Smilomaniac said:
That's a really interesting point and a topic I will read more about, thank you.
As far as I can see, it only really applies in the case of practical goods being diluted or destroyed in some way. Not knowing enough about the theory, I can't state any certainty, but there seems to be more to it than that.
Actually, it best applies to information goods, and especially performances (read up on Public Goods and Public Performances specifically).
But for now I'll try to use a practical example: Fireworks displays.
You can't exactly exclude folks from watching them (freeloaders), and there's obviously a demand for them because people keep putting them on, so who pays for them?
They're always either attached to some larger event, or paid for by the public (government and local funding).
Arguably, people spend more time here if they're forced to watch ads and that wastes user man hours as well as electricity (since there's an average number of minutes per user spent on the computer minus what the user then doesn't spend time on watching due to time limits).
Then there's the psychological factor that you mentioned, which also has something to say since it has a negative impact on people in the form of changing peoples mood and other factors extensively covered in advertisement studies.
I know, it's nitpicking, but it goes to show that placing blame isn't easy (not to mention counterproductive).
You're closer to the subject than you think; "wasting time" is a cost to the consumer. Economics defines it as an "opportunity cost" and that conversion of "monetary -> opportunity" is what makes advertising work so well.
...Too well, in fact. We're bombarded by advertisements as a result, and that in turn is provoking a backlash because, well, folks are just tired of it. Hence, Ad-block.
Aardvaarkman said:
But how is that solely the consumer's fault? It was the creator/publisher who decided to release it for free with advertising support.
I'll have to stop you here because you've already ignored what I explicitly established.
To be blunt:
If it's advertised it's not strictly free. No exception.
Advertisements are not a monetary cost, they're an opportunity cost. Both are costs to the consumer.
I know it sounds strange to think of it that way, but there's a good amount of study behind that, and it works in practice.
(it's nothing new; network TV employed it well before the internet, and radio before TV)
That 30 second clip that plays before each video? You're trading 30 seconds of your life to view the content you want, while the content producer gets paid for convincing you to pay those 30 seconds in hopes that it will influence you to buy their client's stuff.
They would not have done that unless they saw an economic benefit to releasing the content that way. The consumer would not have been able to take that content for free unless the publisher chose to release it that way.
And that's the simple solution to the ad-blocking dilemma - publishers should just charge money for their content, and not allow public ad-supported access. Problem solved.
While that's certainly an option, it's not a strict "solution" to a problem when you're just trading one cost for another.