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ADBLOCK HOW OPEN IS the FUTURE 1 Adblock ADBLOCK HOW OPEN IS THE FUTURE 1 Adblock: How Open is the Future? An Exploration of the Future of Digital Advertising as Consumer and Client Desires Clash By Will Walton ADBLOCK: HOW OPEN IS THE FUTURE 2 Advertising Practice Area This paper focuses on the effects adblock has on advertising and advertising publishers. The research focuses on how and why users choose to block ads, the steps that are being taken to entice users to stop blocking ads, and the financial effects of adblock on the industry. The relationship between adblock providers and advertisers will be explored, especially the relationship between Adblock Plus, owned by Eyeo, and many advertisers. In addition, industry examples of how to combat adblock will be discussed as well as some of the best practices being used within the industry that could be applied towards countering adblock. Research shows that users predominantly use adblock to limit distracting and intrusive advertisements. According to the Interactive Advertising Bureau (IAB), approximately 26% of internet users use adblock programs (Interactive Advertising Bureau & C3 Research, 2016). This paper will look into the potential growth of adblock use as well as the potential of increased loss of revenue. United Nations research shows that almost 43% of the entire human population uses the Internet which creates a huge pool of potential consumers of online advertising as well as potential adblock users. This paper will examine the relationship between the advertiser, the client, and the consumer within adblock, how the relationship led to adblock. Possible methods to solve the issue, such as the LEAN ads initiative from IAB and the Acceptable Ads program from Adblock Plus, will be examined. Adblock use on mobile devices such as tablets and smartphones will also be discussed. This paper will show how more creative digital advertising combined with a compromise between the desires of both consumers and clients will work to end the adblock conflict. Solutions exist within the realms of in-image advertisements and an increased use of native advertising as well. ADBLOCK: HOW OPEN IS THE FUTURE 3 Keywords: adblock, advertising, Interactive Advertising Bureau, Adblock Plus ​ ADBLOCK: HOW OPEN IS THE FUTURE 4 Research Focus Consumers are constantly bombarded with advertisements both in the real and virtual worlds. In real life, ads are easily shut out or ignored. Online, however, that is not the case. Ads can take over a user’s screen, blink annoyingly at them, begin playing the moment that they open the webpage, and even negatively affect the user by injecting their computer with viruses or other malware. In 2002, Henrik Sørenson wrote the source code for adblock. The software was first used on the Firefox browser and eventually migrated to Google Chrome, and other browsers. What started as a college student’s procrastinating has become a popular way to avoid seeing advertisements that are deemed annoying, irritating, distracting, or unsafe. Online advertisers and publishers say that adblocking is “threatening the Internet’s business model (Hern, 2013).” In the end, advertising is not going anywhere, which begs the question: how will adblocking and increased privacy concerns change the way advertisers reach their target audiences? It would seem that the best way to do so is to better engage with consumers through more targeted and creative advertisements that are not distracting or annoying, but interesting and accessible. The cultural phenomenon that helped create adblock is not something new. It began with the world wide web in 1992 and has spread throughout the world since then. It has appeared in several different forms, most notably the shift from cable television to online streaming platforms for television. Users increasingly want streamlined experiences that provide the least number of distractions. As the Internet grew, more advertisers went after their audience online. In 2015, Time Money reported that the International Telecommunications Union of the United Nations found that 3.2 billion people, or over 40% of the human population, use the Internet ADBLOCK: HOW OPEN IS THE FUTURE 5 (Davidson 2015). As the number of Internet users rises, the number of Adblock users also grows among those who are technologically literate and annoyed enough with advertisements to do something about them. Objectives of Research How is Adblock affecting online advertising? A report by PageFair, an Irish start-up that studies adblock, and Adobe, found that there are 198 million adblock users worldwide and that they have cost publishers almost $22 million in lost revenue. The same report found that adblock use grew by an astonishing 41% from 2014 to 2015 and expected to see similar numbers of growth and lost revenue in 2016. Adblock Plus, the world’s largest adblock provider, has been using an acceptable ads criteria to choose which ads are “whitelisted,” or passed through the adblock. The practice has been called extortionary by some, as advertisers and publishers must sometimes pay to have their ads whitelisted. 