Google Dodges an Ad-Blocking Bullet

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.

Endnotes:

GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
was able to get the French government to put pressure on Free: http://www.businessinsider.com/french-internet-provider-blocks-google-2013-1
over 40 million users: https://investorplace.com/2012/11/new-ad-blocking-app-scares-mobile-industry/
IPO Playbook: https://investorplace.com/ipo-playbook/
How to Create the Next Facebook: http://www.amazon.com/gp/product/1430246472/ref=s9_simh_gw_p14_d0_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-3&pf_rd_r=0GRB6ZMCTYDZVNG7Q7NV&pf_rd_t=101&pf_rd_p=470938811&pf_rd_i=507846
High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders: http://goo.gl/pR2F3
@ttaulli: https://twitter.com/ttaulli

Source URL: https://investorplace.com/2013/01/google-dodges-a-ad-blocking-bullet/