Ad blocking to cost US media owners $12.1bn by 2020by
A study from Optimal.com states that ad blocking is set to hit media owners to the tune of $12.1bn in lost display ad revenues by 2020, an increase from $3.9bn in 2016.
The advertising agency used blocker tracking data to also discover that 11.7% of online display ad impressions were blocked in the US in 2015.
This was lower than many countries, especially in Europe where the percentage averages are closer to 20%. However, given the sheer size of the online advertising market in the US, the effects are regarded as being more severe.
eMarketer predicts that digital display ad spending will eclipse search ad spending in the US for the first time. Combined, the categories of video, sponsorships, rich media and “banners and other” will account for 47.9% of digital ad spending, worth $32.17 billion.
But the $3.9bn of lost ad blocking revenue still represents a hefty portion of the market now, and Optimal’s data forecasts that ad blocking rates will increase to nearly 25% over the coming 4 years.
Antti Pasila, CCO and Founder at advertising automation experts, Kiosked says media owners shouldn’t panic in response to the findings.
“Instead of focusing on fighting ad blockers, brands need to address the cause of the issue: Why users are turning to ad blockers in the first place.
“Publishers often put monetisation at the expense of the user, which leads them to installing ad blockers for a better viewing experience. The industry is at a tipping point, and in order to survive we must wake up and begin treating this root cause of the ad blocking issue. Publishers need to put user experience ahead of quick monetisation wins.
“Two key aspects of a successful ad impression include the ad actually getting seen by a user and being relevant either contextually or behaviourally. Using a transparent platform and positioning ads in key places, publishers will create a much better overall user experience and go some way to making ad blockers defunct.”
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.