Ad blockers decrease website ad revenue big time

With advertising being the main source of revenue for many websites from news to online games, it is quite annoying when there are too many ads, slowing down your computer or just getting in your way. In order to combat this situation, ad-blockers have been introduced in order to filter ads to protect users from the damage that is an "ad overload".

Even though this is a positive result for the website visitor because they do not have to deal with so many ads, it is very troublesome for the website/publisher of the adverts because with an ad-blocker, both impression and click stats will go down exponentially which will result in less ad revenue which might put publishers who make their business revenue online at risk due to the sudden drop in ad income.

According to Business Insider, there is a campaign in Sweden called "Advertising Friendly Sweden" which will join forces with publishers and declare war on all ad-blockers by getting users who have ad-blockers installed to pay-per-view, uninstall the ad blocking software or experience decreased content quality such as parts of articles or video previews. All of this will be done in order to pressure visitors to realize what measures that businesses have to take in order to stay afloat with less ad revenue.

Some people have a good reason to block ads. A recent study by the Interactive Advertising Bureau (IAB) showed that 73% of respondents use ad-blockers because some ads are interruptive and 54% said that ads slow down web browsing. Suggesting that interruptive means pop-up ads, yes they are and they always pop up at the worst possible time. 

So far, not many businesses have changed their ways of sharing content with the increase of ad-blockers but soon enough, as the number of ad-blockers continue to rise, there will be dire consequences such as premium content walls, previews before the full article or video or even the comeback of subscriptions. All of which are very unattractive and might make readers lose interest in the website all-together and search for an alternative.

"Ad blocking poses a major threat to digital media companies that depend on advertising for revenue. If ad blocking on mobile reaches desktop levels, US digital media companies could lose out on as much as $9.7 billion across digital ad formats next year, according to BI Intelligence estimates based on current usage rates." stated Business Insider in their article.

While publishers are going crazy on stopping ad-blockers from killing them off, a startup known as Optimal has a workaround for this problem which might work for both visitors and publishers. With a planned launch next month according to the International Business Times, they want to allow the ad-blocker's users to pay monthly fees to use the ad blocker and Optimal will give 70% of the fees to publishers while keeping 30% for themselves.

In a way, this will be an okay thing for publishers but they still will not be generating as much revenue as they did without ad-blockers but still, they will be receiving income, better than no income due to ad-blockers.

Even though this might be a good solution, it is only a workaround because the ad-blocker itself has a monthly fee of $5.99 a month when you can get an ad-blocker off Google Chrome's extension store for free. 

In the time being, there are roughly 10,000 publishers according to Optimal that have signed up for this service and Optimal will put the earned revenue for a website aside for a year so that it gives the publisher a chance to claim it, if they want it. 

Ad blockers decrease website ad revenue big time Ad blockers decrease website ad revenue big time Reviewed by Angus Leung on 22:29:00 Rating: 5

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