Ad Blocking Expansion: How Will the Mobile Advertising Ecosystem Adapt?

By Eugine Dychko
Ad Blocking Expansion: How Will the Mobile Advertising Ecosystem Adapt?

Today’s guest post is brought to us by Eugine Dychko, Content Manager at ComboApp. This article discusses about the expansion of Ad-Blocking and how the mobile ecosystem will adapt consequently. Find out 3 useful tips for app developers to adjust their app marketing strategy.


Mobile Web Ads can now be Blocked on iOS

The launch of Apple’s ad blocking apps has called for many discussions about its impact on the mobile ad industry. Even though the concept of ad blocking has been around for a long time and became very popular on web, it’s the first time users will be able to block ads on the iOS browser. Mobile web ads can now be blocked across all major mobile ad platforms. Some believe this will mostly impact publishers, especially those who rely on advertising as their only revenue source. Others think ad blocking is a good incentive for the all advertising industry participants to change the way ads are created, placed and analyzed.

In order to understand how the mobile ad industry will adapt to this ad blocking reality, it’s important to distinguish the main reasons that make ad blockers so popular. According to the Global Web Index, around 27% of internet users block ads. Adobe’s 2015 Ad Blocking report predicts that the number of ad blocking users will grow. There are currently more than 45 million ad blocking users in the US. iOS ad blocking apps reached top charts almost instantly after the launch. It looks like users are just tired of annoying ads and are ready to spend time and money to stop them. Moreover, users are concerned about their data that is being gathered through ads and being used by third-party companies. Ad blockers let users get rid of pesky banners that drive attention from the content, decrease the load time of the page, and to some extent secure their data.

Ad-Blocking

The expansion of ad blocking appeared to be a tangible threat for most publishers, especially midsize and small publishers. Their monetization model is based on fair exchange; free content for ad impressions. The Adobe report claims that ad blockers will result in a $21.8 billion loss for publishers this year. According to the development company 10up, publishers will lose up to 11% of ad revenue due to ad blockers in the next eight months. With ads being blocked, publishers will face hard times monetizing their websites and will start employing alternative revenue models:

  • Paywalls and apps. It’s likely that some publishers will stop providing free content and switch to paywalls. They also could create their own mobile apps with in-app advertising.

  • Native-looking ads. Publishers will shift from programmatic display banners to native ads and branding content in order to avoid ad blocking. Native ads don’t drive attention from main content, yet engage users and allow publishers to make revenue.

However, ad blocking will likely to change the whole system of annoying, behavior-tracking ads. Ad agencies, advertisers, and app developers will need to adapt by using more clean and native-looking ad formats.

For app developers, it’s important to adjust their marketing strategy to the changes in the mobile ad ecosystem:

1. Switching from standard ad formats, like banners and video, to native-looking ads; content rich ads, branded articles, simple and clean formats. 2. Use precise targeting to engage potential users, especially when it comes to location targeting. Relevance is crucial for a positive advertising experience. 3. Since ad blocking is enabled in the mobile browser, ad spend will likely shift to apps. According to eMarketer, in-app ad spending now outreach mobile web nearly 3-to-1.


TL;DR

  • For the first time, users will be able to block ads on iOS.
  • Opinions differ in the mobile industry. Some welcome this news; others fear its impact on ads revenue.
  • Ad Blockers are popular amongst users, who are tired of annoying ads.
  • Ad Blockers will result in a $21.8 billion loss for publishers this year.
  • Alternative revenue models include: Paywalls and native-looking ads.
  • App developers need to adjust their app marketing strategy consequently.

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