By Tejinder Gill
There are almost 600 million users of the open internet—which offers relatively unrestricted access as opposed to the closed internet where access is limited to a few—in India, and of the 307 hours the average consumer spends on digital media per month, half of that is spent on the open internet. The pace of innovation in the open internet in the past three years is unprecedented. Consumers in India have come to embrace over-the-top (OTT), connected TV (CTV), music streaming and mobile apps as an integral part of their digital lives. So much so that the open internet is reaching 62 million more users than the closed ecosystems of social and search platforms.
Despite the surge in users and time spent on the open internet, there is a significant disparity in ad spend. Today, less than one-sixth of India’s digital advertising budget is allocated to the open internet. This disparity underscores a substantially untapped opportunity, driven by several compelling factors that should encourage brands and media agencies to accelerate investments on the open internet.
Reach more engaged users
As consumers in India turn their attention to content on the open internet, it signifies a broader trend on online activities beyond social media platforms. Marketers who focus exclusively on these walled-garden platforms due to their large scale are overlooking other valuable touchpoints that reach consumers more precisely. These alternative touchpoints offer opportunities to engage with consumers who are not only more active online but also more receptive to advertising.
The paper “Gateway to the Open Internet” by The Trade Desk highlights that brands advertising on the open internet experience distinct advantages. Advertising on the open internet achieves higher levels of ad recall and are perceived as more premium compared to ads on social media platforms. The study indicates that the open internet is where consumers discover premium content that resonates with them. This, in turn, influences how they perceive advertising within this environment.
For instance, consumers are 33 percent more likely to regard ads on OTT/CTV as premium and there is a 22 percent higher likelihood of ad recall as opposed to video ads on closed ecosystems like YouTube. This heightened engagement translates into more effective reach for advertisers in the open internet.
Drive measurable results
In contrast to the open internet, social media platforms that operate within closed ecosystems lack transparency and objectivity, making it difficult to evaluate the performance of a campaign. The absence of readily available measurement and reporting data across various channels can be a source of frustration for marketers, who often grapple with understanding the effectiveness of their strategies.
Open internet media-buying platforms enable marketers to access quality data and analytics that can significantly enhance their ability to measure campaign performance with accuracy. Marketers can exercise greater control and gain transparency over their campaigns, ultimately improving their capacity to assess performance and track campaign effectiveness with precision. This data-driven approach lends itself to more targeted media strategies for more effective outcomes.
Adopt a future-proof approach
The impending end of third-party cookies is driving modern marketers to pivot toward alternative methods for targeting and engaging users. Authenticated environments on the open internet such as OTT and CTV, as well as retail media present fresh opportunities for connecting with consumers. These environments built on authenticated, first-party data for precise targeting without the reliance on cookies. Brands that proactively invest in these areas can strategically position themselves for success in a post-cookie era.
Charting the next era of digital advertising
The digital advertising landscape stands at a crossroads. As consumers increasingly embrace the open internet, marketers face the daunting task of adjusting to a new era of advertising.
It is now imperative for brands to rethink their advertising strategies to keep pace with the evolving advertising landscape. Investing in the open internet can act as a strategic move to future-proof advertising approaches; align with changing consumer trends and harness innovation in the ad tech industry. Early adoption of the open internet can grant brands a competitive edge in driving business success.
The writer is the general manager of The Trade Desk, India. Views expressed are personal.