The advertising needs to embrace AdBlock

Investment Analysis Clubs Saul’s Investing Discussions
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Since we have talked about a number of web advertising related companies on this board, I thought this article might be of interest.

https://techcrunch.com/2016/09/05/why-the-advertising-indust…

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I don’t mind (most of) the advertising, I simply ignore it, but this year I had to install AdBlock to be able to use TMF website. Many if not most ads are now served via JavaScript and if there is any kind of network slowdown, if the JavaScript is poorly written and does not abort the no-load ads, the host website (TMF) becomes inoperable. With all the problems we have had in Venezuela the local telco’s DNS is not working properly. With AdBlock I can again enjoy using TMF.

Denny Schlesinger

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Tamhas,

I found this intriguing. The inevitable slowdown of online/mobile ad growth is one reason I’ve been hesitant with Google and FB. It’s got to come eventually. This article foreshadows it and inspects the changes already happening.

What is your sense of how big this will be for the ad revenue of the online behemoths? And who will other winners and losers be?

My inability to answer those questions is why I am out of RUBI, INUV, etc…and even contributes to my reluctance to start a position in HUBS…although I am very tempted.

Thanks for the input.

Bear

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I think the suggestion of the article is not that ad revenues would drop, but that the nature of the ads needed to change. Of course, changing the nature of the ads might mean a redistribution of the revenue, e.g., more money spent on the ad prep and less on placement is a possibility.

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I think the suggestion of the article is not that ad revenues would drop, but that the nature of the ads needed to change.

From the article:

Ovum and The Wall Street Journal report that in 2015 alone, publishers lost $24 billion dollars in ad revenue because of ad blockers.

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Ovum and The Wall Street Journal report that in 2015 alone, publishers lost $24 billion dollars in ad revenue because of ad blockers.

Publishers might educate advertisers in the art of making ads that people like. Maybe that’s too radical an idea…

Denny Schlesinger

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Yes, but I was thinking longer term. Obviously, the short term effect of an ad blocker is to block ads preventing click through, but if one shifts strategy, then that need no longer to be true.

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$24 billion out of how much in total?