Ad Blocking Costing Advertisers Billions

The latest stats are are in and year-on-year, ad blocking software has increased by 41%. While the actual percentage of people who use ad blocking services and software make up around 6% of the internet usage, it is estimated to be costing advertisers and publishers more than 21 billion in lost revenue.

The estimated loss, at this adoption rate, is over $41 Billion by 2016.

The head of Pagefair's ecosystem, Dr Jonny Ryan, has said  "Ad blocking has grown virally along a classic s-curve to 50+ million ad blocking users at the end of 2012, and onward to 198 million at the end of Q2 2015. This viral growth, and the climb up the curve you describe, is explained by our findings in last year's 2014 report (page nine) that the majority of ad block users find out about ad blocking by word of mouth and through their own online research. Ad blocking is a viral phenomenon that will continue."

Right now, ad blocking usually occurs on desktop computers, but we may see it become more mainstream with Apple allowing developers to develop ad blocking apps it's iOS 9 software. This could have a dramatic effect on publishers as Apple's mobile browser represents 52% of mobile browsing and 14% of over all net traffic. 

Surprisingly, performance is not listed as a top reason why people are using ad blockers, where the misuse of personal information is cited as the main motivator for using this software. 

So what does this mean for the future of advertising online? Certainly a lot more people will be "opting out" of viewing ads and that could continue to hurt advertisers. It does seem as though the wild wild west of online advertising is slowly being tamed and that the advertising industry will likely have to get a bit more creative when it comes to peddling their wares online.

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