Why Is Ad Blocking Gaining Traction?

Why is Ad Blocking Making News?

(Continued from Prior Part)

Why has ad blocking become popular?

In the previous part of this series, we discussed how ad blocking has penetrated the internet advertising world. In this part of the series, we’ll discuss why ad blocking is making news.

To avoid a cluttered and slow internet browsing experience, more and more users are downloading software that blocks website advertisements. This software is free, widely available, and easy to install.

A company against ad blockers, PageFair, in partnership with Adobe, reported that the number of Internet users actively using ad blocking software has increased to 200 million in 2015. In comparison, the number was 50 million in 2013. Apple (AAPL) has recently released the latest iPhone and iPad operating system and its Safari browser allows ad blocking software.

Bad news for tech giants

Ad blocking is certainly not good news for tech giants such as Google (GOOG), Amazon (AMZN), and Microsoft (MSFT). These companies earn a majority of their revenue from advertising and their advertising revenue could take a big hit from ad blocking.

Earlier this year, there were reports that these tech companies have paid ad blocking software developer Eyeo, a German (EWG) start-up, to allow their ads through its filter. Eyeo produces the well-known ad blocking software Adblock Plus.

Continue to Next Part

Browse this series on Market Realist:

Advertisement