Ad-block users tend to be advertisers target audience

A new report published by the International News Media Association suggests that ad-blocker users could be the most valuable target group for display ads, due to the likelihood that they will be part of the hard-to-reach, tech-savvy millennial demographic that is most lucrative for advertisers. By delivering low volume “respectful advertising” through premium brands with premium advertising, the report claims that publishers may be able to leverage ad-blockers as a high-value segment, especially as this demographic sees fewer ads and is therefore likely to be more discerning. With the total lost revenue from ad-blocking estimated at $41.1bn by PageFair, the opportunity for advertisers to make up lost ground from this market is evident.

People who use adblockers when using the web could be some of the most valuable people to show ads to, according to a new report.

The report’s authors say people who block ads could generate more money for publishers because they are likely to be tech savvy and in the “millennial” age range that advertisers want to reach, are less likely to be bots (computers posing as humans), and are likely to see fewer ads overall.

The irony of the conclusion is not lost on the authors, but they claim publishers can still make money from people who have chosen to block ads by delivering “respectful advertising”.

The report, published by the International News Media Association, says: “Reaching the adblocking segment is a privilege that brands have never experienced before. Adblockers interact with ads when they see them more than standard web users – presumably because they see no other ads.

“And those brands that are seen – with low volume, respectful ads – receive more attention than the most garish and brazen formats have been able to achieve when competing in the world before adblocking. For publishers, this presents a counter-intuitive opportunity: adblockers can be leveraged as a high-value segment that can be presented to premium brands with premium advertising.”

The report also warns that publishers should be wary of relying too heavily on so-called “walled gardens” offered by tech companies such as Facebook and Snapchat, which offer ways to provide content with ads that can’t currently be blocked. It says that not only do these platforms gain a high degree of control over the content, but they may also eventually be subject to adblocking themselves.

Adblocking is one of a number of growing threats to online publishers that rely on advertising. The practice has been on the rise in recent years, particularly on desktops and laptops. However, growth in adblocking on mobile devices, driven in part by Apple’s decision to allow the practice in its Safari web browser, is a growing concern as people switch to reading articles and other content on their phones.

PageFair, which sells services to publishers to measure and attempt to counteract adblocking and contributed to the report, has estimated that total lost revenue from adblocking grew from $5.8bn to $10.7bn between 2014 and 2015 in the US, $1.6bn to $3.6bn over the same period in the UK.

The company also predicts the total lost revenue from ad blocking could $41.4bn this year. However, the figures are an approximate calculation based on total revenue and adblocking rates, meaning the real figures could be significantly lower or higher.