Thursday, February 20, 2020

How ad blockers are impacting ad revenues and is there a win-win situation?



More and more users who are sick of ads slowing down their browsing speed, cluttering up web pages, increasing their data usage and violating their privacy by constantly tracking them, are installing ad blockers to rid themselves of this menace once and for all. The number of users with ad-block on their devices has reportedly surged 64% in the last 3 years accounting for 15-30% of total web-traffic. Most of this growth is fueled by an uptake in ad-blocking on mobile devices in the last few years.

Internationally, ad publishers lose ~$50bn in revenue every year to ad blockers. Not only do ad-blockers prevent users from viewing ads (and subsequently clicking on them) but another serious concern is that they are able to prevent publishers from running any analytics on these users resulting in a skewed data set. On the other hand even if publishers found a way to reach users with ad-blockers would they really be able to monetize from them given their dislike towards ads in the first place.

SCROLL

Enter Scroll – a service that partners with over 300 websites (popular ones like Buzzfeed, Business Insider and Vox) to offer ad-free browsing for a subscription fee of $2.49 per month (this is expected to increase to $4.99 per month after the first 6 months of launching). The idea behind this service is that users pay for “a web that’s twice as fast, with no shadowy trackers, no ads, no pre-rolls.” On the other hand, publishers earn more than they would by showing ads to these same users. The benefit that Scroll offers over traditional ad-blockers is 1) smoother integration with mobile devices and 2) ad-free access to websites that currently detect and overcome ad-blockers.

Is the option of having an entirely ad-free internet a possibility in the future? We’ll find out soon enough!

No comments: