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Ad Blocking Impact Will Reach Unprecedented Levels in Coming Years

Gauging ad blocking impact does not yield good news for digital publishers; plus, launches from Time Inc. and Wedgwood

What we know: Ad blocking is on the rise. What we don’t know: whether the effort to block ad blockers will prove effective. What’s starting to become apparent: The ad blocking impact will be significant.

For online publishers who don’t rely solely on digital advertising for revenue, this is not crushing news. Hopefully, you’re one of them, because you have a multiplatform strategy in place. For online publishers who do rely solely on digital advertising, read on for MediaPost‘s coverage. And don’t panic!

Ad Blocking Impact to Hit $12 Billion by 2020

The outlook isn’t ideal for digital publishers dealing with ad blocking programs, MediaPost reports.

“With the number of people using ad-blocking software rising fast, the cost of ad-blocking to publishers is also set to jump: according to a new forecast from analytics outfit Optimal, the approximate losses in digital ad revenue will jump from $3.8 billion this year to over $12 billion by 2020,” Erik Sass writes.

“That equals a fifth of projected digital ad revenues of $50 billion in the latter year, leaving publishers and media companies with $38 billion. Over the same period, Optimal expects the number of U.S. Web users with ad blocking software to more than double, from 43 million this year to over 100 million four years from now. While over half of consumers surveyed by Optimal were still unaware that ad-blocking software exists, the company points out that awareness and adoption have been rising fast, meaning there is plenty of potential growth for ad-blockers in years to come. The report further noted that some publisher responses to ad-blocking may actually make the situation worse.”

Meanwhile, Adblock Plus Installs Top 100 Million

The beat goes on for ad blocking impact, as the brand name behind the movement is experiencing a major growth spurt at the moment, MediaPost reports.

“Adblock Plus is on a tear. On Monday, it announced that it has more than 100 million active installations. That’s downloads from different users on multiple devices. This is a milestone because earlier in the year, the company said it had surpassed 500 million downloads with 50 million active users. What this means is that the active user base has most likely doubled since that time,” Tobi Elkin writes.

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“This is all the more reason why the industry needs an independent third party to gather, track and monitor data about ad blockers on a monthly basis. RTBlog called for this and at least one organization – BPA Worldwide – signaled its interest in this. Deliberate Digital is also interested. The Association of National Advertisers (ANA) has been conspicuously silent on the matter.”

Time Inc. Digital Launches Mobile Video Product

Time Inc. is unstoppable, at least in terms of launches. And, to be fair, their efforts are yielding some serious results, as revenue trends have reversed in a very good way. The latest news from Joe Ripp‘s company sees them releasing yet another new product, this one called Instant and focusing on digital artists, MediaPost reports.

“Although Lee wasn’t ready to give the full details behind the platform, the company said Instant will carry native and branded advertising exclusively, with the native app-like experience directly in the mobile browser,” Sara Guaglione writes.

“Instant is partnering with People, Entertainment Weekly and HelloGiggles to distribute the shareable videos, called ‘Instants.’ The content will span digital verticals, like entertainment, beauty, fashion, food and social media, through the perspective of digital artists.”

New Online Magazine From Wedgwood

Speaking of launches, we see another release from the land of brands as publishers. MediaPost has the story.

“Wedgwood, the venerable home luxury brand famed for its iconic porcelain and china tea sets, as well as other tableware, home décor, and accessories, is jumping into custom content with the launch of a new online lifestyle magazine titled Behind the Blue Door. The new pub covers a range of luxury subjects spanning food to fashion, according to Luxury Daily, which first reported the news and incorporates Wedgwood tea wares and other products into its editorial coverage, all with an appropriately Anglophile attitude,” Sass writes.

“The online mag’s Web site has three main sections: ‘Afternoon Tea Reinvented,’ ‘Weekender’s Brunch’ and ‘Decadent Dinner.’ Stories mentioning the brand may also feature links to retailers selling Wedgwood products, as well as Wedgwood’s own online e-commerce presence. Visitors to the site can also sign up for an exclusive membership club with perks like a 20% discount, gifts, tips on entertaining, and regular email newsletters. Behind the Blue Door also launched with a social media component, inviting readers to post photos of their own elegant tea service with the hashtag #shareyourstyle.”

Will this ad blocking impact cripple the digital publishing industry? Let us know what you think in the comments!

To read more about ad blocking impact and other industry news, visit MediaPost.

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