Film 240 flipbook jesenia silva

THE NEGATIVE
IMPACT OF AD
BLOCKERS ON
PUBLISHERSBy: Jesenia Silva
Film 240
Friday, March 3, 2017
4

Thesis
The irritating, disruptive and public qualities of online advertisements
have directs many internet users to install ad blockers.
As a result, this is negatively impacting publishers as they encounter loss of revenues
and existential concerns.
5

Content
1. What Is Online Advertising?
2. Online Advertising Techniques
3. Ad Blockers
4. Types of Ad Blockers
5. Why Are People Blocking Ads?
6. Impacts on Advertisers and Publishers
7. Financial
8. Existential
9. Conclusion
10. Bibliography
6

What is Online Advertising?
“A marketing strategy that involves the use of internet as a
medium to obtain website traffic and target and deliver marketing
messages
to the right consumers. It is geared toward defining markets through
unique
and useful applications.” 1
- Tenchopedia
Source: pexels.com
By: splitshare
1
Information obtained from techopedia.com
https://www.techopedia.com/definition/26362/online-advertising
7

Online Advertising Techniques
■ Websites and Blogs
Ø This method is the best and most preferred
by internet users. All online ads that are
incorporated in websites and blogs are
geared to direct readers to their websites.
The website or blog acts as a permanent
shop window available 24/7. 3
An article written by James Debono in the Buisness2community website, lists the five biggest and
best online advertising methods. Debono explains what the technique is, how they work and what
makes them the best. 2
Source: pexels.com
By: Kaboompics.com
2
information obtained from http://www.business2community.com/online-marketing/5-of-the-
biggest-and-still-the-best-online-advertising-methods-0186358#HYbUOYGeszUke5Rx.97
3
biggest-and-still-the-best-online-advertising-methods-0186358#HYbUOYGeszUke5Rx.97
8

■ Social media
Ø Social media sites, such as Facebook, allow
advertisers to display their own web pages,
create demand for their products by creating
relevant adverts and to publicize an event such
as a product launch or anniversary. Payments is
based on “pay per click,” which is determined by
the number of times users visit the advertiser’s
website. 4
Source: pexels.com
By: unsplash.com
Source: wordstream.com
4 information obstained from http://www.business2community.com/online-marketing/5-of-
the-biggest-and-still-the-best-online-advertising-methods-0186358#HYbUOYGeszUke5Rx.97 9

■ Banners and Display Advertising
Ø This method of advertising is useful for special
offers or reinforcing brands. They are small
adverts in rectangular form, appear on websites
and serves as a link.5
Source: wordstream.com
5
biggest-and-still-the-best-online-advertising-methods-0186358#HYbUOYGeszUke5Rx.97 10

■ Pay Per Click (PPC) or Keyword Advertising
Ø Many websites include advertisements with URL’s.
After an internet user clicks on the adverts, the
company or advertiser is charged by the website the
ad is featured on. 6
Source: Worstream.com 6

■ Search Engine Optimization (SEO)
Ø This long term strategy requires a
lot of attention. The goal is to
make sure, as an advertiser, that
your website is high up in the
search engines. According to an
article on the Search Engine
Watch, 36.4 % of people click on
the first result and only 2.2% click
on the tenth result. 7
Source: Wordstream.com
7

Ad Blockers
■ Ad blockers prevent internet users from receiving ads. In many cases, advertisers
are paid after the ad have been visited by users. As a result, advertisers and
publishers are not being paid from any browser that has downloaded an Ad Blocking
softward 8
■ The use of ad-blocking software has become more prevalent
Ø In 2015, the Reuters Digital News Survey suggested that 47% of American readers
of news websites and 39% of British readers have installed ad blockers in their
devices. 9
8
information obtained from http://relevance.com/ad-blocking-and-its-effects-on-advertisers-
and-publishers/
9
information obtained from
http://go.galegroup.com/ps/i.do?p=CPI&sw=w&u=queensulaw&v=2.1&id=GALE%7CA420327
989&it=r&asid=345009df25ee25d56f665fc1f29036f5 13

What is Ad Block Plus?
■ Ad Block Plus
Ø One of the biggest ad blocking software
Ø According to Michael Rosenwald, Ad Block Plus has become the internet’s
“advertising sheriff.” He explains that the software allows some ads through its
firewall as long as it meets a series of strict criteria it came up with in conversion
with internet users around the world. 10
10
http://www.cjr.org/business_of_news/will_ad_blockers_kill_the_digital_media_industry.php 14

Why Are People Blocking Ads?
■ HubSpot partnered with Ad Block Plus to conduct a study to determine how people
feel about online ads and why they have decided to install ad blocking softwares.
According to Mimi An, a majority of internet users dislike online advertisements and
claim that many online advertisements do not look professional. The following
shows how people feel about online ads and why: 11
■ Ads are annoying
Ø The popularity of ”pop-up” ads interrupts the browser’s experience on the site. Many
claim that the ad stands in the way of content they wish to see. 12
11
information obtained from https://research.hubspot.com/reports/why-people-block-ads-
and-what-it-means-for-marketers-and-advertisers
12
and-what-it-means-for-marketers-and-advertisers 15

■ Ads are Disruptive
Ø Some ads featured on
websites, such as Youtube,
randomly play video with
sound on the sidebars. Most
of these ads are irrelevant
and upset many internet
users because it completely
disrupts their experience
while browsing. 13
Source: Wordstream.com
13
16

■ Lack of security
Ø Many websites host a third party, as a result, the
websites have difficulties ensuring the users
security. According to Mimi An, a browser was
served with a malware through an ad when vising
forbes.com. Unfortunately, this negatively affects
Forbes reputation even though the ad publisher
was at fault.14
Source: research.hubspot.com
From: Network World vis Brian
Baskin
14
and-what-it-means-for-marketers-and-advertisers 17

