Ad Blocking: Business Models Matter
Business models matter. Consider that global mobile ad spending will probably reach $69 billion in 2015, up from just $19 billion in 2013, according to eMarketer. Mobile will account for more than 50 percent of all digital ad expenditure by 2016.
But the next version of Apple’s IoS will allow its device users to block ads, though that will not be the default setting.
For Apple, which makes its money from devices, ads are seen as content elements that degrade end user experience.
For Google, Facebook and many content providers, ads are a primary or important revenue source. The estimated loss of global revenue due to blocked advertising during the first half of 2015 was $21.8 billion, according to Pagefair.
Ad block usage in the United States resulted in an estimated $5.8 billion in blocked revenue during 2014. It is expected to cost $10.7 billion in 2015 and $20.3 billion in 2016.
Globally, ad blocking is expected to result in a loss of $41.4 billion in potential ad revenue by 2016.
Use of ad blocking software is increasing. Globally, the number of people using ad blocking software grew by 41 percent between 2013 and 2014, according to Pagefair.
Ad block usage in the United States grew 48 percent in 2014, increasing to 45 million monthly active users (MAUs) during the second quarter of 2015.
Ad block usage in Europe grew by 35 percent in 2014, increasing to 77 million monthly active users during the second quarter of 2015.
Precisely how much change will be necessary for users of ad-supported business models is unclear at the moment. But there will be stress.