Ad Blocking: Containment or Rollback?
Posted by Jonathan Tombes on Aug 2, 2016In US foreign policy, a classic debate has been over whether to force change in or simply prevent the expansion of an enemy state. The choice is between “rollback” or “containment.” A similar debate is surfacing in the ongoing ad blocking “wars” between advertisers and consumers. The Interactive Advertising Bureau (IAB), an online media and marketing industry group, thinks you can do both.
In a report released last week, the IAB said not only that “ad blocking is a problem that can be contained,” but also that “two-thirds of consumers using ad blockers are open to stop blocking ads.” The organization, which is responsible for the Video Ad Serving Template (VAST) and the Video Player-Ad Interface Definition (VPAID), drew its conclusions after studying how 103 consumers interacted with a wide range of desktop/laptop and mobile ads.
Ad Blocking, Global Stats
The practice of ad blocking has gained attention over the past half year. While the ability to target audiences online has led to the rapid rise of that sector—as seen in the phenomenal success of Google—one drawback is that smart and targetable end-devices also have the capacity to detect incoming ads and, if equipped with the right software, prevent them from appearing on their smartphone or computer video displays.
Ad blocking is most widespread in developing markets, where sensitivity to data consumption and performance is high. According to a report released in May from PageFair, a startup focused on ad monetization, and research firm Priori Data, one out of five smartphone users worldwide are blocking ads when browsing the web. In the Asia-Pacific region, 36 percent use ad blocking software on their mobile devices; and in India and Indonesia, that rate is more than double. In the U.S., 26 percent of users in the IAB survey block ads on computers, and 15 percent on smartphones. Most tend to be men, 18-34 years old.
Contain, then Convert
The IAB had already begun trying to contain the spread of ad blocking. In October 2015, it launched its LEAN guidelines, an acronym for light, encrypted, Ad Choice-supported and non-invasive. By encouraging a better user experience, the IAB hoped to reduced consumers’ perceived need for ad blocking. Now the IAB is also saying that with the right message, advertisers can win consumers back. On the one hand, advertisers can play hardball by restricting content until users have unblocked them. They can also build trust by assuring consumers that their ads will not auto-play, will not block content, and will not contain malware or viruses or slow down browsing.
While the fate of the world or human lives are not at stake, as in other “containment” and “rollback” scenarios, billions of ad revenue dollars are in play, which suggests that this story will continue unfold, in spy-vs-spy or perhaps more diplomatic manner, for years to come.