Advertisers Overspend On Walled Gardens, Study Shows
March 13, 2020
Once a consumer has reached awareness of your product/service, where do they go next? A new report by OpenX and The Harris Poll details how 80% of American consumers look for information on the open web first. Yet, 60% of advertisers’ spending goes towards “walled gardens” like Facebook and Amazon!
The report concludes that consumers are more likely to be converted by an advertisement on the open web than on “walled gardens”.
What is a “walled garden”?
Companies like Facebook, Google and Linkedin are examples of walled gardens because their advertising data is limited to their platform, and is not shared with outside parties. The study found that most Americans say they are using walled gardens less and will continue declining over time. As a result, it makes sense that advertising dollars would shift towards the open web in order to improve effectiveness.
Advertising methods such as contextual are becoming more popular as a result. Contextual advertising leverages open web technology to deliver ads based on the context of what someone looks at on a webpage. In order for this to happen, open web technology is required to sort data and identify page level content. Walled gardens prohibit access to this data, and advertisers are beginning to take note.
Open web technologies are reported to make up 66% of the time American consumers spend online by the programmatic exchange OpenX and The Harris Poll, one of the longest running media research companies in the United States.