| By: |
Fourberg, Niklas;
Taş, Serpil;
Wiewiorra, Lukas |
| Abstract: |
Ad-avoidance technologies such as ad-blocking add-ons in browsers and
supplemental mobile applications have become mainstream tools in recent years.
Over time they surpassed their niche role as applications only for the
technically savvy and became an essential tool for many internet users. While
the technical impact of these tools has been well researched, their effects on
actual consumer behavior is still unclear. In an experimental setting this
study provides first evidence on the effect of ad-blocking on users' ability
to acquire information in the form of an online reading task. We find that
ad-blocking leads to more effort being exerted and increases social welfare by
reducing inefficient searching. Additionally, ad-blocking induces users' visit
duration on websites to be more elastic in the experienced intensity of
advertisement. Hence, gains in user visit duration from reducing the ad-load
are larger, which consequences a more competitive environment among
publishers. The results provide new perspectives on ad-blocking and inform the
current debate on looming ad-tech regulations in the light of DMA and DSA
initiatives. |
| Keywords: |
ad-blocking,consumer behavior,lab experiment,online advertising,welfare,privacy |
| JEL: |
L82 L86 M37 C91 |
| Date: |
2021 |
| URL: |
http://d.repec.org/n?u=RePEc:zbw:wikwps:1&r= |