SiMa ISSUE JULY 2016

CURIOSITY

Singapore | Malaysia

Technology in
Customer Experience
Connected Heath:
Ipsos' latest syndicated research

Connected Car

71% say
"Ads are
irritating."
Page 22

From Ad Blocking
to Purgatory Nirvana

"Almost half of customers who

experienced bad service did not
provide any feedback..." Page5

Contents
Cover Story
5

The Role of Technology in

Customer Experience
Featured Articles

Connected Health

11

The Connected Car

20

Ad Blocking and Programmatic Buying

Ad features
4

Ipsos Insight Cloud

10

Research Insights Activated

25

Looking for Game Changers

Director's Note
We often talk about Technology as if we are in a love-hate relationship
with it. Yet for all that occasional hate we cannot deny the impact it
has on our lives, both as marketers and as consumers. Technology
has been an "enabler" in the past, supporting mainstream businesses
and services as a "silent" partner. However, Techology has now shifted
to an "integrator" role, seamlessly taking over our lives.
From connected healthcare, to self-driving cars and Enterprise
Feedback Management (EFM), it is evident that we as marketers and
market researchers have to adopt or fall by the wayside. We need to
embrace it and change the way we conduct market research or develop
marketing strategies. Yet, however integrated the advances in
technology become with out lives, the human element (the market
researcher + marketer) is still crucial in deciphering the complexity of
the human psyche, to "humanize" what technology brings to the fore
front. Well, at least for now anyway, until IBM Watson tells us that
developing Genisys is a good idea.
In the meantime, Ipsos will continue to use technology to humanize
the complexity of this world, to continue helping marketers
understand their consumers and grow their business.

Joseph Chua
Managing Director
Ipsos in Singapore

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The Role of Technology in

Customer Experience
By Luca Griseri

How to bridge the experience divide

The need for a comprehensive system to capture and act upon
customers feedback has never been more acute. Data collected
by Ipsos revealed that, in Singapore, 66% of customers
experienced negative service. However, almost half (48%) did
not provide any feedback, because either they did not think the
company would do anything about it or because they did not
know which channels to access.

The Role of Technology in Customer Experience

One third
of customers
believe that
organisations
are not even
aware of
complaints
or negative
incidents.

We have found a similar situation in (Re) think technology:

the USA:
First of all, we need to rethink the
65% of customers think that they role of technology itself. Howard
Shultz, Starbucks CEO, summarised
put too much effort in solving
it well when he commented that
issues ;
many organisations (but not
Conversely, almost half (48%)
Starbucks) have got the balance
claim that organisations do not
between digital advertising and
make enough efforts to help
digital tech wrong, focusing too
them;
much on the former and not enough
on the latter. The actual words used
Only 16% of customers state
that they have been kept up-to- to describe why the new technology
(such as Mobile Order & Pay) was
date about their queries;
introduced are telling (bold added):
Three quarters of organisations
bringing in new customers and
did not even apologise to their
deepening our connection to our
customers;
existing customers, elevating the
One third of customers believe
Starbucks brand and our customer
that organisations are not even experience and streamlining our inaware of complaints or negative store operations By enabling our
customers to order ahead and avoid
incidents.
waiting in line, Mobile Order & Pay is
enabling us to capture more on the
These figures clearly point out to an go customer occasions.
experience divide, the contrast
between what consumers expect of
their interactions with brands and
the reality of how these transactions
are often delivered. Such divide
creates a perception that
organisations make significantly less
effort than their customers, even on
a relatively basic level. Perhaps
even more worrying, our figures
reveal that organisations are not
even aware of a large number of
instances which do not meet
customers expectations.
What can CX practitioners do to
bridge such divide? A starting point
is to re-evaluate the role of
technology in improving the actual
customer experience and collecting
customer feedback.

These words struck to the core of

what CX practitioners need to do:
use technology primarily and
obsessively to make our customers
experience better: faster, easier,
more pleasant and, yes, cheaper.

The Role of Technology in Customer Experience

(Re)-think insights:

The
application of
customer
experience
technology
and feedback
management
bridges the
experience
gap and
generates a
process of
innovative
transformation

About the author:

Luca Griseri

Director, Ipsos Loyalty

Singapore
Luca.Griseri@ipsos.com

In addition to being deployed to

improve the customer experience,
technology should be leveraged to
collect feedback around more
critical instances (in other words,
collect the feedback of as many
customers as possible) in a timely
manner.

