Don’t Worry Much About Ad Blocking, According To JPMorgan Chase & Co. (JPM)


JPMorgan Chase & Co. (NYSE:JPM) advises not to worry much about ad blocking in the wake of Apple Inc. (NASDAQ:AAPL)’s iOS9 software release, which has allowed for the feature to block ads on iPhones for the first time. However, it has been months since the momentum gained ground on the ad blocking trend, as well as, conversations about its impact on publishers apart from ad tech firms.

Most Likely To Use

JPMorgan Chase & Co. (NYSE:JPM) found ad blocking to be mainly a desktop issue. The company ran a survey of 520 internet users in the United States of above the 18-years of age. The analysts brought out some interesting facts. Accordingly, Internet users were half as likely to use an ad blocker on their mobile devices compared to the desktop.

As far as those who have downloaded mobile ad blockers, the brokerage believes that it will affect only ads on mobile browsers and not apps. However, ad blocking startup, Shine, has reportedly claimed that it can block app ads also though the solution is yet to go on live for consumers to make use of it. Interestingly, the financial services provider has backed up its argument. Another survey suggests that 90% of the time were spent on mobile is within apps in the United States, Flurry said. Therefore, reports suggest that only a small potential browsing time was acted by ad blockers.

Ad Blocking Issue Overblown

Until now, ad blockers on iOS could block ads only on the Safari browser. JPMorgan Chase & Co. (NYSE:JPM) said that apps of ad blockers have made their way to the top slot impressively in the app charts. However, Apple Inc. (NASDAQ:AAPL)’s Safari browser share is only 4% on the desktop while it enjoys 23% share on mobile, as well as, the tablet. That was based on the data of StatCounter.

On the other hand, publishers are not just remaining a mute spectator to the goings on. The brokerage said that they were also taking action by citing The Washington Post, and CNET withholding content from users if they have turned on the ad blockers feature. Its survey indicated that 40% of people were ready to add quality or trusted sites to their whitelists of ad blockers’. Alternatively, their ad blockers option should be disabled to access the content they want.

Loss Of Data

JPMorgan Chase & Co. (NYSE:JPM) said that it took into every aspect and believe that the greatest risk of ad blocking was not a loss of ad revenue. In fact, Google Inc (NASDAQ:GOOGL) has been predicted to lose as much as $6.6 billion in revenue due to ad blockers. However, the brokerage said that the biggest impact would undoubtedly be the loss of data.

The financial adviser said that publishers are using data tracking to discover more about their readers. It believes this will finally impact the revenue in the long-run since the publishers can gauge their readers’ preference to create content of their liking.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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