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Ad Blocking Goes Mobile with iOS9- Implications for Pharma and Readiness
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POINT OF
VIEW
The next Apple operating system update will
include ad blocking functionality. With high
adoption of iPhones and iPads among HCPs, this
could greatly affect pharma marketers. Medical
publishers and their advertising clients should be
scenario planning now to address the
proliferation of user controlled ad blocking
technology, including improving the user
experience, using programmatic technology,
developing a content marketing strategy, and
maximizing underutilized channels. This POV
provides more background on the issue and
clear next steps.
Ad blocking software works to remove ads from
the Internet via a browser extension and is not a
new phenomenon. Ad blockers can be system
or browser specific. Adblock Plus, one of the
most popular among consumers, covers almost
all major browsers and surpassed 300 million
installs this year, boasting over 50 million active
users. Beyond the removal of ads, browser
speed and battery life are compelling factors to
users of ad blocking add-ons.
Publishers and advertising networks have the
option to work with blockers such as AdBlock
Plus by applying to have each type of ad they
serve accepted and hence unblocked. The
process is free for small publishers who may be
serving an ad or two, but for giants like Google
and Amazon, there are hefty fees on top of
administrative drain.
Ad Blocking Goes Mobile with iOS9-
Implications for Pharma and Readiness
Planning
July 2015
Executive Summary
“Adblock Plus covers
almost all major
browsers and
surpassed 300 million
installs this year”
Background
As a channel, there are many attributes that
make digital unique compared to traditional
forms of media. This year, the ever increasing
ability of users to control their online and mobile
experience has emerged as a leading topic of
discussion among marketers and publishers
thanks in part to Apple’s latest announcement to
extend ad-blocking functionality to the mobile
version of Safari with the upcoming Internet
Operating System (iOS9) update this fall.
General estimates attribute 25% of all mobile
web browsing to Safari. Needless to say, the
news has many concerned given the high
penetration of Apple devices.
Ad Blocking
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online-only publishers simply vanish in a worst
case scenario situation.
Enter the niche medical publisher. Based on YTD
2015 CMI campaign metrics, iOS powered
devices account for nearly 20% of total
impressions served; traffic from Apple devices is
up 35% from last year. More concerning, is
these impressions are driving the majority of
engagement at 40% of total clicks. Comparing
this traffic to other mobile sources confirms
physicians are strong Apple advocates, with over
90% of all mobile traffic coming from iOS
powered devices.
“iOS powered devices
account for nearly 20%
of total impressions
served; traffic from
Apple devices is up 35%
from last year.”
Fundamentally, promotional and media agencies
are charged with engaging customers in a mobile
dominated world. With the high penetration of
Apple devices among a highly educated and
empowered audience the move by Apple could
be especially dire for the professional ecosystem
already characterized by severe inventory
Pop-ups, interstitials and other more interruptive
units are among the most commonly denied.
With the emergence of ad blockers has come the
formation of companies who help publishers
measure the impact of ad blocking to their
business and assist with the whitelisting process.
One such company, PageFair, estimates that
Google lost out on $6.6 billion in global revenue
to ad blockers last year. That is 10% of the total
revenue Google reported in 2014.
Updates and Implications
If all this wasn’t enough, the news from Apple is
bringing the topic to a fever pitch among
publishers and advertisers alike. Mobile has
been generally unaffected although it is notable
that Adblock Plus is launching its first mobile
browser and will block ads by default. But with
a significant user base in place, it is the new iOS9
update that has the potential to make ad
blocking commonplace. Apple is synonymous
with ease and given the current functionality of
Apple devices, users could find the blocking
features easy to initiate with a simple swipe.
On the other hand, little detail has been made
public about the Safari iOS9 extension such as
default settings, thoroughness of the block list
and ability of users to manage individual settings
to block/whitelist specific sites and types of ad
formats.