This can be achieved by

implementing Enterprise Feedback
Management (EFM) technology,
which transforms the actual collection
of customer feedback into a system
of active customer management.
Also, these systems allow
organisations to quantify the return
on CX initiatives: for example, we
can estimate the financial savings (in
terms of saved revenue and revenue
growth) generated by increasing the
proportion of customers who give
feedback and the instances when the
organisation intervenes to rectify
negative incidents through closedloop feedback.

Traditional researc h such as

relationship surveys (broad in scope,
not specific to individual
transactions) are invaluable as they
provide an un-biased view of how
different touchpoints impact on the
customer experience. However, these
programmes need to be
complemented by more agile, high- Thoughts: technology as
volume and high frequency enabler, not the end goal
transactional surveys which enable
organisations to collect feedback The application of customer
much more extensively. These experience technology and
programmes are characterised by:
feedback measurement bridges the
experience gap and generates a
Large sample sizes: reaching out
process of innovative transformation,
to as many customers as possible, centred around delivering a better
to minimise the risk of negative
experience for customers rather than
feedback slipping through the
focused on technology for its own
system and going un-reported.
sake. Implementing these solutions
reveal the profound transformative
Consistent and immediate
power of CX. Quite often, in
feedback, so that negative
addition to financial considerations,
incidents can be rectified
our clients notice an internal cultural
immediately.
change, characterised by more
cross-department collaboration,
Transparency, with visibility of
more openness and in general a
data anytime/anywhere.
customer first culture which
percolates across the organisation,
Data made accessible to all
from the CEO to front-liners.
relevant stakeholders, to ensure
accountability.

The 1st Ipsos International Survey on Connected Health

Connected Health wearables, apps,
biosensor devices and other new
technology used to monitor and
manage our health is a potential
game-changer for global healthcare.

Now, the 1st Ipsos International Survey on

Connected Health offers a comprehensive
picture of the uptake and use of connected
health technologies together with a unique
technology preference segmentation of
Type 2 Diabetes patients.

The Report: A 360 View of Connected Health Uptake & Usage

Spans the USA, UK & Japan
Includes findings from 50+ questions and
11,600+ interviews with the general public,
physicians & Type 2 Diabetes patients
Contains mirror-image questions to the
general public, patients and physicians to
identify similarities and differences

Offers a deep dive on connected health

device use in Type 2 diabetes, including
a technology preference segmentation
of patients
Purchasers of Report 1 have the right
to interrogate and conduct additional
analysis of the database at a fixed per
hour fee

A Wide Array of Insights & Applications for

The Marketing Team:
Obtain suggestions/directions
in regard to important attributes
for new product development

The Insight Team:

Understand unmet patient
and general public needs and
explore physician perspectives

The Communications Team:

Inform messaging for your
product(s) and identify the
optimum channels through
which to engage patients
and physicians

Syndicated Research Reports Available Now!

Syndicated Research Report 1:

Syndicated Research Report 2:

Connected Health: General Public

& Physician Perspectives

Connected Health: General Public

& Physician Perspectives

Type 2 Diabetes Patients Deep-Dive With

Technology Preference Segmentation

Price = USD $6,500

Price = USD $25,000

For more details and pricing information, just visit http://connectedhealth.ipsos.com/

or contact Reena.Sangar@ipsos.com.

Connected Health: Coming, Ready or Not!

Current adoption of connected health devices
and a high percentage of former users

future of connected
2 The
health devices

Do you currently, or have you ever, used a connected

health device or tool to manage your health?

adults in the
37% ofUSA,
together with

11%
USA

8%
UK

21%

13% in Japan,

3%

10%
Currently used
Formerly used

26% in the UK and

5%

Japan

Currently used
Formerly used

believe that CHDs will form part

of treatment plans in the future.

Currently used
Formerly used

T2B % - 7 point scale combined 6 & 7

Who can influence uptake of connected health device(s)?

