Why would an ad blocking user agree to see… ads?

The short answer? It’s a way to actively support the free web.

The long answer? That involves the demographics of ad blocking users, their commitment to journalism and publishing, and the types of ads they want to block.

We’re going to tackle all of that.

“A Very Savvy Demographic”

Tim Cronin, AAX VP of Sales, used the opportunity of speaking at Digiday Publishing Summit, Budapest to describe just who ad blocking users are.

“They’re a very savvy demographic,” he said. “They’re younger, they’re well-educated, they’re tech savvy, and they index high for consuming media.”

The numbers prove it: US-American ad blocking users, 64% of whom are under the age of forty-five, are 1.5x more likely than the average American to have a bachelor’s degree. And that number goes up to 3x when only the 18-24 year olds are considered. (Source)

These young, well-educated ad blocking users not only enjoy consuming media, but they have an understanding of the value of media. For example, they’re more likely to pay for online subscriptions to magazines and news services than their non-ad blocking counterparts. (GlobalWebIndex, 2019)

“The Value of a Free Press”

All of the factors that make the ad blocking demographic unique—age, education, and interest in participating in the value exchange of online media—coalesce around the question of publishers.

The desire for content access is matched by a growing understanding that ad revenue helps keep publishers’ lights on. Publishers have become vocal about the fact that ad revenue is what allows them to hire talent, create content, and maintain a high standard of quality.

Websites often suggest that browsers subscribe or donate in order to keep browsing. And this tactic seems to have been moderately successful: 15% of users are willing to either pay for the content they enjoy or donate money directly.

Another tactic is suggesting that users turn off their ad blockers. This is successful approximately one-third of the time: 31% would be fine with seeing ads in order to support websites. This includes writer Mark Wilson, who asserts he doesn’t install an ad blocker because he “cares about the value of a free press.”

The vast majority of users also care about the value of a free press, but they’re still concerned about the nature of ads being served. 68% agree with the statement “I’m fine with seeing ads, but only if they’re not annoying.”

As Tim Cronin puts it, “[Ad blocking users] need their favorite publishers to continue to exist. If they don’t subscribe, they’re willing to receive unobtrusive ads.”

“They Just Hate Certain Types of Ads”

When users were asked which ads they considered annoying, they overwhelmingly spoke of pop-ups and video ads. These are the ones that users “dislike”—according to the 2018 Hubspot Survey “Why People Block Ads, and What It Means For Marketers and Advertisers,” a full 73% of users disapproved of pop-ups.

When this is compared to percentage of users who disliked magazine and print ads (18%) and billboard ads (21%), it becomes apparent that it’s not the fact of the ad itself that’s annoying.

With ads, the medium is the message. A static, text-and-image ad is respectful. A glittery pop-up, however? That’s obnoxious

At Digiday Budapest, Tim Cronin summarized the relationship between ad blocking users and ads: “Ad blocking users don’t hate all ads. They just hate certain types of ads—the ones that feel intrusive.”

The banner ad celebrates its 25th birthday

A quarter of a century ago, the haunting melodies on The Cranberries’ No Need To Argue were rapidly going multiple platinum. Theaters were corralling lines of moviegoers eager to see Pulp Fiction. Children and adults alike were a) wearing head-to-toe sunflower print and b) buying investment Beanie Babies by the dozen.

And on the home computer—that blocky behemoth that took up a corner of the living room—things were rapidly evolving.

Once you got past the chirping whirr of the dial-up, you could order delivery pizza online…as long as you lived in Santa Cruz, California, that is. Webcrawler could connect you to one of a staggering 4,000 websites using the power of full text search.

And on October 27, 1994, the world’s first banner ad appeared on HotWired.com.

It’s not a moment that a lot of people think of with fond nostalgia. In fact, the banner ad is often thought of annoying at best, damaging at worst.

But Mat Bennett, Co-Founder of OKO, suggests celebrating the existence of the banner ad. He also suggests spending a moment thinking of how banner ads have shaped and improved the browsing experience for users worldwide.

