Page 8 - AeM_August_2019

RESEARCH, ANALYSIS & TRENDS

Real users live everywhere - not just in

Walled Gardens

According to a survey of the market research firm It is a myth that walled gardens are the only place
eMarketer, global spending for online advertising will where targeted marketing can be successfully carried
reach nearly 427 billion US dollars in 2020. But how can out. The open ecosystem knows more users than a
advertisers use their media budget effectively and to the single Walled Garden platform. This allows advertisers
greatest success for their campaigns? to reach a much wider audience. After all, users do not
live in a garden that is closed off from the rest of the
We can distinguish two groups in the digital advertising world.
industry: on the one side are the so-called "walled
gardens" and on the other Adtech companies that make In order for actors to be able to identify their target
an open ecosystem usable for the advertisers. groups as precisely as possible across the entire open
ecosystem, they rely on cookies. A non-personal,
Walled Gardens are closed online platforms that collect anonymous ID that allows the user to be recognized.
data within their network and use it for promotional The challenge is that each actor sets his own cookies,
purposes. By creating profiles and using the services so these IDs are not uniform. A matching process
offered by the platform, users disclose personal between the individual partners allows the parties to
information. The operators of the platforms distribute the assign the IDs to each other.
collected data exclusively to their advertisers in
combination with their own inventory. This allows Walled Cooperation as a solution
Gardens to accurately identify and associate their users.
The data always stays within the platform and forms the This challenge has prompted a number of actors to
basis for precise targeting - but only within one's own expand their cooperation and create uniform standards.
"garden". It's not about one standard dominating everyone else.
Rather, as many actors as possible, including
With digital advertising spending soaring, it's becoming publishers, agencies and tech partners, should agree
increasingly important for brands to adopt a well- on a clear number of IDs. These "standards" must
considered strategy on where and how they spend their remain interoperable and freely accessible to all.
media budget. It is essential to know exactly how the Projects like the Ad ID Consortium, for instance, have
actual costs are composed. But cost and performance set themselves the goal of bringing together all parties
transparency are just one reason to prefer the open involved.
ecosystem to a closed one.

8 August 2019 - Predictive Algorithms, Programmatic & Native Ads