What Ad Blockers Mean for Web Advertising

I’ve been sitting on this post for a while, considering how to weigh in. I think I always knew what I was going to say, but wasn’t sure if it should be said. Then I realized I think most of us feel this way and it has been said before and will continue to be said – just not heard very often.

BANNER ADS SUCK. Call it display, web ads, whatever you want to call it, but at the end of the day with click through rates falling and a host of other more inventive ways to get your message on the web, they are just more noise than they are worth.

To effectively create a banner ad, you need to consider multiple things, placement on the page (i.e. please stop putting Calls to action at the bottom of skyscrapers.. you don’t see it unless you scroll – and really whose going to scroll to look at an ad? It’s not the reason you went to the website in the first place), audience, and even the website itself amongst other things.

Unless you know your media buyers ensured little to no duplication in terms of the number of units that might show up at once, you’ll want to make sure each format you have will be designed differently so that even though it’s the same message, you will have more chance of it being seen. Otherwise you’ll look like your product just wallpapered the site you’re on with one ad in three different sizes. Boring.

Getting your creative team, or agency to create ads like that, takes a lot of time and a lot of money. It’s not like a simple resize of a print ad, each ad unit needs to be created to its own spec and size. Seems like a lot of work for click trhough rates of 0.2-0.3% or lower (okay – or higher if you do more interactive ads, but then double the cost and time required to produce).

So then comes in the portls and sites who argue about the benefits of branding and the millions of eyeballs that saw your ad. But what if they didn’t? It used to be if your ad server indicated an impression served it meant that at the very least you had a potential eyeball.

Not any more – ad blockers are becoming more and more popular and should be becoming a big concern for advertisers, publishers, agencies and the industry in general.

According to an iMedia Connection article on this, more than 2.5 million people have already downloaded the AdBlock Plus plug in for the FireFox browser. It means that they can surf the web the way they want without any ads.

This should be a big concern for media buyers and advertisers who are forced into CPM buys. How do you know that you’re really paying for impressions that were truly served and not blocked? When determing response rate – how do you look at your CTR and determine if it’s truly accurate? What if 5-10% of your impressions were never served because of an ad blocker? That would change everything.

Personally, I think this is a good thing for the industry for a few reasons…

1. It will force publishers (especially some large major Canadian portals) to start lowering their CPM prices and look at other pricing models for advertisers.
2. It will force the industry to find new ways to measure banner ads and determine their effectiveness.
3. Publishers will be required to find new, more relevant ways of creating advertising and sponsorship packages in order to bring in the bacon from advertisers.
4. It will force advertisers and their agencies to be creative and to start looking beyond the banner ad and into things like content integration, social media and other relevant ways to reach their consumers and target audience online.

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4 Responses to “What Ad Blockers Mean for Web Advertising”

  1. Wladimir Palant says:

    I see two mistakes in your article:

    1. Adblock Plus has a positive effect on CTR if any. An ad that is blocked by Adblock Plus is not downloaded, this means there is no impression. So people who wouldn’t click on ads anyway are removed from statistics, this can only increase CTR.

    2. Adblock Plus has 2.5 million users (actually, more current numbers say 3 million), that’s not the same as 2.5 million downloads. The download numbers are much higher as usually.

    But I agree with your conclusions (the third and forth), that’s what I expect as well.

  2. Rebecca says:

    Hi Wladimir,

    Thanks for the correction on users vs. downloads – that’s a very important correction.

    In terms of the 1st point, I based my comment on the iMedia article that cited the advertiser was concerned he “was paying for impressions that users simply weren’t seeing,” questioning the methodology being used to determine an impression by an ad server.

    Perhaps some of the large portals are sophisticated enough to not count blocked ads as impressions, but for anyone not using a sophisticated platform, how can you guarantee that data sent to your browser is not counted as an impression? what your browser does with it doesn’t change that it was attempted to be delivered. I’ve done several searches on this topic and can’t seem to find one publisher/ad serving company who back this up one way or the other.

    As the creator of this plug-in are you able to provide the hard proof that those of us in the industry seem to be looking for?

    Don’t get me wrong though – at the end of the day – anything that supports change of how web advertising is treated is good in my books (okay, clarification, almost anything….)

  3. Wladimir Palant says:

    how can you guarantee that data sent to your browser is not counted as an impression?
    Easily – because the data is not even requested in the first place, so there is nothing sent to the browser. Adblock Plus doesn’t change the web page you are viewing, it is only telling the browser not to request some elements (images, scripts, frames) that are embedded in it. Note that all but very few web sites use external ad services, so the web page itself and the ads come from entirely different networks. You requested the web page but the advertiser cannot know about this. Since no ads have been requested, there is no way for the advertiser to know that you were there – and no way to count this as an impression.

  4. Rebecca says:

    @Wladimir – What you’re saying does make sense, but I have to say I think it would be nice to hear publishers weighing in on this.

    It may be very true for large sites, but what about some of the smaller sites in Canada that don’t have ad serving capabilities?

    It would be great to have some sort of case study performed in order to put this issue to bed for good.

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