What Makes Alphabet Inc (NASDAQ:GOOGL) To Plan For Ad-Blocking Feature?

What Makes Alphabet Inc (NASDAQ:GOOGL) To Plan For Ad-Blocking Feature?

Alphabet (NASDAQ:GOOGL) reports 4Q16 Profit Up 8.0%

Alphabet Inc (NASDAQ:GOOGL) is reportedly planning to add an ad-blocking feature on its Chrome web browser in the mobile and desktop versions. Despite the revenue from ad is a key factor, the company opts to go for it raising question as to what compelled them to take such a call. Significantly, the move comes after some brands withdrew their ads from YouTube for showing it along with terrorist subjects.

Alphabet’s chrome enjoys about 47.5 percent of the browser market share in all platforms in the United States. According to Wall Street Journal, the new ad-blocking feature could filter some online ad types that are termed as offering bad experiences for users. The company might announce the feature in the upcoming weeks once it could iron out some details.

Coalition for Better Ads has defined unacceptable type of ads and released ads standards list last month. Those standards included ad formats like auto-playing video ads, and pop-ups. The report suggested that the search engine is also planning an app that could block add all with offensive one that appears on its sites rather than individual offending ads. Alternatively, the company expects site owners to ensure standards of ads or else being blocked in chrome.

WSJ report defended the move terming it as a defensive one as Alphabet’s Google’s reliance on ad revenue is a well-known. The company is more worried about the growth of ad blocking tools with 26 percent of users in the United States preferring to employ the software in their desktop services.

By coming out with its own ad-blocking feature on Chrome web browser, Google is trying to limit the upsurge of third quarter software tools that block ads. Some of them even charge a fee for such features. The company is already a part of an acceptable ad program. Therefore, its ads were allowed to pass through the tool of Adblock Plus. However, the worrying factor is the growing culture of ad-blocking since the company cannot afford to lost revenue from online ads. Last year, Google could generate more than $60 billion revenue.

In a nutshell, Alphabet thinks that rather allowing third party to block ad, the company itself could do it to earn a name for itself.

In pre-market trading, Alphabet shares are trading up 0.75 percent.