Why Apple and Google Want to Put a Term to Invasive Advertising on the Internet

A silent war is underway. The challenge of this war is nothing but the future of the Internet as we know it. Most of the internet content is financed by interruptive advertising: unanimously, users hate this. Apple and Google want to remedy this. Their next Internet browsers stop videos from autoloading and targeted advertising.

Their idea goes in the direction of the user, while being good for business. In addition, it is a call for outdated business models.

Frederic Filloux, Editor for the Monday Note website, does not mince his words:

"Those who set up companies, sometimes large, to the detriment of the user experience are not far from a fatal fall." He is not wrong.

Together, Apple and Google are a driving force. Their operating systems cover more than 90% of mobiles, which represent the largest share of the Internet and are experiencing the fastest growth. And Chrome, the web browser developed by Google, dominates all platforms.

Apple and Google are quite capable of rebuilding the way that advertising works on the Internet.

Since its attempt to run an advertising business, which has failed, Apple is the most adamant opponent of the Internet supported by advertising.

Last year, the company announced that Safari, its browser, would natively include a blocker of advertisements. This year, at its developer conference, Google announced that the next version of the browser will block auto-play videos and limit advertising technology by tracking.

These initiatives fit well into Apple's general discourse on privacy.

Apple managers have frequently complained that Silicon Valley companies are too lax about collecting user data. Last year, Apple explained how the company complies with a policy of using complex algorithms to make anonymous personal data. In theory at least, Apple does not collect individual data from users.

As for Google, its field of action relies entirely on advertising. His entry into the war given to mariners is only a question of control.

Frederic Filloux indicates that Google played an instrumental role in the Coalition for Better Ads (an association founded by the major players in the digital industry). This advocacy group, which involves publishers and advertisers, aims to improve the Internet, by tackling its bad actors.

Users are very annoyed by these Internet videos that automatically playback, on computers as on smartphones.

However, Chrome's built-in advertising blocking puts Google in posture to set the standard. The company becomes the arbitrator declaring what is acceptable. This strengthens its already considerable grip on digital advertising without affecting Google Search, its business.

Digital eMarketer expects its digital advertising spending to increase by 15.9 percent in 2017 to $ 83 billion. Google is expected to generate $ 28.55 billion, or 40.7% of the total market. This represents an increase of 16.1% for the year 2015.

Sector players believe that this figure will swell at an even faster pace if advertisers are fleeing blocked ad banners in favor of a paid browser.

Apple may have another motivation in all this. Challenging the Internet supported by commercials is pushing models requiring underwriting. While the high-end smartphone market is saturating, subscriptions have become a significant part of the company's business plan.

There are, however, investment opportunities. Many small companies are well placed to take advantage of the promising results secured by the blocking of advertising. At the moment, companies are building computer hardware with artificial intelligence. Such products will attract strong demand while other players in the sector are looking for new business models.

In all this, let's not forget the digital content providers and product placement companies. Their services will experience a new demand in the period following the era of traditional digital advertising.

It seems to me that in most cases there are opportunities in the advertising markets for emerging technology investors.

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