USA

UK

Japan

46% 50%
30%

19%
Physician

25% 24%

22%

11%

9%
Health Insurer

Pharmacist

Level of agreement with statement

If the following healthcare professionals recommended a CHD as part of my treatment plan I would use it. (T2B% - 7 point scale, combined score of 6 & 7)

Type 2 Diabetes Segmentation:

Techno Tourist
I have owned a few connected health
devices for fitness. Finding one which
keeps me interested is a challenge!
1, 2 and 3: Base: Adults 18-80, USA n=5,003, UK n=3,002, Japan n=3,008. Fieldwork conducted 14th September-20th November.
2016 Ipsos. All rights reserved. Contains Ipsos Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

Ad Feature

At Ipsos we believe in going

beyond just the data to discover
the heart of the consumer.
We partner with our clients to
infuse Insights into their
business, ensuring effective
strategies and campaigns that
drive real business growth.
We deliver Intelligence that will
let you make the right decisions,
at the right time, to help you
navigate a changing world

RESEARCH
INSIGHTS ACTIVATED

CONNECTED
CAR

Ipsos Business Consulting

Build Compete Grow

There will be 69 million

connected cars on the road
by 2020, equivalent to
75% of all cars shipped globally

KEY POINTS

New, lucrative opportunities will

arise as this ecosystem expands to
meet the needs of the contemporary
connected consumer. Connected cars
will evolve beyond the pure motoring
experience to deliver new levels of
convenience and in-vehicle
entertainment

Ipsos Business Consulting

The technology is forging

partnerships and collaborative
open-source associations between
carmakers, original equipment
manufacturers, tech rms and
other businesses outside the
realm of the traditional
automotive industry

Connected Car | 2

A NEW ECOSYSTEM
Connected cars have created a new ecosystem within
the automotive industry, one which is forging a host
of innovative partnerships with technology companies,
original equipment manufacturers (OEMs) and other
businesses which operate outside the scope of
traditional motoring.
These collaborations are now becoming increasingly
focused on creating new products and services to
meet the diverse lifestyle needs of contemporary
consumers. While these newer technologies and
services are expanding their horizons well beyond
the connes of traditional motoring, the original
connected car systems were focused on more classical
functions, such as telematics a combination of
wireless and black box technologies that transmit
data back to a carmaker.
OnStar, a subsidiary of GM formed in 1995, was a pioneer
in this area, developing a subscription-based service
that combined GPS locational systems to support
navigation, safety and anti-theft (eg remote ignition
lock and vehicle tracking) services. More recent
versions include advanced diagnostics, wi and a host
of in-car connected services.
The rst contemporary connected cars started entering
the market at the beginning of the current decade.
By 2015 there were about 15million such vehicles on
the road with the number forecast to rise to 69million,
or about three-quarters of cars shipped globally, by
2020, according to Business Insider Intelligence.

Ipsos Business Consulting

This means by then, the vast majority of cars on the

road will enable drivers and passengers to shop
online, stream music and videos, access detailed trac
information, make use of advanced assisted driving
technologies, such as automated parking, and more.
As the numbers of connected cars on the road increases,
so will the range of services available. It is entirely
plausible in a short time that what we think of as the
core functions of a connected car will have evolved
beyond the current conception.

CONTENTS
PROVIDER
SYSTEM

SOFTWARE/
APPLICATION

INTEGRATOR

CAR OEMS

OS

TELECOMMUNICATION

PLATFORM
HW/AUTO PARTS
SUPPLIER

Connected Car | 3

Ipsos will write about autonomous driving, another major development




AUTONOMOUS DRIVING

Public Infrastructure

V2X Communicaon
Technology

CONNECTED CAR

Soware
Service

Informaon
& Data

TRADITIONAL
MOBILITY

Navigaon

Sensor/Module
for Automaon

Mobile Device

3D Digital Map

Wireless
Network

Automobile

~00s

~Present

Cloud-based Network

Future~

CONNECTED CAR FUNCTIONS



Driving Managment

Ipsos Business Consulting

Infotainment

Convergence

Safety & Security

Connected Car | 4

NEW CONSUMERS, NEW HORIZONS

More consumers are interested in advanced driver
support and safety functions, such as collision prevention
and blindspot detection, than infotainment, according
to research by JD Power. However, it is undeniable
that the industry has barely started to leverage or
explore the potential of the various telecommunications,
operating systems, real-time analytics and content
platforms that have been hardwired into the driving
experience.
This new ecosystem is itself fast evolving to meet
the changing and increasingly complex needs of
the contemporary consumer. The way in which people
use and rely on technology changes how they interact
with the wider world, a dynamic which will become
even more sophisticated as the Internet of Things
becomes reality. Just as smart devices have made it
possible for consumers to manage virtually any aspect
of their life on the y, carmakers, and their nontraditional partners, are now exploring how connected
cars can facilitate and full the same needs and
demands. The successful connected car of the near
future will be both a vehicle and an enabler of broader
lifestyle activities.

