The media sector is going through a period of transition as it moves increasingly from print to online. A potential complication in this move is the increasing growth of adblocking software by consumers.
Adblocking software typically acts as an extension on browsers, allowing users to block a range of advertising formats including banners, pop-ups and video ads including content on Facebook and YouTube.
Adblock Plus is the most well known of the extension providers and has argued that it aims to promote advertising that is more user friendly — although their position is somewhat undermined by their unblocking of advertising from some sites for a share of their revenues.
For internet users faced with an increasingly disruptive array of online advertising formats (driven by falling response rates), this provides a welcome relief and is reflected in the growth of these services. A recent report from PageFair estimated 22.7% of internet users are employing adblocking software with an annual growth rate of 43% per year.
Media outlets do have the option of blocking viewers using adblocking services but many appear reluctant so far as seen by Ars Technica’s approach. As the use of adblockers becomes the norm rather than simply an edge case, this is likely to be revisited.
Reductions in online advertising revenues are also likely to bring forward the introduction of paywalls and the move towards native advertising where the line between content and advertising is blurred. Neither solution present particularly attractive solutions for consumers looking for a free ride.
As for me, I am going to continue to use Adblock Plus, but I am adding those sites I care about to the list of manually whitelisted domains. This way I can hopefully see this sites continue to offer advertising sponsored content well into the future.