Ad blockers, these simple browser extensions endangering publishers business model.
Ad blockers, these plugins that prevent browsers from loading & showing ads, have gone main stream at some point it poses a real threat to publishers’ revenue.
A recent study by Fair Report shows around 150 million users have an ad blocker, as of June 2014. In U.S, some 27 % of Internet users have downloaded some sort of ad blocking solution.
Millenials is the category of population the most familiar with ad blockers: 41% of U.S millennials (aged between 18 & 29) are using an ad blocker.
In video game & technology verticals, up to 50% of users surfing are reportedly equipped with ad blockers.
All these facts explain why the shortfall of revenue can be bigger than you think: ad blockers account for a loss of 15% to 60% of publisher inventory.
Publishers’ business model, which mostly relies on digital ad supported revenue, is then endangered.
How can publishers address the ad block threat?
Financial agreements with Adblock Plus editor
Despite common belief, ad blockers still let certain type of ads go through; not for people sake but for financial reasons.
Eyeo GBMH, editor of Adblock Plus, the most famous adblockers, have not kept up its initial pledge of protecting users from low quality and intrusive ads, actually companies willing to pay can be white-listed and keep showing any of their ads. Through its so-called “acceptable ads” program, Eyeo charges companies such as Amazon or Reddit. For instance, Google reportedly pays $25M each year to deliver an estimated $887 Million worth budget to Ad blocker users.
It’s a non-sense: to be able to reach again the audience they have lost, publishers can decide to pay a company that have deprived them of revenue. Or publishers can hope indirectly benefit from advertisers that have already paid to by-pass ad blockers. That’s why most publishers have turned down this agreement and even some have been fighting it with legal action.
Legal action against Adblock Plus editor
Eyeo GmbH (Adblock Plus editor) is being suited in Germany by several media groups (Axel Springer, TV Channels ProSiebenSat.1 & RTL) for what is somehow considered as a competition’s distortion and even as a “racket”. Eyeo Gmbh business model (90% of its revenue) basically consists in first blocking ads, and then asking for money to show them.
Technological response with ad blocker detectors
A certain number of publishers have developed on their own aad blocker detectors, of different types.
- Informative detectors, to remind users when their ad blockers are on and also to raise awareness about theirs consequences.
- Coercive detectors, scripts preventing ad blocker users from accessing content. In this case, publishers decide to cut direct costs for an audience impossible to monetize.
What is Smart AdServer stance on ad blockers?
Our mission
We believe Smart AdServer’s mission is to help publishers make the most of their digital assets and we are commited to advise them on the best way to handle advertising threats that put their business at risks.
To help publishers face ad blockers, Smart AdServer has created a system that measures the impact of adblockers on inventories. The system can also deliver an informative message to adblockers’s users to raise their awareness about how publishers run their business thanks to advertising. (*)
We are also ready to assist publishers in their initiative to create dedicated response to ad blockers, and to provide technical expertise.
(*) under certain conditions.
