The Problem With Ad-Supported Web Properties
March 9th, 2010 | by LaSean Smith
FireFox popularized extensions to the browsers that allow users to prevent ads from being displayed when they visit web sites. It’s become somewhat of a cool thing amongst geeks to claim they have the latest and greatest ad blocker. Others point to privacy concerns as a reason for blocking ads. There’s some validity here. The ads on a web page can come from a number of third-party sources. They are likely collecting information on you even though you haven’t explicitly given them permission. The risk is that while you might trust the website you’re own, their ad partners may not hold up their part of the deal. Regardless of your position on these tools, there’s an audience using them.
Ars Technica, a popular tech blog, recently blocked access to their website for people using adblockers. Their audience called foul. It may have been a vocal minority that complained, but the fact that this is even an issue is telling. The disconnect here is that Ars Technica and some of their customers don’t value the content the same – and that’s a problem. One of the comments (from Jerry Leichter) in this article nicely recaps the situation.
What Ars was saying was pretty straightforward. They have two sources of income: Ads and subscriptions. If you are a subscriber, you don’t see any ads. Ars only gets paid for ads that are actually downloaded, which ad blockers stop. So someone who neither subscribes nor allows ads to download doesn’t help pay for the site. It’s amazing how many people think their *readership* is so valuable that Ars should be happy just to have them there. Sorry. Ars makes no bones about being a commercial site that pays its writers.
There are three take aways here. First, pick your customers wisely. Some people are never satisfied and you shouldn’t try to appease them simply because they pay attention to you. Second, serve relevant ads. If you can’t find enough targeted ad inventory then you need to start exploring new ad formats and/or beefing up your internal sales team. Otherwise there is a risk that your audience will leave. Or worse, they’ll stay without generating revenue. Finally, make sure ads are the right model for your business. If advertising is the only way to monetize your content you should begin to question it’s value.
Bottom Line: Ad-supported websites can be a thankless business. Enter at your own risk.
