by Tom Taulli | January 7, 2013 12:27 pm
Much of Google’s (NASDAQ:GOOG[1]) $40 billion in revenues comes from advertising. So, the company is definitely concerned about emerging ad-blocking software.
Consider that last week a French Internet service provider called Free started using the technology, making it available for roughly 5.2 million subscribers.
As expected, the move caused a firestorm. Could the Internet’s ad-based business model be in jeopardy?
Well, it looks like Google has some pull in France. Somehow it was able to get the French government to put pressure on Free[2]. And yes, the company agreed to drop its use of ad-blocking software.
However, this may wind up being a Pyrrhic victory. After all, any Internet user can use ad-blocking software. For example, AdBlock Plus counts over 40 million users[3]. The company also recently built a version for mobile devices.
True, the app doesn’t eliminate all ads — only those that are deemed “intrusive.” AdBlock may ultimately prove to be a way to root out spam.
Still, that’s not much consolation for companies like Google, which won’t willingly give up valuable revenue.
Tom Taulli runs the InvestorPlace blog IPO Playbook[4], a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook[5]” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders[6].” Follow him on Twitter at @ttaulli[7]. As of this writing, he did not hold a position in any of the aforementioned securities.
Source URL: https://investorplace.com/2013/01/google-dodges-a-ad-blocking-bullet/
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