Presentation at the Advertising Research Foundation, NYC, on the opportunity of adblocking
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The document discusses the impact of ad blocking on the digital advertising industry, revealing that 18% of internet users engaged in ad blocking as of early 2017, with a notable growth in desktop usage. It emphasizes the reasons for ad blocking, including security, privacy, and user experience issues, while suggesting that the industry adapt by listening to user feedback and employing more appealing ad formats. The document concludes with PageFair's proposed solutions for addressing ad blocking challenges and capitalizing on the unblocked web as an opportunity.
![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.
- David Wehner, Facebook CFO
quarterly earnings call, Q3 2016
Q3](https://image.slidesharecdn.com/arffebruary2017-170209162259/85/Presentation-at-the-Advertising-Research-Foundation-NYC-on-the-opportunity-of-adblocking-53-320.jpg)
Presentation at the Advertising Research Foundation, NYC, on the opportunity of adblocking
- 1. The blocked web, blessing or curse? NYC, 7 February 2017 Dr Johnny Ryan, PageFair
- 2. @johnnyryan
- 3. Background: founded Demonware, created the technology to enable huge multiplayer games. Is used in games like… pre-2012
- 4. PageFair team working on adblocking since 2010. Established PageFair in 2012.
- 5. 2013 2014 2015 The cost of ad blocking PageFair and Adobe 2015 Ad Blocking Report 2016 2017
- 8. Dec 16Apr 09 Global Monthly figures -
- 9. 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
- 10. 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
- 11. 50.2 million monthly active PCs, and 1.6 million monthly active mobile devices. 18% adblock penetration Start of 2017
- 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 U.S. adblock users by age
- 13. 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
- 14. - Dec 16Dec 13
- 15. Desktop Growth Dec 13 Dec 14 Dec 15 Dec 16 50 M 40 M 30 M 27 M
- 16. Desktop Growth Dec 13 Dec 14 Dec 15 Dec 16 50 M 40 M 30 M 27 M Summer months
- 17. Desktop Growth Dec 13 Dec 14 Dec 15 Dec 16 50 M 40 M 30 M 27 M Summer months
- 23. Why people block (no order) •Security. •Ads obscure content. •Bandwidth. •Privacy.
- 24. Why people block (no order) •Security. •Ads obscure content. •Bandwidth. •Privacy. •Because they can.
- 25. The “Blab-Off” TV remote control. 1952.
- 29. 80%learn about ad blocking from friends / web / social media
- 31. “The best western history of the Internet to date” Library Journal “Engrossing” Cory Doctorow, BoingBoing “Consider this book your road map” Marc Benioff, CEO, Salesforce “An immensely important book” Kevin O'Sullivan, Editor of The Irish Times “Enormously useful ... a great read” Prof Tim Wu, Columbia Law School “Captures the sweep of the Internet’s development” Prof Jonathan Zittrain, Harvard Law School
- 32. first physics web servers outside CERN January 1991
- 33. 44.8 million people 1995
- 34. 188.5 million people 1998
- 35. 1.6 billion people 2008
- 36. 2.7 billion people January 2013
- 37. 2.7 billion people blocked web: <1 % January 2013 Blocked Web (nerds)
- 38. December 20163.4 billion people blocked web: 11 %
- 39. 50 million people Now 286.9 million TODAY IN THE UNITED STATES
- 40. THE GOOD NEWS
- 41. 77%of adblock users willing to view ads
- 42. 77%of adblock users willing to view ads up from 66% in 2014
- 43. 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
- 44. Image display 25% 50% 35% 52% Animated display Ads that auto play sound Non-skippable video Native ads Skippable video % of adblock users who express a willingness to view each format, single choice (2017)
- 45. AD SERVING ADBLOCKING CAN NOT TAMPER WITH
- 46. Publisher’s inventory (LEAN display formats) Regular audience Unblocked audience IAB LEAN Advertisement Advertisement /// Advertisement Advertisement /// Publisher’s inventory (All formats) Tamper-proof serving Regular ad Server
- 47. Listen to users’ grievances. 3 Steps to Solve Adblocking
- 48. Listen Fix to users’ grievances. security, UX, bandwidth, & privacy. 3 Steps to Solve Adblocking
- 49. Listen Fix to users’ grievances. security, UX, bandwidth, & privacy. 3 Steps to Solve Adblocking
- 50. Listen Fix SERVE to users’ grievances. LEAN display format using tamper-proof serving. security, UX, bandwidth, & privacy. 3 Steps to Solve Adblocking
- 52. Technologies … that can block the display of our ads … have had an adverse effect on our financial results and, if such technologies continue to proliferate, in particular with respect to mobile platforms, our future financial results may be harmed. - Facebook 2015 annual report
- 53. 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. - David Wehner, Facebook CFO quarterly earnings call, Q3 2016 Q3
- 54. 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. - David Wehner, Facebook CFO quarterly earnings call, Q4 2016 Q4
- 55. SOLVE CMO’s 3 TERRIBLE PROBLEMS OF DIGITAL MARKETING WEB CLUTTER adFRAUD VERSATILITY
- 56. #1 Ad Fraud
- 57. Attention = PLENTIFUL. Adblock user Ads = SCARCE.
