It is a common belief that Google, Amazon and Microsoft are paying to unblock ads that are being blocked by the internet users, which are reducing the amount of revenue that these companies may generate from their ads. Many soft-wares are available in the market that help blocking such ads and are being widely used by people to block pop-ups that they find bothersome, while they are browsing.
According to Google Inc’s first quarter earning in 2014, 22% of the total revenue was obtained by ads. On the other hand, Amazon.com, Inc. (NASDAQ:AMZN) earned 33.5% of it’s total revenue in 2014 through ads on web and Microsoft business on the other hand saw an increase of 47% in the growth of revenue that was received from advertisements. If internet users start blocking ads that are of such value to these companies, a serious decline in the yearly earnings of these organizations can be expected.
Unblocking of pop-up ads has become quite common over the past couple of months among the internet users as different soft-wares that help blockage of unnecessary ads are found in abundance now. Companies like Google Inc, Amazon and Microsoft Corporation (NASDAQ:MSFT), all have shown high revenues earned from advertisements in their previous report earnings.
Former Digital Chief of New York Times, Martin Nisenholtz says that around 23% population of the US is using these ad-blocking soft-wares. But if the companies like Google, Amazon and Microsoft pay to these companies in order not to block their ads; it will not be fair for the clients who are purchasing the ad-blocking soft-wares to ensure the opposite.
According to the software news, one of the most popular ad-blocking software in the United States is said to be Ad Block Plus which is developed by a German company. According to the statistics, this software was downloaded 500 million times since it has been launched, and every month according to the reports over 50 million users are seen to be active with the usage.
The growing number of ad-blocking soft-wares are seen to be a serious threat to these companies. The point that the idea has gained popularity among the masses is a disastrous change, that is sure to bring those companies down which solely depend on revenues generated by ads.
Nonetheless, these business giants need to figure out a way to overcome this problem as soon as possible before it takes a toll on their revenue generation.