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Ronald Reagan’s non-intervention mantra applies to adblocking

Ronald Reagan’s non-intervention mantra applies to adblocking

There are enough people pouring fuel on the adblocking fire that a few water buckets from the government aren’t going to make a blind bit of difference, writes Dominic Mills.

Ronald Reagan was a polarising figure – although, with hindsight (i.e. comparison with Donald Trump) he looks like a raving moderate.

Nevertheless, two of the things he said stick in my mind. One was funny. Responding to allegations that he worked two-three hours a day and took an afternoon nap, he replied: “They say hard work never killed anybody…but I figure: why take the chance?”.

The second was overtly political, and I strongly disagreed with it at the time. He said the nine most depressing words in the English language were “I’m from the government and I’m here to help.”

Over the years I’ve come to believe that Reagan was essentially right, and the news that culture secretary John Whittingdale may intervene in the issue of adblocking brought his comment to mind.

The idea that the government, however well-intentioned, can act in any meaningful way – bar one – to take the fight to the adblockers looks like whistling in the wind. In any case, if the EU referendum goes in favour of staying in, then Whittingdale as a ‘Brexiteer’ is probably out on his ear.

And while I agree with his view that adblockers are the modern-day equivalent of racketeers, the truth is that they are responding to consumer demand. Adblocking, at heart, is a market-driven phenomenon, and so it requires market solutions, not government fiat.

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When governments intervene, they are essentially political, they tend to favour the establishment (i.e. those with the biggest lobbying budgets), the law of unintended consequences takes hold, and popular will may be discarded.

So what is the one exception where the government could do something? Well, that something – which would marginally ease, but not solve, the problem is the BBC – specifically the BBC’s online activities.

As long as consumers with adblockers who are denied access to commercial publishers – mostly newsbrands, but also some lifestyle publishers – can turn to the BBC for ad-free content, then the fight against adblocking is hamstrung.

Nevertheless, there is a sense that the ad market – by which I mean publishers, agencies, advertisers and their respective trade bodies – is getting its act together. All the parties have woken up to the problem, and at the same time the adblock blockers (i.e. the likes of PageFair, SourcePoint and Rezonence are at least getting a hearing.)

In the background, the IAB’s LEAN initiative is moving along, albeit slowly.

Adblocking could be a source of competitive advantage in the fight for consumers by all kinds of providers of online services.”

And here’s a video of a session from the ISBA annual conference earlier in March where the panellists exhibit more optimism (or less pessimism) on fighting adblocking than hitherto.

But it all seems terribly slow, and in the meantime adblock software penetration continues to rise – albeit not exponentially – and new threats, more serious, emerge.

In the mobile sphere Three’s proposal to incorporate Shine’s adblocking technology is the most visible manifestation of this.

There are indications that the Three initiative may fall foul of EU laws on privacy and net neutrality, but it is the underlying principle behind Three’s plans that are most scary for the ad industry.

This is that adblocking could be a source of competitive advantage in the fight for consumers by all kinds of providers of online services.

If this is so, then adblocking software could become a default addition adopted not only by all mobile operators but also, for example, web browsers (maybe not Chrome) and anti-virus software.

Imagine the framing of this proposition: do you want access to all those crappy, intrusive, data-gobbling, page load-slowing ads, or a nice clean online experience?

No prizes for guessing how consumers might vote for that.

Is this fanciful? It’s certainly the scenario painted by one of the adblock blockers I saw speak last week (Chatham House rules mean I can’t say who).

Of course, some will say that, and I paraphrase, if you’re selling fire extinguishers it helps if you portray everything in the house as a fire hazard.

But, and this is where the metaphor nears the end of its useful life, however many fire retardant regulations the government passes, it can’t stop fires. And right now, it looks to me like there’s enough people pouring fuel onto the adblocking fire that a few water buckets from the government aren’t going to make a blind bit of difference.

Steve Chester, Director of Data & Programmes, IAB, on 31 Mar 2016
“Dominic - good thought provoking piece. I agree that ad blocking as a whole is one for the industry to resolve and not for Government. John Whittingdale, by his own admission, is a big advocate of self-regulation is therefore likely to back industry's self-regulatory approach to dealing with ad blocking. However, there is absolutely a role for Government if there is a breach in net neutrality and consumer privacy and it is therefore their responsibility to understand the landscape and where they might need to intervene.

In terms of the industry addressing ad blocking, let’s not forget that before the summer of last year, that ad blocking wasn’t on businesses radar. The move by Apple to introduce the ad blocking facility on their iOS platform last September and publication of PageFair/Adobe’s ad blocking report were pivotal moments that helped to drive awareness and understanding of ad blocking.

Since then a huge amount of work has been undertaken by the IAB and our partner trade associations to review what changes need to be made and what actions need to be taken. These changes will have a fundamental impact on how the web is financed and how businesses make money, no mean feat, and as such cannot be decided quickly and unilaterally without a basis based on facts. As such the IAB LEAN standards, whose first draft will be ready imminently, have and are soliciting both global industry views and detailed consumer views about what advertising is and is not acceptable. Yes, we need to react as soon as possible to address blocking. But we need to do it right, not rush and fudge it.”
Johnny Ryan, Head of Ecosystem, PageFair, on 31 Mar 2016
“Dominic, happy to waive my right to non attribution under Chatham House from that meeting you referred to. Our position on this is here: https://blog.pagefair.com/2016/four-big-ideas-emerge-from-pagefair-global-stakeholder-roundtable/”
bob wootton, director, isba, on 31 Mar 2016
“Good comment as ever and thanks for the mention. I have a complementary perspective.

I'm more optimistic now that I've been to date, but I completely agree that progress is still too slow. This is because the issue involves everybody in the value chain, so everybody can point the finger at someone else instead of putting some effort into playing their part in the solution, which, by the way, is quite obvious and needs to be called out.

STOP PISSING PEOPLE OFF. YOU'RE NOT ENGAGING THEM SO YOU WON'T PERSUADE THEM TO BUY STUFF WHICH IS WHAT YOUR ADVERTISING IS SUPPOSED TO DO.

One of the biggest obstacles we face is that adblocking is largely indiscriminate, so there's not enough incentive for 'good' advertisers to advertise 'well' while others can continue to behave reprehensibly badly.

I agree that we should not look to or wait for Government to impose a solution - which might be misguided anyway - but I believe their awareness and involvement will serve to focus industry's minds on a more coherent solution.

Will it be enough? Who knows, but it is the next and necessary leap in the right direction, hence my (relative) optimism.”
Dale Lovell, Chief Digital Officer, Lovell, Adyoulike, on 31 Mar 2016
“An interesting post that looks at the wider issues around ad-blocking. Yes, they are a reaction to a consumer need, but the majority of ad-block companies are not operating for altruistic reasons: they are looking to make money. The answers need to come from within the industry - better ads and better consumer experiences - but where the government could help - rather than regulation and red tape - is to assist the industry in educating consumers that online publishers and businesses depend on ads to survive. Without advertising the internet would not be what it is - and to most people it's now a life essential.”
David McMurtrie, Head of Publishers UK, Google, on 31 Mar 2016
“Couldn't agree more, this a market challenge that both sides of the industry needs to address, The response should be led by the advertising/publishing industry, not by legislation which will only make the case for ad blocking stronger.”

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