Research Insight | Ad Blockers Are an Opportunity, Not a Threat
The rise of ad-blocking software is often considered a threat to publishers and advertisers. Companies currently attempt to evade ad blockers by restricting users who have enabled them, disguising ads, or paying ad block developers so that ads will not be blocked. But are these the right strategies? This study uses an experimental setup and an extensive survey to investigate the impact of ad-blocking software. The findings show that, when forcing banner ads on ad block users, these users (vs. non–ad block users) spend 10%–20% less time on the web page, indicate lower evaluations of the website, and pay less attention to the banners, whereas the ads are 190% more effective for non–ad block users. Ad blockers thus serve as a self-filtering mechanism that filters out consumers who are less responsive to advertising. Ad blockers help advertisers target the right consumers and increase the value of the remaining ad slots for publishers. Moreover, ad block users are more likely to pay for ad-free content, offering publishers an alternative business model for these consumers.
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What You Need to Know
- Ad-blocking software is mainly used by consumers who are less sensitive to advertising, even when advertising is forced on them.
- Ad-block users are more likely to pay for ad-free content; thus, it is better to offer an ad-free (or ad-light) version of a website or app to these users rather than forcing them to turn off their ad blocker.
- Ad blockers can be beneficial for consumer targeting and can increase the value of ad slots for publishers.
Abstract
A growing group of consumers uses ad-blocking software, preventing advertisers from reaching them and resulting in a loss of ad revenue for publishers. Ways to resolve this issue include blocking these users, disguising ads, or paying the developer of the ad blocker so that ads will not be blocked. The question is to what extent these solutions are effective and desired. This study uses an experimental setup followed by an extensive survey to answer this question. The findings show that, when banner ads are forced on ad blocker users, these users (vs. ad blocker nonusers) spend 10%–20% less time on the web page, evaluate the website as worse, and pay less attention to the banners, while the ads are 190% more effective for ad blocker nonusers. Thus, ad blocking serves as a self-filtering mechanism that filters out consumers who are less responsive to advertising. Ad blockers thus help advertisers target the right consumers and increase the value of the remaining ad slots for publishers. Moreover, ad blocker users are more likely to pay for ad-free content, offering publishers an alternative business model for these consumers.
Evert de Haan (2023), “The Drivers and Consequences of Ad Blocking: A Self-Filtering Mechanism That Increases Ad Effectiveness,” Journal of Interactive Marketing (published online August 7), doi:10.1177/10949968231180500.