Apple Changes Its Tune on Ad-Blocking

Analysts have been murmuring for a while in advance of last week’s Apple’s Keynote speech, and reactions are both intrigued and concerned regarding Apple’s stated intent to allow developers to create mobile ad-blocking extensions.

Internet users of all ages are less and less interested in participating in the current digital advertising ecosystem, and are utilizing technology that allows them to bypass forced advertising interactions on the web and on mobile in record-high numbers. Consumers are dictating how they wish to be approached by how they spend their dollars — brands that are engaging their audiences with authenticity and transparency are finding more success. A personal favorite of mine, digital clothing retailer Everlane (its simple, profound motto: “Radical Transparency”) was able to increase its sales last year by 200% over 2013. How? By removing the shroud behind sourcing and manufacturing, and inviting customers to understand the philosophy of the brand, the brand started a conversation and created trust. It continues to deliver quality product while owning the dialogue of accountability and pricing.

Stalwart mall staples such as Gap and J. Crew continue to buckle under the pressure of fast fashion and digital retailers (in June, Gap announced it would be closing nearly 25% of North American stores, and J. Crew laid off nearly 10% of its NY headquarter office). Digital media streaming services continue to kick the legs out from underneath traditional media and established service providers. The desire for unique or unconventional experiences and the thirst for uninhibited content access are reinforced by evolving technology, providing the consumer a form of leverage to make such demands.

That leverage is growing: According to a PageFair and Adobe study cited by Adage, “the number of people actively blocking ads in the U.S. rose to 45 million in the second quarter [2015], up 48% from the period a year earlier.” Leading up to the release of its iOS 9 update, Apple has announced it will begin allowing developers to create apps and extensions that block, cloak, or otherwise disrupt delivery of mobile advertisements. Although the company controls only approximately 20% of the smartphone market, Apple possesses a cultural clout unmatched by Google and Samsung, which begs the question: what is going to happen if ad blocking truly hits the mainstream?

This change is already causing discomfort and disruption in the industry. Thinkpieces from industry leaders have begun to spring up daily (including this one!) But as more consumers begin to excise advertisements from their mobile experience, the signs are clear that changes are coming for marketers. While iPhone users will still have to actively seek out and download an app from a developer, it is in the marketer’s best interest to develop some kind of contingency plan; even preparing for changes to its best practices is forward-thinking. Ad blocking is certainly disruptive, but in no way does is spell out the end of the industry – it only represents the changing paradigms of the brand-advertiser-consumer relationship.

What’s next for marketers, advertisers and publishers? Requesting whitelisting of a domain is always a useful initial option, and the option to refuse to display content when an ad-blocker is detected is still available. There have even been talks of litigation on behalf of the industry against ad-blocking companies (anyone remember the Napster lawsuit?)..Our take? Marketers and advertisers will need to consider native advertising more significantly, and must focus on development of seamless and organic sponsored or co-branded content (with increased scrutiny regarding the relevancy and immediacy).

It’s clear that technology favors a shift towards user accessibility. But as more developments arise, so will new solutions, new workarounds, and new arguments and conversations. And as usual, it is up to brands and marketers to discover innovative, creative, and ever more meaningful ways of connecting with their potential audiences.