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My Browser is not a Billboard: Experimental Evidence on Ad-blocking Adoption and Users' Acquisition of Information

Author

Listed:
  • Fourberg, Niklas
  • Tas, Serpil
  • Wiewiorra, Lukas

Abstract

Ad-avoidance technologies such as ad-blocking devices in browsers have become mainstream tools in recent years and escaped their role as niche applications that are only for the technically savvy. While technical impacts of those tools are well researched, their effects on actual consumer behavior is not. 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 advertisements, making the competitive environment among publishers more intense.

Suggested Citation

  • Fourberg, Niklas & Tas, Serpil & Wiewiorra, Lukas, 2022. "My Browser is not a Billboard: Experimental Evidence on Ad-blocking Adoption and Users' Acquisition of Information," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265628, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse22:265628
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    References listed on IDEAS

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    More about this item

    Keywords

    Ad-blocking; consumer behavior; lab experiment; online advertising; welfare; privacy;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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