Even Facebook
users deploying ad-blocking software will begin seeing ads on the desktop
version of the social network.
Starting Tuesday, Facebook will make it
tough for ad-blocking software to distinguish between a status update and a
sponsored ad on the desktop version of the social network.
This the first time Facebook has attempted
to circumvent the increasingly popular — and controversial — software
that strips ads from websites, joining the advertising industry's fight
against ad blockers.
"We are making it harder for ad
blockers to be effective on Facebook for desktop," says Andrew
"Boz" Bosworth, Facebook's vice president of ads and business
platform.
The move shows how seriously Facebook is
taking the rise of ad-blocking software. Facebook, which makes most of its
revenue from advertising sales, also stands to benefit financially as it
hits the upper limit on how many ads it shows users.
A growing backlash is gaining steam
as consumers get fed up with being bombarded by digital ads that
obscure content, cause pages to load slowly, drain batteries, consume
excessive mobile data or pose risks to their security or privacy.
But the advertising industry says
ad-blocking software costs billions of dollars a year in lost revenue and
violates an implicit social compact: People agree to be targeted by ads to
consume free content and services.
Facebook is largely insulated from ad-blocking
software which typically does not work in mobile apps, where Facebook users
spend the most time and Facebook makes the most advertising revenue. But
the Silicon Valley tech giant is closely tracking the proliferation of ad
blockers and their growing reach on mobile devices.
In 2016, 69.8 million Americans will use an
ad blocker, an increase of nearly 35% from last year, research firm eMarketer
says. Next year, that figure is expected to grow another 24% to 86.6 million
people. Ad-blocking software is more common on desktop computers and
laptops than on smartphones.
About 90% of users of the software block ads on desktop while
about 30% block ads on smartphones. But, analysts say, as mobile device usage
grows, so too will the use of mobile ad blockers. The number of people using ad
blocking software on smartphones will jump nearly 63% this year, eMarketer
projects.
Facebook listed ad-blocking
software as a risk in its most recent quarterly filing.
"Revenue generated from
the display of ads on personal computers has been impacted by these
technologies from time to time," Facebook said in the filing. "As a
result, these technologies have had an adverse effect on our financial results
and, if such technologies continue to proliferate, in particular with respect
to mobile platforms, our future financial results may be harmed."
Facebook makes nearly all of
its revenue from advertising. It generated $6.44 billion in revenue
in the second quarter, easily topping Wall Street estimates. Mobile
represented 84% of the $6.24 billion in advertising revenue Facebook
collected. Advertisers are flocking to Facebook to reach the 1.71
billion users who are hanging out there.
"Facebook definitely
recognizes (ad-blocking software) as a risk," eMarketer analyst Bryan
Yeager says. "This is a way for them to see what type of success they
could have at mitigating that risk and extending that into a larger scale
strategy for all their properties."
Research conducted for
Facebook by Ipsos Connect found people resort to ad blockers to avoid
disruptive ads (69%), ads that slow down the browsing experience (58%) and
security and malware risks (56%).
"The rise of ad blocking
is a clear signal to the ad industry that consumers are dissatisfied with their
current experiences," says Adam Isaacson, research director of Ipsos
Connect.
Younger consumers are more
open to being targeted by ads and having their data collected, but across the
board consumers want ads to be personalized and relevant, Isaacson found.
Representative Image
Source: USAToday
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