"Walled Garden" Ads to Grow to $115 Billion by 2025

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A new report forecasts “walled garden” programmatic digital display ad spending will grow from $93 billion in 2023 to $115 billion by 2025.

HERE’S TODAY’S ACTIONABLE AI MARKETING AGENDA:

• Top news of the day: BidsCube and Pixalate Partner to Combat Programmatic Ad Fraud

• Startup News: Vendelux Raises $14M to Expand AI-Powered Events Marketing Platform

• Today’s top AI marketing trend: Walled Garden Ads to Grow to $115 Billion by 2025

• Today’s Master Marketing Tip: Elon Musk, Billionaire & Entrepreneur

TOP NEWS

BidsCube and Pixalate Partner to Combat Programmatic Ad Fraud

The adtech company BidsCube and Pixalate, the provider of a compliance analytics platform, have formed a new partnership to offer fraud protection solutions for the programmatic advertising space.

Under the partnership, Pixalate's tools for protecting against digital advertising fraud will integrate with BidsCube's programmatic ecosystem, enhancing its detection capabilities with AI and machine learning tech.

"As the programmatic advertising continues to evolve, addressing ad fraud and ensuring transparency has become paramount for success," said Dmytro Chebakov, CEO of BidsCube.

"By integrating Pixalate's advanced ad fraud protection tools, we are taking a substantial step towards creating a more transparent ecosystem that benefits advertisers and publishers," Chebakov said.

Headquartered in Santa Monica, Calif., Pixalate was founded in 2012. BidsCube was founded in 2020 and is based in Hong Kong. Both companies are privately held.

STARTUP NEWS

Vendelux Raises $14M to Expand AI-Powered Events Marketing Platform

Vendelux, the provider of an AI-driven platform for events organizers and marketers, has raised $14 million in its first round of venture capital, which was led by FirstMark Capital.

Founded in New York two years ago by Alex Reynolds and Stefan Deeran, Vendelux offers an intelligence platform for marketers to make data-driven decisions about event attendance, sponsorship, and hosting.

The company’s underlying model includes a proprietary database of over 30,000 events, including information on speakers, sponsors, and attendees.

CEO Reynolds says the company has created a community of over 5,000 active event marketers, and identified over 10 million net new qualified event leads for its customers.

Vendelux plans to use the new funding to build additional product features and expand internationally in the face of growing demand in EMEA and APAC.

In addition to FirstMark, the investment deal included participation from Cervin Ventures.

TODAY’S TOP AI MARKETING TREND

Walled Garden Ads to Grow to $115 Billion by 2025

Walled garden programmatic digital display ad spending will grow from around $93 billion in 2023 to $115 billion by 2025, according to a recent forecast from Insider Intelligence.

The category includes programmatic digital display ads transacted in a closed ecosystem such as newsletters, where the publisher has access to first-party data and owns and controls all operations in the entire ad tech stack -- buying, serving, tracking, and reporting.

In other words, walled garden inventory isn’t available for purchase through third-party sellers or resellers. These transactions comprise a major share of total programmatic display ad spending, but dropped slightly in 2023 to 69.6% from 71.6% the year before, according to the report.

The report’s authors also predict that Reddit will follow a trend among its competitors by aligning with a larger walled garden such as Google Ad Manager or Amazon Ads in 2024, to fortify targeting options with commerce data and/or first-party audience data, while social network ad spending growth declines.

Another prediction in the report: Apple will introduce a demand-side ad platform (DSP). “The tech giant has been advertising for high-level DSP positions since at least mid-2022, so it seems a matter of time before this happens,” according to the authors.

TODAY’S MARKETING MASTER TIP:

He doesn’t need any introduction, but based on his meteoric business career Elon Musk’s philosophy about marketing deserves some close attention.

One of Musk’s stated core principles, as indicated in the above quote, emphasizes the importance of focusing on your ultimate business goals, without worrying too much about competitors running beside you.

When running a race, it’s best to mostly ignore the competition and keep your eyes focused on the prize ahead—it keeps your head up and your feet churning at optimal speed!

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THAT’S ALL FOR TODAY, FOLKS!