Dive Brief:

• A panel, which included execs from Yahoo, Google and ad blocking firm Shine, at the Mobile World Congress clashed over issues facing mobile advertising, especially ad blocking technology, Ad Age reports.
• The panel agreed that mobile advertising faces serious issues with poor user experience and lack of ad effectiveness — two factors that influence consumers when deciding to use ad blocking software.
• Ad blocking on mobile devices became front page news last summer when Apple announced the iOS 9 release would include ad blocking capabilities, and developers came through with a variety of ad blocking apps for Apple devices.

Dive Insight:

Samsung recently released a Content Blocker extension API that allows developers to create ad blocking apps for its Android browser, raising renewed concerns within the mobile advertising industry.

James Hilton, global CEO and founder at M&C Saatchi Mobile, said that ad blocking is "catching on but we got to it early," citing an estimate that by the end of 2016 mobile ad blockers will only have 0.3% penetration.

But ad blocking as an issue is growing beyond end-users installing apps. Ad block tech firm Shine has cut deals with telcos — currently with Three Group, a British wireless carrier, and Digicel, based in the Caribbean — that allow for ad blocking at the network level by putting those wireless communications companies in control over how ads are served on their networks.

All of these developments are applying pressure to advertisers, ad tech firms and publishers to work together and provide a better user experience and stop serving ad formats that turn consumers off.