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Ad blocking is now a chronic but manageable condition

February 16, 2017

By Lucinda Southern

Ad blocking, which was once treated as a mortal threat to publishers, has now become a chronic condition: They might die with it, but they’re more likely to have been killed by other causes.

The good news: ad blocking rates appear to have flattened — and crucially haven’t yet made the leap to mobile, where most traffic growth is happening. Still, publishers are not exactly in the mood for popping corks of champagne. Besides being beset by a host of challenges– the rise of the Google-Facebook duopoly to an over-dependence on platforms to a depressed digital ad market — ad blocking is still seen as a menace.

“I’d say ad blocking is still in the top three priorities for most publishers,” said John Barnes, chief digital officer at Incisive Media. “Whether they are B2B, paid or open access, everyone needs to have a revenue model that includes some advertising.”

Incisive Media has reduced ad blockers from 25 percent to 9 percent on its tech title, The Enquirer, by restricting content for those with blockers installed. Now the ad blocking rate has leveled off. It’s a similar story for other publishers taking a muscular approach, as they, too, for the most part are no longer seeing a growth in ad blocking. One reason for the dip is that readers are shifting to mobile, where installing ad blockers through web browsers is more complicated. And, importantly, up to 90 percent of time on mobile is spent in apps, where ads can’t be blocked.

Eighteen months ago, the furor around ad blocking was at its peak, with hyperbolic headlines predicting the ad blockalypse. Much of the drama was made by companies looking to benefit from high ad block rates and perpetuated by publishers and the ad industry responding to aggressive language.

“The industry response was to use words like ‘hijacking’ and ‘ransom,’” said Bethan Crockett, digital risk director at GroupM. “That language has now gone. The reaction was of shock and the industry thinking it’s been on the wrong foot. Now the industry is accepting and reflecting that it needs to change.”

The last two studies from the IAB put the number of people using ad blockers at around 21 percent, and it’s not expecting the latest figures, released in two weeks, to show any significant increase. PageFair, which sells anti-ad blocking solutions to publishers, reported recently the U.K. has a 16 percent ad block penetration.

Even as the threat has decreased, publishers are still wary. A recent study by The Association of Online Publishers, which counts as members Bauer, Condé Nast, Dennis, ESI, The Guardian, Telegraph and Time Inc., reports that 69 percent of publishers said ad blocking was a concern, with 54 percent saying it impacts their business significantly. “Ad blocking is recognised as something that’s not going to go away,” said Richard Reeves, managing director at the AOP, adding that the organization is putting ad blocking, data concerns and viewability at the top of the pile to to tackle this year. …read more

Source:: Digiday