With a little marketing finesse, you can market to them extremely reasonably forever. But don’t let the low price tag cause you to over-saturate the market with push notifications. You will kill the golden geese and lose your marketing base.
One of the marketing industry’s darkest secrets is finally coming to light: Consumers dislike online advertising and would prefer not to see it at all. For years, a fringe group of tech-savvy consumers utilized ad-blocking software to create an ad-free online experience (ranging from reading magazines to gaming). In the past year or so, that has begun to change. Ad blocking is going mainstream, most recently with the Apple announcement of ad blocking capabilities native in iOS 9. Although the initial impact is not yet known, the long-term result will likely force the hand of online publishers, agencies, and brands to change the way they advertise across the digital landscape. In this article, I’ll explore exactly how ad blocking will change the digital advertising industry — for the better.
To frame up the impact of ad blockers on the publishing and advertising industry, here are a few impactful statistics:
- According to a report from Adobe and PageFair, 144 million monthly active users (roughly 5 percent of the internet population) have adopted ad-blocking technology globally.
- The use of ad blockers increased 69 percent over the last 12 months.
- Ad blocking is now prevalent across all verticals, not just in tech, video games, or European markets (up to 25 percent in some countries, 20 percent in Germany and Austria).
- While ad-blocking rates are highest among video game (30 to 50 percent) and technology (25 percent) sites, the rates among publishers in business news (15 to 20 percent), entertainment (15 percent), and sports news (10 to 15 percent) are also on the rise.
- Fifty-four percent of men between 18 and 29 use ad-blocking software (the high water mark across all demographics).
- According to Eyeo, the maker of the most widely used ad blocker software, Adblock Plus has been downloaded more than 400 million times and has 50 to 60 million active monthly users.
- ProSiebenSat.1, a German media group, indicated that the practice of ad blocking cost it €9.2m ($10.4 million) in 2014 — around 20 percent of its web revenues.
The impact of ad blocking will be felt across a variety of audiences, but it will be primarily driven by consumer adoption of ad blocking software. Consumers value privacy and free internet, but they are increasingly impatient with advertising and are looking for options. Consumers are getting more savvy, and technology evolved to reach an inflection point last year, resulting in massive adoption growth rates for easy-to-install ad blockers. Technology-savvy consumers are not alone in the adoption of ad blockers; Millennials as a whole reject disruptive advertising.
Ad blockers typically live in the browsers, like those provided by UC Browser and Eyeo. Ad blocking has moved to the mobile networks as well, with platforms like Shine. Ad blocker growth is significant on mobile devices due to privacy concerns and an ad server’s tendency to drain battery life. While mobile makes up roughly 25 percent of online ad spend today, it will continue to be the highest growth channel, which means bigger challenges for publishers.
Read more at http://www.imediaconnection.com/content/38986.asp#multiview#8sQUHqIwUYwRm8gP.99