Will adblocking kill the ads business - Pierre Chappaz, Teads more info & insights on http://blog.idate.fr

1. Will ad blocking kill
the advertising business?
Finding the right balance between
privacy and monetization
REINVENTING VIDEO ADVERTISING
Pierre Chappaz Executive Chairman at Teads
@ TEADSFR

2. Source : PageFair & Adobe Q2 2016
Global monthly active users (mobile adblocking browsers) in millions
198
237
270
334
370
Janvier 2015 Avril 2015 Juillet 2015 Octobre 2015 Janvier 2016
408 million
users of mobile
adblocking browser in
March 2016
+90% vs 2015
Ad blocker adoption cannot be ignored

3. Source : IIAB Europe
France is one of the top countries for adblocking adoption
36%
30% 30%
27% 27% 27%
21,90% 21%
20% 20% 20% 19,43%
18% 17%
15%
13,90%
10% 10% 9% 8%
PL FR SE BE NO ES IT UK DK NL SI DE BG CZ FI RO RS SK CH TR
Penetration of adblocking in Europe

4. The global cost of ad blocking
for publishers in 2015 is
$22 Billion
Source : PageFair and Adobe 2015 ad blockers report/
Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by
Teads, December 2015. Base: Active ad blocker users on any device
Taking legal action
Educating the user
Counteracting ad blockers
through technology
Publishers are fighting back
1
2
3

5. Source : GroupM
Survival is at stake
300
200
100
0
2001 ‘05 ‘10 ‘15 ‘16 ‘17
$279.3 B
$375.5 B
6.9%
9.0%
33.3%
Digital
4.3%
Radio
40.4%
TV
5.8%
Magazine
Newspaper
Digital is more than
ten times larger
than it was in 2001.
Others have
managed to
generally maintain
then shares of
advertising.
Outdoor
$400 billion

6. Source : Sauver les Medias, Julia Cagé
Digital is not covering the loss of print revenues
30
40
50
60
70
80
90
1955 1965 1975 1985 1995 2005 2015
Part de la publicité print+digitale dans le chiffre d'affaires des journaux (en %)
Part de la publicité print dans le chiffre d'affaires des journaux (en %)
% of print + digital advertising in newspapers turnover in the US
% of print advertising in newspapers turnover in the US

7. Why do
users
block ads?
69%
of ad blockers were motivated because they dislike
ads that interrupt their experience
66%mentioned slow browser
performance
60%claimed that they do not
want to see irrelevant
ads
Source : PageFair and Adobe 2015 ad blockers report/
Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by
Teads, December 2015. Base: Active ad blocker users on any device

8. REINVENTING VIDEO ADVERTISING
Aversion to
intrusive ad
formats is global
but providing
people choice
and control is a
global solution.
Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by
Teads, December 2015. Choice-to-view %s are the sum of all choice-to-view response rates for
the features listed.
Q: Which of the following reasons motivated you to install ad blockers on your device?
Q: Which of the following features of an online ad, if any, would make you to consider not
installing an ad blocker?
United States
United Kingdom
Germany
Argentina
Mexico
Spain
Brazil
France
Italy
74%
72%
72%
70%
70%
68%
64%
64%
60%
% who agree intrusive
advertising is the #1
motivator to block ads
% who list ad features that
provide choice-to-view as
motivation not to block ads
80%
79%
83%
84%
89%
89%
86%
80%
85%

9. REINVENTING VIDEO ADVERTISING
( Privacy
#4 motivator)
Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by
Teads, December 2015. Choice-to-view %s are the sum of all choice-to-view response rates for
the features listed.
Q: Which of the following reasons motivated you to install ad blockers on your device?
United States
United Kingdom
Argentina
Mexico
Spain
Brazil
France
Italy
54%
49%
38%
43%
55%
49%
51%
49%
36%
% who agree privacy concerns is
a motivator to block ads
Germany
Privacy concerns
are not as
important as user
experience

10. Defining a new
advertising deal
USER EXPERIENCE
ENGAGEMENT
TRUST
BRANDS MEDIA
USERS
Participating member
Active member of the

11. User friendly
advertising
Never block content access
Ban pop-ups and interstitials
Skippable video ads
Respect data privacy

12. REINVENTING VIDEO ADVERTISING
Formats make
a real difference

14. In-article native video creates a more positive experience.
Even the ad blocker users agree !
Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by Teads, November 2015. Base: those who have installed blockers by device. Sample: Any Device: n=1,003,
Desktop: n=701, Mobile n=591. *In-article native video are formats that appear between the text of an article.
Q: Please order ad formats below from most intrusive to least intrusive.
% of respondents who ranked formats as most intrusive of those given
55%
25%
Pre-roll In-article native
video
Over 1 in 2
consider
pre-roll ads
more intrusive
than native
video on a
mobile device
People
consider
pre-roll more
intrusive on
desktops, too
52%
23%
Pre-roll In-article native
video
Have installed an ad blocker
on a mobile device
Have installed an ad blocker
on a desktop/laptop

15. Advertising
experience
defined by mobile
Reduce load time
Adapt the duration of the ads
depending on the screen
Provide wifi-only preference
settings for video ads

16. Google AMP = The Future
Page upload for AMP pages is 85%
faster than for standard page
Teads: first certified partner of
Google AMP for native video ads
‘Accelerate Mobile Pages’:
A better user and ad experience
Source : Doubleclick Adexchange may 2016

17. Technology for
better ads
Create engagement using
interactivity
Leverage data and programmatic
to improve ad relevancy

18. Audiences prefer
video ad
targeting based
on their interests
and the types of
brands
they follow.
Attitudes toward
targeting are less
positive when it
feels like
‘stalking’
Q: Advertisers can target the video ads you see in many different ways. How do you feel about video ad targeting based on...?
Source : Millsward Brown Adreaction 2015
- 21 41
- 21 40
- 25 29
- 29 29
- 31 29
- 32 29
- 30 28
- 30 26
- 35 26
- 36 25
- 37 25
Your interests
(passions, hobbies & pastimes)
The type of brands you like
or follow
The type of surrounding
context (show, website)
Where you live
Video viewing history
Your online shopping history
Your demographiic profile
(age, gender etc.)
Where you are when the video
is shown
Your online search history
Your social media profile
Your web browsing history
- 50 -30 -10 10 30 50
NET (+ve
minus –ve)
20
19
4
0
-2
-3
-2
-4
-9
-11
--12
NEGATIVE POSITIVE

19. All countries are not equal
Source : BCG Big Data and Trust Consumer Survey 2015
Note : Survey question “ How private do you consider the following types of personal data?“
% considering the data as extremely private

20. Users share sensitive data when the experience is worth it

21. 58%
would be more likely to
tolerate an online video
ad if it is interactive
Source : Brightcove 4000 consumers in the UK, France and Germany

23. Data-driven creative optimization
Teads Studio leverages first and third party
data (audience data, time, location,
weather…).
studio

26. Thank you
REINVENTING VIDEO ADVERTISING