Firefox is offering AdBlock Plus, a free add-on to the popular browser that blocks most display ads. The technology uses a simple filtering system to block the IP addresses that host advertising content. When I tested it out, the standard filter that came with the plug-in probably blocked 80% of the ads I would normally see. In fact, AdBlock Plus was so effective that I had to rely on publisher's own delineations of "advertising content" to differentiate white space on the page from missing ads.
This is a serious challenge to the online advertising industry of Tivo proportions.
As Noam Cohen of the New York Times writes:"the program is an unwelcome arrival after years of worry that there might never be an online advertising business model to support the expense of creating entertainment programming or journalism, or sophisticated search engines, for that matter"
While the project has so far been ignored by large publishers like Google and Yahoo, some smaller sites have responded by blocking the Firefox browser.
In the short term, I see a technology arms race taking off, as in the early days of Napster, where publishers respond by, for example, hosting third-party ads on their own sites, and open source projects like AdBlock Plus counter with increasingly sophisticated workarounds and shared lists of ad IP's.
In the long term, I think ad-blocking technologies will make the value of high quality branded entertainment content more important than ever. The challenge will be to bring visitors to interesting and immersive sites - the kinds we often feature on ThreeMinds- without an easy way to attract them in the first place.
Read more from the New York Times here.
According to software developer Wladimir Palant, AdBlock has about 2.5 million users worldwide.