Ad-blockers and the Search Industry
Google made $74.54 Billion of revenue in 2015. Of that, $67.39 billion came from advertisements. The service Google provides is not paid, we are not charged every time we search something. Instead, Google places heavily directed ads on its pages that target its users based on their browsing history in a series of complex programs and tools. Recently, however, this enormous source of revenue has come under fire from ad-blockers that recognizes tracking tools in a website’s code and prevents ads from appearing. With the release ios 9, Apple joined the groups of programmers supporting ad-blocking software by enable ad-blocking apps on Apple phones. Quietly released as a way of speeding up webpages by eliminating the tools used to place ads, Apple’s new software has the potential to significantly cut into Google’s profit, another strike in the war between the two tech companies. Unfortunately, publishers have become collateral damage in this war. Already suffering from a loss of revenue incurred from the decline of print advertising, online newspapers and other publishers are struggling to make money when faced with Ad-blockers on their free content. These publishers have responded in a number of ways, from blocking the ad-blockers, requesting that users turn off ad-blockers when they are detected, to simply making their content paid.
The concept of advertising and the programs that enable it are key to networks. We discussed the programs used to conduct millions of auctions for ad-space and to place them. The system of auctioning ad-space becomes complicated when the click-through-rate becomes altered by ad-blockers, making all of Google’s (and small publishers’) ad space less valuable. Ads have become the choice way of providing revenue for companies who offer free online content. When this business can be severely damaged by the application of a new software, it becomes evident that the online advertising industry will need to adapt with the times.
https://www.theguardian.com/technology/2016/jan/01/publishers-apple-ad-blockers-target-google