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The concept of the “hedged garden” is gaining traction in the AdTech space as a promising new approach. It offers a more controlled and protected environment for advertisers, reshaping how digital advertising operates. But what exactly is a hedged garden, and could it be the solution we’ve been looking for? Let’s dive into the details and explore its implications.
Walled gardens vs. the open web
Walled gardens continue to disrupt the advertising industry to stay relevant. Google, Meta (Facebook), and Amazon, the largest walled gardens, offer consumer privacy and rich first-party data to advertisers. But, time spent within these platforms, Google and Meta specifically, continues to decrease.
Open web: Pros and cons
On the other hand, the open web allows for more transparency, scale, and constant diversification. Yet, this has not led to increased spending. As a result, the open web continues to lag behind walled gardens. With a heavy reliance on third-party data and growing concerns over signal loss, the open web faces significant challenges. Under these circumstances, advertisers turn to easy activation channels like walled gardens, even as they become less effective to marketers.
Consumers are increasingly focused on privacy, pushing the industry toward alternatives to third-party cookies. As Google rethinks its cookie deprecation plans, channels like connected TV (CTV) and mobile apps, which don’t rely on cookies, are gaining traction.
“A significant portion of web traffic does not support cookies today — and that number will grow as Google rolls out [its] new solution. This means that the industry shouldn’t slow down investments in cookieless solutions, including alternative IDs, first-party data and data-driven contextual targeting.”
kimberly gilberti, general manager, experian
This shift emphasizes first-party data and user choice as a potential solution that balances privacy with effective advertising sources.
Enter the hedged garden
So, what is a hedged garden? The “hedged garden” is a new industry concept where a network of publishers works together to activate first-party data sets in a privacy-compliant way across many partners at scale. These publishers run their businesses with large amounts of first-party consumer data. But they are not big enough on their own.
What does a hedged garden look like? Hedges are more permeable and not as tall as walls. This idea is key to the success of the hedged garden.
Data protection and privacy regulations
As hedged gardens grow, staying compliant with privacy laws like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) is vital. These rules focus on protecting user data by requiring clear consent and transparency. Hedged gardens help publishers share first-party data in a safe, privacy-compliant way.
By working together, they ensure data is used responsibly, aligning with strict privacy regulations. This not only keeps marketers compliant but also builds trust with consumers at a time when data protection is more important than ever.
Opportunities for marketers in hedged gardens
Hedged gardens offer unique opportunities for marketers to enhance their strategies. Unlike walled gardens, hedged gardens offer the ability to work with a wider array of data sources and provide more diverse insights into audience behavior. This flexibility lets marketers develop more tailored, cross-platform campaigns that reach users in different ways.
Additionally, hedge gardens encourage collaboration with multiple partners, allowing for new partnerships and innovative strategies. With data from several sources, marketers can create more precise and privacy-compliant targeting methods to deliver better results. With the right approach, hedged gardens give marketers the freedom to break away from restrictive ecosystems and drive creative and impactful growth.
How Experian navigates through hedged gardens
As our ecosystem moves toward a hedged garden solution, how do we get involved? We are already a key ingredient for this type of solution within the TV landscape. Below, we walk through how we partner with one of our current TV media clients.
Organize our client’s data and provide a Living Unit ID (LUID)
First, we work with our client to clean and enhance their data, matching individual personal identifiable information (PII), such as an email address, to a household through a LUID. Our Digital Graph, which includes hashed emails (HEMs), cookies, mobile ad IDs (MAIDs), IPs, universal IDs, and CTV IDs, is rebuilt weekly to create accurate, refreshed connections. This consistent linkage creates precise targeting and measurement over time.
Our interconnected Offline and Digital Graphs organize identity into households and devices, enriched with marketing data for deeper insights and better addressability. With partnerships across major platforms, we improve match rates, helping you activate audiences seamlessly for optimal reach and measurement.
Enrich data through Experian Marketing Data
Next, our TV media client licenses our Marketing Attributes. This data is the most comprehensive resource for both traditional and digital marketing campaigns. With its multi-channel availability and addressable capabilities, our Marketing Attributes allow our clients to develop insights and build audiences based on a wide range of attributes within their segment set, ensuring they reach relevant audiences across all channels.
