Are advertisers looking past ‘walled gardens’ in India? - Exchange4Media

After commanding the digital advertising space for years, tech giant Google is now looking at smaller portions of ad budgets globally. YouTube and Search, which have long been drivers of the company’s overall performance, have started showing some weakness of late, say industry observers. The reason, they say is marketers exploring new alternatives.

In FY22, Google recorded Rs 24,000 crore as ad revenue from India. This was nearly 75% higher compared to the previous year.

This may not be the story anymore. Leading Indian advertisers have now started slashing their ad monies for digital platforms like Google, media planners told e4m.

Paras Mehta, Business Head of Matterkind, a Reprise network company, said, “Leading FMCG brands and others too are eager to be present on platforms where their core TG is, and for doing so they are more open than ever to the idea of understanding and exploring new opportunities. Many advertisers now allocate 15-20% of their ad spends as ‘Test-Learn-Scale’ on platforms outside of the known walled gardens to reach out to their TG in the ‘Open Web’. The trend is likely to grow with more and more advertisers following the suit.”

Google, Meta and some other major digital advertising platforms are referred to as ‘walled gardens’. A walled garden is a closed ecosystem, in which the technology provider has total control over the content, ad inventory, ad buying and selling among others, thanks to their huge database.

Google, for instance, gets nearly...

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