Walled Gardens

Google, Facebook and Amazon attract large chunk of ad spend, and the rest of the industry shrinks. It is because of a walled garden approach. It is a closed eco-system in which all operations are controlled by the eco-system operator, e.g. Apple controls the whole iOS ecosystem. In digital marketing, such operators force the clients to use their whole marketing stack to run their campaigns.

DMP targets audience on their data. DSP pushes ads on selected inventory. DCO handles ad personalisation or ad hosting.

The walled garden directs user’s navigation within particular areas, to allow access to a selection of material or prevent access to other material. Thus it is a closed platform or eco-system. In open platform consumers have unrestricted access to applications and content.

With GDPR and other upcoming privacy laws, the walled gardens are definitely under more scrutiny. Independent players, however, will always have a significant portion of digital ad spend.

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