Mobile ad blockers on the rise – why network-level ad blocking may be a bad idea

strategt alliance

Source Strategy Alliance

Ad blocking software on mobile devices is a growing problem among mobile marketers and advertisers. However, blocking ads at network level is a fairly recent addition to the issue.

Market intelligence firm Strategy Analytics believes that whilst network-level ad blockers may be making things easier for the consumer, advertisers and publishers won’t be happy about the move.

That’s why operators such as Sprint, Telefonica and Verizon have begun to add value to the mobile ad ecosystem.

The use of ad blockers on mobile device is undoubtedly growing.

According to the latest PageFair report, ad blockers on mobile devices have gone up to 380 million this year.

pagefair1

Source PageFair

Wei Shi, Analyst, Wireless Media Strategies, explains:

“Even without the participation of mobile operators, the use of mobile ad-blockers has already become popular. According to a recent study by Strategy Analytics, more than one-third of mobile users under the age of 24 years in France have installed ad-blockers on their mobile handsets. This is worrying to brands and publishers.”

Hence, Strategy Analytics’ report argues that mobile operators should be leaving solutions up to the market.

Indeed, whilst operator-owned ad blocking services may protect the consumer from annoying ads and cuts the operators into the value chain, the substantially alters the publishing and advertising chain.

Nitesh Patel, Director, Wireless Media Strategies, says:

“By enabling network level ad-blocking, […] mobile operators are not only alienating the publishing and advertising industries, but also challenging regulators, especially in markets with strict net-neutrality rules. Instead, operators should investigate alternative opportunities to add value to the mobile advertising ecosystem. For example, they can consider becoming data management platforms (DMPs), like Sprint’s Pinsight Media, or Verizon’s Precision Insights, or playing a role in ad-assurance to help advertisers overcome ad-fraud.”