In an opinion piece for The Drum, he writes:

“Ads support the online content we consume. Without advertising to support online business, it is estimated that the average American internet users would need to pay $420 per year to pay for those ad-supported services. That is a lot of value that variations of banner ads currently contribute a very large proportion of. Whilst a small proportion of users might be happy to pay that sum to avoid banner ads, reducing that to a dollar value greatly undersells the benefits of providing that value without a cost to the end-user.

The biggest of those benefits is the democracy that a free, ad-supported web offers. A banner, or the page serving it, doesn’t care whether you are prince or pauper when you access ad supported content. I’m not aware of any website that restricts content based on the bids they receive for an impression, so banners and other digital advertising work not only to keep content free but to keep it open to all.

The idea of an ad-free “pay to play” internet also ignores the practicalities of that. Whilst some users might be willing to pay for an ad-free experience on the sites they access daily, the model falls apart when it comes to the long tail of the web. The website that settles a pub argument, a local forum of the town you are visiting, the odd niche site that explains your child’s maths homework problem to you and the thousands of other sites we use but have no need to return to.

These sites don’t fit a subscription model and are even more reliant on the pennies that arrive through banner impressions. That vibrant, independent, free and open long tail that exists outside of corporate ownership only continues to do so thanks to the humble banner ad.

We want to echo Bennett and say thanks to the humble banner ad.  And on October 27th we’ll put on a ridiculous party hat, eat some sheet cake, and belt out “Happy Birthday To You” in honor of the banner ad.

What are Acceptable Ads? A crash course

The AAX team attended the Digiday Publishing Summit in Key Biscayne Florida with a particular mission: instead of talking about AAX, we wanted to take a step back and discuss the Acceptable Ads initiative.

But in order to get the full picture, and understand how ad blockers have, over the years, evolved into ad filterers, we need to start at the beginning.

How Did We Get Here?

What are the causes of ad blocking? If you ask an ad blocker, you’ll usually hear something along the lines of “There are too many ads.”

But when you dig deep, exploring the causes of these “too many ads,” you’ll find the culprit is a supply and demand imbalance that has long posed a challenge to premium publishers.

What happens in a marketplace when there’s a supply and demand imbalance is that the seller—in this case, the publisher—finds themselves in a weakened position. That means that the buyer, the advertiser, moves into a position of strength. This has lead to a squeeze on the publisher: the publisher has to serve more ads, bigger ads, and more intrusive ads.

It was exactly this dynamic that lead to a dramatic increase in ad blockers.

Ad blocking is the Biggest Boycott In Human History– Doc Searls

At a conference like Digiday Publishing, ad blocking is always the elephant in the room. And in this case it’s not just a question of standing out. It’s also a question of sheer size: the scope of ad blocking is massive.

  • One billion people worldwide use ad blockers.
  • In the USA, a publisher can expect 15-20% of their visitors to have an ad blocker.
  • In places like Germany and France, the percentage ad blocking visitors reaches 45%.

These numbers are astounding.

But there’s another number to consider: 90% of ad blockers users can receive ads.

Solutions To Ad Blocking and Benefits To Publishers

When an ad blocker is installed, the ad block user is given an option: to opt in and consent to be served acceptable ads. The fact that 90% choose this option speaks to the fact that ad block users don’t hate all ads—just the kind of invasive, flashy ads that prompted the mass boycott of ad blocking.

It also speaks to the particulars of the ad blocking demographic. These users are young, highly educated, tech savvy, and index high for consuming media online. In other words, they understand the balance of the ecosystem relies on advertising, and that a browsing experience can actually be augmented by the presence of respectful, non-intrusive ads—by the presence, in other words, of Acceptable Ads.

The criteria for what determines an Acceptable Ad is defined by the Acceptable Ads Committee, a fully independent third party committee made up of industry insiders, privacy organizations, users, consumers, publishers. The criteria is straightforward: an ad can be deemed Acceptable if it

  • is a static banner instead of an animated banner
  • there is no video present
  • the ads don’t represent more than 15% above the fold…
  • …or 25% below the fold

Ultimately, what the Acceptable Ads initiative—along with AAX, an ad exchange that serves only Acceptable Ads—is committed to is achieving is a balance between consumer experience, browsing experience, and content monetization.