SERVICE
CATEGORY

Check location of car

Activate horn
Activate headlights

DRIVING
PREPARATION

Remote air-conditioning
Start engine
Open and close roof

LOCK &
UNLOCK

Remotely open and close door

SETTING
DESTINATION

Search destination
Real-time trac info & notication on speed limit
Find optimal route

FUELING

Check remaining fuel

Search for nearby gas stations
Search prices for each gas station

PARKING

Search for nearby parking lots and space

Book parking
Parking rates

INSURANCE

Connection to connected car service insurance

and discounts on insurance rates

Stream music
Weather information
SNS, Videos, Radio, etc.

INFOTAINMENT

NEARING
CAR

DESCRIPTION

ENTERTAIN-

CONVENIENCE

DESCRIPTION

SHOPPING

Online shopping delivery

Take-out food & beverage

PAYMENT

Car-related payment (parking, gas stations, etc.)

Payment in drive-through, cafes, hotels, etc.

EMERGENCY

24hrs call center

Road-side assistance
Detect collisions

THEFT
PROTECTION

Anti-theft
Damage alarm
Stolen vehicle assistance

SAFETY & SECURITY

DRIVING MANAGEMENT

INTERACTION

SERVICE
CATEGORY

MENT

Smartphone mirroring

MOBILE DEVICE
Hands-free calls
UTILITY
Concierge service

MAINTENANCE Predictive maintenance system

& DIAGNOSTIC Tele-diagnostic

Source: Each brands ocial website, Ipsos BC analysis

Ipsos Business Consulting

Connected Car | 5

SERVICE
CATEGORY

ADOPTION
LEVEL

OEM BRANDS

INTERACTION

NEARING
CAR
DRIVING
PREPARATION
LOCK &
UNLOCK

DRIVING MANAGEMENT

SETTING
DESTINATION
FUELING

PARKING

INSURANCE

INFOTAINMENT

SHOPPING

SAFETY & SECURITY

ENTERTAIN-

CONVENIENCE

SERVICE
CATEGORY

ADOPTION
LEVEL

OEM BRANDS

MENT

MOBILE DEVICE
UTILITY

PAYMENT

EMERGENCY
THEFT
PROTECTION
MAINTENANCE
& DIAGNOSTIC

Audi Connect Easy Delivery is a prime example of how

companies are collaborating to explore these new
possibilities. The carmaker is partnering with DHL,
an international courier service, and Amazon, to bring
a new level of convenience to online shopping and
delivery service. Audi owners can now make an in-vehicle
purchase from Amazon and request the retailer to
deliver the order directly to the boot of their car.
The technology platform enables Amazon and DHL
to locate the car in a car park, have the courier enter
a security code for the luggage compartment, pop
the boot and leave the parcel inside.
Just as Audi is demonstrating how seemingly unrelated
businesses can be brought together to develop
connected car services, BMW provides a quintessential
example of how enlightened automakers are looking
beyond the boundaries of their brand in order to
expand the entire ecosystem itself. BMW understands
that all players will reap greater benets by working
together collaboratively.

Source: Each brands ocial website, Ipsos BC analysis

Ipsos Business Consulting

Connected Car | 6

The luxury carmaker has supported this development

by making BMW ConnectedDrive its integrated
combination of services including BMW Assist, BMW
Online, BMW Teleservices and Advanced Driver
Assistance an open-source platform. This enables
companies from app developers and OEMs to develop
products and services to support the systems expanding
range of interaction, driving management, infotainment,
and safety and security services.

BMW is also pushing boundaries with its own proprietary

developments, such as MINI Augmented Vision system,
which it introduced at the 2015 Shanghai Autoshow.
This system displays information on local parking lots,
speed limits and other useful information on MINI
Augmented Vision glasses, which are a similar technology
to Google Glass.

