Town Hall: Digital Advertising in the European Economy

Transcription

1 IAB GLOBAL SUMMIT 2015 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

2 Digital Advertising in the European Economy Townsend Feehan, Constantine Kamaras / Global IAB Summit 30 September 2015

3 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

4 Why economic research to support policy engagement is important now Last IAB Europe economic impact study (2012) was outdated New Juncker Commission since 2014 digital is high on the agenda Defensive issues / offensive opportunities Data protection review Proposed Digital Single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

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

6 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

7 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 3 rd 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

8 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

9 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

10 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 Jobs in the US attributable to advertising US/EU ad market EU ad job metrics characteristics (examples) US-EU translation model Direct Ad market size Eurostat Harmonisation of metrics Building ratios Indirect Ad/ capita Industry organis ations Factoring in scale differences* Induced Share of digital Company sample Validation on available actuals *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 16

11 Release plan Official launch 9 th 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

12 Next steps Second White Paper in series may look at how digital is supporting media Timeframe => Q 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?

13 Contacts Constantine Kamaras, IAB Europe Chairman Townsend Feehan, IAB Europe CEO Alison Fennah, Executive Business IAB Europe