TLDR – While ad blocking software is great for users, big content producers are taking a hit. Here’s how your business grow in this new advertising landscape.
With so many voices shouting for your customers’ attention, it’s only natural users would want to block ads and cut out some clutter.
Now a YouTube star has shared some numbers on exactly how many people use ad blocking software, and it’s higher than expected.
Felix Kjellberg, more commonly known by his YouTube username PewDiePie, boasts over 40 million YouTube subscribers. In January, he shared that his videos earned him $7.4 million in 2014, making him one of YouTube’s top earners.
Now, Kjellberg says, YouTube was forced to launch its paid YouTube Red option in order to keep video producers like him on the site.
Since his income is entirely dependent on YouTube ads, Kjellberg has a vested interest in educating the public on the consequences of using those ads. In a recent blog post, PewDiePie shared some behind-the-scenes numbers about just how much ad blockers are affecting his revenue:
It’s a number that has grown a lot over the years, from roughly 15-20 percent when I started. And it’s not unlikely that it will keep growing. What this means is that YouTubers lose about 40 percent of their ad income. . . .
I think what many people still don’t realize is that: YouTube Red exist largely as an effort to counter Adblock. Using Adblock doesn’t mean you’re clever and above the system. YouTube Red exist because using Adblock has actual consequences.
A 40% loss in ad revenue from ad blockers is a huge amount. In theory, without ad blockers Kjellberg could have earned a whopping $12.3 million last year – a large jump from the relatively paltry $7.4 million.
Though big channels like PewDiePie can take the hit, smaller video publishers earning only $2000-$4000 per month are feeling more pressure. “Personally, I’m ok with if you use Adblock on my videos,” says Kjellberg. “But for smaller channels, this number can be devastating.”
A Warning for All Businesses
As more and more advertising networks feel the squeeze from ad blocking software, small businesses are also struggling to figure out how to reach new customers without ads.
The businesses who spent time growing an audience, building a relationship with that audience, and generously sharing valuable content will thrive in a post-ad world. They’ll be able to afford the higher ad rates stemming from the use of ad blockers because their lifetime customer value will significantly increase.
The goal of every business, large and small, should then adapt to this new advertising landscape. Here are some ideas to get you started:
- Share a valuable report or download in exchange for the privilege of emailing someone
- Provide pro-bono services for your customers as a “thank you” for signing up
- Create a forum or content distribution channel you own (and thus won’t change unexpectedly)
- Communicate frequently in a way that benefits customers (instead of spamming them)
- Reward loyal customers, especially for spreading the word about your business
- Ask for feedback to show you’re listening and to learn valuable insights into your customers’ thought processes
Want to chat about how your business can adapt to a post-ads world? Schedule a time for a FREE 15-minute consulting call, and we’ll speak with you about specific strategies your business can follow.
Image Source: PewDiePie Facebook