Slides from my presentation to the INMA Study Tour, May 2017

1. Background: founded Demonware, created
the technology to enable huge multiplayer
games. Is used in games like…
pre-2012

2. PageFair team working
on adblocking since
2010. Established
PageFair in 2012.

3. 2013 2014
2015
The cost of ad blocking
PageFair and Adobe 2015 Ad Blocking Report
2016
2017

4. Dec 16Apr 09
Global
Monthly figures
-

5. 200 M
150 M
25 M
Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16
100 M
50 M
235 M
Dec 1
Global
Monthly figures

6. 50 M
100 M
25 M
235 M
Global
Monthly figures
Desktop/Laptop
Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Dec 1

7. 400 M
300 M
50 M
100 M
25 M
235 M
Global
Monthly figures
Desktop/Laptop
Mobile
Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Dec 1

8. Adblock user
ATTENTIVE
EDUCATED

9. Adblock user
100% HUMAN
ATTENTIVE
EDUCATED

10. 50.2 million monthly active
PCs, and 1.6 million monthly
active mobile devices.
18% adblock penetration
Start of 2017

11. 5%
10%
15%
20%
25%
18-24 25-34 35-44 45-54 55-64 > 65
All ages are 1.5 times more likely than
average to have a bachelors degree
U.S. adblock users by age

12. 5%
10%
15%
20%
25%
18-24 25-34 35-44 45-54 55-64 > 65
All ages are 1.5 times more likely than
average to have a bachelors degree
3 times more likely to have a bachelors degree
U.S. adblock users by age

13. - Dec 16Dec 13

14. Desktop Growth
Dec 13 Dec 14 Dec 15 Dec 16
50 M
40 M
30 M
27 M

15. Desktop Growth
Dec 13 Dec 14 Dec 15 Dec 16
50 M
40 M
30 M
27 M
Summer months

16. Desktop Growth
Dec 13 Dec 14 Dec 15 Dec 16
50 M
40 M
30 M
27 M
Summer months

17. Linear. Not
exponential.

18. NOT THE
“ADPOCALYPSE”

19. ADBLOCKING
IS LIKE
CLIMATE CHANGE

21. DIGITAL
AD INDUSTRY
SHORT TERMISM

22. WILL YOUR NEXT
CAMPAIGN / ADTECH
INNOVATION DO THIS?

23. Why people block
(no order)
•Security.
•Interruption
•Bandwidth.
•Privacy.

24. Why people block
(no order)
•Security.
•Interruption
•Bandwidth.
•Privacy.
•Because they can.

25. The “Blab-Off” TV remote control. 1952.

29. THE
GOOD NEWS

30. 77%of adblock users
willing to view ads
up from
66% in
2014

31. 61%
67% 67%
% of adblock users who express a
willingness to view each format,
multiple choice (2014)
Popover Video non-
skippable
mid-roll
Display with
audio
Video non-
skippable
pre-roll
Interstitial Animated
display
Video
skippable
mid-roll
Video
skippable
pre-roll
Text ad
30%
60%
Image
display

32. 25%
50%
35%
52%
Animated
display
Ads that
auto play
sound
Non-skippable
video
Native ads Skippable
video
Image
display
% of adblock users who express a
willingness to view each format,
single choice (2017)

34. BETTER ADS
NOT BLOCKED ADS

35. BETTER ADS
WHAT IS THE
ADBLOCK AUDIENCE
REACTION TO
?

36. BRAND REACTION
Regular users
v
Adblock users

37. EXAMPLE

38. EXAMPLE

39. Q. “It bothers me that I have
seen a picture ad from [brand]”
REGULAR USERS
ADBLOCK USERS
20%
41%
Disagree
34%
41%
Neutral
46%
17%
Agree

40. NOBODY
32%
WEBSITE
45%
BRAND
23%
REGULAR USERS
Q. “Who do you blame?”
23% blame
the brand

41. NOBODY
32%
WEBSITE
45%
BRAND
23%
REGULAR USERSADBLOCK USERS
NOBODY
17%
WEBSITE
28%
ADBLOCK
SOFTWARE
40%
BRAND
14%
Q. “Who do you blame?”
23% blame
the brand
14% blame
the brand

