shine-ad-blocker

Ad blocking start-up has the potential to tear a hole right through the mobile ad industry

Ad blocking on mobile has been possible for a while — with services like Adblock Plus and TrustGo allowing users to control the amount of advertising they see on apps and the mobile web. But a new Israeli start-up called Shine claims to have backing from the major wireless carriers, which could seriously threaten the mobile advertising industry.

There are some 144 million active ad blocker users around the world, a number that grew 70% between 2013 and 2014, according to PageFair and Adobe.

The rise of ad blocker usage clearly have the potential to seriously damage publishers’ online revenue — advertisers won’t pay for ads that aren’t served.

But for mobile carriers, ads can actually be a hindrance. Roi Carthy, chief marketing officer at Shine, told Business Insider that the standard app or website pings an antenna up to 50 times a minute — it’s called background signaling. Bandwidth is one of the most expensive pieces of infrastructure for a telecommunications company to operate.

It’s expensive for users too: Shine estimates that, depending on your geography, ads are using up 10-15% of user’s data plans (and not to mention sucking up battery life, and making load times slower.)

Shine mobile ad blocking

Shine originally started its life in 2011 as a company devoted to creating mobile anti-virus software. The company has raised $3.3 million in funding to date, has 25 staff, and is based in Israel.

Its investors include Horizons Ventures — which is owned by Li Ka-shing, the billionaire chairman of Hutchinson Whampoa, the huge conglomerate that owns the “3”-branded mobile carrier, which operates across Europe, and also the company that has a stake in carriers in Asia including Hutchinson Asia Telecommunications. It also invested in a number of technology companies Facebook, Spotify, and Siri. Shine is also funded by Initial:Capital, which is an early stage investment firm, where Carthy is managing partner.

It was only recently that Shine pivoted to look at ad blocking

Carthy said: “What we discovered redefined malware, and ad tech. That doesn’t mean it has to be malicious, but [ad tech] behaves like malware. The tech and methodology is the same, [but in the case of advertising] it’s more about targeting.”

And so Shine’s ad blocking technology was built.

The ad blocker — or ad-controlling technology as Carthy sometimes calls it — aims to block ads across all mobile display, apps, and mobile video ads. It won’t siphon out “native” ads on sites like Facebook, Twitter, and BuzzFeed, however as these are an “intrinsic part of the user experience,” Carthy says.

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Wednesday, May 13th, 2015 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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