ad blocking & the future of digital advertising
TRANSCRIPT
AD BLOCKINGand the FUTURE of DIGITAL ADVERTISING
IntroductionSince 2006, ad-blocking technology has experienced a slow and steady growth. Analysts equated it to global warming rather than extinction; a long but inevitable death. Recently however, ad-blocking technology has experienced a critical mass. Growth of ad-block users is not quite exponential but certainly geometric. Major companies like Apple are integrating it into iOS, the industry as a whole is beginning to react, and we’re contemplating what is next.OAREX Capital Markets, Inc.50 Public Square, #200Cleveland, OH 44113
OAREX provides advertising receivable financing for major web publishers, apps, ad networks, exchanges and YouTube producers.
Hanna Kassis, FounderHanna Kassis is the founder of OAREX Capital Markets and leads the credit and underwriting of clients. He has been following ad-blocking developments recently for the betterment of clients and OAREX. Hanna is also a licensed CPA and attorney in Ohio.
Hanna can be reached directly at 330-207-5115 or [email protected].
This presentation can be found at Fast Pay Ads
Greetings!Hanna Kassis, OAREX
I am here because OAREX shares the same risks pubs do.
You can find us this weekend at@oarexCM.
1.A QUICK HISTORY LESSON
Ad block originated in Germany, c. 2006.
MAP OF EARTH
VEGASOAREX
AdBlock HQ
Ad-Block Tech, 2006 – 2013
○Slow and steady growth
Ad-Block Tech, 2013 – 2015
○Explosive growth
2.PRESENT DAY
Ad block is a costly technology.
198,000,000
Average Monthly Active Users (MAUs)June 30, 2015*
Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
$20,300,000,000Cost of ad-block, USA, 2016 (est.)
41%Annual growth rate
45m MAUs in USAQ2, 2015
Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
BROWSERS 98%
○Chrome, 126m○Firefox, 48m○Safari, 9m
Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
WHAT ABOUT MOBILE?
MOBILE 2%
○38% of browsing○1.6% of ad-block○Apple’s Safari
Source: “The Cost of Ad-Blocking”, Pagefair & Adobe 2015 ad block report
MAIN DRIVERS
○Apple’s Safari○Interstitial ads○Locked Pre-Roll○Critical mass
3.FIGHTING THE GOOD FIGHT
Tech, industry and legal plan of attack.
TECH INITIATIVESAd-Block Block Technology
AD-BLOCK BLOCK TECH
○Block IQ○Source Point
INDUSTRY INITIATIVES
Interactive Advertising Bureau
IAB’S “TECH LAB”
○Guidelines & Standards
○Detection / Post-Detection
○Better UX Solutions
4.OAREX’S CRYSTAL BALL
A less intrusive world without ad blocking.
LEGAL BATTLESTime will tell.
LEGAL ARGUMENTS
○Anti-competitive○Fair Use & Exchange○Free Speech / Expression
○Tortious Interference○Extortion
“An extortionist scheme that risks distorting the
economics of democratic capitalism.
Randall Rothenberg, President & CEO, IAB
FUTURE 1-5 YEARS
○Extortion ○ROI services○New revenue / ads○Legal battles
FUTURE 5+ YEARS
○Legal battles○Ad-block○Free media○Less intrusive = norm
SUMMARY
RISE
Ad block is on the rise and growing geometrically. This may become exponential as the tech becomes integrated into mobile.
BATTLE
There are major initiatives against ad block tech including anti-ad block tech and industry led initiatives. Big legal battles inevitable.
FALL
Ad-block tech falls. The end result will be a rise in native ads, stricter ad guidelines, less intrusive ads, and free media on the internet.
CREDITS & RESOURCESSpecial thanks to all the people who made and released these awesome resources for free:
○Presentation template by SlidesCarnival○Photographs by Unsplash
Resources○Source Point & ComScore: State of Ad Blocking○PageFair & Adobe: The Cost of Ad Blocking, 2015 report○“Ad Blocking: Theft or Fair Use?”, Ad Exchanger ○German Advertisers Lose AdBlock Plus Legal Challenge, The Gu
ardian○Ad Blocking: What You Need To Know, IAB○“Advertising Is Protected By The First Amendment”, Law Publish