Digital
companies like Google, Yahoo and other digital media companies generate
revenue via digital ads, but what if more and more peoples choose to
block ads on their systems. A new Business Insider report highlights a
similar problem.
The
report shows that an increasing number of people are relying on ad
blocking software, posing a threat to digital businesses that completely
rely on advertising. Companies like Google, Amazon and Microsoft are
even paying Adblock Plus to unblock ads on their websites. In fact, some
companies are also believed to be paying about 30 percent of the
additional ad revenue off the unblocked ads.
A previous report from August 2013 claims that Google had saved an estimated $887 million by paying Adblock to show its ads.
The
report also adds that roughly 5% or say 144 million of all global
internet users used ad blocking software during the second quarter of
2014. Most users comprising almost two-thirds came from Chrome and
Firefox browsers.
AdBlock
has been making money by allowing certain ads that meet its criteria to
appear on websites. This could mean industry giants are paying to
‘whitelist” their ads. “Some companies, however, are clearly threatened
by Adblock Plus’ business, and are seeking damages from Eyeo, the German
company that owns Adblock Plus, the report further adds.
The
extension has eaten up into the revenue generated by advertisements for
most companies. The service thus has a programme called the “Acceptable
Ads” whitelist. The feature, which has been around since 2011, allows
some “unobtrusive” ads to filter through the extension unblocked.
Posted by : Gizmeon
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