Online Ad Blocking To Cost Marketers Almost $22B in 2015

The use of online ad blocking software, which is growing by double digits globally and is now moving into mobile as well as desktop devices, could cost marketers nearly $22 billion this year, according to a new study from PageFair and Adobe. Unless publishers can find better ways to earn revenues, ad blocking's rapid growth poses an "eminent threat" to the Web as we know it, PageFair's co-founder and CEO said.

Worldwide, the number of people using ad blockers over the past 12 months has grown by 41 percent, to 198 million monthly active users, according to the study released today. The use of ad blocking has seen even faster adoption in the U.S., which experienced a 48 percent increase to 45 million users -- about 16 percent of the country's entire online population -- between Q2 2014 and Q2 2015.

"The Cost of Ad Blocking" report predicts that $41.4 billion in online advertising will be blocked globally by 2016, with nearly half of that amount -- $20.3 billion -- affecting online ad revenues in the U.S. Based in Ireland, PageFair was founded in 2012 to "help create a more sustainable advertising ecosystem" that supports online revenues for Web sites without alienating users.

A 'Threat' to the Open Web

"It is tragic that ad block users are inadvertently inflicting multi-billion dollar losses on the very Web sites they most enjoy," said PageFair CEO and co-founder Sean Blanchfield. "With ad blocking going mobile, there's an eminent threat that the business model that has supported the open Web for two decades is going to collapse."

The use of ad blocking software is especially prevalent among users who are young, technically savvy and more typically male, according to PageFair's third annual study. Those demographics are reflected in the types of sites most likely to...

Comments are closed.