Obama, snowboards, and beer: the impact of Bits and Pretzels

This marked the first year AAX headed to Bits and Pretzels, the three-day Munich-based founders festival that famously culminates in a massive networking events on the Oktoberfest grounds.

But, as our team found out, the jolly atmosphere of this “liquid networking”—like-minded people mingling and beer drinking under the decorated dome of the Schottenhamel tent—wasn’t the only memorable thing about Bits and Pretzels.

In fact, for AAX Head of Operations Otilia Otlacan, time spent in the Schottenhamel tent wasn’t even the aspect of Bits and Pretzels most conducive to networking. For her, that was the speakers.

Want To Make An Impact? Help Your Neighbors.

The theme of this year’s Bits and Pretzels was impact. This created an unofficial dialogue between the speakers: everyone pondered what it meant to be impactful.

“The talks ranged from companies trying to tackle food waste at the local level to multinational corporations thinking about supporting entrepreneurship and how to support women. People were really considering their impact onto communities,” says Otlacan.

What does the word impact mean for AAX? For CEO Frederick Leuschner, impact refers to directly to value exchange. “The ad ecosystem is a community in need of balance,” he says. “The ideal is a three-way equilibrium between publishers, advertisers, and users.”

How To Thrive On A New Continent

Obama, Snowboards, and Beer: The Impact of Bits and Pretzels

One of the most inspiring speakers, says Otlacan, was Donna Carpenter, CEO of Burton Snowboards. Carpenter spoke about her journey, dwelling specifically on the lessons she learned when she brought the company came across the Atlantic. Carpenter, an American outdoors, was new to Europe and a much of the knowledge she brought from home just wasn’t applicable.

“If I had to distill her message,” says Otlacan, “it would be that, in order to be impactful, you ask for input, ask for help, and listen to feedback.” That message is especially vital, thinks Otlacan, in the fast-moving and ever-evolving start up environment.

The message of impact was also strengthened by Bits and Pretzels designation as a festival for founders. “What you saw was diversity in mission,” says Leuschner. “By building events around founders, the focus becomes centered around a particular stage in business instead of a particular industry. It becomes about helping people who are all at the same step.”

Barack Obama’s Secret To Success

Of course, no discussion of Bits and Pretzels 2019 is complete without mention of the star speaker: Barack Obama.

“His focus on leadership wasn’t just applicable at an entrepreneurship event,” says Otlacan. “It managed to link these large concepts of responsibility and global thinking back to start-ups.”

Obama stressed the importance of diversity, both in a larger context and within a team. “All of us have blind spots,” he said. “We have strengths, but we also have weaknesses. We have different perspectives. The greater mix of people I had around me […] with common values but different perspectives, experiences, and strengths, the more likely it was that we’d have fresh eyes and fresh approaches to problems.”

The environment of Obama’s talk, a hall packed with a mix of 5,000 attendees, helped bring these words into reality. It’s all too possible to lose sight of where we exist as part of a larger ecosystem and participating in acts of community—like coming together for a festival—can help you reconnect with a sense of being part of something.

Autumn forecast: NYC –> BUD –> LA –> AZ

The AAX team isn’t getting lulled into the sweater-lined, pumpkin-spice-scented cocoon of autumnal laziness.

Instead, we’re attending events. Over the next month, our team is crossing continents and oceans with the aim of facilitating discussions about restoring the value exchange between publishers and ad blockers…as well as educating ourselves on trends and innovation, sharing insights, and connecting with peers.

