Friday, October 02, 2015

Publishers are in peril from annoying ads

Sale of Business Insider shows the challenge facing anyone that relies on digital advertising, an interesting article from this week’s Financial Times explains.

Non-subscription based publishers’ revenue models seem to turn into a vicious cycle of crowded ad placements and upset customers. Relying only on display ads and crowding the websites push viewers more towards ad-blocking extensions, which, according to the article, cost $22bn of advertising revenues last year. For publishers like Business Insider, this might imply a long-term risk of value destruction. As the article puts:

“Publishers, which have a long-term interest in not alienating users, need to impose tighter rules for advertisers themselves. If they do not, the tensions will descend into warfare among advertisers, consumers, ad blockers, and software companies that nullify ad blocking, such as PageFair.”

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