Why Ad-Blockers On iOS 9 Might Not Be What You Think

Today  marks the official release of iOS 9, Apple’s newest operating system upgrade for its mobile devices. Along with it comes the much hyped mobile ad-blockers. TechCrunch tested three new content blockers for iOS 9 – 1Blocker, Blockr and Crystal. Popular desktop ad-blocker AdBlock Plus will also introduce an ad-blocking extension following iOS 9’s debut. So far, the ad industry appears to be somewhere between unconcerned and challenged, while most digital publishers seem to see this as a “frightening reckoning” and “potential nightmare.”

It is important to note that Apple is only adding support for content filtering extensions for Safari which must be downloaded and installed. Therefore they are not a system-wide feature that users  can simply switch on to block all digital display ads with a simple swipe in settings. Instead, users seeking to block ads on their mobile browsers will have to install a third-party app, and jump through several steps in order to get it to work with Safari. While the process varies from app to app after downloading, generally users need to then enable content blocking extensions in Settings –> Safari –> Content Blockers, before returning to the app to customize the configurations. This process is akin to installing a third-party keyboard, and it can seem rather complicated for non-power users.

That being said, the well-documented, wide-ranging benefits that those ad-blocking extensions can bring to mobile browsing experience will likely motivate a significant portion of users to jump through hoops to set up the extensions. With the popularization of pop-ups, interstitials, and autoplay videos, digital display ads on websites have only grown aggressive over the past few years. Usage of the new content filters will only accelerate the ongoing shift towards native advertising and publishing directly to social networks and platforms that can help monetize content without the use of third-party ad networks. Moreover, as the extensions only work with Safari, all the ads served in apps, where users spends over 85% of their time on mobile devices, won’t be affected at all.

For more actionable suggestions on how brands can deal with the rise of ad-blockers, click here to read our in-depth Fast Forward analysis on this buzzing subject matter.

 

Ad Blocking in iOS 9 Safari: What You Need to Do

Ansible and Magna Global contributed to this report.

Fast Forward is your guide to tech-driven changes in the media landscape by IPG Media Lab. A fast read for you and a forward for your clients and team.

  • iOS 9 will allow ad-blocking extensions for Safari, distributed through the App Store
  • Ad delivery and data tracking abilities will be impacted for a significant number of users who opt in
  • Brands and publishers can adapt with native advertising or partnering with data owners that don’t rely on ad network tracking


What Happened
Important details have recently emerged about a new feature in Apple’s default web browser in iOS 9, Safari. Apple promises developers a “fast and efficient way to block cookies, images, resources, pop-ups, and other content.” That means that ads and ad-network tracking scripts will never get delivered to some portion of iOS 9 users. Recent tests removing ad-tracker javascript with a pre-release version of iOS 9 reduced page loading times by as much as 80%, from 11 seconds to 2 seconds.

How Media Owners Should Respond

  • Deliver the best possible experience in a native app. Ads delivered in your app are unaffected as this only affects web ads and trackers.
  • Tests of your ability to serve highly-targeted and engaging advertisements on the web have been accelerated as Apple has pushed forward the timetable.
  • Integrate with Apple News and Facebook Instant Articles and others that own the user data necessary for precise targeting without hopping all over the internet to get it.


How Advertisers Should Respond

  • Focus on in-app advertising, either through a network like iAd or through direct sponsorships.
  • Look for more ways to integrate native advertising into your plans.
  • Consider significant new investment in media properties that own enough user data that they can sufficiently target without going through an ad exchange. Seek out Facebook Instant Articles or Apple News. Google, Verizon, Yahoo and publications with niche audiences and direct ad sales are the other beneficiaries here.


Market Impact
As digital ad revenue has transitioned from desktop to mobile, most has found its way to in-app ads instead of on the web. This nearly matches attention. Whereas 81% of time spent on a smartphone is in-app, only 76% of ad spend is in-app.

Screen Shot 2015-08-11 at 3.16.02 PM
We expect these new ways to block mobile web ads to more than close that gap, especially because of the importance of Safari. As the default web browser on iOS devices, Safari accounts for roughly 40% of mobile web traffic worldwide and more than half in the US.

Screen-Shot-2015-08-10-at-6.03.28-AM-800x492
Ad-blocking extensions are appealing to users because they can better protect their privacy, improve webpage load times, save battery life, as well as blocking the pop-ups and banner ads that disrupt basic browsing experience. Ad-blocking on the desktop is used by about 25% of users worldwide and the most popular extension for the desktop version of Safari is AdBlock.

Therefore, there is little doubt that such extensions would catch on with a significant number of users, especially when aided by the ease of App Store distribution. Ads blocked in this way on both the desktop and in the future on mobile aren’t billed to the advertiser, and will have a bigger impact on publisher revenue than on advertisers. Wide adoption could lead to a devastating impact on web publishers and ad tech providers, as an extension can shut out most ad views and cuts off the resulting ad revenues and tracking data.

We expect two main groups to be heavy adopters of these new content blockers, for different reasons. First, the higher-income, early adopter crowd is a prime candidate to incorporate these extensions, as they are more likely to know about them. Second, because content blockers have a large impact on page data size and battery life, consumers with low data caps or electricity concerns, particularly across Africa and India, are also likely to install a content-blocking extension sooner than later.

