Ad-Blocking Results in $22B in Lost Ad Revenue, Says Report

Ad-blocking software has grown dramatically in usage; an estimated 200 million people worldwide now use ad-blocking software of which 45 million are in the U.S. That’s one of the findings of a report sponsored by Adobe and PageFair, two companies concerned about the implications of such software on the advertising industry. Ad-blocking is responsible for nearly $22 billion in lost revenue this year. The Dublin-based PageFair focuses on helping advertisers regain some of this lost revenue.

PageFair LogoAccording to The New York Times, the report notes that the loss of $22 billion in revenues this year “represents a 41 percent rise compared to the previous 12 months.” The websites most impacted by ad-blocking are gaming, social networks and technology-related.

Ad-blocking is even more commonly used in Europe than the U.S. The report notes that 77 million people use it in Europe; more than one-third of people in Poland have and use the software. German startup Eyeo, which sells the popular Adblock Plus browser plug-in, says it has about 60 million active users.

Video advertising is of particular concern. “Some of their most valuable content is starting to be blocked,” says Adobe director of product marketing Campbell Foster. Mobile phone users are also downloading ad-blocking software. But the Adobe/PageFair report reports that “only a small fraction of ad-blocking comes from mobile devices.”

But PageFair chief executive Sean Blanchfield told NYT that his company is seeing “a shift to mobile.” “It will unleash a huge growth spike in people using ad-blockers,” he adds.