Ad Blocking and Its Effects on Advertisers and Publishers
Ad blocking is nothing new for most internet users. Closing a pop up is practically instinctive, and more and more people are downloading ad-blocking software to their computers each day.
Ad-blocking software prevents ads from being served. While most internet users are fine with this, many also don’t realize how much of an adverse effect it has on advertisers and publishers.
In response to this, cross-channel marketing technology leaders Signal have put together an infographic and guide that covers the rise of ad blocks and what advertisers and publishers can do about them.
Here are a few highlights and takeaways:
The Rise of Ad Blockers
The main purpose of ad-blocking software is to stop ads from being served. This limits advertiser’s potential views or Cost per Thousand Impressions. Ads are paid for only after they’ve been served. This means that publishers aren’t being paid for visits to their site from any browser that has an ad-blocker installed.
Because of this, U.S. publishers are set to lose nearly 10 percent of total ad revenue due to ad blockers. In some industries with tech-savvy readerships, this number can jump to nearly 50 percent. The total cost of ad blocking is projected to cost publishers nearly 22 billion in 2015. As you can see, this is a serious loss for publishers as a result of ad-blocking software.
Globally, ad blocking has seen growth of nearly 41 percent over the past 12 months with nearly 200 million people now using ad-blocking software. This number is expected to continue to rise with the ad-blocking functionality that was just released on iOS9. Previously, most ad blocking had occurred on desktops; however, that will soon change with the recent iOS9 update.
What Can Advertisers & Publishers Do About Ad Blocking?
Ad blocking software is here to stay and has the potential to negatively impact both advertisers and publishers. But there are a few things that they can do to help rescue their cost per impressions.
Crafting the right message is important. Make sure you truly know your customers. Don’t rely on third-party data, which is often old and unreliable. First-party data is far more accurate for developing and serving relevant ads so that you target the right audience.
Real-time marketing is also important. Consumers are more likely to buy from a brand when they’re in a buying mindset. Be sure to connect all of your channels so that you never miss a chance to reach customers when they are in the market for your product.
Embrace native advertising. Native ads are a great way to reach consumers who have already adopted ad-blocking software. Consumers are also far more likely to share native ads then they are to share banner ads, and they view native ads more frequently than banner ads.
Ad blocking is only going to continue to grow. Most consumers see popups and display advertising as intrusive and are eager to take the steps necessary to block it. By committing to using better data to make better decisions about whom and when you target, you’re doing your part to keep advertising relevant. And by experimenting with native, you’re helping advance the field of marketing communications in a new and radical way—a win-win for everyone.