Key Takeaways

• The Interactive Advertising Bureau (IAB) is a non-profit trade organization founded in 1996 that develops standards for digital advertising

• IAB standards include ad sizes, formats, and technical specifications that help publishers optimize their monetization strategies

• The IAB Tech Lab creates and maintains technical standards that power the programmatic advertising ecosystem

• Following IAB standards can help publishers increase ad revenue and improve user experience

• Non-compliant publishers risk decreased ad revenue as demand platforms prioritize IAB-standardized inventory

What Is the IAB?

If you've spent any time in digital publishing or advertising, you've probably heard the acronym "IAB" thrown around, but maybe you've been too embarassed to ask what it actually means.

The Interactive Advertising Bureau (IAB) is a non-profit trade organization that was established back in 1996. Think of it as the grown-up in the room of digital advertising—setting rules, creating standards, and generally trying to keep things from turning into complete chaos.

The IAB's main job is to develop standards and best practices that make digital advertising work better for everyone involved: publishers (that's you), advertisers, and even users. Without these standards, we'd all be trying to fit square pegs into round holes when it comes to ad formats, measurement, and technology.

Why Should Publishers Care About the IAB?

As a publisher looking to monetize your content, the IAB matters to you for several practical reasons:

1. Standardized Ad Sizes: The IAB has defined standard ad units that most ad networks and exchanges support. Using these sizes means better fill rates and potentially higher revenue.

2. Technical Standards: Ever heard of VAST, VPAID, or MRAID? These are IAB-created technical standards that power video and mobile advertising. Without them, your video monetization would be a mess.

3. Best Practices: The IAB provides guidelines on everything from viewability to user experience that can help you optimize your site for better monetization.

4. Industry Advocacy: The IAB advocates for publishers and the digital advertising industry with lawmakers and regulators. This helps protect your ability to monetize through advertising.

One publisher I know increased their ad revenue by 35% simply by switching to IAB standard ad sizes and implementing IAB's recommended ad placements. It's not just theoretical—these standards have real impact on the bottom line.

What's the IAB Tech Lab?

The IAB Tech Lab is like the engineering department of the IAB. While the main IAB focuses on broader industry issues, the Tech Lab gets into the technical weeds, developing the nuts and bolts that make digital advertising work.

Established in 2014, the Tech Lab is responsible for creating and maintaining technical standards like:

• VAST (Video Ad Serving Template): The standard that enables video ads to work across different video players and platforms

• Open Measurement SDK: A tool that makes measuring viewability and verification easier across mobile apps

• ads.txt and app-ads.txt: Simple text files that help combat ad fraud by listing authorized digital sellers

The Tech Lab also works on solutions for emerging challenges like privacy regulations, identity resolution, and the eventual deprecation of third-party cookies.

How IAB Standards Affect Your Monetization

Let's get practical. Here's how IAB standards directly impact your ability to make money:

Ad Sizes and Formats

The IAB Standard Ad Unit Portfolio defines the most common ad sizes used across the industry. These include:

Using these standard sizes typically results in higher fill rates and CPMs compared to non-standard sizes because more advertisers create creatives in these dimensions.

Technical Implementation

For video publishers, implementing IAB's VAST standard is practically required if you want to monetize successfully. Non-compliant video players will struggle to fill inventory from major demand sources.

Similarly, mobile app publishers need to implement the IAB's MRAID standard to ensure rich media ads can function properly within their apps.

Recent IAB Initiatives Publishers Should Know About

The IAB continues to evolve with the industry. Some recent developments worth noting:

1. Privacy Focus: In response to changing regulations like GDPR and CCPA, the IAB has developed the Transparency and Consent Framework to help publishers comply with privacy laws while still monetizing effectively.

2. Seller Defined Audiences: This initiative aims to help publishers thrive in a post-cookie world by enabling first-party audience targeting.

3. Video Standards Update: In March 2023, the IAB Tech Lab updated its video standards to better distinguish between in-stream and outstream placements, which affects how inventory is categorized and valued.

According to JW Player, "Non-compliant publishers risk decreased ad revenue as Demand-Side Platforms (DSPs) adopt IAB standards for video inventory categorization."

Should You Join the IAB?

IAB membership isn't necessary for most small to medium publishers. You can implement IAB standards without being a member.

However, larger publishers might benefit from membership through:

• Access to research and data

• Networking opportunities with industry leaders

• Input into developing future standards

• Early access to new initiatives and guidelines

Membership fees vary based on company revenue, starting at around $5,000 annually for smaller companies.

The Bottom Line

Even if you dont become a member, understanding and implementing IAB standards is essential for maximizing your monetization potential. The IAB essentially creates the common language that allows publishers, advertisers, and technology providers to work together efficiently.

By following IAB guidelines for ad formats, placements, and technical implementations, you'll position yourself for better fill rates, higher CPMs, and a more sustainable advertising business.

For publishers just starting out, focusing on implementing standard IAB ad sizes and proper ad placement according to IAB guidelines is the simplest way to benefit from the organization's work.

Want to learn more? Check out these resources:

• IAB Official Website

• IAB Tech Lab Standards

• IAB New Ad Portfolio Guidelines

• Publift's Guide to IAB Standards for Publishers

This article is part of our "Monetization Minis" series, designed to help publishers understand key concepts in digital monetization.