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Ad Blocking: The End of Advertising as We Know It

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This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: With the potential to disrupt the entire economy of the Internet, ad blocking is on the rise—especially for mobile. See how marketers are getting around ad blocking and what to expect in the future.

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Ad Blocking: The End of Advertising as We Know It

  1. 1. Jonah-Kai Hancock Marketing Director @Jonahkai AD BLOCKING: THE END OF MOBILE ADVERTISING????
  2. 2. Agenda: 1. What It Is & Why Care 2. Industry Movements 3. Get Smart - Research Stats 4. What To Do
  3. 3. Ad Blocking: What It Is & Why Care
  4. 4. @Jonahkai To Date – 25% Have Downloaded Ad Blocking • European and Asian desktop ad blocking is much higher, in the 20- 30% range
  5. 5. Consumer Concern and Dissatisfaction @Jonahkai
  6. 6. Which Is Why We See So Many Ad Blocking Apps Now @Jonahkai
  7. 7. @Jonahkai …And Companies Blocking Ads At Their Roots
  8. 8. @Jonahkai The Experience
  9. 9. We are in the business of monetizing attention. @Jonahkai Why Care?
  10. 10. Ad Blocking: Industry Trends & Movement
  11. 11. Publisher War On Ad Blockers @Jonahkai
  12. 12. Publisher Membership @Jonahkai
  13. 13. Industry White Labeling - $$$ Ad Blocker Plus - A pay-to-play scenario where your ad is blocked, unless you pay. @Jonahkai
  14. 14. Alliances Are Forming @Jonahkai
  15. 15. Premium Ads – Getting Aggressive @Jonahkai
  16. 16. Native Content – Is Growing @Jonahkai
  17. 17. Walled Gardens – Expanding Options @Jonahkai
  18. 18. IAB L.E.A.N Ad Standards L. Light file size, with strict controls on data calls, which affect latency E. Encrypted. All supply chain transactions should be https/ssl compliant. A. Ad choices supported. All ads should support consumer OBA opt out. N. Non invasive or disruptive. Ads should not interfere with the user experience. Includes covering content and sound defaults. Shaped by Consumers and Industry Leaders @Jonahkai
  19. 19. IAB D.E.A.L D. Detect ad blocking, in order to initiate a conversation E. Explain the value exchange that advertising enables A. Ask for changed behavior to maintain an equitable exchange L. Lift restrictions or Limit access in response to consumer choice Ad blocking Primer: iab.com/adblockingprimer @Jonahkai Publisher Ad Blocking Primer
  20. 20. Google A.M.P A. Accelerated M. Mobile P. Pages https://www.ampproject.org/ @Jonahkai
  21. 21. People are Smart @Jonahkai
  23. 23. Ad Blocking: Lets Get Smart
  24. 24. Mobile Ad Blocking 2016 ● Surveyed 4,000 smartphone owners ● Studied 1.3 billion mobile app installs ● Included 150 million people over 7 months @Jonahkai
  25. 25. Searches and General Interest Is Up This Google Trends screenshot for the term “ad blocking” shows a huge increase in interest and search behavior around ad blocking. @Jonahkai
  26. 26. Reported Ad-Blocking App Installs Are Up As of January 2016, 25% of mobile users in the U.S. and U.K. have installed an app or browser that can block ads. @Jonahkai
  27. 27. At the Current Rate of Growth, It’ll Soon Be a Majority 80% of mobile users could have the capability of blocking mobile ads by late 2017. @Jonahkai
  28. 28. Its Not Just Techies While techies still tend to block ads to a higher degree, the reality is that people with all levels of technical proficiency have joined them. @Jonahkai
  29. 29. Men Tend to Block Ads Just a Bit More Than Women @Jonahkai
  30. 30. Android Users Tend to Block Ads a Bit More Than iOS @Jonahkai
  31. 31. But Currently, Mobile Ad Blocking Hardly Matters @Jonahkai
  32. 32. What We're Seeing in LAT Rates Is More Interesting To protect users’ privacy, both Google and Apple have added a setting to limit ad tracking. When enabled, it severely limits the data advertisers can collect about you and your device. It does, however, result in less relevant advertising. @Jonahkai • Almost 90% of our time on mobile devices is spent in apps, and NOT on the mobile web. • Most of that time is spent in 5-8 apps. • Two of which are probably from Facebook. • Two of which are probably from Google. • One is email. • Another two are probably games.
