Why Google Chose to Shoot Itself in the Foot

Have you noticed a change in your online browsing experience in the last week or so? If you’re using Google Chrome, that could be your user experience improving by a mile.

Last week, Google released an ad blocker native to Chrome. Considering that ad revenue is almost 90% of Google’s revenue, this move may seem a bit self-defeating. But as a long-term strategy, this move definitely makes sense. By hindering display’s abilities, Google has taken steps to ensure this revenue stream’s long-term survival.

Google has two primary sources of ad revenue: AdWords and AdSense. Adsense – which makes up approximately 23% – relies on display (i.e. banner) units placed on partner sites using a revenue share model. This 15.5 billion dollar business is the primary target of Google’s new ad blocker.

However, looking at the types of ads Chrome’s blocker targets reveals a fuller picture: there seems to be 1 main bullseye: Bad user experience.

Chasing a view or a click these days can often mean creating a disruptive experience for the end user. Pop-ups that cover the page. A blast of sound coming out of your laptop as some video or another decides to play of its own volition. A sudden appearance at the bottom of your screen, causing you to tap the link even though you were just intending to scroll. The list goes on and on.

Google has raised the gauntlet and dared advertisers and publishers to do better. While they were at it, they struck a blow against other display ad networks that allow disruptive formats. Whichever way you turn it – the decision serves Google’s long-term business goals.

The ramifications for marketers continue to remain the same. Evolve, or get left behind.

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