Ad blocking could cost publishers $27 billion in lost revenue by 2020

By Jim O'Neill on May 11 2016 at 9:15 AM

Publishers are losing nearly 10% of their digital ad revenue – some $27 billion by 2020 -- to ad blockers, a new study says, creating a demand for new strategies to counter an evolving ad blocker industry and the increased adoption of ad blockers by Millennials.

Juniper Research, in its Worldwide Digital Advertising: 2016-2020 report, said ad blockers are becoming more sophisticated and difficult to overcome as they pour more money into development.

And, said the report, publishers likely will face ad blockers not only in browsers but increasingly in apps over the next five years.

“Adoption is being driven by consumer concerns over mobile data usage and privacy,” said report author Sam Barker. “They are also incentivized to adopt the technology in order to reduce page load times.”

Smaller publishers who rely almost exclusively on ad revenue – rather than having a hybrid monetization model that includes TVOD and SVOD – generally are most at risk from ad blocking.

Some websites have experimented with blocking content from users who employ ad blockers, and even found success; but that tactic also poses a risk of alienating users; others have countered ad-blocking technology with tech blockers of their own.

Inevitably, publishers need to develop new strategies that encourage users to allow their ads to be seen. An opportunity, perhaps, for more targeting of advertising driven by better data collection.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

READ THESE NEXT

Report: Mobile video mainstreaming with Millennials
Research, Mobile, Millennials
Report: Mobile video mainstreaming with Millennials
Dec 15 2016 11:00 AM

More than 20% of U.S. Millennials watch at least three hours of video each week on the smartphones, with nearly 12% saying they watch more than five hours. And, according to a new report, 53% say they watch at least an hour a week.

North American SVOD subs to top 138M by 2021
SVOD, Research
North American SVOD subs to top 138M by 2021
Nov 23 2016 8:30 AM

Nearly three-quarters (71%) of TV households in the United States are expected to pay for at least one subscription video on-demand service by 2021, with the average subscriber paying for 1.5 services.

Global OTT revenues seen growing at 14.5% CAGR through 2026
Research, OTT, AVOD
Global OTT revenues seen growing at 14.5% CAGR through 2026
Nov 21 2016 7:00 AM

The increasing penetration of smartphones, tablets and high-speed broadband is driving global OTT revenues at an increasing pace, with forecasters expecting it to see a compound annual growth rate (CAGR) of 14.5% through 2026.

Online video consumption in APAC nearly matching traditional TV viewing
APAC, Research, SVOD
Online video consumption in APAC nearly matching traditional TV viewing
Nov 21 2016 6:15 AM

Consumers in APAC watch more than 1.6 hours of online video content daily, nearly matching the 2.0 hours of traditional TV they consume daily, a new report says.