148 sites are currently whitelisted. How will online and mobile advertisers change their practices? Responses to adblock have been varied. Some publishers and online advertisers such as Google have simply been paying the fees to have their ads whitelisted. Other publishers, such as Forbes.com have tried a different strategy by forcing users to either turn off their adblock or whitelist Forbes or they will be unable to view any content. Forbes.com and Wired.com, as well as other sites, came under fire for this deciosn in May of 2016 when traffic drivers such as Reddit.com’s Technology subreddit began contemplating “banning all domains that require users to disable ad blockers (/u/Creq, 2016).” ADBLOCK: HOW OPEN IS THE FUTURE 6 The Interactive Advertising Bureau (IAB) and AdBlock Plus, although they are on different sides of the conflict, have similar suggestions on how to solve the adblock problem: make better ads. Their programs revolve around the idea that ads need to be less intrusive, have less drag on data, and encrypted. Practice Area Adblock is primarily an issue with online advertising. While there are nearly 200 million active adblock users, the majority of these users utilize the software on their home and work computers, laptops, and tablets. A small percentage of adblock users also utilize the software while on their mobile devices. Although advertisers and publishers are mainly focused on how to combat adblocking through online use, many are still worried about mobile advertising becoming the next target. IAB and others have begun research into how to streamline mobile advertising to make it more consumer friendly while also meeting the client’s needs. The issue of adblocking touches almost all aspects of advertising, from accounts to media buying to creatives and planners. Online advertising focuses on the number of total impressions and views more than the total number of clicks, which makes adblocking a large issue. Ads need to not only meet the standards so they are not blocked, but be placed in the correct location, be creative and naturally eye-drawing, and must be seen. Key Terms There are several key terms that surround both the advertising industry and the adblock issue that must be defined. These terms are adblock/adblocking, whitelisting, acceptable ads, the Acceptable Ads platform, LEAN ads, Clicks per million, traffic, browser, browser extension, Internet Service Providers (ISPs), malware, spyware, adware, and anti-virus. ADBLOCK: HOW OPEN IS THE FUTURE 7 Adblock or Adblocking is a type of software used as a browser extension to block ​ advertisements from view. Adblock is sometimes mistaken for anti-virus software. There are approximately 50 different types of adblock programs that are available for use. Notable adblock programs include Adblock Plus, Adblock, and ublock Origin. Whitelisting refers to an ​ ​ advertisement that has been unblocked, or deemed acceptable, by adblock software. This process sometimes involves payment or having the ads meet a certain criteria in order to be whitelisted. The Acceptable Ads Criteria is a series of criterion set by Adblock Plus to decide what ads are ​ ​ whitelisted. There are three criterion the ads must meet to be deemed acceptable: the ad’s placement must not disrupt the user’s natural reading flow, the ads should be clearly marked with the word advertisement or an equivalent, and the size of the ad and the size of the space it takes up are limited. The criteria is also the basis for the Acceptable Ads Program launched by ​ ​ Adblock Plus and its partner ComboTag to sell ads. L.E.A.N ads is a program first proposed by the IAB. The acronym stands for Light, ​ Encrypted, Ad-choice supported, and Non-invasive ads. IAB is working on creating the program to introduce it to the web as a possible industry standard. They want the ads to be light so they do not place too much weight on streams of data, especially fixed data. They also are working towards having the ads encrypted so they cannot be used to inject malware, spyware, adware, or any other types of viruses or invasions of privacy into users’ computers. Clicks per minute (CPM) is defined as “the cost per thousand impressions” by ​ marketingterms.com. The CPM for a website determines the cost of advertisements that are placed on the site. It is the online version of Cost per Thousand. ADBLOCK: HOW OPEN IS THE FUTURE 8 Browsers are the programs that consumers use to “browse” or “surf” the Internet. Notable ​ browsers include Internet Explorer, Firefox, Google Chrome, and Safari. Browser extension are a ​ ​ type of software or program that has been created by the same organization that created the browser or other teams/individuals that operates in conjunction with browsers to perform certain functions.
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