  • First, we’re attending Ad Exchanger Programmatic I/O, from October 15-16, in New York City. Come find our booth in the Live Exchange Zone.
  • Then, from October 21-23, we’ll be at Digiday Budapest, where our VP of Sales Tim Cronin will be giving a Dialog Presentation.
  • October 30th finds us at another World Forum Disrupt event: this time, it’s Digipublish Los Angeles.
  • Next we’ll be in Arizona for AdMonsters Scottsdale from November 3-6. Not only will we deliver a keynote lecture, but the AAX team will also participate in the Question the Tech Q & A on the main stage.
  • Reach out; contact us to set up a meeting. We’re available and happy to discuss sustainable publisher monetization options.

We’re already busy planning events in December and beyond. Follow us on Twitter @aaxmedia and stay tuned for what we have planned.

5 subjects of discussion at World Forum Disrupt: Programmatic New York

On September 18th, the AAX team joined with leading minds at the vanguard of programmatic for a day of sharing insight, strategy, and passion-fueled ideas.

In other words: we attended World Forum Disrupt Programmatic New York.

The talents behind World Forum Disrupt created a platform designed with the mission of challenging. Because of this, we made sure that we arrived ready to be challenged, ready to challenge, and ready to develop and participate in open dialogue.

The conversations we participated in were helped, in large part, by the fact that World Disrupt Programmatic marked the first time Tim Cronin gave a keynote speech in his role as AAX’s VP of Sales. This presentation became what Cronin referred to as “the coming out party for the Acceptable Ads program and for AAX .”

There was also another, more vital, reason why Cronin’s keynote was so important. As the new faces in town, AAX wanted to make sure that we had a chance to facilitate discussions on the state of ad blocking.

Hart Gliedman, AAX Director of US Sales, explains: “It was incredibly useful that Tim Cronin was given the stage to present AAX to the Forum, because was able to properly explain our unique value proposition to prospective publishers of the highest quality.”

We had a number of fascinating dialogues at World Forum Disrupt Programmatic, and we wanted to share five key subjects that we discussed at length.

#1 Ad Blocking: How Did We Get Here?

When asked about his keynote speech, Tim Cronin spoke enthusiastically about the event, praising the publishers and the atmosphere of change.

“It was interesting to see what people’s priorities and questions were. People were curious about the evolution of ad blocking. Basically, the surplus in online inventory created a supply and demand imbalance—premium publishers’ revenue gets squeezed in such an environment. As a result, many were forced to make up revenue by serving more, or larger format and flashier ads. And this drove up the use of ad blockers by the most sensitive and technical consumers.”

# 2 Privacy Is The Key

But other factors prompted the advent of ad blocking—what Doc Searls called “the greatest boycott in human history.” As Gliedman explains, this is partially the result of a misunderstanding. “Concerns over privacy are a big reason why people install ad blockers in the first place,” he says.

World Disrupt Programmatic was abuzz with discussions surrounding GDPR and third party vs. first party cookies. According to Gliedman, that’s a discussion that needs to occur.

“Having less data on the user? That’s the world that AAX lives in,” he says, adding, “Programmatic without user data is the future.”

#3 Mobile Is The Future

Another, adjacent topic that dominated dialogues concerned mobile. (For more on the mobile-related conversations occurring at World Disrupt Programmatic, check out Kristina Hahn and Gabrielle Heyman’s insights on the subject.)

“A lot of traffic is going mobile. Mobile relies on cookies,” says Cronin. “Safari just stopped allowing third party cookies, and other browsers are thinking of doing the same. This is a big deal for publishers—the industry is faced with more challenges than ever.”

# 4 What’s Broken Was Already Broken…

Gliedman stressed how important it was to let everyone know about the evolution of Acceptable Ads.

“The system is broken,” he says. “The trust between users and websites is broken. But it’s already been broken. That’s why ad blocking emerged in the first place.”

# 5 …But It Can Be Fixed

This broken system, asserts Cronin, is the reason that he was so enthusiastic about delivering “Ad Blocking Is Dead,” his keynote speech.

“It’s time to restore the value exchange,” he says. “Acceptables Ads allow users to support their favorite sites in a way that benefits all parties. It’s possible to meet in the middle.”


We’ll be posting video of Tim Cronin’s keynote lecture shortly. In the meantime, check out our upcoming engagements here or follow us on Twitter at @aaxmedia.

