Ad blocking remains a controversial topic as of today. Based on a variety of data, one company attempts to estimate the financial loss of the biggest search engine in the planet, Google. Of the estimated $41 Billion in revenue Google reported in 2014, PageFair estimates that around $17.6 Billion came from the US alone. Some $1.9 Billion would represent US revenue available to Google that the search company did not generate as a result of the 10% of visitors having ad-blacking technology installed on user’s browsers.
Ad Blocking also costs brands billions on lost revenue because they lose opportunities to connect with potential customers. Sean Blanchfield, technology entrepreneur and CEO at PageFair, believes that Google co-founder Larry Page glossed over a critical question during the company’s shareholder meeting, when an investor had asked how ad-blocking technology will influence the company’s main revenue stream. Page responded by saying that there is a need to make more “useful” ads.
A popular ad blocking browser plugin is Adblock Plus by Eyeo. Adblock allows people to block annoying ads, while some ‘acceptable ads’ from Google and Microsoft filter through. The industry calls being ‘white listed’, a practice that insiders say requires the engines to pay a fee.
If the practice of blocking ads will continue, PageFair estimates that it will increase by at least 50% this year – which will cost publishers along with Google, Microsoft, Amazon and others even more. The practice will extend into mobile advertsing, with 90% of the media’s profits are derived from advertising.
Not all data points to consumers using ad blocking plug-ins. It turns out Genesis Media recently surveyed more than 3,000 Internet users and found that 50.3% are aware of ad blocking software but choose not to use it.