Optimal Pitches Subscription Alternative To Ad Blocking

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Optimal.com founder and CEO Rob Leathern

From my Forbes blog:

Rob Leathern has spent the last decade and more trying to find better ways for advertisers to serve us online ads. So why are he and four colleagues from his previous company starting a new one that will let us pay publishers not to show us ads?

“We got to know the good, the bad, and the ugly,” said Leathern, founder and chief executive of Optimal.com. Since he sold his last company, the unrelated social media analytics and ad software firm OptimalSocial, to Brand Networks, in 2013, Leathern has been mulling how to fix a “broken” online advertising industry plagued by too many annoying, bandwidth-sucking, privacy-invading, malware-carrying banner and video ads.

To address that mess, today he’s announcing plans for what he calls a “smart subscription service for all the content on the web, minus the ads.” The idea is that people could sign up to pay a yet-undetermined monthly or annual fee to see any content they want but without ads for whatever sites they choose. They could still agree to see ads from sites that are showing ads “respectfully,” meaning those that aren’t deceptive in content or how they use people’s data for targeting.

After taking a small cut of those revenues, Optimal would pay publishers according to the percentage of overall Web traffic they generate. If users upvote a publisher or its specific content using Optimal’s system, the publisher could get a higher revenue share. Either way, the intention is that publishers would get at least as much revenue as they would from these subscribers viewing ads.

“We think there’s a legitimate use case for ad blocking,” says Leathern, whose younger brother is a magazine journalist in their native South Africa. “But if publishers don’t get paid, they can’t produce good content.” …

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Billions Of Online Ads Are About To Die A Well-Deserved Death

From my Forbes blog:

Businesses that run annoying ads on your smartphone and laptop are about to get a rude awakening.

Not only are online ad blockers quickly gaining in popularity, now two very big companies will soon offer us new ways to avoid in-your-face video and animated ads, pop-ups, and other intrusive ads that plague our online existence.

Today, Sept. 1, Google will start blocking ads that use Adobe’s Flash software, employed widely by video advertisers, in its Chrome browser. And as early as next week, Apple is expected to release its new mobile operating software for iPhones and iPads that will allow the installation of apps that keep ads from appearing in its Safari Web browser.

These developments suggest a new era in which you’ll finally be able to zap annoying ads like those in the video above. For a variety of reasons, it’s unlikely that ad blocking alone will cause advertisers and publishers a big problem. But the fact that the two biggest forces in mobile phones are both cracking down on annoying ads means the online ad business is about to change in a big way. …

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Why Ad Blockers Won’t Destroy Online Advertising … Yet

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From my Forbes blog:

Today’s release of another study on the rising use of ad blockers has sparked a new round of hand-wringing over the software’s blow to the online ad industry. Some $22 billion will be lost worldwide this year, according to the report from Adobe and PageFair, an Irish company that helps advertisers get some of that lost ad revenue back.

Sounds scary! But the concerns are overblown, at least for now. Here’s why:

* It’s still a relatively small percentage of people especially in the U.S., where only 15% of users employ ad blocking, according to the study.

And the U.S. is by far the most lucrative ad market in the world. So in the places where most online companies advertise, they’ll continue to reach the vast majority of users.

* Only desktop ads are getting blocked for now. And we all know we’re rapidly approaching the time when most of the ads we see will be on our mobile devices. So the fastest-growing ad market, on mobile devices, isn’t even affected yet, not least because app stores such as Google’s don’t allow ad blocking apps. …

All this isn’t to say advertisers shouldn’t be concerned. They should be. The ad blocking trend line doesn’t bode well for brands that expect to keep reaching people as easily online as they have everywhere else.

But advertisers that create ads that aren’t intrusive and may even be useful have less to fear. Those that keep trying to shovel pop-ups and annoying mortgage come-ons? They probably deserve to lose business anyway.

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