Categories
  • 0 Subscribers
  • +500 Contacts
07 June
2016
Digital Advertising, Home Slider
Vistas Views 2835

Adblocking: So be it!

Blocking ads on the Internet has become a digital trend in the last few years, worrying many publishers and advertising companies.

During 2015, the use of adblocking in mobile phones grew up to 90%. It is estimated that there are at least 419 million users using tools to block ads on their mobile devices.

I believe adblocking is really good for the industry, and I say this for three reasons:

1) As popularity increases the business relationship between the publicistaand the user will become more explicit. Why do I say this? Because users sometimes get annoyed reading ads and forget that the content they read for free is thanks to advertising. If everyone used adblockers, quickly, they will realize that no publisher will display their content for free. This has already started happening. Some adblockers allow publishers to hide its contents to the people who block their ads, but give the user the option of a) re-accept advertising to read the content or b) subscribe to Publisher paying a few dollars a month. This will work best when many people use adblockers. If only a few people use it, publishers will not be affected and certainly not change their business model, allowing some free -riders read its contents for free and without seeing advertising.

4ebef7f4-a5d2-4a29-bfe0-2ce7179e305c

2) In another blog i wrote about the paradox of digital advertising, which is: more digital content consumed, more advertising inventory; reducing CPM because the supply is greater than demand for that inventory. With adblockers inventory could be reduced and become more valuable, because only users who want to receive publicity would be getting it. In theory, users will be willing to see advertising on sites that they actually want to read. This can create differentiation between publishers and increase their quality. Hopefully we can stop reading the “10 most popular positions of Kamasutra” or “5 different ways to eat an egg.

3) It is true that many companies are abusing users with invasive advertising and illegally tracking personal information. Adblockers are improving this user experience.

Finally, companies like Google, RedMas and Adsmóvil which are basically advertising intermediaries between the publisher and the advertiser, adblockers will not affect them. They will have fewer inventories to sell, but today inventory is more than enough; Premium inventory is what is missing. If one day there is really a shortage of inventory, prices would rise and I think these intermediaries would do the same volume of business selling less inventory at a higher price.

Like many other measures, that sometimes have a counterintuitive effect, adblocking can be very good for publishers and the digital advertising industry.



Spotify

Newsletter

Subscribe to my newsletter and receive my blog updates with news and articles about digital advertising, new media, startups and lifestyle.


Popular posts

RAPPI: A LATIN AMERICAN START-UP GETS SELECTED BY Y-COMBINATOR
05 April 2016
Home Slider Startups
RAPPI: A LATIN AMERICAN START-UP GETS SELECTED BY Y-COMBINATOR

It is always great news when a Latin American start-up succeeds in attracting Silicon Valley’s VC money, and even more when one gets selected by the prestigious accelerator Y Combinator. Y Combinator for those of you who do not know is a mega-famous start-up incubator company and seed fund which has supported and invested in […]

THE FORGOTTEN IMPORTANCE OF BRANDING IN DIGITAL ADVERTISTING
02 February 2016
Digital Advertising
THE FORGOTTEN IMPORTANCE OF BRANDING IN DIGITAL ADVERTISTING

eMarketer’s recent projection that said US Digital Display Ad Spending will Surpass Search Ad Spending in 2016 , led me to think that finally Branding is being given the importance it deserves in digital media.   If we analyze the sources of growth in eMarketer’s projection , these seem to support my assumption.   Video, Sponsorships, and […]

AirBnB vs. Marriott: How come it could be worth more?
02 July 2015
Startups
AirBnB vs. Marriott: How come it could be worth more?

In one of my last blog entries, I wrote about Uber.   This time, I am writing about AirBnb, a marketplace selling accommodations. An article on the Wall Street Journal caught my attention: It seems that AirBnB is worth more than Marriott International with its 4,000 hotels under management and US$13.8bn in revenue.  In contrast, AirBnB […]