DMEXCO 2019 recap: restoring the value exchange, restoring trust

Autumn comes early in Germany. By the second week of September there was a palpable sense of excitement in the air as the AAX team assembled in Cologne. It may have had something to do with the golden light or the newly crisp weather.

Or maybe it was the fact that, less than two years after founding, AAX was attending our first DMEXCO.

During DMEXCO 2019, the city of Cologne was electric. Its normally relaxed atmosphere was bustling, infused with the 41,000 visitors from over 95 countries all headed to the Kölnmesse. This charged environment helped inspire us to get up for an early commute—mainly by train, although VP of Sales Tim Cronin and Director of U.S. Sales Hart Gliedman preferred to ride in style via e-scooter—to the Messe. We arrived at our Hall 8 stand prepared for two packed days of inspiring discussions, interactions, and meetings of the mind.

Crafting a dynamic stand, explains AAX Head of Commercialization Rotem Dar, is one of the most dependable ways to ensure a dynamic DMEXCO experience. “You can’t just exchange business cards,” he says. “You need a good sized stand, in order to create an area with separate meeting rooms. This is what facilitates longer, more productive conversations.”

Hart Gliedman agrees. For him, the meeting rooms served as a conduit to better communication. “It was great to talk to publishers and really have a solution for them. And their response was extraordinary. I’ve been in sales for a long time and it was wonderful to hear that there were very, very few objections.”

He urges any new exhibitor at DMEXCO to aim to find the right hall and position for their stand, but not to get caught up in the extras. “Don’t worry about providing food,” he says. “There’s more than enough around.”

Otilia Otacan, AAX Head of Operations, chimes in: there might be enough food, but there’s never enough coffee. She advises first-timers to “walk around and spot the professional coffee machines…because that’s where the good coffee is!”

To help expo-weary visitors in their quest for caffeine, AAX provided XL travel mugs—specifically, these mugs are 15% larger than average. This number was chosen as a reflection of what AAX provides to publishers: an opportunity to frictionlessly, respectfully monetize 15% of their audience. This 15% constitutes a young, highly engaged demographic who’ve consented to seeing advertising deemed acceptable by the Acceptable Ads standard.

AAX is restoring the value exchange between publishers and ad blockers, explains AAX CEO Fredrick Leuschner. And he sees this mission reflected in the slogan of DMEXCO 2019, “Trust in you.

“Trust is invaluable,” Leuschner states. “And restoring this value exchange works to restore an overall sense of trust.”

The double meaning of “Trust In You” wasn’t lost on the AAX team—and it served as an especially inspiring slogan to keep in mind for our first DMEXCO. “It was a reminder to believe in yourself and what you stand for,” says Otlacan. “That was easy to do in the thoughtful environment of DMEXCO. ”

VP of Sales Tim Cronin agrees. “I was deeply impressed with the quality of the conversations at DMEXCO,” he says. “You could sense a palpable shift towards building a fairer web that rewards all three participants in the value exchange: publishers, advertisers, and users.”


DMEXCO 2019 is over, but we’re already excited for what 2020 holds. And in the meantime, we’re gearing up for an autumn full of other events. Check out our upcoming engagements here or follow us on Twitter @aaxmedia and stay tuned for what we have planned.

AAX launches Blockmeter to show publishers how much they could be making from ad blockers in real time

Free tool allows publishers to measure their potential revenue lift from monetizing an untapped ad-blocking audience

New York, USA and Berlin, Germany – June 3, 2019 – AAX, the Acceptable Ads Exchange, today announced the launch of Blockmeter. Blockmeter is a free tool that enables publishers to measure the potential revenue lift they would generate from displaying Acceptable Ads to the segment of their audience that is using content-filtering software but willing to see less intrusive advertisements.