- 58. Attention = PLENTIFUL. Adblock user Ads = SCARCE. Definitely human.
- 59. #2 Clutter
- 60. Ad Ad Ad Ad Ad Ad Ad Ad Ad Ad Ad Ad
- 64. #3 Versatility
- 65. BTL ATL 66% of online advertising is performance advertising, according to IAB/PwC Internet Ad Revenue Report, HY 2015
- 66. Most normal Web users BTL ATL AWARENESS CONSIDERATION INTENTION PURCHASE 66% of online advertising is performance advertising, according to IAB/PwC Internet Ad Revenue Report, HY 2015
- 70. TIME TO ENGAGE WITH THE BLOCKED WEB
- 71. “Appeal” Please turn off your adblockerTamper-proof Adblock Detection
- 72. “Appeal” Ads blocked Please turn off your adblocker No Tamper-proof Adblock Detection
- 73. “Appeal” Ads blocked Regular Ads Please turn off your adblocker No Yes LEAN AD Advertiseme Tamper-proof Adblock Detection
- 74. “Wall” “Appeal” Mandatory: Turn off your adblocker No Yes Regular Ads 50% - 90% Exit Your Site Advertiseme Ads blocked Regular Ads Please turn off your adblocker No Yes Advertiseme Tamper-proof Adblock Detection Tamper-proof Adblock Detection LEAN AD LEAN AD
- 75. “Wall” “Inform” “Appeal” Mandatory: Turn off your adblocker No Yes Regular Ads 50% - 90% Exit Your Site Advertiseme Restored Ads Advertiseme Welcome to better ads! Ads blocked Regular Ads Please turn off your adblocker No Yes Advertiseme Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection LEAN AD LEAN AD LEAN AD
- 76. “Wall” “Inform” “Appeal” “Choice” Mandatory: Turn off your adblocker No Yes Regular Ads 50% - 90% Exit Your Site Advertiseme Restored Ads Advertisement Advertiseme Welcome to better ads! Ads blocked Regular Ads Please turn off your adblocker No Yes Advertiseme Regular Ads Restored Ads Advertiseme Please turn off your adblocker No Yes Advertiseme Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection LEAN AD LEAN AD LEAN AD LEAN AD LEAN AD
- 77. “Wall” “Inform” “Direct” “Appeal” “Choice” Mandatory: Turn off your adblocker No Yes Regular Ads 50% - 90% Exit Your Site LEAN AD Advertiseme Restored Ads LEAN AD Advertiseme Welcome to better ads! Restored Ads LEAN AD Advertiseme Ads blocked Regular Ads Please turn off your adblocker No Yes LEAN AD Advertiseme Regular Ads Restored Ads LEAN AD Advertiseme Please turn off your adblocker No Yes LEAN AD Advertiseme Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection Tamper-proof Adblock Detection
- 78. Listen Fix SERVE to users’ grievances. LEAN display format using tamper-proof serving. security, UX, bandwidth, & privacy. PageFair’s 3 Steps to Solving Adblocking
- 79. 1. Adblock is a new remote control. It will not go away. 2. Respond like Facebook: Listen to grievances, Fix these problems, then Serve ads in a tamper-proof way. 3.The unblocked web is an opportunity. Summary @johnnyryan PageFair.com