We expect the biggest tech companies and especially social networks to benefit, as they can deliver ads with sufficient targeting without relying on ad network trackers. Though Facebook’s Instant Articles has had a slow roll out, these ad-blocking extensions will accelerate publishers’ incentive to partner with Facebook. Similarly, the new Apple News is the carrot to balance the ad-blocking stick. Few other media owners can target as well as Google, Facebook and Apple, but that list includes Verizon/AOL, Yahoo, Pinterest and Twitter.

In the short term, Google’s revenue from web ads makes them unlikely to offer similar functionality in Android, but this could change if content blockers become a key selling point of iOS. Now, ad blockers are allowed on Android but are stand-alone browsers and do not integrate with Chrome, the default web browser.

For More Information
Please contact Engagement Director Samantha Holland (samantha@ipglab.com) at the IPG Media Lab if you would like more detail or to schedule a visit to the Lab to discuss how the feedback loop on this could play out over the next couple years.

For previous editions of Fast Forward, please visit ipglab.com. Please reply with any constructive criticism or feedback. We want these to be as useful as possible for you and your clients, and your feedback will help us immensely.

 

For Additional Reading:

Paul Hudson:
This should also show you how Apple has managed to introduce content blockers without compromising on privacy: apps tell Safari the kind of content that should be blocked, but they do it indirectly and the communication only ever flows one way: apps have no knowledge of any user behavior whatsoever.

Ben Thompson:
[A]rguably the biggest takeaway should be that the chief objection to Facebook’s [Instant Articles] offer — that publishers are giving up their independence — is a red herring. Publishers are already slaves to the ad networks, and their primary decision at this point is which master — ad networks or Facebook — is preferable?

Jean-Louis Gassée:
As users, we understand that we’re not really entitled to free browsing; we pay our bills with our selves: When The Product Is Free, We Are the Product. The problem is that we feel betrayed when we find out we’ve been overpaying.

Joshua Benton:
A report from 2014 found that adblock usage was up 70 percent year-over-year, with over 140 million people blocking ads worldwide, including 41 percent of 18- to 29-year-olds.

Apple Adds Ad-Blocking Extension To iOS 9 – IPG Media Lab

Apple’s Support of Ad Blocking May Upend How the Web Works – Wired

Safari Content Blocker, Before and After – Daring Fireball

Ad Tech Is Killing The Online Experience – The Guardian

 

 

Apple Adds Ad-Blocking Extension To iOS 9

Read original story on: 9to5Mac

Preview of the upcoming iOS 9 reveals a new ad-blocking extension in Safari, which would prevent specified web resources (like images and scripts) from loading in Apple’s native browser, which affects the entire supply chain of digital media.

Two weeks ago, we reported on the increasing usage of ad-blocking, especially on mobile devices, and recommended brands and marketers to look into native ads as a way to circumvent the trend. Apple’s new move seems to be mostly targeted at cutting down Google’s ad revenues from iOS devices, as its AdWord serves the majority of digital ads, and Apple’s own iAd platform is unlikely to be affected. Therefore, it may be worthy for media owners and publishers to migrate from mobile web into apps, or Apple’s very timely News app, to avoid further hemorrhaging ad revenues due to ad-blocking.

Apple WWDC Preview Round-up: Apple Watch SDK, Music Streaming Service & More

With next Monday’s Apple’s annual Worldwide Developers Conference (WWDC) just around the corner, more new information, credible or speculative, regarding the impending event is surging up in the press. Here are four handpicked preview items that we believe all brands should be aware of in preparation for Apple’s announcements.

Improved Watch Apps with New SDK
Corresponding to Apple Watch’s planned retail expansion, Apple is set to release a new SDK on Monday that will allow access to the many sensors and “Digital Crown” on the Watch. Already, we are seeing early-adopting brands like Office Depot coming up with their own Apple Watch app, and we expect more brands to take advantage of the new functionality offered by this new SDK to further improve their apps on Apple Watch.

The Double Duty of Apple TV
A new Adobe report on digital video consumption surfaced today, indicating a sharp growth of Apple TV in the past quarter, likely due to the recent price drop and the its previously exclusive support for HBO Now. We reported on Wednesday that Apple TV is set to become the control hub for the connected devices. Although The New York Times reports that there won’t be any new Apple TV hardware debut next Monday, some updates are due on the increasingly crucial role that Apple’ set-top box will play in its ecosystem.

Apple’s Ready to Revolutionize Music, Again
The beta of iOS 8.4 released in April already offered a sneak peak of what Apple’s long-anticipated music streaming service may look like. And now, reports are claiming that Apple is set to take on Spotify with a $10/month subscription service, along with an augmented free, ad-supported Internet radio service. If launched successfully, this could once again change the landscape of the music industry as the iTunes Store did in early 2000s, while also presenting brands with new channels to connect with its listeners.

iOS 9 to Refine the Future of Mobile
In recent years, Apple has made it habit to preview the next OS software at WWDC, and this year should be no difference. The upcoming iOS 9 is reportedly focused on stability and only includes minor upgrades, such as new keyboards, an enhanced Siri, and the haptic Force Touch feature. As the mobile user experience continues to improve as Apple refines its mobile OS, brands need to adapt to a “mobile-first” future that is quickly becoming a reality.

As always, the Lab will be live-tweeting @ipglab during the events, followed by original posts highlighting the brand implications of the new announcements. Check back Monday afternoon to find out more.

Header image taken from Apple’s Live Streaming Site