Google to tackle ads
Alphabet’s (GOOGL) Google is expected to begin rolling out the ad filter built into its Chrome browser in February, according to VentureBeat. Google earlier this year said that it would integrate an ad blocker into Chrome as part of its efforts to improve online ad experience.
Google would base its decision on which ads to block and which ones to display utilizing the digital ad standards provided by the Coalition for Better Ads. The Coalition for Better Ads considers sites with flashing ads or ads with autoplay sound as providing a poor user experience. Google’s ad blocker would target annoying or intrusive ads.
Potential relief for publishers
Google has portrayed its Chrome ad blocker as good news for Internet publishers. By cracking down on annoying ads, Google hopes to discourage the use of third-party ad blockers that often result in advertising revenue losses for online publishers.
Business intelligence firm eMarketer forecasts more than 25.0% of US (SPY) Internet users could deploy ad blockers in 2017, compared with less than 16.0% of Internet users deploying ad blockers in 2014.
Advertising is Google’s lifeblood
The rise of third-party ad-blockers could pose a threat to the Internet advertising industry. As a result, companies like Google and Facebook (FB) have responded by creating and deploying anti-ad-blocking technologies (QQQ) to protect their most important revenue stream.
Alphabet, Facebook, Twitter (TWTR), and Snap (SNAP) generate more than 80.0% of their total revenues from advertising. In 2Q17, Facebook reported that its battles against ad blockers saw its desktop advertising revenues increase 17.0% year-over-year in the quarter.