Today, even the largest publishers like The New
York Times or Wall Street Journal struggle to
monetize their online traffic. Given the potential
impact – if Apple could shut down 25% of all ads
on the web - we could see thousands of smaller,
Readiness Planning
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constraints as almost all medical publishers
would find it impossible to make up for any
significant volume of lost impressions. Medical
publishers and their advertising clients should
be scenario planning now to address the
proliferation of user controlled ad blocking
technology:
• Display stewardship: Follow user experience
best practices and adhere to formats that
load easily and are more integrated vs.
disruptive. Focusing on the quality of
creative and paying close attention to
frequencies can help rebuild trust in digital
advertising.
• Go programmatic: New programmatic
platforms are available to professional
medical advertisers. Look for the platform
that can work direct with endemic publishers
and target on a 1:1 basis vs. relying on a
cookie pool.
• Maximize underutilized channels: We could
see a return to more traditional offline
channels and an increase in more digital
direct tactics like email.
• Complement pure ad plays: Now is the time
to craft a content marketing strategy for
brands that haven’t explored leveraging their
story across non-personal channels.
Collaborate with medical publishers seeking
new ways to monetize their qualified traffic
to standardize content opportunities like
native advertising and pre roll. By creating
and curating content that is timely and
desirable to your customers, volume metrics
lose relevance in lieu of deeper brand
engagement and loyalty metrics.
• Get social: With a strong content marketing
strategy in place and new market solutions
that minimize risk through AE monitoring and
reporting, social becomes an opportunity for
Pharma to forge customer connections.
Share case studies among a private forum,
Tweet contemporary article headlines, and
offer expert opinion on trending topics. As
targeting and volume improves, paid social
could also become a viable option for
professional media plays year-long, going
beyond convention specific campaigns.
Ultimately, advertisers can shift budgets to new
channels and tactics in an effort to maintain and
grow customer connections. Our publishers will
be on the frontline but not without options. Ad
blockers violate publishers by allowing users to
essentially steal content. Free content is a
privilege made possible by advertisers in
exchange for the placement of advertisements.
They may be unwanted elements but ads are the
currency of the Web and pay the bill for all that
content. Publishers could appeal to their users
to manually whitelist their site or simply block
the content from serving when an ad blocker is
detected. Sadly, AdBlock Plus and the like have
shown Apple that publishers are willing to pay
for inclusion.
Apple Power
On the surface, integration of ad blocking
features in the iOS9 update appears to empower
savvy consumers who want to actively preserve
their online privacy and data. the eye.
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Contact:
Eugene Lee
Executive Vice President, Managing Director
Communications Media, Inc.
However, many industry insiders are
questioning the intent behind Apple’s decision
saying instead that the tech giant has more to
gain than meets the eye. First and foremost,
ads served within the Apple proprietary app ad
network, iAds, would not be subject to blocking.
It’s highly unlikely that scientific medical
publishers would ever join such a network,
given the low participation to date in general ad
networks, but the thinking here is that by
pinching sites that rely on ad revenue, more
publishers could turn to native apps and join
iAds where Apple would have a direct benefit.
The launch of Apple News in a parallel move
could also be significant. News will officially
replace Newsstand and big surprise, will be ad
supported. For publishers, partnering with
Apple is another revenue stream but only if the
audience gravitates toward News. As ad
blocking is adopted and ad blocking apps gain
prominence in the App Store, publishers may
have to opt-in to curated feeds like Apple News
and Facebook Instant Articles.
Just last month, Apple secured a patent for a
viral ad platform that can track personal
information and actions such as content
consumed across social and email channels
which could position them favorably with third
party advertisers looking to target custom
audiences. All moves point to Apple gaining
control over the consumer connection and
seeking new revenue streams.
As panic spreads, lest we forget that nothing is
set in stone. Apple may be a giant but if Taylor
Swift can single-handedly impact the launch of
Apple Music, certainly publishers and
advertisers can make an impact. You may also
remember Microsoft’s 2012 “do not track”
default feature that never got off the ground.
After raising alarms among the online ad
community and causing an internal rift between
the browser and ad departments, Microsoft
eventually got out of the ad business altogether.
If not careful, Apple could be dealing with a real
iMess come the fall and face a publisher
backlash or worse an antitrust suit, when
publisher’s refuse to pay for inclusion on an
acceptable ads list and opt instead to disrupt
the user experience by blocking content thus
frustrating users who are promised a seamless
experience.
Conclusion