With Apple’s iOS 9 update happening on Sept. 16, ad blocking has become a hot topic all over again. This is chiefly due to the new iOS feature that allows content-blocking extensions for Safari. Consumers now have more control over opting out of sharing their data, and there is transparency in the whole process.
These extensions give consumers option to block cookies, trackers, pop-us and even third-party scripts that serve advertising.
Is this announcement the chronicle of a death foretold for publishers that rely a lot on advertising revenue?
Not much impact for publishers & advertisers… for the time being
Despite creating a lot of buzz (both negative and positive) with the new feature in iOS 9, most of the noise was unintentionally geared towards publishers as the majority of their revenue is derived from advertising. But the new ad blocking feature on iOS 9 should not affect them much, for now.
To put this in perspective, according to Flurry, 90% of all mobile activity happens in-app with only 10% spent within a browser, of which 60% is in Safari. The update only affects those using the Safari browser app and have “content blocking” switched on.
Furthermore, with some of the major publishers’ mobile traffic originating between 30% to 50% from social referrals, ad blocking extensions will not work within those native social browsers, and mobile web display will still serve in these environments.
For advertisers, potentially blocked advertising constitutes a relatively small number of the available mobile ad inventory. Based on eMarketer research, advertising on mobile websites makes up only 28% of spending in the U.S. compared to the 72% going in-app. We would be surprised if the numbers were quite different for Canada.
Finally, Facebook, Twitter, Instagram, Snapchat and the like will not be affected by iOS ad blockers, since they offer “walled garden” advertising experiences.
A necessary shift in approach for the long run
Things will change in the long run whether we want it to or not. As mobile ad blockers become more popular, mobile publishers will have to restructure their approach to mobile media monetization and become more consumer focused. Publishers will need to offer persuasive and enticing ad-funded content that provides a positive experience rather than annoy the consumer. They will need to move away from intrusive, pushy display ad formats and instead think of a clever way to benefit all parties.
This shift in approach will benefit the industry as a whole. It will increase focus on native advertising/branded content, which will enhance the native app experience. Regarding revenues, publishers will need to look somewhere else for revenue streams; it could be in-app purchases from users or better audience data monetization.
To sum up, ad blocking is only the beginning. It shows a continuing trend and shift in power to the people/consumer. People are much more in control of the brands, content and media they consume than ever before.
Instead of fighting ad blocking, we (agencies, brands and publishers) need to think of how to be more personal, adaptive and valuable to the consumer. By doing so, people will have more meaningful experiences rather than manipulative or force-fed ads.
Guillaume Bouchard is the CEO of iProspect Canada
