Ad-blockers and product quality

The rights and wrongs of ad-blockers have been debated for years. My view is that people who block ads are choosing to free-ride on users who don’t, and whilst I would stop short of calling it immoral, I don’t think it’s good behaviour. However, the number of people blocking ads has always been relatively small and the subject has mostly been of academic interest. The interesting thing now is that post iOS 9 that might change.

Three forces are at play here:

  • The trend to mobile – smaller screens and slower connections make ads more intrusive
  • Growth in support for the the anti-ad/pro-privacy meme
  • It’s getting easier for users to block ads

The Apple vs Google battle is an important part of the backstory. As Jason Calacanis details here, Apple’s assault on ads and its pro-privacy position helps in the iPhone vs Android battle and is a direct attack on the core of Google’s business.

Also important is that the online advertising industry still hasn’t got it’s act together. Ten years ago I was hopeful that the adtech was on a trend to become more about product, less about relationships and in the process would shed a lot of it’s shadier practices. That manifestly hasn’t happened and we still have an over-complicated landscape characterised by opaque relationships and misaligned incentives that doesn’t serve advertisers as well as it could.

Meanwhile larger advertisers have been moving an increasing percentage of their budgets online (they have to go where the audience is) which is crowding out startups.

It’s still early days for iOS 9 ad-blockers, but it seems likely we will see an acceleration of the trend of startup founders focusing on product quality as a way of rising above this mess. Since the advent of social media native advertising, earned media, and customer referrals have been growing in importance as part of the startup advertising mix and they work best for high quality products.

Moreover, the products that really win in this environment aren’t simply of high quality, they are also noteworthy, delivering moments of ‘wow’ that stick in the mind.

  • http://www.troglo.net Henning Moe

    Great perspective on the positive “fallout” of ad blockers. Can this mobile ad-aversion also be the beginning end of ad-supported or freemium as viable startup business models or monetization strategies?