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Saving Ad Revenue

According to a global survey conducted between January and February of 2018, an estimated 27% of global consumers use some sort of ad-blocking service. Such services lower the value that businesses can obtain from running ads through keyword advertising by limiting the impressions per day. This, in turn, hurts the total conversions that the business will receive for each ad. Since ad-blocks lower the effectiveness of advertising, the market-clearing prices for advertising slots drop and businesses turn to other methods of advertising. For large search engines such as Google that rely on keyword-based pay-per-click advertising as a significant source of revenue, ad-blocks can cause significant losses.
To prevent more consumers from switching to ad-blocks, Google has decided to adopt the Better Ads Standards published by the Coalition for Better Advertising. In February of 2018, Google added a feature to Chrome that will regulate the types of ads that can appear. Any ad that violates the standards will be blocked by Chrome. By removing the worst ads, the feature could lower the incentive for consumers to install ad-blocking software. However, this is not a long term solution as blocking ads only benefit the consumer. For consumers to abandon the thought of using ad-blocking software, the ads must also provide value to the consumer. By focusing more on showing relevant ads to goods and services that solve immediate problems, it could be possible that ads could one day become closer to suggested solutions than irrelevant and intrusive clutter.

https://www.wired.com/story/google-chrome-ad-blocker-change-web/

https://www.statista.com/statistics/351862/adblocking-usage/

How Ad Blockers Are Changing the Online Advertising Landscape

 

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