AdBlock costs companies like Google tens of billions of dollars in lost revenue every single year. So, you would think that such companies would be strongly against AdBlock, but Google is actually the exact opposite. In fact, Google embraces AdBlock ad still allows for extraordinarily popular AdBlocks to be downloaded directly from the Chrome Webstore. While this may be confusing at first glance, it all makes sense when you zoom out and look at Google’s long-term goals. Here’s the thing, while AdBlock may be costing Google money in the short term, it’s likely to increase audience retention as people who despise ads don’t have to deal with them. This will in turn lead to more data collection, more opportunities to advertise in the future, and ads that are optimized to be less intrusive and more effective. Aside from maximizing user retention, AdBlock also increases Google’s ad statistics. When most people who despise ads block them, the remaining people are much more likely to click than the average person which increases click-through rates, conversion rates, and revenue for advertisers. This video explains why Google still allows AdBlock despite being the largest advertising business in the world.
Why Google is Not Happy You're Using Adblock
In recent years, ad-blocking software has become increasingly popular among internet users who are tired of being bombarded with ads while browsing the web. This software allows users to block ads from appearing on websites, thereby improving their browsing experience. While this may be good news for users, it's not so great for publishers and advertisers who rely on ads to generate revenue. And as it turns out, it's not so great for Google either.
Google, the world's largest online advertising company, is heavily impacted by the use of ad-blockers. In fact, according to a recent study by PageFair, an ad-blocking solutions provider, ad-blocking cost publishers an estimated $22 billion in revenue in 2015 alone. This is a significant blow to the online advertising industry and one that Google is not taking lightly.
So why is Google so unhappy about ad-blockers? The answer is simple: because it's hurting their bottom line. Google generates the vast majority of its revenue from online advertising, and the rise of ad-blockers threatens to disrupt this revenue stream. With more and more users adopting ad-blockers, Google's revenue from ads is taking a hit, which is why the company is working hard to combat the use of ad-blockers.
Google's Response to Ad-blockers
In response to the rise of ad-blockers, Google has taken several steps to try to mitigate their impact. One of the most significant steps is the creation of its own ad-blocking tool, called Google Contributor. This tool allows users to contribute a small amount of money to websites they visit, which replaces the ads on those websites with less intrusive ones. This allows publishers to continue generating revenue from their websites while giving users a more enjoyable browsing experience.
In addition to Google Contributor, Google has also taken steps to penalize websites that use what it considers to be intrusive ads. In 2017, the company announced that it would be implementing a new ad-blocking feature in its Chrome browser that would block ads on websites that do not comply with its Better Ads Standards. This move has been seen as an attempt to force publishers to improve the quality of their ads and make them less intrusive, thereby reducing the need for users to adopt ad-blockers.
The Future of Online Advertising
The rise of ad-blockers has forced the online advertising industry to rethink its approach to ads. For too long, ads have been seen as a necessary evil, something that users have to put up with in order to access free content. But the reality is that ads don't have to be intrusive or annoying. In fact, many users are happy to view ads that are relevant and interesting to them.
This is where the future of online advertising lies. Advertisers need to start focusing on creating ads that users actually want to see, rather than ads that they feel they have to put up with. By doing this, they can increase engagement with their ads, improve click-through rates, and ultimately generate more revenue.
Conclusion
In conclusion, the rise of ad-blockers is a significant challenge for the online advertising industry. While it's understandable why users are turning to ad-blockers to improve their browsing experience, it's also clear that the use of ad-blockers is hurting publishers and advertisers. Google, as the largest online advertising company, is particularly impacted by the rise of ad-blockers, and has taken steps to combat their use. However, the future of online advertising lies in creating ads that users actually want to see, rather than forcing them to put up with intrusive or annoying ads. By doing this, advertisers can increase engagement, improve click-through rates, and ultimately generate more revenue.
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