Adaptive Medias Inc (fka ADTM)

[newelong]

Ad Blocking Not Nicking Company Earnings Yet: Study

BY MICHELE CHANDLER, INVESTOR'S BUSINESS DAILY
08/14/2015 12:56 PM ET

A new study shows that more people are using ad-blocking software online, but the trend isn't affecting ads or publishing profits. While exact data are scant, 10% to 15% of Internet users, particularly younger ones, are believed to be actively blocking digital ads, according to a report Friday from eMarketer.

EMarketer says 41% of PC users and 11% of mobile users regularly used ad blocking in America in June, basing that on a study by the Reuters Institute for the Study of Journalism at the University of Oxford in the U.K.

Those users "have a very different Internet experience than the ones marketers and publishers have built; no display or pre-roll ads, no retargeted ads and, in many cases, no native ad content," eMarketer said.

Despite relying on ads for revenue, ad agencies, advertisers and ad networks "have been largely insulated from any major disruption of activity so far," eMarketer said, adding that "at the moment . .. digital advertising's status quo appears safe.

"Although some percentage of Internet users have made themselves unreachable to ads, their absence hasn't necessarily hurt the digital advertising ecosystem."

One reason for the small impact is that usage of ad-blocking software is still relatively low. Also, ad-blocking software doesn't block all ads.

But investors are seeing the trend, and that is having an effect.

Criteo (NASDAQ:CRTO) saw its stock crater last week after the digital ad service provider reported earnings that fell short of consensus views, following reports that Apple (NASDAQ:AAPL) plans to allow ad blocking on iPhones for the first time as part of the Apple iOS 9 release next month.

Google's (NASDAQ:GOOGL) Chrome browser is the top facilitator of ad-blocking software, according to a study released Monday by PageFair and Adobe Systems (NASDAQ:ADBE). Google also runs the largest online ad network, so it's a delicate situation for Internet companies that have prospered from ad sales.

Those companies include Paris-based Criteo, which embeds cookies — tiny text files that let websites recognize users and their preferences when they return to a site — in nearly half of the 100 largest retail and travel websites in the U.S.

Criteo gets paid for serving ads that users click, and also gets a bigger cut if the user goes on to buy a product from that advertiser.

New ad-blocking features are expected as part of the Apple iOS 9 release in September, which Cowen & Co. analyst Thomas Champion says could hurt Criteo.

"Criteo's business is founded on selling ads on the Web, and a lower supply of ads could limit the liquidity of the Criteo marketplace and (its) ability to grow and support clients," Champion wrote in an industry report Monday.

While the Apple move has squeezed Criteo's stock price, "the risk associated with ad-blocking software is mostly overblown," Champion wrote.

A May survey by Strata found that 44.8% of U.S. ad agency professionals said ad blocking was not a concern for the agency or clients. An additional 88% said they'd experienced no or just a slight impact on ad spending due to ad blocking.

Gaming, social networking and tech-related websites are most affected by ad-blocking software.

http://news.investors.com/081415-766616-ad-blocking-rising-but-not-too-disruptive-yet.htm?ven=yahoocp&src=aurlled&ven=yahoo


Dedicated to socio01

By the way, I can't find any evidence that Criteo serves up anything other than display ads ... no video and no mobile video. Just thought that was interesting.

ADTM