Ad blocking software is being used by as many as 40 percent of German desktop users – and it is nearing 20 percent in the United States. For some demographics, use in the U.S. is as high as 50 percent. As the issue becomes increasingly critical, there needs to be a transparent value exchange between publishers, advertisers and consumers, says Ben Barokas, the founder and CEO of Sourcepoint, a start-up that works with publishers around the ad blocking issue.
The key is for publishers is to reset their monetization strategy, he explains. This involves offering consumers various payment options — from accepting ads to moving to a subscription model.
After founding AdMeld and selling it to Google for $400, adtech veteran Barokas launched Sourcepoint in June with VC backing and offices in Berlin, London and New York.
Of the much talked-about decision by Apple to allow users to install ad blocking software, he says the impact so far as been limited but addressing the problem is essential now.
Ad blocking will be be in many conversations at the upcoming CES show. This video is part of our “Road to CES” series leading up to the big electronics show. Our series is sponsored by YuMe. Please find additional videos from the series here.