Ad Block Apps: RIP Digital Ad Revenues?
What is the purpose of ad blocking apps? While they enhance customer experience by blocking ads while browsing content on PCs or smartphones, they seem to be disrupting the entire ecosystem of digital advertising. How should they be looked at as – innovators or intruders? With the incurring losses because of the ad blocking apps, what should the publishers or advertisers do to get past the ad blockers? The case study helps in analyzing the impact of ad blocking apps on digital advertising ecosystem.
The ad blocking apps have been there for quite some time, but in September 2015, Apple announced its iOS9 for its mobile devices, which enabled and supported the ad blocking apps purchased from its stores. While the users were relieved, the digital media industry incurred losses because of these apps. On the other hand, advertisers or website developers had integrated applications – ad block blockers – that would nullify the effect of ad blockers and enable the display of ads on the users’ phones and browsers. However, few saw it as an opportunity for advertisers and agencies to create great content that could get past the blockade. Does the Indian advertising industry need to worry about the ad block apps or would it get past them?
Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion
The students/participants should be asked to be prepared with the theoretical concepts of digital marketing, digital marketing platforms, customer-centric innovation, competitive strategy, business ecosystem, revenue model and the value chain.
Case Positioning and Setting
This case study can be used in the MBA Program for the following:
- -Marketing Course – How technology advancements and innovations in digital marketing-related products and services can affect the entire ecosystem, i.e., marketers (companies), digital content agencies, digital marketing platforms, the websites, instruments (TV, smartphones, tablets, etc.) and also the consumers
- -Digital Marketing Course – How a company’s customer-centric innovation can affect the entire ecosystem, i.e., how ad blocking applications can affect the whole lot of players involved
- I. Why is there an imperative need for digital advertising in India?
- II. Discuss the business dynamics and ecosystem of digital media and advertising industry in India.
- III. Discuss and debate on how the ad blocking apps would impact the digital advertising ecosystem. How should publishers and advertising companies respond to ad blocks as they are losing advertising revenues?
Preamble to the Case Study Analysis and Suggested Orchestration
This case study provides an opportunity to understand the nature, characteristics and competitive scenario, the business ecosystem, value chain and revenue generation system of the Indian digital media and advertising industry. It also analyzes the pros and cons (to the mobile users and ad-industry) of having ad blockers on the users’ mobile devices. It also allows a discussion on the strategies that the advertising industry players could take up in order to get past the ad blockers. This case study analysis was carried out as presented in Exhibit (TN)-I.......................