Presentation to INMA group of publishers

1. Dr JOHNNY RYAN
Friday 6 November 15

2. HOW AD
BLOCKING
WORKS
Friday 6 November 15

3. Web server
Ad server
Friday 6 November 15

4. Advertisements
Advertisement
Web server
Ad server
Friday 6 November 15

5. Web server
Ad server
Ad blocking active
Friday 6 November 15

6. Advertisement
Advertisement
Web server
Ad server
Ad blocking active
Friday 6 November 15

7. Web server
Ad blocking active
Friday 6 November 15

8. Web server
Ad blocking active
Friday 6 November 15

9. Background: created the technology to
enable huge multiplayer games.
Was used in many games like...
pre-2012
Friday 6 November 15

10. PageFair team working
on adblocking since
2010. Established
PageFair in 2012.
Friday 6 November 15

11. 4,000+
sign ups
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12. 9 of the
ComScore 25
use our products
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13. 11,802,837,822
measured pageviews
last 30 days
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14. The cost of ad blocking
PageFair and Adobe 2015 Ad Blocking Report
Friday 6 November 15

15. 10%
Average for news:
(much higher for video)
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16. 48% growth in the last year
45 million monthly active
users in Q2 2015
15% adblock penetration
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17. 45 M
20 M
Jan 2013 Jan 2014 Jan 2015
Friday 6 November 15

18. Linear. Not
exponential.
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19. NOT THE
“ADPOCALYPSE”
Friday 6 November 15

20. ADBLOCKING
IS LIKE
CLIMATE CHANGE
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21. Friday 6 November 15

22. ADINDUSTRY
FOCUSES
ON SHORT TERM
WINS.
Friday 6 November 15

23. WILL YOUR NEXT
CAMPAIGN DO THIS?
Friday 6 November 15

24. The cost of ad blocking
PageFair and Adobe 2015 Ad Blocking Report
2013 2014 2015
Friday 6 November 15

25. 80%learn about ad blocking from
friends / web / social mediaFriday 6 November 15

26. Who is blocking
ads?
Friday 6 November 15

27. 18-29 30-44 45-60 >60Age
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28. Why people block
•Ads obscure content.
•Privacy.
•Bandwidth.
•Slow website load.
•Because they can.
Friday 6 November 15

29. EU:
IE
18%
GB
20% DK
23%
DE
25%
NL
14%
BE
12%
FR
10%
ES
16%
PT
21%
CH
11%
PL
35%
LT
19%
LV
15%
EE
25%
FI
19%
SE
25%
IT
13%
HR
19%
RO
18% BG
16%
SK
9%
CZ
11%
HU
23%
SI
20%
GR
38%AT
21%
10-38%
Friday 6 November 15

30. 10-38%US: 10-17%*
Friday 6 November 15

31. Mobile
a non-event
in the West (so far)
Friday 6 November 15

32. Asian
mobile browsers
with blocking on by default
Friday 6 November 15

33. UC Browser
Owned by Alibaba
ver 9.9.2 (Aug. 2014)
Friday 6 November 15

34. Maxthon
ver 4.4.4.2000 (Feb. 2015)
UC Browser
Owned by Alibaba
ver 9.9.2 (Aug. 2014)
264 million
installs
120 million
installs
Friday 6 November 15

35. Firefox Mobile
Friday 6 November 15

36. 16% of
Firefox
Mobile
users were
blocking ads
(at end
Q2 2015)
Friday 6 November 15

37. 200 M
100 M
mid 2009 mid 2011 mid 2013 mid 2015
50 M
Ad block users
source:
PageFair
Friday 6 November 15

38. $1.4B
$2B
$2.9B
$4.1B
$5.9B
200 M
100 M
mid 2009 mid 2011 mid 2013 mid 2015
50 M
Ad block users
Digital video ad spend
$7.7B
source:
PageFair
eMarketer
Friday 6 November 15

39. “Engrossing”
Cory Doctorow, BoingBoing
“Understanding the trends driving this revolution is
pivotal to success.Consider this book your road map”
Marc Benioff, CEO of Salesforce
“An immensely important book”
Kevin O'Sullivan, Editor of The Irish Times
“Enormously useful ...a great read”
Tim Wu, Columbia Law School
“The best western history of the Internet to date”
Library Journal
“Captures the sweep of the Internet’s development”
Jonathan Zittrain, Harvard Law School
Friday 6 November 15

40. THE BIG
PICTURE
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41. The need to monetize has
led to unrestrained
advertising.
1
Friday 6 November 15

42. The need to monetize has
led to unrestrained
advertising.
Increase in ad volume and page clutter.
Increase in experience interruption.
Increase in data snooping.
2
1
Friday 6 November 15

43. The need to monetize has
led to unrestrained
advertising.
Increase in ad volume and page clutter.
Increase in experience interruption.
Increase in data snooping.
Decline in audience goodwill,
Decline in attention to ads,
Decline in trust.
2
1 3
Friday 6 November 15

44. The need to monetize has
led to unrestrained
advertising.
Increase in ad volume and page clutter.
Increase in experience interruption.
Increase in data snooping.
Decline in audience goodwill,
Decline in attention to ads,
Decline in trust.
Advertising blocking by users
2
1 3
4
Friday 6 November 15

45. FIRST 20
YEARS OF ADS
ON THE WEB
= A DISASTERFriday 6 November 15

46. DATA, DONE
WRONG, IS A TRAP
@johnnyryan
Friday 6 November 15

47. @johnnyryan
Friday 6 November 15

48. @johnnyryan
Friday 6 November 15

49. @johnnyryan
Friday 6 November 15

50. Latanya Sweeney
Professor of Government
and Technology at the
Harvard University School
of Government
@johnnyryan
Friday 6 November 15

51. @johnnyryan
Friday 6 November 15

52. Strategy
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53. Ask nicely
<1% conversion rate
3 strategies that failed:
Friday 6 November 15

54. Ask firmly
This only work for publishers of exclusive
long-form content (e.g. TV series)
Ask nicely
<1% conversion rate
3 strategies that failed:
Friday 6 November 15

55. Ask firmly
This only work for publishers of exclusive
long-form content (e.g. TV series)
Ask nicely
<1% conversion rate
Trench warfare/cat & mouse
Ad blockers retaliate and block all
javascript on site
3 strategies that failed:
Friday 6 November 15

56. Friday 6 November 15

57. i. Avoid trench warfare, ii. put back ads,
but iii. make sure people do not rebel
against those ads.
Friday 6 November 15

58. We need to end the cycle
We can serve ads to them,
but... what should we serve?
We do not want to put back
the ads they have already rebelled against
i. Avoid trench warfare, ii. put back ads,
but iii. make sure people do not rebel
against those ads.
Friday 6 November 15

59. 0%
30%
60%
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
Still image Text display
% of people who do block ads
who expressed some willingness to view ads
61%
67% 67%
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60. Principles needed
For the next 20 years of the Web
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61. Friday 6 November 15

62. 1. Publishers - not advertisers - feel
the pain
2. Ad blocking driven by bad ads
3. We can put ads back
4. ...but publishers must decide
what ads to show people who block
Summary
Friday 6 November 15

63. johnny@pagefair.com
@johnnyryan
Friday 6 November 15