20% of all internet users have an ad blocker; of these, 90% agree to view certain non-invasive advertisements, namely Acceptable Ads. This is a tech-savvy, valuable demographic that represents a sizeable market share. Studies show that members of this demographic1:

  • are 80% more likely to make online purchases than non-ad-blocking users2;
  • are not against ads, because they believe in the rights of content creators and in the value exchange between users and content creators3;

  • generate 15% more page impressions than non-ad-blocking users4.

These valued users—who have an ad blocker installed and are opted in to the Acceptable Ads program—can be efficiently monetized by publishers who run Acceptable Ads as an additional revenue channel to their existing ones.


“We’ve launched Blockmeter to help publishers measure how much revenue they’d be leaving on the table by not monetizing their ad-blocking users, who are willing to see non-intrusive, respectful ads,” said Frederick Leuschner, CEO at AAX.


“The Acceptable Ads Exchange enables publishers to show consent-based advertising to their unique ad-blocking audience, thus helping them generate additional ad inventory that would otherwise remain untapped. Blockmeter is a simple way for publishers to see beforehand what their revenue lift might be, ” added Rotem Dar, Head of Commercialization at AAX.

Blockmeter is completely free to use for any publisher who wants to see how much more money they could be making from this valuable audience, no strings attached. To find out more about Blockmeter, please visit https://aaxmedia.dxdemos.online/blockmeter/. To express an interest in using the tool, please fill in the form at https://aaxmedia.dxdemos.online/try-blockmeter/.

About AAX

Acceptable Ads Exchange (AAX) is a programmatic marketplace that allows publishers, advertisers, and users to benefit from a healthy, respectful and human ecosystem. AAX is committed to a fair and profitable value exchange between user, marketer, and content provider.

By working with AAX, publishers are able to access and monetize over 150 million ad-filtering users with specially formatted ads consented to by those users and curated by an independent non-profit organization. For marketers it means the opportunity to target this precious user group which they otherwise have no access to.

Follow AAX on Twitter at @www.aax.media and read our updates at https://aaxmedia.dxdemos.online/news. For more information, please visit https://aaxmedia.dxdemos.online/about/.

* according to the Global Ad-Blocking Behavior report, the ad-blocking rate of websites with an audience aged 15-44 is between 20-32%

** Deloitte’s Technology, Media and Telecommunications Predictions 2018

*** YouGov Adblock User Report

**** Mozilla Report


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Industry Roundup: May 2019

Highlights

Markets

Technology

Supply

Regulation

AAX approved for TAG registry, signaling commitment to a better advertising ecosystem

New York City, April 25th 2019: The Acceptable Ads Exchange (AAX), is joining the Trustworthy Accountability Group (TAG). Acceptable Ads Exchange (AAX) is now “verified by TAG,” and is approved for listing in the TAG Registry of known and trusted players in the digital advertising ecosystem.

TAG, which was formed in 2015 by the American Association of Advertising Agencies (4A’s), the Association of National Advertisers (ANA), and the Interactive Advertising Bureau (IAB), is a cross-industry accountability program, established to promote transparency and fight against fraudulent traffic, malware, and internet piracy across the online advertising vertical.

TAG-registered companies have been verified as legitimate participants in the digital advertising industry through a proprietary background check and review process. Additionally, they receive a TAG-ID, a unique identifier which enables them to identify themselves as registrars in the TAG registry, augmenting their standing and reputation.

AAX understands that credibility and trust are essential for maintaining a secure, efficient, and sustainable online advertising ecosystem,” said Frederick Leuschner, AAX’s CEO. “Our TAG membership will provide our customers with further assurance that they are working with a reliable and trustworthy partner. At AAX, we will continue to strive to enhance our brand safety and fraud protection measures, and TAG’s membership is an important milestone for us.

About AAX

The Acceptable Ads Exchange (AAX) allows publishers, advertisers and users to benefit from a healthy, respectful and human adtech ecosystem. It is a programmatic marketplace that acts as a bridge between the needs of the publisher, the marketer and the wishes of the user, and provide publishers and advertisers a unique access to a segment of young, highly educated and high-income visitors.

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For more information, please contact:

Amir MILLO GROSS, Business Operations Manager
amir@www.aax.media