The Ad Blocking Landscape
Ad blocking is not a new concept, but part of the continuing co-evolution of advertising and technology. Desktop ad blocking, typically using browser extensions, has existed since 2006, while mobile ad blocking is still in its infancy.
Ad Blocking Growth is Accelerating
The limited research available suggests 10- 20% of U.S. Web users are active ad blockers, skewing towards tech-savvy male millennials. Ad blocker adoption has seen double-digit increases in recent years, and is expected to continue. Apple’s iOS 9 release may contribute to the trend by allowing ad blocking on the Safari mobile browser. However, advertisers and agencies are not concerned yet.
Near Term Implications
BRANDS: MONITORING THE IMPACT
- While we expect increases in ad blocking adoption, mobile ad blocking growth will nominally affect the ability to reach mobile users in the near term.
- The ability to target consumers seems to be minimally impacted by the blocking enabled by ad tracker technology.
- The impact of ad blocking on paid search seems to be minimal in the near term.
- While we believe the near-term effects will be minimal, brands focused on high adoption consumers should more closely monitor the impact of ad blocking.
CONTENT PUBLISHERS: FINDING NEW STRATEGIES
- Adblock Plus, the most widely used blocker, is expanding its “Acceptable Ads program” to show publisher ads (often in exchange for fees) meeting the criteria of ad blocker users.
- The Interactive Advertising Bureau (IAB) announced support for small publishers to help combat ad blocking using monitoring services and ads that deter blocking, and plans to launch UX-focused ad standards.
CONSUMERS: CONSUMER EXPERIENCE VS. CONTENT ACCESS
- Ad blockers claim to improve the browsing experience by improving page load times and avoiding intrusive ads, while protecting personal privacy and reducing security concerns.
- Content is still important to consumers: 60% of people who use ad blockers would turn them off in order to access content, according to the IAB.
- As publishers look to alternative revenue models, consumers may need to choose between ad-supported vs. paid content. Research suggests most users do not want to pay for content.
Recommendations for Brands
Marketers can consider a few steps to understand the impact of ad blocking and create valuable experiences for consumers, reducing the need for ad blocking:
- In the short term, monitor the impact and rates of adoption among target audiences
- Evaluate media mix alternatives to reach ad blocking users
- Move the industry forward by focusing on the consumer experience & UX best practices
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