Search giant Google makes most of its money from selling ads online. As an increasing number of people are turning to ad-blocking software to avoid the unruliest of ads, Google and other companies that depend on ads to generate revenue are beginning to act to make sure their business models remain profitable. Google has recently invited European media firms to back the tech firm in improving its ad implementation.
"The problem is that ad blockers that block all ads are throwing the baby out with the bathwater," said Google's president for European, the Middle Eastern, and African (EMEA) strategic relationships Carlo d'ASaro Biondo. Google was in attendance at a media conference in Germany and explained to European media companies why Internet ads needed to be refined. Many banners and advertisements that users find across the Internet are intrusive and off-putting. Ad-blocking software used is costing Google and others big time, and the company is recognizing the need to change how ads are interacting with potential customers.
Google is pushing its Digital News Initiative to help appease the media industry. The search giant's services are costing media companies in ad revenue because products like Google News, Google Search, and even YouTube are capturing wider audiences than traditional television companies and the like. However, Google is hoping to partner with this industry by offering support in the form of technological training and funding. The project seems to be winning newspaper publishers over and so far 100 have agreed to participate.
Despite the threat to Internet advertising, the online ad market in Europe is experiencing a rise in value. Last year, the market was worth $33 billion. News site and publishers make their money from their involvement in this market, meaning Google's partnership increases the chances their businesses will remain viable in the future. Axel Springer, the largest newspaper publisher in Germany, has taken drastic steps to stop users from using ad-blocking software on their site. If a user has ad-blocking technology active and they visit Springer's Bild tabloid site, they can expect to be banned. Axel Springer's actions highlight the reality of lost revenue and possible solutions. A massive 200 million users have ad-blocking software in use, and $22 billion is not collected because of it.
The ultimate goal is to control ads and make them relevant to users while remaining conservative enough as to not disrupt the viewing experience. Getting everyone on board will be a tough fight for Google, as will be reversing user habits and having them ease off ad-blocking software. The company has already started making strides to help reduce the negative effects ads may have. A new service called Accelerated Mobile Pages will help load pages faster on smartphones, which eliminates slow page loading speeds as a reason for users to seek the aid of ad-blocking solutions.