Ad blockers will cost publishers US$27B by 2020, says British study
This comes as digital ad spending is expected to shoot up annually to more than US$239 billion in the next three years
Ad blocking software could cost digital publishers over US$27 billion by 2020, according to a new report by Juniper Research.
Use of the software has been on the rise. Globally, there were 198 million active ad blocking users in August 2015, according to a report by Pagefair, representing a 41 per cent year-on-year rise. A recent study by eMarketer suggested that more than a quarter of U.K. internet users will be using ad-blocking software by the end of next year.
A number of developments have been driving the trend. Some of the most common reasons people are using ad-blockers include the intrusiveness of adverts, the lack of relevancy and specifically on mobile, the fact that loading of adverts slows down web pages and uses data.
"Smartphone users will be able to experience faster page load times, creating a better user experience. Much like desktop browsing, consumers will also be less likely to have their personal data shared with third parties," Juniper Research's report said.
Digital ad spending has been on the rise with revenue forecast to grow 12.1 per cent annually to US$239.87 billion in 2019, according to PWC. Mobile ad revenues will outstrip display by 2018. But ad blocking software has put this revenue under threat.
Many marketers and advertisers have not yet cracked mobile advertising, giving rise to products aimed at blocking ads.