The Welfare Effects of Ad-Blocking

Fengyang Lin (), Cristobal Cheyre () and Alessandro Acquisti
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Fengyang Lin: Cornell Bowers CIS, Cornell University, Ithaca, NY 14853
Cristobal Cheyre: Cornell Bowers CIS, Cornell University, Gates Hall 210, Ithaca, NY 14853

No 23-05, Working Papers from NET Institute

Abstract: Concerns regarding online tracking and excessive advertising have led to a marked increase in the adoption of Ad-Blocking tools. We conduct a field experiment to study users’ valuation of Ad-Blockers, and to study how exposing or shielding users from online advertising influences their online experiences, their attitudes towards online advertising, their valuation of ad-blocking tools, and their future usage of such tools. We find that for users currently using an ad-blocker, uninstalling them leads to a deterioration in their online experiences and lower satisfaction with recent purchases. For users that were not using Ad-Blockers, installing one led to fewer reported regrets with purchases, an improvement in subjective well-being, and a less positive view of online advertising. In terms of users’ valuation of Ad-Blockers, we observe a great degree of heterogeneity. Some users are not willing to uninstall their Ad-Blocker even if offered large payments (>$100). Conversely, a similar number of users are not willing to install an Ad-Blocker even if offered large payments. However, most users are willing to install/uninstall an Ad-Blocker in exchange for moderate payments (

Keywords: Online Advertising; Ad-Blockers (search for similar items in EconPapers)
JEL-codes: D12 I31 L82 L86 M37 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2023-09
New Economics Papers: this item is included in nep-exp, nep-hap and nep-pay
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