by Danielle Goh
GOOGLE announced on June 1 that it will be launching an “ad blocker” and a tool called Funding Choices on Chrome early next year.
But Google’s “ad blocker” is more of an ad filter that will rid websites of ads blacklisted by Coalition for Better Ads, an industry group that develops global standards for online advertising. Those on the black list includes auto-playing ads that blare loud music, ‘sticky’ ads that are pinned to the page even after scrolling, and ads with a ten second countdown.
Funding Choices will prevent Chrome users from depriving publishers of revenue by blocking all ad blockers. Users will have to disable their ad blockers to view the website. It will also provide publishers with an alternative source of revenue. An option to pay for ad free access will be available to users.
On twitter, some welcomed the move but voiced their concerns that Google might have a conflict of interest. Currently, advertising makes up 86 per cent of its revenue.
Some were not too happy about Google’s new ad blocker…
While others understood that the move will have a widespread impact on digital advertising. Google is a dominant player, accounting for 40.7 per cent of digital ad revenues in the US. Chrome is the internet’s most popular browser.
Mr Sridhar Ramasawamy, senior vice-president of ads and commerce at Google said in a blog post that Chrome will stop showing ads on websites that are “not compliant with Better Ad Standards starting in early 2018.” The “ad blocker” is expected to be turned on by default on mobile and desktop. Google has not elaborated on the tech it will be using to filter ads.
But Google is helping publishers to prepare with a tool called Ad Experience Reports, alerting them to offensive ads on their sites and explains how to resolve the issues.
Funding Choices is currently available to publishers in North America, UK, Germany, Australia and New Zealand, and will be available in other countries later this year. This new tool will allow publishers to charge users for ad free access. Google will get a ten per cent cut from each charge. Details are not yet announced about how Google plans to distribute the money.
Mr Ramasawamy, said that Google’s new initiative would prevent people from blocking all ads, a solution that takes a “big toll on content creators”. About one in four people are estimated to have used a desktop ad blocker, and about one in ten on phones.
By removing the most intrusive ads, Google hopes that it can improve browsing experience, and safeguard a vital source of revenue for publishers. Chrome already blocks some adverts such as pop-ups. Some publishers see the move as a good thing. “We’re supportive of action as it helps to clean up the ad-ecosystem and improves consumer trust,” said Mr Jason Klint, the CEO of Digital Content Next, the trade group for digital media publishers like Vox Media and CBS Interactive. (Vice News, Jun 2)
While it may be good news for the advertising industry, smaller publishers and ad companies might find it harder to adapt to the changes. With fewer resources, it might be financially challenging to reformulate ads to meet Google’s standards.
Others are concerned that Google will have a conflict of interest as advertising makes up 86 per cent of its revenue. Previously, Google controversially paid Adblock Plus $25 million annually to ensure that its ads are unblocked. EU antitrust regulators might be extracting a $9 billion fine from Google, if it’s found guilty of skewing search results for its own shopping service.
Google’s new “ad blocker” seems to be a good thing for everyone, publishers, advertisement companies and consumers. But concerns remain that Google’s expanding influence and policing of advertisements might also be a move to block competitors.
Featured image by Sean Chong.
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