The World of Online Is Losing 8 billion Dollars a Year!
The Interactive Advertising Bureau (IAB) came out with a report in December 2015 that claimed that the world of online advertising is losing $8 billion per year. It’s not just ad blocking – contributing $782 Million – it is also bot traffic and content piracy.
The study, commissioned by the IAB and conducted by Ernst & Young, found three primary causes that, if we were to fix it, would add $8.2 billion to the digital advertising industry.
Ad Blocking & Malware
The first one is ad blocking and malware. Malware has always been an issue – since the days of the Internet’s infancy. What’s interesting to note is ad blocking software is a result of malware. Short for malicious software, malware includes the viruses that can make our computers run in unpredictable and sporadic – often dangerous ways.
Another reason people install ad blocking software is to avoid the ads to begin with. Many marketers are in the habit of poorly placing ads in a random fashion just to see what sticks. Anca Bradley, Brand Management Director at Fruition, share some excellent insight about ad placement techniques.
Another $4.6 billion comes from invalid traffic. In fact, this is why captcha software exists. When a piece of software can go to hundreds of different sites and create ghost accounts just to pump up some numbers, it leads to inaccurate data, wasted storage space, and hours of manually removing what invalid traffic leaves behind. The report estimates that roughly $169 million is spent – and ultimately wasted – trying to take a stand against invalid traffic.
Another $2.4 billion comes from infringed content – stolen videos, music, software and more. The industry spends roughly $33 million fighting back. In some ways, large content providers stand with the content creators when it comes to inference content. YouTube, for instance, has policies in place to protect people against copyright infringement. When someone is found posting copyrighted content, YouTube takes it down and puts a “copyright strike” against their account.
In the end, online advertising revenue continues to increase, year after year. IAB believes that there are a few things we can do to help us reclaim some of that money back. By creating relationships with trusted experts you’re in a much better position to take back what’s yours.