AdBlock Makes The Rich Richer

rich_get_richer-50226711-images-inequality1Lots of reports in the news today about how AdBlock Plus has done deals with Amazon, Google, and Microsoft to not block their ads for people with AdBlock installed. On the one hand, good for AdBlock Plus, I guess, that they are so big that they can start taking money to unblock ads and still dominate the market. I find that hysterical.

More importantly, let me emphasize an under-reported aspect of this deal. This is huge dollar opportunities. These people see very few ads. As any pro will tell you, with such low frequency the odds are great that the few ads that actually get displayed will perform very well. If they are reaching an additional 50% of the audience, odds are that this could produce an outsized chunk of revenue, even accounting for the fact that these consumers have gone to the trouble of installing anti-adware.

Imagine how few ads these consumers are exposed to if the only ads they see are Google’s ads? Very, very few.

Furthermore, if you are a publisher and looking at the revenue generated by various networks, if you are using Google, you will produce additional incremental revenue and higher RPMs because they will be showing ads to consumers that block the ads of other networks.

So this is an instance where being a big company that can write a big check will allow these guys to lock up publisher relationships and monetize advertisers more efficiently than “better technology” would.

Good for them, but I don’t love it.

2 thoughts on “AdBlock Makes The Rich Richer

  1. I disagree
    If AdBlock Plus allows adds of companies that pay them through, then they are basically digging their own grave.
    How long before AdBlock’s Adblock pops up? A week? A day? Oh wait, there already is one. ┬ÁBlock.
    I mean, the purpose of me using AdBlock is to not see adds. If I see adds because you are a sellout, I stop using your product. Your security team keeps criminals out, except the ones that bribe them? This is beyond okay. An ad blocking program that lets ads through defeats the purpose.

    • Totally agree. Unfortunately, the AdBlock guys take the money from Google and use it to market their AdBlock product, shutting out competitors. It verges on deceptive. “I don’t love it” is putting it strongly.

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