DWS16 - Plenary - Will adblocking kill the ads business - Pierre Chappaz, Teads
Presentation at the Advertising Research Foundation, NYC, on the opportunity of adblocking
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Transcript of Presentation at the Advertising Research Foundation, NYC, on the opportunity of adblocking
Background: founded Demonware, created the technology to enable huge multiplayer games. Is used in games like…
pre-2012
200 M
150 M
25 M
Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16
100 M
50 M
235 M
Dec 16
Global Monthly figures
400 M
300 M
50 M100 M
25 M
235 M
Global Monthly figures
Desktop/Laptop
Mobile
Apr 09 Apr 10 Apr 11 Apr 12 Apr 13 Apr 14 Apr 15 Apr 16 Dec 16
50.2 million monthly active PCs, and 1.6 million monthly active mobile devices. 18% adblock penetration
Start of 2017
5%
10%
15%
20%
25%
18-24 25-34 35-44 45-54 55-64 > 65
All ages are 1.5 times more likely than average to have a bachelors degree
U.S. adblock users by age
5%
10%
15%
20%
25%
18-24 25-34 35-44 45-54 55-64 > 65
All ages are 1.5 times more likely than average to have a bachelors degree
3 times more likely to have a bachelors degree
U.S. adblock users by age
Why people block (no order)
•Security. •Ads obscure content. •Bandwidth. •Privacy.•Because they can.
“The best western history of the Internet to date” Library Journal
“Engrossing” Cory Doctorow, BoingBoing
“Consider this book your road map” Marc Benioff,
CEO, Salesforce
“An immensely important book” Kevin O'Sullivan,
Editor of The Irish Times
“Enormously useful ... a great read” Prof Tim Wu,
Columbia Law School
“Captures the sweep of the Internet’s development” Prof Jonathan Zittrain, Harvard Law School
61%67% 67%
% of adblock users who express a willingness to view each format, multiple choice (2014)
Popover Video non- skippable mid-roll
Display with audio
Video non- skippable
pre-roll
Interstitial Animated display
Video skippable
mid-roll
Video skippable
pre-roll
Text ad
30%
60%
Image display
Image display
25%
50%
35%
52%
Animated display
Ads that auto play
sound
Non-skippable video
Native ads Skippable video
% of adblock users who express a willingness to view each format, single choice (2017)
Publisher’s inventory (LEAN display formats)
Regular audience Unblocked audience
IAB LEAN Advertisement
Adv
erti
sem
ent
///
AdvertisementA
dver
tise
men
t
///
Publisher’s inventory (All formats)
Tamper-proof serving
Regular ad Server
Listen Fix SERVEto users’grievances.
LEAN display format using tamper-proof serving.
security, UX, bandwidth, & privacy.
3 Steps to Solve Adblocking
Technologies … that can block the display of our ads … have had an adverse effect on our financial results and, if such technologies continue to proliferate, in particular with respect to mobile platforms, our future financial results may be harmed.
- Facebook 2015 annual report
Desktop ad revenue grew 18%… Recent quarters [were] about half of that growth rate on a year-over-year basis. … That acceleration in desktop revenue growth is largely due to our efforts on reducing the impact of ad blocking.
- David Wehner, Facebook CFO quarterly earnings call, Q3 2016
Half a quarter = 9% growth
Q3
Desktop ad revenue grew 22%, despite a decline in desktop usage, helped by our efforts to limit the impact of ad blockers on advertisements served on personal computers.
- David Wehner, Facebook CFO quarterly earnings call, Q4 2016
Q4
BTL
ATL
66% of online advertising is performance advertising, according to IAB/PwC Internet Ad Revenue Report, HY 2015
Most normal Web users BTL
ATL
AWARENESS
CONSIDERATION
INTENTION
PURCHASE
66% of online advertising is performance advertising, according to IAB/PwC Internet Ad Revenue Report, HY 2015
“Appeal”Ads blocked
Regular Ads
Please turn offyour adblocker
No
Yes
LEAN AD
Adv
erti
sem
e
Tamper-proof Adblock Detection
“Wall”
“Appeal”
Mandatory: Turn off
your adblockerNo
YesRegular Ads
50% - 90% Exit Your Site
Adv
erti
sem
e
Ads blocked
Regular Ads
Please turn off your adblocker
No
Yes Adv
erti
sem
e
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
LEAN AD
LEAN AD
“Wall”
“Inform”
“Appeal”
Mandatory: Turn off
your adblockerNo
YesRegular Ads
50% - 90% Exit Your Site
Adv
erti
sem
e
Restored Ads
Adv
erti
sem
eWelcome to better ads!
Ads blocked
Regular Ads
Please turn off your adblocker
No
Yes Adv
erti
sem
e
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
LEAN AD
LEAN AD
LEAN AD
“Wall”
“Inform”
“Appeal”
“Choice”
Mandatory: Turn off
your adblockerNo
YesRegular Ads
50% - 90% Exit Your Site
Adv
erti
sem
e
Restored AdsAdvertisement
Adv
erti
sem
eWelcome to better ads!
Ads blocked
Regular Ads
Please turn off your adblocker
No
Yes Adv
erti
sem
e
Regular Ads
Restored Ads
Adv
erti
sem
e
Please turn off your adblocker
No
Yes
Adv
erti
sem
e
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
LEAN AD
LEAN AD
LEAN AD
LEAN AD
LEAN AD
“Wall”
“Inform”
“Direct”
“Appeal”
“Choice”
Mandatory: Turn off
your adblockerNo
YesRegular Ads
50% - 90% Exit Your Site
LEAN AD
Adv
erti
sem
e
Restored AdsLEAN AD
Adv
erti
sem
eWelcome to better ads!
Restored AdsLEAN AD
Adv
erti
sem
e
Ads blocked
Regular Ads
Please turn off your adblocker
No
Yes
LEAN AD
Adv
erti
sem
e
Regular Ads
Restored Ads
LEAN AD
Adv
erti
sem
e
Please turn off your adblocker
No
Yes
LEAN AD
Adv
erti
sem
e
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Tamper-proof Adblock Detection
Listen Fix SERVEto users’ grievances.
LEAN display format using tamper-proof serving.
security, UX, bandwidth, & privacy.
PageFair’s 3 Steps to Solving Adblocking
1. Adblock is a new remote control. It will not go away.
2. Respond like Facebook: Listen to grievances, Fix these problems, then Serve ads in a tamper-proof way.
3. The unblocked web is an opportunity.
Summary
@johnnyryan PageFair.com