Facebook’s hackproof ads turned its adblocking problem in to a $709 million revenue stream.

Dr Johnny Ryan Adblocking Leave a Comment

Four successive quarterly reports show the year-over-year revenue growth that Facebook attributes to showing ads that adblock companies are unable to hack.  While many websites prevaricated, Facebook figured out how to turn its adblocking problem in to a $709 million revenue stream by serving ads that were immune to adblock. Both online giants, Google and Facebook, have concluded that showing ads to adblock users is the right way to tackle adblocking. In mid Q3 2016 Facebook implemented  tamper-proof ad serving that adblock companies can not hack. Eyeo, which owns Adblock Plus, has attempted at various times to introduce hacks to break this system, with partial results for brief periods. Nonetheless, Facebook’s quarterly earnings figures reveal that it has netted nearly three quarters of a billion dollars as a result.…

How the GDPR will disrupt Google and Facebook

Dr Johnny Ryan GDPR 22 Comments

Google and Facebook will be disrupted by the new European data protection rules that are due to apply in May 2018. This note explains how.  Google and Facebook will be unable to use the personal data they hold for advertising purposes without user permission. This is an acute challenge because, contrary to what some commentators have assumed, they cannot use a “service-wide” opt-in for everything. Nor can they deny access to their services to users who refuse to opt-in to tracking.[1] Some parts of their businesses are likely to be disrupted more than others. The GDPR Scale When one uses Google or Facebook.com one willingly discloses personal data. These businesses have the right to process these data to provide their services when one asks them to. …

Facebook’s Q4 earnings prove how to respond to adblock

Dr Johnny Ryan Adblocking Leave a Comment

Facebook’s Q4 earnings now prove what its Q3 earnings had indicated: the unblocked web – when used appropriately – is an opportunity for marketers.  From August 2016 onward Facebook deployed tamper-proof ad serving to show ads to users who have adblock installed on their machines. Before doing this it listened to users to identify and fix problems that adblock users had with its ad formats.[1] Last week Facebook’s CFO, David Wehner, told investors and analysts on an earnings call for Q4 that “desktop ad revenue grew 22%, despite a decline in desktop usage, helped by our efforts to limit the impact of ad blockers on advertisements served on personal computers.”[2] This builds on Facebook’s Q3 earnings, when Wehner revealed 18% growth in desktop ad revenue.…

How much extra revenue will Facebook make by advertising to the blocked web?

David Barton Adblocking 1 Comment

Facebook’s decision earlier this year to start serving ads to adblockers is already starting to bear fruit. In last week’s Q3 earnings call, the company said that “desktop ad revenue grew 18%, which is higher than growth rates in recent quarters, and was aided by our efforts to limit the impact of ad blockers on advertising served via web browsers”. This post examines these figures to extrapolate the revenue lift that Facebook will enjoy from serving ads on the blocked web. We estimate that Facebook's decision to show tamper-proof ads will yield an additional $720 million over the next year. 

Eight Things From Q3 Worth Knowing

Dr Johnny Ryan Adblocking, GDPR Leave a Comment

Now, ten days into October, we have had time to digest on the events of the last quarter. As is ever the case with history, only some of the headlines of the last three months will have any lingering impact. But of all the events in the past three months the following eight are worth knowing about. This post is a quick digest of the ones that will shape the environment.…