Adblocking is not the end of advertising

TubeMogul ANZ managing director, Sam Smith
By TubeMogul ANZ managing director, Sam Smith | 17 November 2015
 
Sam Smith.

Adblocking technology has been with us for a long time, yet we are suddenly being inundated with messaging about the threat to our industry these programs pose.

Why the sudden onslaught of ‘sky is falling’ messaging? One word: Apple. Ever since Apple announced that it would allow for adblocking software on the App Store and its latest operating system, media naysayers have been predicting the cataclysmic effect this will have on video advertising. The truth, however, is far more rosy.

Young men, according to US data, are driving the adblocking phenomenon. While this demographic are most likely to turn away from advertising messages and have little time for ads that fail to engage them, the most obvious reason behind their adoption of adblocking technology is because they watch 20% more video content than anyone else.

Their love of online video drives their desire to remove advertising from their experience. But, they are willing to switch the adblockers off if they think the ad will be engaging, fun and worth watching.

The digital advertising industry needs to look to the future and be innovative, especially if they want to keep the attention of the hard-to-reach millennial male market. Demands are higher in digital video because of the sight, sound and interactive dimensions. We need to ensure that creative and relevance keep pace. Especially as there is so much video content to enjoy.

In the 12 months leading up to June 2015, the total number of available impressions in the TubeMogul platform grew by over 350%.The number of available ads is therefore increasing at faster rate than the number of people blocking ads. Additionally, a number of premium inventory sites are demanding that viewers switch off adblocking technology in order to access free content.

What does this mean? Consumers who try and block ads can run, but they can’t hide. Advertisers can drive significant positive sentiment if their ads use the power of programmatic to be targeted, meaningful and engaging. All the better to persuade viewers that adblocking technology isn’t necessarily needed.

Smart pundits believe the adblocking storm will pass with creativity, data, software, engaging ad formats and storytelling all pushed to the forefront. Advertisers need to be brave and embrace new ideas with their creative if they are to gain positive returns from their digital advertising investments. That means marrying audience data with the creative being served to consumers.

In short, the adblocking hysteria should be a trigger for better digital advertising. Our experience is that brands in Australia are using the power of automation, scale, and first and third-party data to build purchase intent and brand recall.
The trick is to be bold, invest across screens, and optimise your campaign during its execution.

At a technical level, most ad blocking technologies have a whitelist of publishers that have created ad experiences that aren’t detrimental to user experience. Additionally some publishers with desktop pre-roll video ads that precede broadcast-quality content are able to proactively detect the presence of ad blockers and require viewers to disable them in order to watch content. We are already seeing this from publishers in Australia.

What we need to remember is that ads fund content. So it is unlikely that publishers will allow billions of dollars to disappear without a fight. In the meantime, media buyers have plenty of inventory to choose from. 

By TubeMogul ANZ managing director, Sam Smith

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