The Wall St Journal (WSJ) – The number of websites that accept advertising online is surging and, with it, the number of ads they generate, according to a new study.
The study by the internet research firm eMarketer found that the average ad-free browsing time on the internet grew by 10% in the last year, driven by the rise in ad-hosting platforms such as Facebook and Google.
The study also found that in 2017, ad-supported websites accounted for nearly one-third of online traffic.
The rise of ad-driven websites, which offer a cheaper option for online shoppers, is prompting many companies to look for ways to monetize their ad networks, said Paul Marra, eMarketers senior director of research.
In some cases, those efforts have included a surge in online ads in the past year, Marra said.
But the surge has come at a cost, as many of the sites that offer ads have struggled to keep up with rising traffic and ad revenue.
That has led to an increased number of ad networks with low levels of traffic, and a growing number of sites with very low ad revenue, said Michael Wasser, vice president of business development at AdBlock, a group that represents ad networks.
The number of online advertising networks has more than tripled over the past three years, the study found.
It has more sites accepting ad revenue than in 2016, according a separate study by eMarkets.
The number has doubled since the study’s inception in 2014.
The decline in ad revenue is partly due to the increased use of social media and video ads, and partly because of the rise of paid online ads.
Wasser said it is not uncommon for ad networks to offer up ad-laden websites to potential advertisers, but he said that there is also a lack of awareness among companies about how their ad offerings are being used.
AdBlock and eMarkers’ study found that more than 90% of all online ads were hosted by third-party publishers, but only around 40% of them used social media or video ads.
While many publishers said they were aware of the increasing use of online ads, Marr said that many did not know that many ad networks accept ad revenue and that they often rely on those revenue streams.
Wesson said the rise and decline in online ad revenue are being driven by a number of factors.
It is not just that ad networks are getting richer by offering a cheaper alternative to traditional media.
It’s also that people are becoming more active on social media, he said.
He said that the rise has also led to a decline in the quality of the ads that are being generated, especially on mobile devices.
Online ad revenues are growing at a faster rate than the ad revenue generated by traditional media, and advertisers are increasingly turning to the online space to generate revenue, he added.
In addition, he believes that advertisers will need to adjust their marketing strategies to better compete against the increasing number of advertising networks.
Marra expects that there will be an increased demand for branded content, branded content that is more easily understood, and more branded content in the coming years, Marras said.