New Ad-Blocking App Scares Mobile Industry

by Tom Taulli | November 26, 2012 10:34 am

Smartphone and Globe[1]While smartphones continue to grow at a rapid clip, many companies are still having a tough time with monetization on mobile devices. Even large players like Facebook (NASDAQ:FB[2]) and Google (NASDAQ:GOOG[3]) are struggling to find ways to make advertising work.

Unfortunately, the situation may get worse because of a product called AdBlock Plus, which is backed by start-up Eyeo. The software, which has been extremely popular in eliminating Web-based ads (attracting over 40 million users), will soon be unleashed on mobile ads[4].

However, AdBlock Plus eliminates only ads that are “intrusive.” For example, it still allows messages from respected companies like Amazon (NASDAQ:AMZN[5]).

What’s more, it’s not necessarily inevitable that AdBlock Plus will get much traction on mobile platforms. If anything, it takes a while for an app to become widespread, which should provide some comfort for operators that are still trying to figure out ad strategies that work on mobile devices.

Tom Taulli runs the InvestorPlace blog IPOPlaybook[6], 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.[7]” Follow him on Twitter at @ttaulli[8]. As of this writing, he did not hold a position in any of the aforementioned securities.

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