When you use ads, you pay for them: The world’s largest online ad platform
The world is not ready for a fully integrated advertising ecosystem, a growing number of tech companies are telling Wall Street.
Advertisers are demanding more transparency, more control over their data, more controls on the content they share and more accountability, they say.
The demand for such services is mounting as advertisers, publishers and media companies battle over the future of online advertising.
Here’s a look at some of the top challenges facing the ad industry and how they may be affecting the future.
The Big One The demand is building.
Some companies are trying to take the lead, launching online ad-free zones, letting consumers pay a flat rate per ad that they view.
Others are experimenting with ad-blocking software that blocks ads from showing up on users’ browsers and apps.
Some have begun offering ad-tracking tools to consumers to help them opt out.
A recent survey by the ad-tech firm comScore showed that 44% of ad-buying consumers are willing to pay more than $50 a month for ad-supported content and ads, up from just 9% in July.
But that trend may be slowing down as more companies see the need for more ad-favorable alternatives, said Matt Stegman, chief executive of advertising-tracking firm Zogby.
Ad-free zone companies may not be able to compete with sites that charge for ads, Stegson said.
“They don’t want to get into the free-market space, they don’t really want to go to the space of the ad.”
Some are working on the potential of ad networks to offer a more streamlined, cost-effective solution.
For example, Aeon, an ad-network that allows consumers to opt out of a host of third-party ad-ware, announced this week that it is planning to launch a service that offers ad-paid alternatives to advertisers in the future, such as the ad blocker Adblock Plus, which is available in a number of apps.
That platform is expected to offer users a choice between paying for ads or paying for ad network traffic.
“We believe it’s a really good solution to what is a really difficult business to navigate,” said Alex Pizzolo, vice president of advertising at Aeon.
“The people who are paying are in the end getting the traffic.”
Some companies have begun selling ad-blockers that are paid by advertisers, and some are experimenting in creating ad-revenue-sharing arrangements with publishers.
A few have already rolled out a product that allows users to pay to receive traffic from publishers.
But for a large number of companies, the future lies in the ad marketplace.
Some are experimenting to offer ad-shelving software that can block or remove ads from the browsers and devices of users, for example.
Others, like Google, are using algorithms to determine how many times users visit the sites and platforms that they own.
“It’s really hard to predict the future,” Stegmen said.