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.
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