To increase the customer-centricity of its brand, and

the range of services that support needs of contemporary connected consumers, BMW has also partnered
with telecommunications and technology companies,
such as T-Mobile and AT&T, to provide in-car LTE
hotspots. This vision resulted in 95% of BMWs new
cars sold in 2014 rolling o the production line equipped
with internet connectivity. The number of countries
where BMW ConnectedDrive is available rose from
36 in 2015 to 45 at the start of the following year.
Adoption is only expected to increase, as is the
development of new related technologies.

INTERACTION

BMW: CONNECTED SERVICE OFFERING

NEARING CAR
DRIVING PREPARATION
LOCK & UNLOCK

FUELING
PARKING

ENTERTAINMENT

SHOPPING

SAFETY &
SECURITY

NIENCE

INFOTAIN
-MENT

INSURANCE

CONVE-

DRIVING
MANAGEMENT

SETTING DESTINATION

MOBILE DEVICE UTILITY

PAYMENT
EMERGENCY
THEFT PROTECTION
MAINTENANCE & DIAGNOSTIC

DEVELOPMENT & PARTNERSHIP

ConnectedDrive: Remote Services

Utilizes the BMW iRemote app to check the

current state of the car and maintains it remotely
Activates the door, air conditioning, horn,
headlights, etc.
Detect the location of car in parking lot

ConnectedDrive: Real-Time Trac Info

Real-time updates on trac and optimal route

detection

Operating
System

Telecom

ConnectedDrive: In-App Store

Embedded infotainment system; providing various

services such as entertainment, refueling, etc.

ConnectedDrive: Concierge Services

Connected to a 24-hour call center and provides

search and booking for hotels, hospitals, etc.

INRIX On-Street Parking

Provides a search service for places to park, as well

as prices and regulations of parking in the area

ConnectedDrive: Teleservices

Automatically detects problems such as functional

issues and provides a call service to book
teleservice

Service
Provider

Open Development Platform

: Adopted open source infotainment
platform, GENIVI Linux, to BMWs
vehicles. Suppliers incl. BMW founded
GENIVI Alliance in 2009
Partnership with T-Mobile / AT&T
: Launched service with LTE Hotspot
using the LTE network of T-Mobile and
AT&T
INRIX On-Street Parking
: Developed Dynamic Parking Prediction
Service cooperating with the service
provider INRIX, to provide real-time
based parking lot search service

SUMMARY
BMW is considered to be a pioneer in developing invehicle information among OEMs and provide their via
their own platform ConnectedDrive.
BMW is aiming to have its own ecosystem by having a
diverse partnership with service/solution providers as well
as developing exclusive connected service platform.

Source: BMW ConnectedDrive Website; GENIVI Alliance; Ipsos BC Analysis

Ipsos Business Consulting

Connected Car | 7

Insurance

Telecom

Internal Resource
Partnership/Cooperation
Insurance Telematics

Mobile App

Wireless
Network
BMW Connected Car

Remote Services,
In-app Store

Driving Analytics

Teleservice
Center
24hrs Call Center

Parking Assistant Service

Platform

Big Data/Analytics

Call Center

Teleservices,
Concierge Services

Smartphone Sync

OS

Smartphone

Parking Assistance

Source: BMW ConnectedDrive Website; Ipsos BC Analysis

While it is still early days for the connected car segment,

the range of more advanced driving support and
autonomous driving technologies is proliferating in
both depth and scope. Companies within and without
the traditional auto market are realising that while
a car does not oer the communications convenience
of a smartphone, consumers expect and demand
similar levels of technologically-enabled convenience
from everything they buy.

Companies outside of the auto sector, such as Google,

are also driving innovation in the connected car market.
In 2014, the search giant launched Open Automotive
Alliance, a global alliance of technology and automotive
companies including Audi, GM, Google, Honda,
Hyundai and Nvidia who are focused on integrating
the Android platform in cars. Apple launched CarPlay,
which enables an in-car entertainment system or head
display become a controller for an iPhone and a limited
number of iOD apps; while a less adventurous venture
than OAA, it is still popular.

