The most typical reaction is blocking anything intrusive, especially when it comes to advertisements across digital platforms. Interestingly, in India, currently, two sets have found its place in the eco-system. There is a set of consumers who don’t mind being bombarded with ads, as long as they don’t have to pay for content. On the other hand, there is a mature group of consumers who do not like being drowned in ads now and then. “Users are seeking refuge from the bombardment of online ads, which often detract from their digital experience. The rising numbers of adblockers reflect a critical demand for a change in how ads are delivered, making it imperative for advertisers to prioritise non-intrusive and relevant advertising to mitigate user fatigue and resistance,” Vinay Babani, VP-marketing, SRV Media, said.
As per a recent report by FICCI-EY, Indians spent 4.77 hours daily per user which is two percent more compared to 2022, and experts believe that people are now becoming more conscious about their habits and selecting quality content over whatever algorithm is throwing at them. Further, globally, user adoption of ad blocking grew 11% between Q4, 2021, and Q2, 2023, to reach a total of 912 million users, as per eyeo Ad Filtering Report. The average year-on-year (YoY) growth of ad blocking since 2011 has been about 30%. It is predicted that at this rate, the 1 billion mark will be hit in 2024. Also, at the end of Q2, 2023, over 416 million estimated monthly active users of desktop blocked ads. Furthermore, China, Indonesia, and Vietnam were top of the class, with adblocking penetration rates of over 40% revealed by data from market research firm Statista. This was followed by 39% of surveyed Indians and 38% of surveyed Taiwanese admitting to using software to block online advertising. In the United States, 33.6% of Internet users said they used adblockers.
A double-edged sword?
According to industry experts, typically interactive ads and skippable ads tend not to bother users. However, constant pop-up banners and displays with close options with a duration of even one minute are believed to be an exhausting experience. To ward off this overwhelming information overload, people resort to ad blocking to gain more control over their browsing experience. “I’ve seen how ad blocking and short attention spans are changing the game. People are using ad blockers more because they want ads that are interesting, not annoying, and mean something to them,” Ayush Wadhwa, founder, OWLED Media, said.
As per the eyeo Ad Filtering Report, Acceptable Ads have an average opt-in of 94% based on new data analysed between Q1, 2022 – Q2, 2023. By Q2, 2023, 307 million ad-filtering users allowed Acceptable Ads on desktop and mobile combined, up 42% from Q4, 2021, the report stated.
From a consumer’s perspective, adblocking offers a seamless experience without advertisements but it is not the same experience from a marketer’s point of view. There are both positive and negative aspects to ad blocking. On one hand, ad blocking contributes to a clutter-free and streamlined online experience for the user, including faster page load times. On the contrary, it can adversely impact the online content creators, publishers and platforms who solely rely on ad revenue for their operations. “ Also, blocking ads equips users with better safety by protecting their online data and helps mitigate concerns linked with targeted advertising. However, it would pose a challenge for the platforms that operate on a freemium model and have a high dependency on revenue generated from advertising,” Delphin Varghese, co-founder and chief revenue officer, AdCounty Media, said.
It is believed that display advertising historically has always performed badly in terms of other formats of ads. It is generally now believed that display advertising in most cases is intrusive and leads to massive accidental clicks. Since there is a mismatch between the ad content and the user’s intent at the moment, users are driven towards finding means of blocking these ads. “Advertisers have been getting creative with their ways of getting people to click on the ads and making the ‘X’ button smaller than the size of an atom to make sure people indulge in accidental clicks. However, what they fail to understand is that if the end objective of a display ad is conversions, this is not the way to do it. Most marketing agencies that work on behalf of brands to increase brand awareness may find it difficult to meet their KPIs and may end up spending more money to target these users via other mediums,” Chirag Parmar, AVP – marketing (L&D), Webengage, explained.
A wake-up call!
Perhaps this is also the reason why publishers and platforms have devised something called, ad-light experience. What this does is essentially coaxes users to turn off their ad-blocking software in exchange for access to high-quality content. Data from the report stated that in 2024, ad blocking is expected to cost publishers $54 billion in lost advertising revenue, which is about eight percent of the total projected global digital ad spend of $695 billion as per eMarketer. Industry experts suggest that while publishers and platforms will resort to using many ways to create a seamless experience, a portion of the job resides with advertisers. “Marketers need to focus on making ads that people actually want to see—ads that are interesting, relevant, and add value to their day. We’re putting more effort into understanding what our audience cares about and then tailoring our ads to meet those interests in a way that feels natural, not forced. We’re also big on content marketing and storytelling because stories are a great way to engage people without making them feel like they’re being sold to. The rise in adblock users is a sign that we need to be more thoughtful and creative in how we advertise,” Wadhwa said.
To be sure, publishers have so far implemented solutions such as ad-light experience to retain their users by encouraging them to disable adblocking software in return for accessing high-quality content without excessive ads and as many people don’t prefer to pay for an ad-less experience but still get exhausted by unskippable ads, opting for ad-light solutions can be a win-win for both users and publishers.
In a first-party data world!
With the demise of Google’s third-party cookies and the digital world becoming more privacy-inclusive and user-consent-oriented, the use of first-party data is imperative for any advertiser, marketer, or publisher. Therefore, personalisation with first-party data can resolve a lot of issues around ad-blocking. “By leveraging data and analytics, marketers can identify these users and deliver personalised messages that are not extremely intrusive. Martech tools can be used to create more engaging and contextually relevant ad formats that bypass ad blockers. Techniques such as native advertising, influencer partnerships, and sponsored content can provide value to users while promoting products or services in a less intrusive manner,” Siddhartha Vanvani, founder and CEO, Digidarts, said.
It is believed strategising and altering content to create a more personalised advertising experience without intriguing personal data will be a weapon for businesses. “ To create more engaging and contextually relevant ad formats that might bypass ad blockers and capture audience attention, advertisers can utilise native ad platforms. These platforms leverage the relevance of the content being browsed, presenting ads related to the topic. This strategy aims to align ads with user interests more closely, potentially increasing engagement by offering content that complements the user’s current activity,” Babani highlighted.
It is predicted that machine learning, sustainability and privacy will help in solving the issue in the long run. The shift from third-party cookies is happening, and mechanisms such as ITP and IDFA have been introduced by Apple indicating the industry’s seriousness about this transition.