Showing posts with label Ad Blocking. Show all posts
Showing posts with label Ad Blocking. Show all posts

Friday, August 11, 2017

(The Big Disrupt) Google: Why Publishers need to concerned with Google's recent moves






Being publisher is probably the hottest seat in the digital ad ecosystem and it's about to get hotter as Google goes on the warpath against "bad ads" recently outing 1,000 publishers, Forbes Magazine among them, about the quality of ads on their sites.  

Google weren't exactly resting on their laurels last year as the search ad giant went to town on "bad ads" with the Mountain View based company throwing out 1.7 billion ads out of its network. Google also kicked out 200 publishers out of their network suspected of providing "fake news".  

While it's great that Google taking a much tougher stance against the bad ads we hate the most such as pop ups and interstitial ads, the clear losers in this play are publishers who now may be publicly shamed, receive stern warnings via email or outright blocked out of Google's ad network if their ads don't meet standards Google themselves played a role in creating. 

Add to that, with Google planning to release their own ad blocking app in the near future, publishers may find themselves further under the grip of its "partners". This is also bad news for Ad blockers as publishers will almost certainly choose to follow Google's guidelines than pay ad blockers whitelist their ads who neither the reach or ecosystem Google has. What's more is that ad blockers are just as dependent as publishers on Google's ecosystem. When Google releases their new ad blocker, ad blockers are going to see a sharp downturn in users and revenue as Google will almost certainly use chrome, the world largest browser by market share to shut out its competition.  

The relationship between Google and publishers is complex yet remarkably one sided. let's remember that Publishers don't do business with Google because they want to, they do business with google to earn revenue they already lost in the open market. with Google and Facebook vacuuming most the growth in the digital ad marketplace, publishers have no choice but to deal with these companies or die a slow death. The downside of this scenario is obvious as publishers are increasingly relying on their competition for revenue which in turn gives Google and Facebook a lot of power, power neither is shy about exercising.      

Publishers are more than aware that Google's tougher stance will affect them more than most as publishers lose revenue as Google continue to purge ads on their platform in the name of better ads which will have the effect driving up ad rates due to less ad inventory which makes Google's drive to clean up its ecosystem look as cynical power play as it gets. The effect of Google's recent changes has seen publishers report large drops in their CPC (cost per click) per ad rates since Google trialled their ad blocker last week. While publishers may see their CPC numbers return to normal in the next few days or weeks, it speaks to the lengths Google are willing to go to bring publishers to heel. 

In sum, what we're really seeing here isn't Google taking steps to deal with one of the biggest problem in the digital ad ecosystem but an expression of just how much power they have over it as they now can determine what constitutes a good ad and, by proxy, the inventory they display. What all this means is that Google is tightening its grip and publishers would do well not crumble in its grasp.  

Saturday, August 13, 2016

(The Big Disrupt) Ad blockers: A nail in the online news coffin? by @AJEnglish



Check out the great video feature below by @AJEnglish about the ad blocking phenomenon and it potential detrimental effect on the publishing industry and future of online content.  





Friday, April 8, 2016

(The Big Disrupt) Ad Blocking: Why publishers are in trouble





2016 (nor was 2015 for that matter) hasn't been a great year for publishers as ad blocking has become more prevalent than ever and ad blocking firms have become more assertive. No ad blocking firm represents this more assertive stance than ad blocking software firm Brave who left publishers in uproar this Wednesday when they announced a plan to cut publishers (55%) and consumers (15%) in on revenue generated from blocked ad inventory1. 

Not surprisingly, publishers aren't willing to bite on this deal as the blocked inventory in question is theirs and any ad revenue generated on their inventory should belong to them. Publishers see Brave's offer as insulting (which it is) and illegal (which is it isn't, yet) as Brave are simply creating a market on top of one that already exists. 

Being a frequent consumer of published content, I'm no fan of invasive and privacy breaching pop up, pre roll and load time killing ads that's rampant across the web but with Brave effectively trying to get paid twice by blocking publishers' ad inventory, placing their own ads on top of them, and then having the cheek to offer a deal to cut them in is, for the lack of a better word, criminal genius. 

Ad blocking, as of yet, isn't illegal but breathtaking gall like this is begging to be regulated out of existence. However, Publishers, outside of banning readers using ad blocking apps and sending cease and desist lettersdon't really have an answer to counter ad blockers and may have to take deals offered by ad blocking firms who are sure to follow Brave's audacious lead.     

All this doesn't bode well for publishers who are more dependent than most on the digital ad market for revenue and have no real power to stop advertisers making the ads their readers hate. Publishers in the end are only one route available to advertisers in reaching audiences for their products and services and while publishers aren't able to stop their inventory from being blocked is unfortunate, there are other options for advertisers to explore with larger audiences. 

Publishers aren’t the only ones bothered by the growth as ad blocking is also a threat to Google, who just as dependent on the digital ad market as publishers are. Ad blocking has been around for a while but with Apple's iOS 9 update last September supporting ad blockers which works as a rather cunning way of Apple "knife into Google's revenue platform"2     

Because of ad blocking, we may see publishers become increasingly reliant on non content producing social and search advertising firms like Facebook and Google who are in a much better position to tackle ad blockers and protect their large ad markets. This would be terrible news for advertisers as their options online narrow intensively Facebook and Google become the only game in town worth entertaining online. 

The only real card publishers have to play is to make the case to readers to pay for content but in an age where a generation has become accustomed to getting the majority of their content for free or dirt cheap, their case is likely to fall on deaf ears.  

In sum, publishers are almost certainly going to rebuff Brave's offer but as ad blocking continues to grow and  Facebook and Google increasingly use their dominance of social and search ad markets on desktops and smartphones to co-opt publishers for content, deals offered by ad blocker like Brave may start to look inciting. 

  1. J. McCarthy, 2016, Ex-Mozilla chief's adblocking extension Brave riles publishers, http://www.thedrum.com/news/2016/04/08/ex-mozilla-chiefs-adblocking-extension-brave-riles-publishers 
  2.  N. Patel, 2015, Welcome to hell: Apple vs. Google vs. Facebook and the slow death of the web, http://www.theverge.com/2015/9/17/9338963/welcome-to-hell-apple-vs-google-vs-facebook-and-the-slow-death-of-the-web 
  

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