Shopping

Outdoor
Medical

Payment
News

Public Transport
Route
Finding

Fuel Information

Home

Emergency
Social Media

Streaming
Music

Adoption levels vary widely according to the function

provided by the technology in connected cars. It comes
as no surprise that the most common functions in use
are those that directly focus on the driving or in-car
experience, such as GPS, smartphone mirroring,
maintenance diagnostics or emergency services.
These more pragmatic and obvious services were
developed rst, however, mobile payment (especially
for drive-through retailers), online shopping and other
convenience services are underutilized and therefore
present signicant opportunities for development as
a result.
Ipsos Business Consulting

Interaction
Seating

Maintenance
Security

Parking Space

Hospitality

Connected cars already deliver a range of safety, security,

convenience, navigation, infotainment, and in-car
payment services. As carmakers and other players
start to leverage the potential of more lifestyle-focused
products, they will create new revenue streams and
opportunities that will help shape the future of the
auto industry.

Connected Car | 8

ABOUT IPSOS BUSINESS CONSULTING

Ipsos Business Consulting is the specialist consulting
division of Ipsos, which is ranked third in the global
research industry. With a strong presence in 87
countries, Ipsos employs more than 16,000 people.
We have the ability to conduct consulting engagements
in more than 100 countries. Our team of consultants
has been serving clients worldwide through our 21
consulting "hubs" since 1994. Our suite of solutions
has been developed using over 20 years experience
of working on winning sales and marketing strategies
for developed and emerging markets. There is no
substitute for rst-hand knowledge when it comes to
understanding an industry. We draw on the detailed
industry expertise of our consultants, which has been
accumulated through practical project execution.
Founded in France in 1975, Ipsos is controlled and
managed by research and consulting professionals.
They have built a solid Group around a multi-specialist
positioning. Ipsos is listed on Eurolist - NYSE-Euronext.
The company is part of the SBF 120 and the Mid-60
index and is eligible for the Deferred Settlement Service
(SRD).ISIN code FR0000073298, Reuters ISOS.PA,
Bloomberg IPS:FP

Build Compete Grow

At Ipsos Business Consulting we focus on maintaining
our position as a leading provider of high quality
consulting solutions for sales and marketing professionals.
We deliver information, analysis and recommendations
that allow our clients to make smarter decisions and
to develop and implement winning market strategies.
We believe that our work is important. Security,
simplicity, speed and substance applies to everything
we do.
Through specialisation, we oer our clients a unique
depth of knowledge and expertise. Learning from
dierent experiences gives us perspective and inspires
us to boldly call things into question, to be creative.
By nurturing a culture of collaboration and curiosity,
we attract the highest calibre of people who have
the ability and desire to inuence and shape the future.
Our Solutions
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Business Unit Strategy
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Partner Evaluation
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Optimal Channel Strategy

Market Sizing
Pricing
Forecasting
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Sales Detector
B2B Customer
Segmentation

AUTHORS OF THIS PAPER

Per-Henrik Karlsson

Head of Consulting - Korea

E. PerHenrik.Karlsson@ipsos.com
T. +82264645107

Hong Kyu Ahn

Senior Consultant, Korea

E. Hongkyu.Ahn@ipsos.com
T. +82264645145

Byeongmin Choi

Consultant, Korea
E. Byeongmin.Choi@ipsos.com
T. +82264645310

May 2016

The Path from Ad

Blocking Purgatory to
Programmatic Nirvana
Adam Sheridan | Agnes Gilbert

The Path from Ad

Blocking Purgatory to
Programmatic Nirvana
Programmatic buying has led to a revolution in advertising.
These cloud-based platforms allowing the automated buying
and selling of digital advertising have come with the promise of
near nirvana; the ability to target a range of specific audience
segments, at broadcast reach, all in real time.
This revolution has been democratic, allowing smaller
publishers to join and buyers to access the ecosystem, using
the same platforms. But, like any revolution, the winners are
joined by some losers. In this case, the losers happen to be the
people we all depend on; online users.
The inclusion of more publishers in the ecosystem has led to
more supply. This has in some cases led to lower costs. Great
for advertisers, but publishers still need to cover their costs;
the programmers that code and the journalists that write need
to be paid.
This has led to some publishers delivering more ads in their real
estate and, because costs are lower, buyers place the same
ads at higher frequencies, all leading to users being presented
with more ad-cluttered sites and apps.
With this poorer online experience emerging, ad blockers software
that filter ads from content delivered by websites have seen an
exponential rise in adoption. Adobe estimates 181 million global
mobile users have now installed such software and eMarketer
predicts this to increase proportionately by 35% by 2017.

