Marketing TechnologyDigital AdvertisingHow emerging tech is eliminating the need for ad blockers

How emerging tech is eliminating the need for ad blockers

Ad blockers could cost advertisers more than $40 billion by 2020. Three examples of what companies like Spotify are doing to eliminate the need altogether.

Emerging technology is reinventing marketing and boosting the validity of advertising ROI.

It’s no secret the rise of digital has given the global advertising industry — and its revenue models — a massive shake-up.

With more people online than ever before, digital has given advertisers the gift of being able to push content to consumers while on the go, at any place and at any time.

But digital has also given birth to the rise of ad-blocking technology, making it the easiest it has ever been to avoid ads in the first place.

Adoption of ad blockers is on the rise and Statista estimated that about 25% of US internet users blocked ads on their devices in 2018.

Ad blocking user penetration rate in the United States from 2014 to 2020Stats on ad blocking user penetration rate from 2014 to 2020

Image: Statista

And Apple added fuel to the fire when it announced that its iOS9 operating system that supports iPhones and iPads would enable ad blocking technology.

For decades many businesses have relied on advertising revenue (print or otherwise) to power their operations.

The long-term impact of ad blockers could be detrimental to many industries. And the marketing sector is bracing for the worst, with some anticipating that ad-blocking technology could cost advertisers more than $40 billion by 2020.

But emerging technology could stop ad blockers — and the need for ad blockers — in its tracks.

Linius Technologies adtech prototype that bypasses ad blocking software

Last month Linius Technologies announced that it had developed an adtech prototype that can bypass ad blocking software.

The Linius Personalized Ad Prototype was developed in partnership with internet solutions company Hemisphere and will be made available via Linius’ SaaS platform Linius Video Services (LVS).

The leaders at Linius and Hemisphere share their vision for hyper-personalized ads

Linius CEO Chris Richardson said that by using the prototype, ads became immune to ad blockers because they were delivered as a single stream of data, embedded within the actual digital video stream.

“This prototype offers a great opportunity to disrupt the global advertising industry. The hyper-personalized advertising prototype offers previously impossible data combinations, which power hyper-targeted ad delivery and analysis. This is made possible by treating video as data with Linius video virtualization technology.”

Beyond surpassing ad blocking software, the new ad tech solution enables advertisers to deliver hyper-personalized ads, targeted to specific viewers through a combination of granular contextual, consumption and AI-generated data.

So not only will advertisers be able to ensure their ads are actually getting to consumers, but they’ll be better targeted to people who actually might be interested in watching them.

Divan TV paying consumers to watch ads

Global OTT video streaming platform Divan TV, which has users from more than 195 countries, has also turned traditional advertising on its head.

The company recently unveiled the world’s first protocol for programmatic real-time-bidding (RTB) on Smart TV, meaning viewers are effectively incentivized to watch ads and ads are better targeted, at lower costs.

Divan TV’s 2.0 blockchain video platform gives audiences tokens for watching an ad, enabling “free” access to premium content.

The platform is also designed to benefit content owners, who are reportedly on track to lose $37.4 billion to piracy in 2018.

Their new platform protects content from piracy and fraud via blockchain smart contracts.

Currently, content owners receive just a small part of advertising revenue for sharing their content on existing platforms. But under this new platform, they would receive 50 percent of the total advertising revenue.

Spotify testing new “enhanced targeting” feature that lets non-paying users skip ads

Streaming music service Spotify recently rolled out the trial of a new “enhanced targeting” ad-supported feature in Australia that turned heads.

Unlike YouTube and other online streaming services that force viewers to watch a snippet of an ad before skipping, Spotify enabled its non-paying Australian users the ability to completely skip ads.

So what is the method to their “madness”?

Spotify strongly believes that users will only listen to the ads they care about. So, why waste time and budget, and waste a listener’s time on an ad targeted to the wrong person?

Spotify’s Global Head of Partner Solutions, Danielle Lee, said:

“Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands. Just as we create these personalized experiences like Discover Weekly and the magic that brings to our consumers, we want to inject that concept into the advertising experience.”

On top of that, Spotify has reportedly promised to refund advertisers for any ads skipped.

Given the streaming service’s track record of experiential advertising methods, it could be on to something. Two years ago Spotify released Ad Studio, its fastest-growing advertising channel, based off quarterly revenue and advertiser growth numbers.

Spotify’s Ad Studio is a self-serve ad platform that lets brands create an ad, pick their audience (based on age, gender, location, activity, and music taste), and customize their campaign based on budgets and dates.

Evolution

Digital may have given the advertising world a massive shake-up, but like any change, it forces people to do things differently and often better.

Emerging technology could be the catalyst for the paradigm shift the marketing world needs in order to survive and thrive in the new digital age.

Heidi Cuthbert is Executive Producer at Coincast TV. She can be found on Twitter @heidicuthbert.

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