Ad blockers: How better ad quality increases acceptance of advertising

by Christoph Seehaus, Senior Account Manager at adlicious

Online advertising is everywhere, on every device, whether we are on the go or at home. From banners to videos, programmatic ads are ubiquitous, following us across almost every website. It is therefore quite understandable that the number of ad blocker users has risen over the years. However, anyone who blames the sheer volume of ads is missing the point. Just like in human interaction, the first impression counts. We are only convinced by visually appealing, content-rich advertising that offers real value; we prefer to block out the rest. And that is exactly what we do. As a natural reflex to intrusive online advertising, 22.8 million Germans—36% of all German internet users—used software to suppress ads last year. Ad blocking is not a new trend; it has been on the rise since 2015, and not just in Germany. A look beyond national borders confirms this: 3 out of 10 Austrian and Swiss internet users also block ads. Ad blocker users in the DACH region are largely in the 18–34 age bracket—a demographic highly relevant to brands—and spend several hours a day online. Furthermore, they are better educated than average and have a high household income. This is a high-spending target group that doesn't want to see online ads—or do they? They do, but not just any ads. 59% of ad blocker users are annoyed by ads that are widely distributed but have little relevance to their personal preferences and interests. Intrusive advertising, especially pop-ups and interstitials, has a lasting negative impact on the browsing experience for 58% of users. Don't do it like everyone else—do it better!

Although users with ad-blocking software are more critical of online advertising, they do not reject it entirely. Only about a quarter of these users want to consume web content completely ad-free; the majority are not fundamentally opposed to ads. Brands and agencies can still reach these audiences through "Acceptable Ads" providers. Quality is the keyword here—more personalized and dynamically tailored ad formats are needed to reduce the use of ad blockers. Display banners are at the forefront of this, as they use data in real-time and fully automated ways to present each user with content that is most relevant to their individual decision-making process at that exact moment. After all, it is no secret that banners with generic, redundant "one message fits all" content will never achieve the highest conversion rates or the lowest cost per order.

High-quality ad creative should offer the following:

• Unique designs: Only with custom-created ad assets that go beyond simple color adjustments can you stand out from the flood of online advertising. And this is not just figuratively worth its weight in gold. In addition to significantly more clicks, the brand, product, and message are also remembered much better.
• High-quality image and video material: This should go without saying, but unfortunately, it often doesn't. Blurry brand or product images are a no-go—especially when a large budget is spent on media distribution but very little on the actual creative.
• Target group fit through dynamic personalization: The key to efficient campaigns. The more precisely the ad creative matches the user's interests and past behavior, the more that relevance is reflected in the desired metrics.
• Continuous optimization: Anyone who doesn't adjust programmatic campaigns daily—and especially on weekends—is leaving money on the table, particularly on those high-spending days.

The advantages of personalized advertising are clear for both sides: ads tailored to the user not only trigger stronger recall of the brand and product, but are also perceived as more innovative and personal. The initial creative effort pays off through higher click-through rates and more efficient media spend. These, in turn, translate into a higher probability of purchases and conversions.

What does ad blocking mean for advertisers?

First things first: the user holds the power and has been given a potent tool in ad blockers. The steadily rising number of ad blocker users since 2015 is the consequence of poor quality in ad creation and targeting. Clients and agencies are challenged to define their target groups and ad formats more precisely and to manage their programmatic campaigns more effectively. If this continues to be neglected, "Acceptable Ads" providers will be the big winners of the growth in ad blocking. For clients and agencies, however, the requirements for successful campaigns will become more difficult due to additional surcharges on inventory. There are plenty of arguments, therefore, to act now and win people over with high-quality creative in precise campaigns.