The Path from Ad Blocking

Purgatory to Programmatic Nirvana
Adam Sheridan | Agnes Gilbert

Just over half of ad blockers

in the UK (56%) were also
motivated to install the
software because they felt the
ads they see are irrelevant
to me, suggesting flaws
in the promised power of
programmatic targeting.

Although ad blockers meet the user need for a less cluttered

online experience, they have the potential to dismantle the
implicit contract that publishers have with their audience,
namely providing free content underwritten by advertising.
Without some form of revenue, either from advertising or pay
walls, in the end users will lose the quality content they go
online for in the first place.
So how can publishers and advertisers avoid the possible
purgatory ad blockers risk to the nirvana originally promised by
programmatic buying? Ipsos Connect ran a research study of
1,045 representative online users in the UK and, in partnership
with the IAB, a study of 13,000 in France. Both studies were
representative of the online population and included specific
questions among ad blocker users to better understand the
motivations for using, as well as what circumstances they
would consider to stop using the software.
When ad blocker users in France were asked why they installed
the software on their device, some of the top drivers were ads
being disruptive (85%), irritating (71%) and repetitive (61%).
Just over half (56%) of ad blockers in the UK were also motivated
to install the software because they felt the ads they see are
irrelevant to me, suggesting flaws in the promised power of
programmatic targeting.

The Path from Ad Blocking

Purgatory to Programmatic Nirvana
Adam Sheridan | Agnes Gilbert

How can publishers convince

users to uninstall or disable ad
blocking software? The answer
lies in the reasons they install
in the first place.
A majority feel ads disrupt, rather than are part of, an
acceptable online experience. For at least half to consider ads
to be repetitive or irrelevant, perhaps speaks to the effect of
publishers making more inventory available to looser targeting
criteria as programmatic buying has increased supply.

In addition to the volume, when asked what type of advertising

they would find acceptable to see, nearly two thirds of this
group (62%) advocated user opt-in ad formats, such as
skippables or autoplay.

So how can publishers convince users to uninstall or disable

ad blocking software? The answer lies in the reasons they
install in the first place, the user experience and perceptions of
fair value exchange.
When asked what the industry should do to convince them to
uninstall, just over half (56%) who used ad blockers in France
said they needed to see less advertising and the same ads
less frequently.
This again suggests a priority being placed on a positive
experience and, at the same time, openness to advertising,
provided it plays by the same rules of content consumption. If
the user finds the advertising interesting then they view, and if
they dont then they skip or move on.

The Path from Ad Blocking

Purgatory to Programmatic Nirvana
Adam Sheridan | Agnes Gilbert

With this aversion to the volume of advertising delivered and the suggestion that less frequent and more user controlled advertising is
more acceptable, these users are sending signals to publishers and advertisers about how to reduce the need for ad blockers.
Considerations on how they act on these signals in a coordinated way with industry bodies, such as the IAB, include:

1. Redefining variables of programmatic currencies

At present, buying and selling behaviour is defined by what the market place values, which is delivering an impression to the right
audience. Can consideration be given for advertisers to know how many other ads are shown on the same page? Or having a
quality score of the online experience available to set as a bidding threshold?
2. Greater availability of user opt-in ad formats
Skippable and autoplay ad formats such as YouTube, TrueView and Facebook Video offer the best of both worlds. Users
only watch the ads they like and advertisers only pay for ads viewed for an agreed minimum time. Are other publishers fully
embracing these types of formats? And are advertisers insisting on them enough, rather than just focusing on reaching
enough people?
3. Optimising advertising to the online experience
Its clear that advertisers need to be part of the solution and ask themselves if placing the same video creative they use for
TV is going to fit the online and skippable advertising experience that users desire? Can they consider ways to creatively
add to the experience, rather than intrude on it?

Whether these types of actions are considered by the industry or not, the growing number of ad blocker users and signals via this
research suggests the volume of online ads needs to reduce and that users should be in control of the ads they view. Only then will
ad blocker users reassess the value exchange of advertising for free content and show willingness to uninstall or disable the software.
If publishers and advertisers accept these signals and address them, this could set us on the pathway to escaping from the purgatory
of ad blocking back to the reach and the targeted programmatic nirvana originally promised.

Ad Feature

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