Why Ad-Blocking Software Will Shift The Bucks To Native And Social Media

Why Ad-Blocking Software Will Shift The Bucks To Native And Social Media
SHARE
THIS



There’s arguably no more divisive debate in Adland at present than around ad-blocking software.

The ‘pros’ argue it’s inevitable anyway and most people hate/don’t pay attention to online banner ads, while the ‘cons’ say websites dependent on ad revenues and not paid subscriptions won’t survive as revenues plummet.

But it’s not necessarily the ads that people don’t want to look at. According to recent research by The New York Times people use ad-blocking software because it chews up data on their phones when the ads appear, not necessarily because they don’t want to look at the ads.

In September, IAB president and CEO Randall Rothenberg told US trade publication AdAge that, “ad-blocking is robbery, plain and simple – an extortionist scheme that exploits customer disaffection and risks distorting the economics of democratic capitalism.”

In August B&T ran a story that reported 200 million people would be using ad-blocking software by the end of 2015 and that would represent $US40 billion in lost potential revenue.

However, there’s a new concerted move to use native ads – ads that look like editorial but are actually paid for – to circumvent the technology.

Yahoo7 boss, Ed Harrison, is a huge fan of native and recently told B&T: “We need to recognise the fact that a lot of publishers need to think hard about the user experience they’re providing and not giving people reasons to install ad-blocking technology in the first place.”

According to US marketing title Marketing Land spends on social media advertising will markedly increase as brands try and avoid ad-blocking software. Which is brilliant news for the likes of Facebook, Twitter and Snapchat and their booming bottom lines.

It says that US firms will spend $23.6 billion on social media campaigns in 2015 and it will increase to close to $US36 billion by 2017. So Aussie CMOs if you don’t have a social media strategy, you need to!

Despite many new devices coming with ad-blocking software as standard some publishers and media outlets already have plans to block the blockers

In the US, Yahoo is already punishing users with the software. The Washington Post is reporting that Yahoo users will be refused access to their emails until they disable the software. Some people who logged into their Yahoo Mail accounts last week were greeted with an ultimatum: “Please disable Ad Blocker to continue using Yahoo Mail.” However, whether this will become official Yahoo policy or merely a trial remains to be seen.

Here in Australia, Channel Nine is also reportedly set to ban the blockers or at the very least charge them for looking at sites and content that would normally be free.

Alex Parsons, managing director of Mi9, Nine’s digital media business said in The Australian: “Ad-blocking software has been with us for some time. However, the introduction to mobile will likely see some ­increase in their use. We have been blocking content when ad blockers are in use with our video content.

“We advise users that we are an ad-funded model and that they will need to turn their ad blockers off to view our premium content,” he said.

Please login with linkedin to comment

Latest News

Western Australia Gets Its First Influencer Marketing Agency
  • Marketing

Western Australia Gets Its First Influencer Marketing Agency

Western Australia’s first dedicated social influencer marketing agency will launch next week to service the state’s new and rapidly growing digital industry. The Influencer Agency – TIA – brings strategy, accountability and measurement to influencer marketing for WA brands using WA influencers. TIA will also assist influencers wanting to grow their brand by developing new […]

One-on-one With Marie Claire Editor Nicky Briger
  • Media

One-on-one With Marie Claire Editor Nicky Briger

Following the launch of the revamped marieclaire.com.au, editor Nicky Briger spoke to Magazine Networks about all it can offer readers. In September, Pacific Magazines unveiled an all-new digital experience for Marie Claire. Led by design thinking, the new look marieclaire.com.au was crafted to provide a better reader experience across all devices. It’s a testament to […]

Women’s Health Unveils Its New Premium Digital Experience
  • Media

Women’s Health Unveils Its New Premium Digital Experience

Pac Mags’ Women’s Health has unveiled an all-new premium digital experience. With a faster, cleaner, more intuitive and visually consistent brand experience across all devices, the new look is designed to optimise the user’s journey with less clutter, discoverable content and seamless integration for commercial partners. Will Everitt, head of product and technology said: “The digital evolution of […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine
Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy
  • Marketing

Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy

Melbourne-based market research consulting agency T Garage has announced the appointment of Ali Dexter as its director of insights and strategy. Dexter joins T Garage from Kantar TNS, where she was the director of its Qualitative division. Prior to that, Dexter held a number of senior roles at Kantar TNS in the US and Vietnam.  “After […]

XXXX on Tuesday, March 21, 2017, in Las Vegas. (Jeff Bottari/AP Images for Adobe)
  • Advertising

Adobe Releases Advertising Cloud App

Not one, but two Adobe announcements. The tech elves have been busy this week, not that we're inferring Adobe is Santa.