  33. 33. Why? Because The People Blocking Ads Want Privacy @Jonahkai
  34. 34. Are Ad Blockers A Fad? @Jonahkai
  35. 35. What Will Users Pay to NOT See Mobile Ads? Most people wouldn’t even pay $1 not to see ads. @Jonahkai
  36. 36. What Kind of Revenue Would That Generate? Consumers are willing to pay just 9% of the total revenue that mobile publishers actually bring in from advertising. @Jonahkai
  37. 37. The Main Reason for Ad Blocking Is to Block All Ads KIA_q10new. Thinking about the LAST time you downloaded software/ apps on your personal device(s) that allowed you to block adverts on the internet… Which ONE, if any, of the following was the MAIN reason for doing this? Base: All GB adults online who have ever downloaded software/apps on any of their personal devices that allows them to block adverts to the internet (577) @Jonahkai
  38. 38. Main Reason for Switching Off Ad Blocker SOURCE: IAB/YouGov Ad blocking software- consumer usage and attitudes Wave 4 - Feb 2016. KIA_q13. You mentioned that you have downloaded an ad blocker on one of your devices but do not currently use one… Which ONE, if any, of the following is the MAIN reason for this? Base: All GB adults online who have downloaded ad blockers but do not currently use software/ apps on any of their personal devices that allows them to block adverts on the internet (114) 1/6 switched off their ad blocker because they couldn’t access some content with it installed. @Jonahkai
  39. 39. Over Half Said They Would Turn Off Their Ad Blocker SOURCE: IAB/YouGov Ad blocking software- consumer usage and attitudes Wave 4 - Feb 2016. KIA_q15. Please imagine a website you visited said you could only gain access to the content by switching off any ad blocking software you had installed… Which ONE of the following BEST describes what you would do? Base: All GB adults online who have ever downloaded software/ apps on any of their personal devices that allows them to block adverts on the internet (577) I would switch it off for some websites, but not all, 19% @Jonahkai
  40. 40. 5 Key Learnings 1. Advertising There are a lot of people who are not happy with the current degree of advertising and monetization on the web and mobile. 2. Ad blocking: who’s doing it? It’s not just one demographic or one group. It is growing… 3. Mobile ad blocking: largely ineffective Current solutions do not actually block the majority of ads served on mobile. 4. Revenue replacement There is just no way that a tip-jar style pay-as-you-go solution for compensating publishers is doable industry-wide. 5. If The Content Is Missing People are willing to turn off ad blockers, if they cant see the content they want. @Jonahkai
  41. 41. Ad Blocking: What Do Advertisers Do?
  42. 42. EDUCATE YOURSELF & LEVERAGE OTHER CHANNELS • Social is massive and growing. • Content marketing might be out of the hype phase, but it’s solidly in the usefulness stage. • Video has never been hotter - simple explanatory product videos are extremely effective. • Influencer marketing is growing. • App store optimization is increasingly important. • Email… @Jonahkai
  43. 43. ADVERTISING WILL ADAPT • The ad tech industry the fastest-moving and most innovative spaces on the planet. • Ad networks, publishers and platforms will figure out ways to give advertisers options. • Make sure you leverage the NEW options – more are coming… @Jonahkai
  44. 44. NATIVE ADVERTISING IS GROWING • Native advertising is clearly content that is in-stream with editorial or social content, and as such is much harder to filter out. • While it’s not appropriate for every advertiser, brand, platform, or publisher, native is growing fast and in an era of extreme ad blocking, will accelerate even more. • We use it at TUNE with massive success. @Jonahkai
  45. 45. PATIENCE: THE PENDULUM IS SWINGING • Google and Facebook, with accelerated mobile pages and instant articles respectively. • Publishers blocking ad-blockers. • New Platforms to test – Snapchat. @Jonahkai
  46. 46. GET THE APP RELATIONSHIP • Not every brand can have its app in the hands of all of its customers or prospects. • But as you work towards that goal - build your own bridge to your customers, for which there are no toll trolls. @Jonahkai
  47. 47. Q & A @Jonahkai
  48. 48. Get the Full Report And many others! tune.com/resources