Ask online advertisers what their biggest headache is today, and they will probably say ad blockers, which are browser extensions and add-ons that can remove adverts from websites.
The growth of ad blocking has been followed closely by Dublin-based PageFair, a group looking to find a way for online advertising to survive. In its third annual study, published in August last year, it revealed that ad blockers are costing around US$22 billion a year in lost revenue.
With around 200 million active users and rising, the loss of revenue is already disrupting the industry, with worse to come as more people get on board.
For many advertisers and publishers, the next 12 to 18 months will see a tipping point, as the gap between the cost of doing business and dwindling revenue widens.
What Users Want
The reality is that ad blockers are here to stay, and so is online advertising. The problem lies at both ends of the spectrum; those who want something for nothing and everything for free, and with those at the other end who push profit over propriety.
The problem is that people are becoming more digitally savvy, taking control of their online experience. They use ad blockers because they dislike having their online experience marred by objectionable content, or their personal details bought and sold.
Since much content on the web is only possible through advertising, the challenge is to find a way that works for everyone.
How Advertisers Are Responding
Advertisers are countering ad blockers in various ways, such as cajoling the user to white list them so the adverts show up, erecting pay walls or finding ways to circumvent ad blockers.
Some say they don’t care about ad blockers because it saves money on pay-per-click ads by separating out the people who were never going to buy.
Rather than trying to circumvent ad blockers or pretend they don’t matter, online advertisers need to negotiate a workable compromise by producing content that people want to consume. They need to engage people in a win-win dialogue that ultimately leads to a conversion.
Advertisers could hire new categories of creative talent who can leverage social media and mobile platforms to connect with people in new ways. There will be much trial and error before getting things right so clients will need to be understanding.
