Re: Ad-blocking Software

From: Jim Kulakoski <contest_at_contestworld.com>
Date: Sat, 26 Jun 1999 21:00:52 -0500 (CDT)

SETH RUFFER WROTE
> ...about the surging popularity of ad-blocking software,
>which allows a user to open a website without having the ads
>on the page served on his/her pc. Any comments about the
>impact this might have on the internet advertising industry?
> ...I'd especially like to hear from other owners of small
>independent sites that depend on advertising for at least
>part of their revenues. Thanks!

Our site's revenues at Contestworld
http://www.contestworld.com are about 75% advertising driven
(the other 25% comes from contest marketing services).
Obviously ad blocking software would have a negative affect
on revenues if the end result were a reticence on the part
of our sponsors to place ads for fear they would not be
displayed.

But lets look at the big picture. Advertising, for the most
part, is what makes web content free to the end user.
Therefore if the wholesale implementation of ad blocking
software by the surfing public were to come to be; the end
user (web surfer) would be cutting off their nose to spite
their face.

It is not just the smaller sites that would be affected. As
a matter of fact -in the short run- the larger sites with
greater overheads would probably be affected to a greater
extent.

The end result, if the software was successful, would be the
beginning of a more user fee based system of accessing web
content. In such a scenario the first site(s) in any
particular genre that were able to get users to ante up
a long term (say a year's) access fee would be highly likely
to be able to hold onto that user more easily than in today's
open market where the competition is just a click away.

This would lead to less overall competition and a
deterioration of creativity and choice.

Sincerely,
Jim Kulakoski - jimk_at_contestworld.com
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Received on Sun Jun 27 1999 - 05:25:06 CDT