Adblocking – how is it going to affect me?

The issue of adblocking is a very real one. In 2015 it is predicted that £14 billion will be lost in advertising revenue.

Adblocking is a subject that has promised to be coming to the forefront for a while, however Apple’s iOS 9 launch and the subsequent approval of adblocking offerings in their app store has thrust it into the public’s eye.

The Internet Advertising Bureau UK Adblocking Report, recently conducted by YouGov, makes quite stark reading and extrapolates the extent of the current issue:

 15% of Brits are adblocking.

 22% have admitted downloading adblocking software at one point or the other.

 Main reasoning according to the report is that people find online ads interruptive or annoying.

 Regionally Scotland and the North are most likely to block ads – 19%.

 Men are the most prominent with 22% blocking, women – 9%.

 Predictably adblocking is most prevalent among the younger generations, 34% 18-24s and 19% 25-34s.

Maybe even more startling is that only 44% of adults in Britain realise that most websites are free because they are, in fact, funded by advertising revenue. So is it the case that people simply need to be educated and in turn would be more understanding of the knock on effect that this reduction in revenue will have?

It seems unlikely. IAB’s CEO, Guy Phillipson, sums up what he feels is the current public perception that “When it comes to a free and an ad-free internet, a lot of consumers want to have their cake and eat it,” “However, those unaware that most online services are free – or cost very little – because sites make money from showing visitors ads, could be in for a shock if websites start charging for access because ad blocking reduces their revenue from advertising.

“The bottom line is that if the web didn’t have ads, most sites could only exist by charging subscriptions.” 

Despite ad-free subscriber sites like Netflix’s meteoritic rise in the video on demand market, the general public is still very unwilling to pay for content in return for not having ads with only 3% saying they would be happy to do so. While clearly this is a more premium offering it does portray that most see advertising as acceptable when compared to the option of having to dip their hand into their own pocket.

Unsurprisingly the more ‘traditional’ Medias are highlighting the issues that may be slowing down the digital beast. Karen Stacey, DCM’s Chief Exec, was quick to capitalise on the opportunity to champion the transparency that their offering has: “Despite ad block usage in the UK reportedly increasing by 82% in the past year, 92% of cinemagoers make sure they’re seated before anything is shown on the big screen, while 97% watch ads before the movie.”

 Is this paving a way for the resurgence of traditional Medias or is it simply highlighting their timeless value?

To back up Guy Phillipson’s view, it seems that people’s ignorance is a contributor to their use of ad blocking.

The impact on our industry remains uncertain but is likely to be that salehouses begin taking matters in to their own hands in order to protect their content that advertising revenue is supporting. City AM is the prime example, having been the first online newspaper site to ban users with adblockers running. Essentially giving the consumers the choice, enjoy our free content with the ads that pay for it or don’t.