Abstract

Ad revenues have become a major income source for online platforms and ad-sponsored content services allow online users to access abundant information at a practically little cost. However, the rising incidence of ad-blockinga new type of low-cost softwarewhich is allowing online users to remove online ads, has started to challenge this online business model. However, content providers and advertisement agencies are complaining about this technology and describe it as a “highway robber”. In this study, we investigated the impact of AdBlock on the firm's profits and examined how it damages them. We also analyzed the effect of content restriction strategy, one of the most popular responses of content providers. We demonstrate that although content restriction strategy can help to cover some of the losses, the firm should not take it as a perfect solution to avoiding the negative impacts of AdBlock.

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