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Cupertino-based Apple Inc released the beta version of its much-hyped iOS 9 this week. The latter is the ninth update of Apple's operating system that powers its iPhones, iPads and iPods. But while most tech enthusiats and Apple users are rejoicing, media planners, advertisers and publishing houses across the world are nervous thanks to the operating system's in-built ad blocking features - a first by Apple. The fear is that Apple's move could goad rivals to attempt something similar.
So far, users have had to relay on external software to block ads. This is typically downloaded by them onto their mobile phones. But with Apple allowing its operating system to block ads, the trend is expected to become mainstream.
According to Reuters Institute Digital News Report, some 47% of US internet users already use ad blocking software. For 18- to 24-year-olds, that number is even higher at 55%. A recent report in Fortune cites a worrying statistic that two ad blockers, UC Browser and Maxthon Browser, claim they have over 600 million users between them, mostly in India and China. The number for India was not specified though. The companies were not available for comment.
Even then, digital experts say that India is insulated for now.
"The digital wave globally precedes ours by a few decades. So the fatigue factor for online ads visible with users globally is not the case in India," says Manas Mishra, formerly with Lintas Media Group, who now runs his own media agency called Mediant Communications in Gurgaon.
"India is a fairly young market when it comes to digital advertising, so it is unlikely that users are skipping or blocking ads the way their international counterparts are doing," he says.
According to a recent GroupM forecast, digital advertising in India was pegged at 9.5% of total advertising from 1.2% a decade ago. This digital market, GroupM said, would touch Rs 4,661 crore in size this year. Total advertising was pegged at Rs 48,976 crore by the agency. Industry estimates are that in another five to seven years, digital advertising could touch about 20-25% of total advertising, by which time it would have crossed the Rs 10,000-crore mark.
Mahesh Murthy, a digital entrepreneur and investor, who runs a Mumbai-based digital agency called Pinstorm, says, "While ad blocking on TV and direct-to-home has been around for a while, the problem seems acute now because there is a mechanism to block ads on digital. Advertisers are aware of this and have been talking to us to help them look at options. One way out is native advertising apart from making engaging storyboards. Reproducing your TV commercials on digital will simply not work anymore."
Arvind Sharma, former chairman and CEO, India sub-continent, Leo Burnett, who now has his own e-commerce platform called Indiasarihouse.com says, "The probability of other handset makers considering the option of ad blocking could make the threat very real. So advertisers will have to take heed of these emerging trends. Earned media, which is content that makes users want to say that they want more of it, is the biggest phenomenon on digital today. Advertisers will have to take note of this."
