Start Date
10-12-2017 12:00 AM
Description
The rise of Ad-Blockers has prompted discussions about whether the online advertising has become a nuisance rather than a benefit. Many argue that greedy advertising practices coupled with less stringent regulation of online advertising has led to this steep rise in users blocking ads on websites, thereby affecting revenues of websites dependent on online advertising. While industry research on one side has argued that increased ad-blocker usage among users might incentivize advertisers to curb formats of online ads, and therefore improve online advertising., others have argued that rising user memberships could make websites suffer in terms their revenues, further impacting e-business models. Our research attempts at clarifying this confusion by analyzing formulating the ad-blocker platform as a two-sided platform, with advertisers and users as participants. We develop a game theoretic model to better enhance pricing policy and platform participation discussions in the context of platforms such as ad-blockers.
Recommended Citation
Ray, Abhishek; Ghasemkhani, Hossein; and Kannan, Karthik N., "Ad-Blockers, Advertisers, and Internet: The Economic Implications of Ad-Blocker Platforms" (2017). ICIS 2017 Proceedings. 15.
https://aisel.aisnet.org/icis2017/EBusiness/Presentations/15
Ad-Blockers, Advertisers, and Internet: The Economic Implications of Ad-Blocker Platforms
The rise of Ad-Blockers has prompted discussions about whether the online advertising has become a nuisance rather than a benefit. Many argue that greedy advertising practices coupled with less stringent regulation of online advertising has led to this steep rise in users blocking ads on websites, thereby affecting revenues of websites dependent on online advertising. While industry research on one side has argued that increased ad-blocker usage among users might incentivize advertisers to curb formats of online ads, and therefore improve online advertising., others have argued that rising user memberships could make websites suffer in terms their revenues, further impacting e-business models. Our research attempts at clarifying this confusion by analyzing formulating the ad-blocker platform as a two-sided platform, with advertisers and users as participants. We develop a game theoretic model to better enhance pricing policy and platform participation discussions in the context of platforms such as ad-blockers.