This presentation is from the Performance Marketing Summit (June 16, 2016 in Toronto). Session description: With the potential to disrupt the entire economy of the Internet, ad blocking is on the rise—especially for mobile. See how marketers are getting around ad blocking and what to expect in the future.

1. Jonah-Kai Hancock
Marketing Director
@Jonahkai
AD BLOCKING:
THE END OF MOBILE ADVERTISING????

2. Agenda:
1. What It Is & Why Care
2. Industry Movements
3. Get Smart - Research Stats
4. What To Do

3. Ad Blocking:
What It Is & Why Care

4. @Jonahkai
To Date – 25% Have Downloaded Ad Blocking
• European and Asian desktop ad
blocking is much higher, in the 20-
30% range

5. Consumer Concern and Dissatisfaction
@Jonahkai

6. Which Is Why We See So Many Ad Blocking Apps Now
@Jonahkai

7. @Jonahkai
…And Companies Blocking Ads At Their Roots

8. @Jonahkai
The Experience

9. We are in the business of monetizing attention.
@Jonahkai
Why Care?

10. Ad Blocking:
Industry Trends & Movement

11. Publisher War On Ad Blockers
@Jonahkai

12. Publisher Membership
@Jonahkai

13. Industry White Labeling - $$$
Ad Blocker Plus - A pay-to-play scenario where your ad
is blocked, unless you pay.
@Jonahkai

14. Alliances Are Forming
@Jonahkai

15. Premium Ads – Getting Aggressive
@Jonahkai

16. Native Content – Is Growing
@Jonahkai

17. Walled Gardens – Expanding Options
@Jonahkai

18. IAB L.E.A.N Ad Standards
L. Light file size, with strict controls on data calls, which affect latency
E. Encrypted. All supply chain transactions should be https/ssl
compliant.
A. Ad choices supported. All ads should support consumer OBA
opt out.
N. Non invasive or disruptive. Ads should not interfere with the user
experience. Includes covering content and sound defaults.
Shaped by Consumers and Industry Leaders
@Jonahkai

19. IAB D.E.A.L
D. Detect ad blocking, in order to initiate a conversation
E. Explain the value exchange that advertising enables
A. Ask for changed behavior to maintain an equitable exchange
L. Lift restrictions or Limit access in response to consumer choice
Ad blocking Primer: iab.com/adblockingprimer
@Jonahkai
Publisher Ad Blocking Primer

20. Google A.M.P
A. Accelerated
M. Mobile
P. Pages
https://www.ampproject.org/
@Jonahkai

21. People are Smart
@Jonahkai

22. IAB - Ad Blocking Working Group
TRADEBODIESBUYERSMEDIAOWNESMOBILEADTECH
@Jonahkai

23. Ad Blocking:
Lets Get Smart

24. Mobile Ad Blocking 2016
● Surveyed 4,000 smartphone owners
● Studied 1.3 billion mobile app installs
● Included 150 million people over 7 months
@Jonahkai

25. Searches and General Interest Is Up
This Google Trends screenshot for the term “ad blocking” shows a huge increase in
interest and search behavior around ad blocking.
@Jonahkai

26. Reported Ad-Blocking App Installs Are Up
As of January 2016, 25% of mobile users in the U.S. and U.K. have installed an
app or browser that can block ads.
@Jonahkai

27. At the Current Rate of Growth, It’ll Soon Be a Majority
80% of mobile users could have the capability of blocking mobile ads by late 2017.
@Jonahkai

28. Its Not Just Techies
While techies still tend to
block ads to a higher
degree, the reality is that
people with all levels of
technical proficiency have
joined them.
@Jonahkai

29. Men Tend to Block Ads Just a Bit More Than Women
@Jonahkai

30. Android Users Tend to Block Ads a Bit More Than iOS
@Jonahkai

31. But Currently, Mobile Ad Blocking Hardly Matters
@Jonahkai

32. What We're Seeing in LAT Rates Is More Interesting
To protect users’ privacy, both Google and Apple have added a setting to limit ad tracking. When enabled, it severely limits the data advertisers
can collect about you and your device. It does, however, result in less relevant advertising.
@Jonahkai
• Almost 90% of our time on mobile devices
is spent in apps, and NOT on the mobile
web.
• Most of that time is spent in 5-8 apps.
• Two of which are probably from Facebook.
• Two of which are probably from Google.
• One is email.
• Another two are probably games.

