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Tech companies are paying to get around ad blocking: Google, Amazon, Microsoft and content marketing platform company Taboola are paying the company that makes AdBlock Plus, a popular software solution that allows users to block ads, to exclude their ads from the blocking system, the Financial Times reported Sunday. The financial terms of these deals remain unclear. The existence of these deals highlights how some of the biggest ad-driven tech companies are increasingly viewing ad-blocking software as a significant threat to their core business models.
As we’ve said before, the use of ad blockers is exploding worldwide. The number of people using ad blocking software on desktop and mobile worldwide grew 69% year-over-year to 144 million in Q2 2014. According to an analysis of data from PageFair and Adobe, this represents about 5% of the world’s Internet users, which is no small percentage. AdBlock Plus is by far the most popular blocking software, and it comes as a free browser extension. This solution does not block all ads, and in some cases it allows some types of ads that it deems acceptable (you can read about their strict standards here). Presumably, these big tech companies are paying AdBlock Plus to ensure that ads always meet their standards.
Globally, ad blocking is more prevalent among Firefox and Chrome users than users of other browsers: Around 67% of people who use ad blocking use the Chrome browser, and another 25% use Firefox, compared to just 4% who use Safari and the same percentage who use Internet Explorer, according to data from PageFair and Adobe.
In the US, younger users and men are more likely to use ad-blocking software. Over 40% of US internet users ages 18-29 say they use ad-blocking software. US men are 48% more likely than women to use some kind of ad-blocking plug-in when browsing the web. BI Intelligence
Yahoo took search share from Google in January: Yahoo gained search engine share in the U.S. in January, a new trend in which Google continues to lose dominance in the overall search market, according to a new report from Statcounter, a company that tracks and analyzes web traffic. Specifically,
Yahoo!’s U.S. search engine share, combining desktop and mobile, rose to 10.9% during January 2015, up from 10.4% in December and 8.6% in November. This is Yahoo!’s highest search share since 2009, according to StatCounter.
Meanwhile, Google’s search share in the U.S. fell below 75% for the first time since StatCounter Global Stats began recording data in July 2008. That’s down from a 75.2% share in December and a 77.3% share in November. BI Intelligence
StatCounter claims that Yahoo’s recent deal with Mozilla to be the default search engine for its Firefox browser has directly boosted Yahoo’s share and led to a decline in Google’s search share. The deal effectively ends Mozilla’s longstanding partnership with Google. While this is good news for Yahoo, it remains to be seen whether the company will be able to continue to steadily increase its search share in the U.S. in the coming months, and whether it will be able to do so beyond its expensive search deals with external web browsers. Financial terms of Yahoo’s deal with Mozilla were not disclosed, but ZDNet reports that Google paid around $300 million for Mozilla’s recent three-year renewal with Google.
These developments add to Google’s woes. In its fourth-quarter earnings report last week, the tech giant reported slowing advertising revenue growth (15% year-over-year growth in Q4 2014, down slightly from an average of 17% over the past four quarters). The company also reported that growth in paid clicks on Google and its network sites has slowed, and that average cost-per-click continues to decline.
Univision joins Sling TV lineup: Sling TV, the cord-cutting video streaming service launched by Dish Network, has acquired over-the-top (OTT) multi-stream rights to both live and on-demand content from Spanish-language broadcaster Univision Communications, according to a press release issued Monday. The Sling TV-Univision deal includes the flagship Univision Network, UniMas, UDN (Univision Deportes Networks), Galavision, El Rey Network, Bandamax, Depelicula, Depelicula Clasico, Telehit, TL Novelas, FOROtv, and Univision and UniMas stations nationwide. Sling TV previously signed similar deals with Walt Disney, A+E Networks, and Scripps Network Interactive.
We previously reported that early reviews of Sling TV have been mostly positive. Here are some highlights from those reviews.
Sling TV is like the “Netflix of live TV.” For $20 a month, with no contract, any American with internet access can use the app on their computer, smartphone, or tablet. It’s also compatible with Roku 3, Amazon’s Fire TV, and Samsung’s smart TVs. It’s a TV-like experience. Channels are broadcast live, so content plays whenever someone watches. There’s no lag time like you’d experience with other streaming video on demand services like Hulu. Channels are organized by content categories like sports and news, making it easier for users to find what they want to watch. The basic service is limited. With only 12 channels, including ESPN, Disney, CNN, TNT, and TBS, some consumers may find Sling TV not worth the money right now. Additionally, there’s a limited selection of movies to watch or rent for free. As Sling TV becomes more popular, more networks and studios will have content available, which will increase adoption and improve the value proposition.
The service is expected to be generally available nationwide during the first quarter of 2015.
Amazon Echo makes music streaming a little easier: Amazon’s cylindrical voice-activated personal assistant device, the Echo, released an update on Saturday that brings voice control support for Spotify, iTunes, and Pandora. The new update lets users control music playback using their voice (e.g. pause, play, skip songs). Previously, the Echo only integrated with three separate music streaming services — TuneIn Radio, iHeart Radio, and Amazon Prime Music — and users had to rely on their iPhone or Android smartphone, or the Echo remote, to control music streaming. According to ZDNet, the company notified users of the update via email.
The Echo is currently in limited release and available to purchase by invitation only. BI Intelligence has been testing the device and you can read our first full review here.
Messaging App LINE Enters Grocery Delivery: Popular Japan-based messaging app LINE is testing a range of fresh and non-fresh food sales and delivery options through its platform, according to TechCrunch. The company plans to begin piloting the feature in Thailand this week, initially using a Groupon-esque “daily deal” model. It plans to promote three daily deals and two “big discount” deals per week, with a gradual expansion. LINE claims to have 36 million users in Thailand.
The move comes as major messaging app companies look to expand their platforms beyond just communication. China-based WeChat is a leader in both user numbers and successful diversification of features. The app combines messaging with banking, retail shopping and games. According to a study conducted by the China Internet Network Information Center, one in five WeChat users (out of a total of 438 million monthly active users) viewed the “WeChat Store” in 2014. In the United States, Snapchat recently launched a new “Discover” feature, giving users access to photos, videos, articles and other content from major media companies such as ESPN, Food Network, CNN, Vice and Discovery Channel.
LINE released a standalone free shopping app for retail items called “LINE SHOP” in July 2014. The app is still in operation, but future plans for this initiative are unclear.
Industry Trends:
The Guardian News & Media has hired Rachel Israel as executive vp of Guardian Labs US. Israel was previously executive director of strategic planning at media agency Mindshare. Guardian Labs is the company’s in-house agency that develops branded content and other new experimental initiatives for advertisers. Israel is tasked with expanding the division, which currently has about 15 employees.
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Chart: Google earnings — fourth-quarter ad revenue grew but shows signs of slowing
Mobile App Install Advertising Report: Spending Forecasts, Performance and Pricing Trends, Case Studies
Chart: Facebook Revenues — Mobile continues to drive strong revenue growth in Q4