■ Ads slow down load time
Ø According to Mimi An,
internet users are not
patient. Therefore, if an ad
takes too long to load, it
negatively affects the
website host and publisher,
who may lose a potential
click.15
Source: shutterstock.com
By: ESB professional
15
18

Negative Impacts on Advertisers and
Publishers
A majority of internet users are installing ad blocking software to prevent ads from
being served to them while they are browsing the web. Unfortunately, this is negatively
impacting advertisers and publishers. The rise in ad blockers results in less visits to
their page, meaning advertisers are not getting paid and are unable to accommodate
free online services. As a result, many advertisers and publishers are facing financial
damages and existential concerns.
19

Financial Damages
■ According to a report from Adobe claims that 198
million people globally are installing ad block
software.16 Unfortunately, many advertisers and
publishers are not being paid for visits to their sites
from any browser with ad blockers installed. Thus, their
loss in revenue continues to increase and there is no
long-term solution available.
■ An article written by Jack Marshall in The Wall Street
Journal, claims that publishers have lost $24 billion in
revenue globally in 2015. 17
■ An example of a company affected is Google. Due to
the rise in ad blockers, Google has lost more than $6
billion (U.S) in revenue. 18
Source: pexels.com
By: pixabay.com
16
http://www.cjr.org/business_of_news/will_ad_blockers_kill_the_digital_media_industry.php
17 Information obtained from https://www.wsj.com/articles/the-rise-of-the-anti-ad-blockers-
1465805039
18 information obtained from
327989&it=r&asid=345009df25ee25d56f665fc1f29036f5 20

■ One solution to the financial crisis many advertisers
and publishers are facing has been offered by many
companies who are offering technology that will
work to reverse the affects by ad blockers.
■ Admiral is among many who are hoping to offer
revenue recovery with a software that will allow
websites to shot ads to users with ad-blockers
enable. Unfortunately, this solution can not be long
term because it is difficult to force ads on users who
do no wish to come into contact with them. 19
Source: pexels.com
By: unsplash.com
19
information obtained from https://www.wsj.com/articles/the-rise-of-the-anti-ad-blockers-
1465805039
21

Existential Concerns
■ Since the rise in ad blockers, many websites have experience a decline in
subscriptions made by browsers to receive their content. Therefore, they are
dependent on their ad revenue. However, it is evident that many internet users find
ads irritating and with the technology provided today, ads can easily be erased. This
phenomena can result in permanent damage for the websites, advertisers and
publishers.
■ As a result, it is essential that companies begin take matters into their own hands
and ensure their security. The Guardian for example, has built a platform to detect
users with ad blockers and ask them for a contribution.20 This ensures some sort of
revenue coming through since it is hard to survive with a free for all model.
20
989&it=r&asid=345009df25ee25d56f665fc1f29036f5
22

Conclusion
In conclusion, ad blocking softwares are punishing advertisers and publishers in
regards to their finance and future existence. The intrusive, disruptive and potential viruses
that accompany ads have pushed browsers towards installing an ad block software.
Softwares, such as Ad Block Plus, ensures that the browser has a pleasant experience and
the browser’s security. Unfortunately, advertisers and publishers are losing revenue because
of users who have ad blocking softwares installed. Some companies, such as Admiral, are
offering technology to ensure advertisers and publishers receive revenue by forcing ads on
users who have ad blocking softwares. However, since users do not want to be forced ads
upon them this is not a long term solution. Since they are losing money, they are facing
existential concerns. The “free for all” model used by many websites will have to be revised
to ensure the future of the company. News websites, such as The Guardian, are detecting
users with ad blocking softwares and asking for a small contribution. Although there are
many solutions, the irritating qualities of online advertisements are continuing to push more
and more web users to install ad blocking softwares and negatively affecting advertisers and
publishers.
23

Work Cited
An, Mimi. "Why People Block Ads (And What It Means for Marketers and Advertisers)."
HubSpot Research. N.p., 13 July 2016. Web. 28 Feb. 2017.
https://research.hubspot.com/reports/why-people-block-ads-and-what-it-means-for-
marketers-and-advertisers
Debono, James. "5 of the Biggest and Still the Best Online Advertising Methods." Business 2
Community. N.p., 5 June 2012. Web. 28 Feb. 2017.
http://www.business2community.com/online-marketing/5-of-the-biggest-and-still-the-best-
online-advertising-methods-0186358#HYbUOYGeszUke5Rx.97
Marshall, Jack. "The Rise of the Anti-Ad Blockers." The Wall Street Journal. Dow Jones &
Company, 13 June 2016. Web. 28 Feb. 2017. https://www.wsj.com/articles/the-rise-of-the-
anti-ad-blockers-1465805039
Mortished, Carl. "Readers Have Declared War on Publishers." Globe and Mail. N.p., 3 July
2015. Web. 28 Feb. 2017.
27989&it=r&asid=345009df25ee25d56f665fc1f29036f5
24

Rosenwald, Michael. "The Digital Media Industry Needs to React to Ad Blockers … or
Else." Columbia Journalism Review. N.p., Sept. 2015. Web. 03 Mar. 2017.
http://www.cjr.org/business_of_news/will_ad_blockers_kill_the_digital_media_industry
.php
Zajechowski, Matthew. "Ad Blocking and Its Effects on Advertisers and Publishers."
Relevance. N.p., 26 Oct. 2016. Web. 28 Feb. 2017. http://relevance.com/ad-blocking-
and-its-effects-on-advertisers-and-publishers/
25

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