33. Why? Because The People Blocking Ads Want Privacy
@Jonahkai

34. Are Ad Blockers A Fad?
@Jonahkai

35. What Will Users Pay to NOT See Mobile Ads?
Most people wouldn’t even pay $1 not to see ads.
@Jonahkai

36. What Kind of Revenue Would That Generate?
Consumers are willing to pay just 9% of the total revenue that mobile publishers
actually bring in from advertising.
@Jonahkai

37. The Main Reason for Ad Blocking Is to Block All Ads
KIA_q10new. Thinking about the LAST time you downloaded software/ apps on your personal device(s) that allowed you to block adverts on the internet… Which ONE, if any, of the following was the MAIN reason for doing this? Base: All GB adults
online who have ever downloaded software/apps on any of their personal devices that allows them to block adverts to the internet (577)
@Jonahkai

38. Main Reason for Switching Off Ad Blocker
SOURCE: IAB/YouGov Ad blocking software- consumer usage and attitudes Wave 4 - Feb 2016. KIA_q13. You mentioned that you have downloaded an ad blocker on one of your devices but do not currently use one… Which ONE, if any, of the
following is the MAIN reason for this? Base: All GB adults online who have downloaded ad blockers but do not currently use software/ apps on any of their personal devices that allows them to block adverts on the internet (114)
1/6 switched off their ad blocker because they couldn’t access some content with it installed.
@Jonahkai

39. Over Half Said They Would Turn Off Their Ad Blocker
SOURCE: IAB/YouGov Ad blocking software- consumer usage and attitudes Wave 4 - Feb 2016. KIA_q15. Please imagine a website you visited said you could only gain access to the content by switching off any ad blocking software you had
installed… Which ONE of the following BEST describes what you would do? Base: All GB adults online who have ever downloaded software/ apps on any of their personal devices that allows them to block adverts on the internet (577)
I would
switch it off
for some
websites,
but not all,
19%
@Jonahkai

40. 5 Key Learnings
1. Advertising
There are a lot of people who are not happy with the current degree of
advertising and monetization on the web and mobile.
2. Ad blocking: who’s doing it?
It’s not just one demographic or one group. It is growing…
3. Mobile ad blocking: largely ineffective
Current solutions do not actually block the majority of ads served on mobile.
4. Revenue replacement
There is just no way that a tip-jar style pay-as-you-go solution for compensating
publishers is doable industry-wide.
5. If The Content Is Missing
People are willing to turn off ad blockers, if they cant see the content they want.
@Jonahkai

41. Ad Blocking:
What Do Advertisers Do?

42. EDUCATE YOURSELF & LEVERAGE OTHER CHANNELS
• Social is massive and growing.
• Content marketing might be out of the hype phase, but it’s solidly in the
usefulness stage.
• Video has never been hotter - simple explanatory product videos are
extremely effective.
• Influencer marketing is growing.
• App store optimization is increasingly important.
• Email…
@Jonahkai

43. ADVERTISING WILL ADAPT
• The ad tech industry the fastest-moving and most innovative spaces on
the planet.
• Ad networks, publishers and platforms will figure out ways to give
advertisers options.
• Make sure you leverage the NEW options – more are coming…
@Jonahkai

44. NATIVE ADVERTISING IS GROWING
• Native advertising is clearly content that is in-stream with editorial or
social content, and as such is much harder to filter out.
• While it’s not appropriate for every advertiser, brand, platform, or
publisher, native is growing fast and in an era of extreme ad blocking,
will accelerate even more.
• We use it at TUNE with massive success.
@Jonahkai

45. PATIENCE: THE PENDULUM IS SWINGING
• Google and Facebook, with accelerated mobile pages and instant articles
respectively.
• Publishers blocking ad-blockers.
• New Platforms to test – Snapchat.
@Jonahkai

46. GET THE APP RELATIONSHIP
• Not every brand can have its app in the hands of all of its customers or
prospects.
• But as you work towards that goal - build your own bridge to your
customers, for which there are no toll trolls.
@Jonahkai

47. Q & A
@Jonahkai

48. Get the Full Report
And many others!
tune.com/resources