Ad Blocking & The Future of Digital Advertising
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This presentation explores the history and development of the ad block dilemma, measures being taken by industry players and how the online advertising ecosystem will (and should) respond.
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Ad Blocking & The Future of Digital Advertising
- 1. AD BLOCKING and the FUTURE of DIGITAL ADVERTISING
- 2. Introduction Since 2006, ad-blocking technology has experienced a slow and steady growth. Analysts equated it to global warming rather than extinction; a long but inevitable death. Recently however, ad-blocking technology has experienced a critical mass. Growth of ad-block users is not quite exponential but certainly geometric. Major companies like Apple are integrating it into iOS, the industry as a whole is beginning to react, and we’re contemplating what is next. OAREX Capital Markets, Inc. 50 Public Square, #200 Cleveland, OH 44113 OAREX provides advertising receivable financing for major web publishers, apps, ad networks, exchanges and YouTube producers. Hanna Kassis, Founder Hanna Kassis is the founder of OAREX Capital Markets and leads the credit and underwriting of clients. He has been following ad-blocking developments recently for the betterment of clients and OAREX. Hanna is also a licensed CPA and attorney in Ohio. Hanna can be reached directly at 330-207-5115 or hanna@oarex.com. This presentation can be found at Fast Pay Ads
- 3. Greetings! Hanna Kassis, OAREX I am here because OAREX shares the same risks pubs do. You can find us this weekend at @oarexCM.
- 4. 1. A QUICK HISTORY LESSON Ad block originated in Germany, c. 2006.
- 6. Ad-Block Tech, 2006 – 2013 ○Slow and steady growth
- 7. Ad-Block Tech, 2013 – 2015 ○Explosive growth
- 8. 2. PRESENT DAY Ad block is a costly technology.
- 9. 198,000,000 Average Monthly Active Users (MAUs) June 30, 2015* Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
- 10. $20,300,000,000 Cost of ad-block, USA, 2016 (est.) 41%Annual growth rate 45m MAUs in USA Q2, 2015 Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
- 11. BROWSERS 98% ○Chrome, 126m ○Firefox, 48m ○Safari, 9m Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
- 13. MOBILE 2% ○38% of browsing ○1.6% of ad-block ○Apple’s Safari Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
- 14. MAIN DRIVERS ○Apple’s Safari ○Interstitial ads ○Locked Pre-Roll ○Critical mass
- 15. 3. FIGHTING THE GOOD FIGHT Tech, industry and legal plan of attack.
- 16. TECH INITIATIVES Ad-Block Block Technology
- 17. AD-BLOCK BLOCK TECH ○Block IQ ○Source Point
- 18. INDUSTRY INITIATIVES Interactive Advertising Bureau
- 19. IAB’S “TECH LAB” ○Guidelines & Standards ○Detection / Post-Detection ○Better UX Solutions
- 20. 4. OAREX’S CRYSTAL BALL A less intrusive world without ad blocking.
- 21. LEGAL BATTLES Time will tell.
- 22. LEGAL ARGUMENTS ○Anti-competitive ○Fair Use & Exchange ○Free Speech / Expression ○Tortious Interference ○Extortion
- 23. “An extortionist scheme that risks distorting the economics of democratic capitalism. Randall Rothenberg, President & CEO, IAB
- 24. FUTURE 1-5 YEARS ○Extortion ○ROI services ○New revenue / ads ○Legal battles
- 25. FUTURE 5+ YEARS ○Legal battles ○Ad-block ○Free media ○Less intrusive = norm
- 26. SUMMARY RISE Ad block is on the rise and growing geometrically. This may become exponential as the tech becomes integrated into mobile. BATTLE There are major initiatives against ad block tech including anti-ad block tech and industry led initiatives. Big legal battles inevitable. FALL Ad-block tech falls. The end result will be a rise in native ads, stricter ad guidelines, less intrusive ads, and free media on the internet.
- 27. THANKS! Any questions? Call me maybe. @oarexCM hanna@oarex.com c: 330-207-5115
- 28. CREDITS & RESOURCES Special thanks to all the people who made and released these awesome resources for free: ○ Presentation template by SlidesCarnival ○ Photographs by Unsplash Resources ○ Source Point & ComScore: State of Ad Blocking ○ PageFair & Adobe: The Cost of Ad Blocking, 2015 report ○ “Ad Blocking: Theft or Fair Use?”, Ad Exchanger ○ German Advertisers Lose AdBlock Plus Legal Challenge, The Guardian ○ Ad Blocking: What You Need To Know, IAB ○ “Advertising Is Protected By The First Amendment”, Law Publish
Notas do Editor
- 45,000,000 in the US 77,000,000 in Europe
- By the end of 2016, the share of browsing between desktop and mobile (tablet/phones) will be 50/50. With the integration of ad-block tech into Apple’s Safari on the new iOS, the cost of ad block tech may rise more exponentially than geometrically.
- By the end of 2016, the share of browsing between desktop and mobile (tablet/phones) will be 50/50. With the integration of ad-block tech into Apple’s Safari on the new iOS, the cost of ad block tech may rise more exponentially than geometrically.
- Fair use – the internet is a vehicle for the free exchange of information – advertising keeps content free First Amendment – Freedom of Speech (advertisers), Expression (publishers). Tortious interference – ad-block interferes with contractual rights and obligations between Pub and Ad network Extortion – blocking ads and requiring pubs pay against their will to show ads is a form of extortion.