Mobile Ad Blocking Surged 90% In 2015 - InformationWeek

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Mobile Ad Blocking Surged 90% In 2015
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jastroff
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jastroff,
User Rank: Ninja
6/1/2016 | 2:04:29 PM
Apps Rely on Ads
The figures are quite impressive for mobile and PC ad blocking -- so, what do APPS which rely on ads do now? If the App is free, then advertising is the main form of revenue, in addition to partnerships and revenue sharing. But ads are the way.

This will alter the industry considerably -- perhaps moving Apps from a "free" to a "paid" model, more or more, or a signicant decline in the number of apps, many of which don't make the fortune for their authors, or MSFt, Apple and Samsung, etc. get into the App business

One way or another, this has an impact on the Yahoo! sale -- a service which uses advertising as a revenue source
tjgkg
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tjgkg,
User Rank: Ninja
6/1/2016 | 3:51:16 PM
Re: Apps Rely on Ads
I wouldn't mind paying for an app if you got full functionality out of it. So many apps now have a pay as you go mode like the games. You get the app for free or a small charge but to get to the more interesting parts of the game or continue playing after you have achieved a certain level, you have to pay. That is rubbish. The free games like solitaire and backgammon have annoying ads that pop up between games. Now when you press the X to close the ad, many times you get taken to the store anyway or another ad.
TollFreeApps
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TollFreeApps,
User Rank: Apprentice
6/2/2016 | 6:07:09 PM
How Toll-Free / Zero-Rated Mobile Data Apps Will Remedy The Ad Blocking Problem
It should come as no surprise that there is a resistance to advertisements on mobile. The engagement costs to the end-user consumer are simply too onerous -- too much distraction, too great a delay, and far too high bandwidth cost. On the last point -- high bandwidth cost -- this is actually something that is solvable by simply having the app provider reimburse (e.g., pay, reward, subsidize - choose your own verb) the end-user for the data costs associated with delivering the ad to their mobile device. In fact, ad markets can use these types of free data incentives as a way to really build up meaningful engagement and loyalty with the user base.

This can be done one of several ways: (1) Maybe the advertiser only pays for the exact bandwidth consumed by the ad itself; (2) maybe the advertiser pays for all the bandwidth consumed by the ad and the content associated with the ad (e.g., the news story); or (3) perhaps the advertiser even reimburses for the bandwidth consumed by the story and the ad, and also awards additional "surplus" data to the end-user consumer as a proper "thank you" for viewing / engaging with the ad.

It is with regard to this last scenario "3" that I think markets are heading and why toll-free / zero-rated apps will take off in the US and elsewhere. It is not much of a stretch to envision a world where end-users are rewarded this way (it's really no different than air miles or loyalty points) and it certainly empowers the end-user to pick and choose the ad, content, and free bandwidth "mix" that best matches their viewing objectives. It also creates a mechanism where advertisers need to thoughtfully compete with each other to earn the continuous patronage / engagement of the end-user (which imo is a very good thing for both the advertiser and the end-user).

Of course, there will be people that cry foul over such a free market mechanism. But their arguments will likely be based on the fact that such a free-market, transparent, and competitive system of rewarding end-users with free data takes money out of their pockets and puts it in the pocket of the end-user consumer (those same end-users who currently pay the mobile carrier for the privilege of downloading and viewing mobile ads).

Looked at another way, imagine the physical world of the IKEA paper catalog that you and I get in the mail. IKEA rightly pays the delivery cost (postage stamp) since they are seeking the engagement of the end-user. But on the Internet the end-user is the party that pays for the delivery of this same ad-based content (mostly promotional ad content). This too will migrate to the world of mobile apps and ads, it is just a question of when.

It is for these reasons that I believe the toll-free / zero-rated app will soon be making its way to our phones and will be a very welcome development for mobile end-user consumers and those advertisers who want a reliable and fair way of engaging with these mobile end-users.
moarsauce123
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moarsauce123,
User Rank: Ninja
6/4/2016 | 8:40:15 AM
Re: How Toll-Free / Zero-Rated Mobile Data Apps Will Remedy The Ad Blocking Problem
I think advertising networks should go a step further than apps: offer ad financed unlimited data plans. I'd go for that. I'm fine with looking at or listening to ads in exchange for data service. When calling on such a plan play a 5-10 second ad before the call is placed (except 911 calls of course!). Starting the browser, show me an ad. Starting an app, show me an ad. While browsing show me an ad every 15 minutes. That would address the biggest issue the mobile market faces these days: still very high operating costs. Yes, there are a few plans that cost 30$/month per line, but they come with hefty restrictions. Even prepaid plans of low cost providers are still rather expensive compared to other alternatives such as VoIP. For ads to work and be accepted there must be a much bigger benefit to users, reimbursing for data usage is falling too short.
moarsauce123
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moarsauce123,
User Rank: Ninja
6/4/2016 | 8:50:33 AM
Re: Apps Rely on Ads
What drives ad blocking is not ads per sé, but the ad content. I have used ad financed apps and 99.9% of what gets advertised is stuff I'd never would buy even if it is a decent deal. Advertisers are catching on to that, but run into another unaccetable issue by collecting a lot of personal information to deliver targeted advertising.

The entire online advertising model is broken and it is self-inflicted by the ad and content providers. They got greedy and slap ads into everything. More ads means more exposure which used to mean more clicks and thus more conversions, but the ill placement of really annoying in your face ads drives the high rate of ad blocking.

Of course, content and apps need money to be created and delivered. I think the only viable option is using the open source model. Base content and apps on voluntary payments. Of course, that will cause a lot of apps and content to be no longer viable. Honestly, given how much craptastic stuff there is especially in mobile that would not be a bad thing.
jastroff
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jastroff,
User Rank: Ninja
6/4/2016 | 11:09:44 AM
Re: How Toll-Free / Zero-Rated Mobile Data Apps Will Remedy The Ad Blocking Problem
very interesting idea  >> I think advertising networks should go a step further than apps: offer ad financed unlimited data plans.

But what would be the carrier's incentive to do so? would they make more in ad revenue payments than the charge for data plans? If the industry was constructed differently, then maybe that would work. Or, companies could do "ad buys" for data plan time? 

All those ads would slow down the user though. 
Joe Stanganelli
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Joe Stanganelli,
User Rank: Author
6/6/2016 | 12:06:16 PM
Re: Apps Rely on Ads
I don't think this alone solves it.  Many people who use adblockers (like me) use them primarily for security reasons -- to protect against rogue attacks via ads that can inject malware.
fragro
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fragro,
User Rank: Strategist
6/7/2016 | 10:49:03 AM
Re: Apps Rely on Ads
Completely agreed. If you are in danger of losing your PC because of just one malicious ad, you do not want to take that risk...


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