The effect of ad blocking on website traffic and quality

A-Tier
Journal: RAND Journal of Economics
Year: 2018
Volume: 49
Issue: 1
Pages: 43-63

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Ad blocking software allows Internet users to obtain information without generating ad revenue for site owners, potentially undermining investments in content. We explore the impact of site‐level ad blocker usage on website quality, as inferred from traffic. We find that each additional percentage point of site visitors blocking ads reduces its traffic by 0.67% over 35 months. Impacted sites provide less content over time, providing corroboration for the mechanism. Effects on revenue are compounded; ad blocking reduces visits, and remaining visitors blocking ads do not generate revenue. We conclude that ad blocking poses a threat to the ad‐supported web.

Technical Details

RePEc Handle
repec:bla:randje:v:49:y:2018:i:1:p:43-63
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-29