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Ad Blockers Are Forcing Biz Model Innovation

June 22, 2016

Parks Associates warns that consumers might increasingly use ad-blocking solutions while streaming video if the digital advertising methods disrupt their viewing experience. So, service providers and media companies need to develop digital advertising models that are integrated and non-disruptive to the viewing experience.

“Many content creators rely on advertising revenue to monetise video, especially as newly launched digital services seek revenue,” said Glenn Hower, research analyst, Parks Associates. “As digital video viewership increases on all screens, use of ad-blocking technologies is a concern for content owners and distributors. Ad blockers have their roots in Web publishing, often to prevent full-page overlays or pop-ups that would disrupt the experience. As Internet video viewership on the television screen increases, advertisers are seeking to leverage prime living room real estate in this new media model. Content and OTT providers and advertisers need to ensure their methods do not interfere with the viewing experience, which would otherwise drive viewers to ad-blocking technologies.”

From the article "Ad Blockers Are Forcing Biz Model Innovation" by Michelle Clancy.

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Ad Blocking Cost Industry USD 41 Bln In 2015

US broadband households watch an average of 3.8 hours of internet video on TV screens each week, accounting for 20 percent of all video viewed on this device, according to research by Parks Associates...

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