Society worse off without quality editorial, says consumers
65% believe society would be worse off without high quality, low cost newspaper and magazine content, yet ad blockers threaten future of media
London –2nd September 2015 – The vast majority (65%) of UK adults think society would be worse off without free or low cost, high quality editorial from newspapers, magazines and their online sites, according to new research from Teads(1).
Despite this, 15% of consumers have already installed ad blockers(2), with the number growing each month, threatening to cut off essential revenues that fund publishers. Ironically, those who use ad blockers are 12% more likely to value low cost or free editorial than the general population(3).
Most publishers now reach far larger audiences online than in print: 7 out of the 10 popular news websites in the UK are free to use and supported by advertising revenue. The growing use of ad blockers could be catastrophic: recent research showed that ad blockers will hit global ad revenues by more than £14 billion in 2015.
The Teads study also found that consumers underestimate the contribution of advertising revenue in sustaining the business models of quality publishers. Around half of UK newspaper revenues come from advertising4, rising to 75% for pure online titles, yet 62% of consumers underestimated this amount, or simply didn’t know.
Justin Taylor, UK MD Teads said; “Editorial content from premium publishers informs and entertains us every day, but most people don’t realise that it’s advertising that keeps this free or very low cost. However, we can’t blame people for using ad blockers online. Advertisers must respond with far better ads that are less intrusive and more relevant to consumers. We
need to focus on creating experiences that are respectful of the end user and which engage,
rather than enrage readers.”
The Teads study asked respondents specifically about their attitudes to online video advertising, the fastest-growing4 of ad mediums, increasingly favoured by brands. Over half (52%) of consumers said they’re more likely to enjoy video advertising if it’s relevant to what they’re reading and 82% prefer video ads when they’re in control and have the option to
Taylor adds, “It’s clear that online video ads need to be carefully placed so that they are directly relevant to the content someone is consuming at that time and that the user has control. Addressing these issues will reduce consumer animosity towards ads and lead to
greater viewing figures for advertisers.”
Teads has launched a campaign to help people understand how advertising funds the things we love. It includes a short film inviting people to ‘imagine a world without advertising’. The campaign is calling for advertisers and publishers to employ more innovative creative and formats online: www.teads.tv/advertisingmatters.
Notes to editors
1. Teads commissioned independent research company, Censuswide to survey 2,008 UK adults in August 2015. The survey excluded those working in publishing or advertising, so as not to
bias the results. All figures relate to this survey data unless otherwise stated.
2. IAB Ad blocking software – consumer usage and attitudes, July 2015 http://www.iabuk.net/research/library/ad-blocking-software-consumer-usage-and-attitudes#XW8K6lTZeMJYL4cX.993.
3. 73% of those who use ad blockers and read newspapers, magazines and their online sites say they agreed with the statement: ‘Society would be worse off if quality independent editorial (from things like newspapers and magazines – both on and offline) did not exist and was not available to people at a low cost’ compared to 65% of all UK adults.
4. Deloitte/Advertising Association ‘Advertising Pays: How advertising fuels the UK economy’ January 2015 (p38) http://www.adassoc.org.uk/wp-content/uploads/2014/09/Advertising_Pays_Report.pdf
5. PwC Entertainment and Media Outlook report Source
Teads, founded in 2011, is the inventor of outstream video advertising and a global monetization platform for publishers. Publishers work with Teads to create brand new video inventory and manage their existing inventory, monetizing it through programmatic buying, their own sales force, or third
Teads’ outstream video advertising solutions encompasses a series of formats inserted deep into media content, like the inRead playing inside articles. It is changing the game within the video advertising market by creating unprecedented levels of premium inventory, which did not exist before.
Brands and agencies can access this top-tier, premium inventory, available on the web and on mobile, through programmatic or managed services. Through its managed services capabilities, the Teads team execute on their clients behalf using its platform.
Teads has a team of over 400 employees, 100 of which are in the innovation team, across 26 offices
in 18 countries.