Understanding Walled Gardens and the Open Internet in Programmatic Advertising

Walled Gardens

What are Walled Gardens? Walled gardens are like exclusive clubs. Platforms like Facebook, Google, Snapchat, and Amazon require you to use their own systems to purchase ads.

Pros:

Data Control: You get rich data on your users for precise targeting.
High Engagement: Users are highly engaged with the content.
Security: A secure and controlled environment for your ads.

Cons:

Limited Reach: Your ads are confined to that platform's user base.

Transparency Issues: It’s not always clear how your ads are served.

Higher Costs: Premium data and engagement come at a higher price.

Tip: Use programmatic campaigns alongside walled gardens to reach a broader audience.

The Open Internet

What is the Open Internet?

Think of the open internet as the wider world outside these exclusive clubs. Here, programmatic advertising can reach a much larger audience.

Advantages:

Wide Reach: Access a vast audience across multiple sites.

Diverse Contexts: Your ads can appear in various settings, reaching niche audiences.

Greater Transparency: More clarity on where and how your ads are placed and perform.

Considerations:

Fragmented Data: Less comprehensive user data compared to walled gardens.

Ad Verification Tools: Using robust ad verification tools can minimize the risk of ad fraud and ensure your ads are seen by the right audience.

Data Integration: While user data may be less comprehensive compared to walled gardens, integrating data from multiple sources can provide valuable insights.

How Programmatic Advertising Works on the Open Internet:

Programmatic ads use Demand-Side Platforms (DSPs) to bid on ad inventory in real-time, reaching a wide range of sites and apps.

Buying Side: Advertisers, agency trading desks, in-house teams, ad networks, ad servers, DSPs, and DMPs.

Selling Side: Audience, publishers, ad networks, publisher ad servers, and SSPs.

The Programmatic Ecosystem

Components: Advertisers, agency trading desks, in-house teams, ad networks, advertisers, ad servers, DSPs, and Data Management Platforms (DMPs).

Process: Advertisers use DSPs to bid on ad placements. DSPs work with DMPs to gather and use audience data for targeted ads.
Selling Side:

Components: Audience, publishers, ad networks, publisher ad servers, and Supply-Side Platforms (SSPs).

Process: Publishers use SSPs to sell ad spaces. SSPs offer available inventory to DSPs for real-time bidding.

Auction Process: The DSP and SSP handle the auction to determine the highest bidder and serve the ad.

Analogy: Imagine a website as an art gallery with dynamic picture frames (ad slots) that change based on what the visitor is interested in.

Six Steps of Programmatic Advertising:

1: User visits a website or mobile app.
2: The ad placement is recognized and offered for auction via SSP.
3: Advertisers bid for the impression via DSP.
4: The highest bidder wins the ad impression.
5: The ad is served in its designated placement.
6: The user sees and interacts with the ad.

Main Programmatic Channels

Native Display: Blends seamlessly with content, focusing on creative and engaging ad copy. Ideal for sharing content and educating about your brand or product.

Display: Uses visual ads (images, videos) on networks and publisher sites. Effective since 1994.

Video: Short, informative videos that build brand awareness across all devices (desktop, mobile, connected TV).

Emerging Channels:

Connected TV (CTV): With more viewers using CTV devices, this format allows users to watch content on their own schedule.

Audio: Digital audio ads deliver messages to engaged listeners, allowing for personalized audio content.

In-Game: Non-clickable ads in gaming environments that blend seamlessly with the game, enhancing realism and viewability.

Digital Out-of-Home (DOOH): Digital ads in public spaces (like billboards and bus stops) offer real-time messaging and measurable success.

Explore the Benefits of Programmatic Advertising for Your Business

Programmatic advertising offers a powerful way to reach your target audience across various platforms. By combining efforts in walled gardens with the expansive reach of the open internet, you can maximize your marketing impact. Contact us today to learn more about how we can help you leverage programmatic advertising for your brand’s success.