IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

IAB GLOBAL SUMMIT 2015

September 30 – October 1New York, New York

Town Hall: Digital Advertising in the European Economy

Presentation: Constantine Kamaras, Chairman of the Board, IAB Europe, and Vice Chairman, 24 Media

Moderator: Sherrill Mane, Senior Vice President

Research, Analytics, and Measurement, IAB

Townsend Feehan, Constantine Kamaras / Global IAB Summit 30 September 2015

Digital Advertising in the European Economy

•  IHS – IAB Europe White Paper will be issued in November 2015 •  Why economic research to support policy engagement is important

now •  Target audience •  Substantive scope - why / how we landed where we did, and what the

White Paper will aim to do •  Release plan •  Possible next steps at a global level

IAB Europe Digital advertising in the European economy

•  Why economic research to support policy engagement is important now

–  Last IAB Europe economic impact study (2012) was outdated –  New Juncker Commission since 2014 – digital is high on the agenda –  Defensive issues / offensive opportunities

•  Data protection review •  Proposed Digital Single Market strategy

–  Existing IAB Europe research stream does not give full story on impact of digital advertising on EU economy, other sectors

–  Ongoing policy research programme can build bridges to other, key stakeholders

IAB Europe Digital advertising in the European economy

•  Target audience –  EU institutions (Commission, Council, EP) –  Media –  Influencers (think-tanks, academics)

IAB Europe Digital advertising in the European economy

•  Substantive scope (1) – the reflection process –  Policy Committee defined scope in H1 of 2015 –  Possibilities ranged from update of McKinsey study (@ EUR 350k+) to something

shorter & sharper –  Literature survey should be part of the exercise: cut through range of diff. voices –  Committee wanted a simple message - “one number” –  Paper to be opening salvo in a series – ensuing papers could drill down on impact

from specific angles –  ‘Funnel approach’ moving from macro-perspective on advertising & overall

economy (GDP, sector contribution metrics) to role of advertising in a digital economy

–  Paper should then look at digital advertising in the European labour market –  Finish with policy recommendations

IAB Europe Digital advertising in the European economy

•  Substantive scope (2) – some constraints –  Timeframe, including GDPR trilogues, DSM discussion in Q3 –  Availability of data –  Elusive nature of the notion of “digital economy” – national, cultural and

methodological differences in how this is construed –  Potential inability to reconcile 3rd party studies for a like-for-like comparison –  Blurring boundary between digital and non-digital advertising, esp. WRT job roles

within the advertising industry –  Fragmented, opaque, incomplete landscape of reliable data on employment, jobs,

job creation etc. attributable to digital advertising in Europe

IAB Europe Digital advertising in the European economy

•  Substantive scope (3) – workarounds to finesse the constraints –  Explore the problem of divergent notions of ‘digital economy’, ‘digital advertising’, e –  Use a case study rather than comprehensive EU 28 approach for employment and

job data, local data permitting –  Extrapolate from IHS work on jobs in the US advertising industry –  Draw on support of national IABs and IAB Europe corporate members to supply

e.g. employment statistics to finesse gaps in available data –  Supplement with company reports –  Accept that employment metrics will be top-level

•  Study is a ‘first’ – no similar work has been undertaken for Europe •  Honest and transparent approach may be a competitive differentiator,

invite a dialogue

IAB Europe Digital advertising in the European economy

•  Substantive scope (4) – what the White Paper will show –  High-level literature survey of relevant studies issued over the past 5 years, in Europe

and the US, focussing on advertising & its relationships to the economy & jobs –  Review of competing definitions of ‘digital economy’ and proposed working definition –  Proposed approach takes account of the weaknesses of those previous efforts –  Qualitative perspective on digital innovation in Europe, job skillsets required and the

role of digital advertising as an incubator of those skills for the digital economy at large

–  EU-level estimate of number of jobs attributable to digital advertising, both directly and indirectly, based on a new model (see next slide)

–  Call to action: Taking Adex Benchmark as a template, embark on systematic and harmonised way of gathering employment metrics through local IABs in order to support future research and policy work

IAB Europe Digital advertising in the European economy

•  Jobs attributable to digital advertising in Europe: this paper’s approach: Secondary research as a basis, using ratios and benchmarks to translate US figures into a European market environment based on IHS (2012) study

IAB Europe Digital advertising in the European economy

| 16

Direct

Indirect

Induced

Jobs in the US attributable to advertising

Ad market size

Ad/capita

Share of digital

US/EU ad market characteristics (examples)

EU ad job metrics

Eurostat

Industry organisations

Company sample

US-EU translation model

Harmonisation of metrics

Building ratios

Factoring in scale

differences*

*platform economics mean that some companies need lower headcount per EURm of revenue, and that significant part of this headcount is located outside of Europe

Validation on available actuals

•  Release plan –  Official launch 9th November 2015 –  Event at Centre for European Policy Studies on GDPR versus the Digital Single

Market (Brussels) –  Webinar –  Dashboard & other collaterals –  Blogs, social media –  “Roadshow” to national IABs & national media, influencers during fall & winter –  Ecosystem associations to act as multipliers

IAB Europe Digital advertising in the European economy

•  Next steps –  Second White Paper in series may look at how digital is supporting media –

•  Timeframe => Q2 2016 •  Hoping to enlist another industry organisation (publisher?) as co-sponsor

–  Proposed IPSOS Mori research with EDAA on consumer perceptions of advertising’s role in funding the Internet (Q4 2015)

–  Can we imagine a global policy research programme to complement the current market surveys and benchmarking work?

IAB Europe Digital advertising in the European economy

@IABEurope

IAB Europe

www.iabeurope.eu

Constantine Kamaras, IAB Europe Chairman (constantine.kamaras@gmail.com)

Townsend Feehan, IAB Europe CEO (feehan@iabeurope.eu) Alison Fennah, Executive Business Advisor (fennah@iabeurope.eu)

Contacts