Lives of Moms, a look at U.S. millennial moms and the central role that mobile plays in the things they buy and the media they watch. We decided to dive back into the data for another look, this time specifically at Hispanic millennial moms, to compare how their use of mobile and media stacks up against the average millennial mom. Unless otherwise noted, references to “moms” throughout this post refer specifically to U.S. moms in the millennial generation, aged 18-32 years old.

The Hispanic population is one of the most important demographic groups in the United States today. Among moms this is particularly true: 23 percent of all U.S. births are to Hispanic women. So any marketer looking to reach moms needs to understand Hispanic moms, and tailor their message accordingly, or they risk missing almost one in four of their target audience.

The Digital Toolbox is Key for Hispanic Moms
The data clearly indicate just how important digital media are for Hispanic moms looking for parenting related advice or insights. Seventy-one percent of Latina millennial moms whose primary language spoken at home is Spanish (going forward, we’ll call these moms “Spanish-preferred,” and we’ll call Hispanic moms whose primary language spoken at home is English, “English-preferred”) seek expert advice on parenting websites weekly or more often, as compared to 60% of moms in that demo who prefer English, and only 49% of  moms in general. This holds true for an array of other digital media.  Among Spanish-preferred Hispanic moms, 60% turn to mom blogs, 52% turn to other parents on parenting social media, and 45% look to parenting or baby apps, all much higher than the average mom. While the digital world is important for all moms in the coveted millennial age group, it is particularly so for those who are Hispanic.

Even more than PC/laptop-based digital, mobile is the key medium for Latina moms. As the table below shows, PC ownership drops for Hispanic moms relative to moms in general, and indeed, the Spanish-preferred segment is almost equally likely to own a tablet as a laptop/PC. Moreover, 36 percent of Latina moms rely on a mobile device (smartphone or tablet) as their sole internet connection—more than 2.1 times the rate of moms overall. Clearly, even more so than for the average millennial mom, Latina moms are already leading mobile-first, and sometimes even mobile-only, lives.

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Hispanic Mom Media Time Goes Very Mobile
As a mobile-first demographic, it’s unsurprising that Hispanic moms spend even more media time on their mobiles than the average mom does. While millennial moms estimate they spend about 2.8 hours daily online via smartphone or tablet, English-preferred Latina moms in that generation spend 3.2 hours, and those who prefer Spanish spend 4 hours online that way. In fact, the latter group spends 37% of their media time with mobile.

Spanish-preferred Hispanic moms make heavy use of both TV and mobile media, reporting about 11 hours of total daily media time, as compared to 8.9 hours for moms overall.

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Of course, the only way a busy mom could possibly spend that much time with media is through significant multitasking, and Hispanic moms are true experts at that. About 53 percent of this demo always or often use their smartphones while also watching TV, comparable with moms overall. One area where Hispanic moms are distinctive is in watching online video while watching TV. While 33% of moms overall watch online video on their phones while watching TV, the number jumps to 42% with Latinas.

But Hispanic Moms Present Untapped Mobile Shopping Opportunity
While they have definitely embraced mobile media, Hispanic millennial moms do surprisingly little mobile shopping. For example, 51% of moms overall say they use their mobiles in-store to help them search for better prices, as compared to 42% of English-preferred Hispanic moms, and only 39% of those who prefer Spanish.

Similarly, although 62% of moms overall look for and download mobile coupons, only 31% of the Hispanic segment does, and while 44% of U.S. moms search for and read product reviews, and 40% of English-preferred Latina moms do so, and only 27% of those that prefer Spanish use this mobile capability.

We think this is a big untapped opportunity for marketers to influence Latina moms’ shopping habits via mobile. This adoption gap would quickly close if Hispanic millennial moms were more aware of such services and capabilities, and if they were more widely available in Spanish. Marketers should not overlook the opportunity to make this demographic more mobile-shopping savvy.

Digital Advertising is a Great Way To Attract Hispanic Moms’ Attentions
In the “2015 State of Modern Motherhood” report, IAB and BabyCenter observed that millennial moms were much more likely than Gen X moms to say they frequently notice digital and mobile ads. That’s even more true of Hispanic millennial moms. Fifty-six percent of them say they frequently notice digital (laptop/PC, smartphone, or tablet) ads, as compared to 44% of millennial moms overall. And over half (52%) of Hispanic moms frequently notice mobile ads, as compared to only 37% of all moms. That is on par with the percentage of Hispanic moms who said they notice TV ads (50%). Clearly, for marketers reaching this important segment of U.S. moms, mobile is a key media channel.

About the Authors

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Joe Laszlo

Joe Laszlo is Senior Director, Mobile Marketing Center of Excellence, at the IAB.

 




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Julie Michaelson

Julie Michaelson, Head of Global Sales at BabyCenter.

 


 


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