IAB Italy Forum 25 November Townsend Feehan, CEO, IAB Europe
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1 IAB Italy Forum 25 November 2014 Townsend Feehan, CEO, IAB Europe
2 IAB Italy Forum Townsend Feehan, CEO, IAB Europe Snapshot of Q3 ad spend trends in Europe, projections to 2018 Device penetration How IAB Europe s substantive policy and industry promotion work aim to help drive continued growth IAB Italy Forum 2
3 Online to overtake TV by end 2014 as print is squeezed, but TV and online are more friend than foe Western Europe: Net advertising revenue by media other media print online television Source: IHS IAB Italy Forum 3
4 Market dynamics differ internationally online proportionally more important in Europe* US: net ad revenue in 2013 ( m) European Big 5: net ad revenue in 2013 ( m) LATAM: net ad revenue in 2013 ( m) China: net ad revenue in 2013 ( m) TV Online 0 TV Online 0 TV Online 0 TV Online Broadcast Cable Broadcast Cable Broadcast Cable Broadcast Cable Video Other Display Video Other Display Video Other Display Video Other Display Search Search Search Search *note that scales vary by region caution when comparing market sizes across regions IAB Italy Forum 4 Source: IHS
5 Online growth will be driven mainly by transactional mechanisms (programmatic), mobile and video formats 2014 year-on-year growth (%) Programmatic buying 72,8% Mobile Display 51,0% Video 21,1% Display 11,5% Search 11,2% C&Ds 4,2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: IHS IAB Italy Forum 5
6 Online video advertising revenue will cross the 2bn mark in 2015 and growth will not fall below 9% by 2020 Western Europe: net online video ad revenues ( m) % % % 80% % % % % Source: IHS IAB Italy Forum 6
7 Mobile advertising exploded in 2013, and market will triple by Europe: net mobile advertising revenues ( m)* *includes display, search, messaging Source: IHS IAB Italy Forum 7
8 The average European household will have nearly 6 connected devices by Smart TV for every 2 households Nearly 3 smartphones per household 1 STB per 4 households 1 games console per 10 households 1 tablet for every 2 households Source: IHS 1 DMA per 10 households Over 1 PC per household IAB Italy Forum 8
9 The device universe is becoming ever more fragmented World Connected device installed base (m) Other connected devices FTA set-top boxes BD players Smart TVs DMAs Pay-TV set-top boxes Game Consoles Tablets PCs Smartphones Source: IHS IAB Italy Forum 9
10 How IAB Europe s policy engagement contributes to continued growth Increased regulatory attention on our sector Privacy & data protection: GDPR, data transfer, amended eprivacy Directive ( cookie Directive), OBA Self-regulatory Framework Intellectual property: trade mark review, copyright review Consumer protection: UCPD Telecom rules / net neutrality European legislative process is a 2-track process where European Parliament and Council / Member States are co-legislators both national- and EU-level tracks are essential for impact IAB Europe works to explain bottom-line impact of new rules on innovation & competitiveness in Europe Digital is top of the agenda 13 Digital Commissioners! DISE network supported by national IABs will bring business reality to EU decision-makers IAB Italy Forum 10
11 How IAB Europe s policy engagement contributes to continued growth Substantive policy priorities are still to do with privacy & data protection; new focus on intellectual property Privacy & data protection : Proposed general data protection regulation; Data transfer / Safe Harbour; Implementation and case law around the amended e-privacy Directive 2009/136/ EC; OBA Self-regulatory Framework Ad blockers & Do Not Track Intellectual property: trademark review, copyright review Other dossiers telecom rules, consumer protection, ad blockers IAB Italy Forum 11
12 How IAB Europe s policy engagement contributes to continued growth Proposed general data protection regulation: key changes in comparison with 95/46/EC Scope/jurisdiction (affects non-eu companies) RTBF Breach notification (ecommerce Directive) Consent (affirmative action) Enforcement 5% of global turnover for breaches Data protection officer mandatory for companies over 250 employees & risky processing DPA competence / one-stop-shop EDPB with increased autonomy & authority Ex ante notifications / prior approval removed (exceptions) IAB Italy Forum 12
13 How IAB Europe s policy engagement contributes to continued growth Proposed general data protection regulation: EP first reading made minor improvements but kept general shape of Commission text Council made slow progress until Italian Presidency; current focus is one-stop-shop, and public sector (in-scope / out-of-scope) IAB Europe priority issues: consent, legitimate interest, pseudonymous data, profiling Key industry allies = ICDP (esp. WFA, EACA, FEDMA) Next steps / timing Call to action for IAB Italy, other IABs New rules would come into force mid-2017 at the earliest IAB Italy Forum 13
14 How IAB Europe s policy engagement contributes to continued growth Ongoing enforcement, possible amendment of the eprivacy Directive 2009/36/EC ( cookie Directive ): Lack of harmonisation across the EU (see IAB online documentation centre for rules in your Member State) Some worrying national case law Commission has said will amend Directive but outcome linked to final GDPR wording on consent IAB Italy Forum 14
15 How IAB Europe s policy engagement contributes to continued growth Data Transfer / Safe Harbour Current applicable law is 95/46/EC US does not meet adequacy test, but Safe Harbour regime in place since 2000 Post-Snowden revelations, pressure on EU Commission to renegotiate or drop Safe Harbour Talks with US on modernisation scheduled to be completed this autumn / winter IAB Europe supports a level playing field and effective enforcement of Safe Harbour
16 How IAB Europe s policy engagement contributes to continued growth IAB Europe OBA Self-regulatory Framework Framework implemented since end 2012 Enforcement by national SROs, certification providers Third parties implement Steps are licencing the icon, technical implementation and link to Your Online Choices site, internal self-certification of compliance, external audit of self-certification, award of B2B business seal of compliance Extension to mobile currently discussed with EDAA stakeholders on the basis of an IAB Europe draft addendum to the existing Framework Current dialogue with European Commission on future role of / scope for Self-regulation IAB Italy Forum 16
17 How IAB Europe s policy engagement contributes to continued growth Ad blockers, Do Not Track Survey of national IABs in September found ad blockers may deprive websites of up to 80% of ads, depending on type of site and audience demographic Most respondents said replying tit-for-tat would be unproductive in the long term Policy issue or a business issue? Some competition policy aspects (e.g. whitelisting against payment) IAB Europe working with EU publisher organisations to explore way forward Do Not Track link to OBA Framework for DG CNECT IAB Italy Forum 17
18 How IAB Europe s policy engagement contributes to continued growth Trademark reform Trilogue discussions underway informal trilogue completed, Council will review state of play on 14 th November IAB Europe focusing on referential use Copyright reform Barroso Commissions put off opening up the 2001 Copyright Directive, despite support from Kroes for new rules to support digital innovation Juncker Commission has put it on the agenda, but unclear how Commission VPs with team responsibilities will articulate with individual Commissioners IAB Italy Forum 18
19 Thank you for your attention IAB Italy Forum 19
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