Microsoft Corporation (NASDAQ:MSFT) Explains The Effects Of Ad Blockers On Online Advertising

Everyone knows the importance of online advertising. In context with this, an electronic competition has kicked off between a range of Internet users as well as the online advertising niche worth $120 billion. Adblockers have become quite prominent as over 140 million people are presumed to be using such software. In relation to this, Microsoft Corporation (NASDAQ:MSFT) explains that pop-ups can actually annoy the consumers. And also, the company’s head of advertising business, Europe, Andy Hart explains that the primary problem of ad blockers is that they are blunt tools. He adds that these tools have a propensity to block all kinds of advertising, including the ones which are supposed to make the consumer experience better.

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People using ad-blockers on a rise

Adblock Plus and Adblock Edge are the kinds of software used to block the ads. According to a joint study of Adobe Systems Incorporated (NASDAQ:ADBE) and PageFair, there is already 5% of the online population of world using such software. It should not surprise the advertisers to know that this population is continuously rising. The study said that the number of online people making use of such software increased 70% in 2014.

It is a dangerous scenario for the companies like Google Inc (NASDAQ:GOOGL) and Germany-based RTL, whose staple source of income is advertising. These companies, in turn, are combating the “menace” of such blockers with their techniques and tools like courts and cash.

Impact on the publishers’ revenue

The Interactive Advertising Bureau general Counsel, Mike Zaneis, said that the software like ad blockers is creating a material blow to the revenue of publishers. He also adds that the consumer is demanding free Internet, but it is impossible to make it co-existent with increase of ad blockers. As a result, Mike Zaneis explains, the publishers have started using the aggressive solutions.

Demographically, the youth is the first one to adopt ad-blockers for clutter-free surfing and chatting across the Internet. Even though the publishers have started fighting against these ad-blockers, but there is still no accord in the industry of online advertising, as to how this phenomenon can be tackled at the best.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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