In a recent Wired article, it was reported that Google's web browser, Chrome, would begin blocking ads that do not adhere to guidelines issued by the Coalition for Better Advertising. Why would one of the world's largest advertising platforms start blocking ads?
1. Customers are already using ad blockers- Regardless if Google changes their policy on ad blockers or not, customers are already using them. The article quoted a survey stating that 26 percent of web users had installed ad-blockers on their computers, and about 15 percent had ad-blockers on their smartphones. In this case Google has chosen to preemptively accommodate customers and reduce/better select ads.
2. Websites are now encouraged to make their own changes- Before implementing the new ad blocking functionality Google notified websites in advance and 42 percent made preemptive changes. Google is using its market power to make sure that websites are providing customers with less invasive adds.
3. This change will affect a small audience- Lastly, the number of sites that will be impacted by the change is expected to be relatively low. "Of the 100,000 most popular sites in North America and Europe, fewer than one percent violate the guidelines Google uses to decide whether to filter ads on a site." Therefore Google will still be able to generate large advertising revenues from other sites.
Although this new move by Google may seem counter intuitive, I believe by self-imposing ad blockers Google will increase their ad revenue in the long run because they are giving customers a better experience. By self-policing which ads are allowed or not allowed, Google is discouraging customers from installing third party ad blockers which pose a bigger threat to Google's advertising revenues.
Source: https://www.wired.com/story/google-chrome-ad-blocker-change-web/
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