How ad blockers affect your ad revenue

street-sign-2At the intersection of your ad block rate and available inventory you will discover how much revenue you are losing. Ad blockers prevent your readers’ browsers from connecting to ad networks like Google to display ads. As a result, you are not able to bill your advertisers for impressions based on those page views, even though you incurred the usual costs in producing and hosting that content. Your ad revenue goes down as your ad block rate increases. But how much are you losing as a result of ad blockers? And how much can you potentially recover? These are questions that you can best answer once you have solid ad block analytics in hand.

Once you know your true ad block rate with accurate analytics, the next step is to assess how that affects your ad revenue. When an ad blocked user shows up, the best case is that they don’t see any ads and you are not charged for those blocked impressions. In the worst case, you may be charged for those blocked impressions. Advertisers do not want to pay for blocked impressions for obvious reasons.

Because your directly sold ads command a premium price as compared with your programmatic, what effectively happens is that your ad blocked users eat into your available inventory for directly sold ads. So long as you have sufficient available inventory (ad block rate is less than your available inventory), the net result is that ad blocked users will decrease your programmatic ad revenue. However, if you are sold out and do not have sufficient inventory, then ad blocked users start eating into your direct ad revenue, your most profitable revenue stream. If there are times when your available inventory approaches zero – such as for special events or around holidays – then your ad block rate will have a more significant impact on your revenue than at other times.

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