42. Q. “Overall, how satisfied or dissatisfied
are you with this webpage?”
Neutral DissatisfiedSatisfied
60%60%
28%29%
12%11%
REGULAR USERS
ADBLOCK USERS

43. Q. “I have a positive attitude
toward [brand]”
Neutral DisagreeAgree
33%
30%
46%46%
21%
25%
AMONG USERS WHO ARE BOTHERED AT HAVING BEEN SHOWN AN AD
REGULAR USERS
ADBLOCK USERS

44. BETTER ADS
NOT BLOCKED ADS

45. WHAT
PUBLISHERS
ASK FOR

46. “Appeal”
Ads blocked
Regular Ads
Please turn off
your adblocker
No
Yes
Regular Ad
Advertiseme
Tamper-proof
Adblock Detection

47. “Wall” Mandatory:
Turn off
your adblocker
No
Yes
Regular Ads
74% of users
leave the site.
Advertiseme
Tamper-proof
Adblock Detection
Regular Ad
“Appeal”
Ads blocked
Regular Ads
Please turn off
your adblocker
No
Yes
Regular Ad
Advertiseme
Tamper-proof
Adblock Detection

48. “Replace” Better Ads
BetterAd
Welcome
to better ads!Tamper-proof
Adblock Detection
Better Ad
“Wall” Mandatory:
Turn off
your adblocker
No
Yes
Regular Ads
74% of users
leave the site.
Advertiseme
Tamper-proof
Adblock Detection
Regular Ad
“Appeal”
Ads blocked
Regular Ads
Please turn off
your adblocker
No
Yes
Regular Ad
Advertiseme
Tamper-proof
Adblock Detection

49. BetterAd
Welcome
to better ads!
Tamper-proof
Adblock Detection
Better Ad
///

51. “Technologies … that can block the
display of our ads … have had an
adverse effect on our financial results”
- Facebook 2015 annual report

52. “Desktop ad revenue grew 18%…
Recent quarters [were] about half of
that growth rate on a year-over-year
basis. … That acceleration in desktop
revenue growth is largely due to our
efforts on reducing the impact of ad
blocking”
- Facebook Q3 2016 earnings call
Q3 2016

53. “Desktop ad revenue grew 22%, despite
a decline in desktop usage, helped by
our efforts to limit the impact of ad
blockers on advertisements served on
personal computers”
- Facebook Q4 2016 earnings call
Q4 2016

54. - Facebook Q1 2017 earnings call
Q1 2017
“Desktop ad revenue grew 22%, despite
a decline in desktop usage, and was
aided by our recent efforts to limit the
impact of ad blocking technologies,
which we began in Q3 of last year.”

55. Listen
to users’
grievances.
3 Steps to Solve Adblocking

56. Listen Fix
to users’
grievances.
security,
UX,
bandwidth,
& privacy.
3 Steps to Solve Adblocking

57. Listen Fix SERVE
to users’
grievances.
IAB LEAN display
format using
tamper-proof
serving.
security,
UX,
bandwidth,
& privacy.
3 Steps to Solve Adblocking

58. BETTER ADS
REPLACE BLOCKED
ADS WITH

59. HOW?

60. Accurately
detect adblock
Render an
ad securely
Interface with
necessary parties
Serve an
ad securely
Four requirements of reliable tamper-proof ad serving

61. Regular audience Unblocked audience
Better Ad
Advertisement
///
Ad
Ad
///
PageFair
Your ad server

62. 1. Adblocking will grow.
2. Adblock users are willing to tolerate
better ads.

63. 1. Adblocking will grow.
2. Adblock users are willing to tolerate
better ads.
3.These people are a valuable audience.
4.We need to replace blocked ads with
better ads.
5.See Data at pagefair.com/intel