Activate audiences across the ecosystem
Finally, we help our client execute their audiences across the full digital and TV ecosystem. We enable the connection that allows these audiences to be activated by matching partner LUIDs (example: LUID123 = LUIDABC). By using client-specific LUIDs to match up data in a privacy-first manner, we can continue to build strong partnerships within the fast-growing ecosystem.
Are hedged gardens the future of advertising?
Have we found the perfect bridge between walled gardens and the open web? We’re hedging our bets. Our vote is yes, but only time will tell.
The future of advertising is shifting, and hedged gardens appear to be a promising model that balances the scale of walled gardens with the flexibility of the open web. We’re using what we learned from the TV industry to support other hedged garden verticals (retail media networks, audio, and gaming).
Now that we know what a hedged garden is, we should consider what the future holds for both walled and hedged gardens.
What’s next for walled gardens
- Increased privacy regulations: Walled gardens will face stricter regulations on data use, pushing them to adapt for compliance and trust.
- Reduced market dominance: As advertisers want more control, reliance on walled gardens could decline, shifting focus to hedged gardens.
- Diversified ad spend: Brands may spread their budgets across multiple platforms instead of being locked into walled gardens.
The future of hedged gardens
- Greater industry collaboration: Expect more publishers and platforms to join forces in hedged gardens for better data activation.
- Expansion into new channels: Hedged gardens will expand into emerging channels like gaming and connected devices.
- Improved data integration: Privacy-first data sharing in hedged gardens will lead to smoother, more secure ad targeting.
Data collaboration in a post-cookie world
As signal loss becomes a growing concern, the need for secure, privacy-first data collaboration will rise. Hedged gardens offer a pathway forward, allowing advertisers to activate first-party data across multiple partners while complying with data regulations.
This is where Experian Collaboration shines. By enabling data sharing without exposing raw consumer data, clients and partners can collaborate at Experian in their own environment or in clean rooms. Each of these environments allows partners to exchange data and gain insights without compromising privacy.
Maximize your advertising reach with Experian
As the advertising landscape changes, one thing remains clear: successful campaigns will require flexible, privacy-first solutions. At Experian, we are at the forefront of this shift. With our data expertise and advanced collaboration solutions, we’re here to help you navigate through both walled and hedged gardens to maximize your advertising reach.
Together, we can navigate across the walled and hedged garden ecosystems. Contact us to learn how.
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With a majority of households containing at least five people, this segment is a haven for large broods living in new suburban subdivisions. Parents in this segment tend to be in their 30s and 40s. There is a wide range of kids in these households, from preschoolers up to those in high school. There is also money in this segment, reflecting the high educations and low six-figure incomes that come from dual earners employed in professional and technical occupations. Some key traits of Babies and Bliss households include upscale tastes, large families, well-educated, conservative views, financially-savvy, convenience, and power shopping. Implications: Given their large families, it's not surprising that Moms from Babies and Bliss households are value-conscious shoppers who seek appealing deals for quality merchandise. They carry coupons, like to comparison shop when buying expensive items and head to the clearance rack first whenever they buy clothes, which tend to be conservative in style. In the mall, these Moms follow their children's lead but also remain very open to consider generic store brands rather than high-priced name brands. They like to shop (it's practically a sport) and are happy to open their wallets at department stores, specialty shops, catalogs and online sites. They especially pride themselves in being very Internet-literate. With their jobs, kids and errands, they appreciate the convenience of shopping online and are receptive to email ads, sponsored Websites and Web page links. Families Matter Most Description: A fast-growing segment, Families Matter Most consists of young, middle-class families in suburban locations leading active, family-focused lives. Nine out of ten households have kids (nearly two-thirds have multiple kids). 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Segmentation Layering For many marketers, segmentation is like breathing – it comes naturally and is a part of everything they do. To better connect with your target audience, use a good segmentation system with multiple layers that provides a breakdown of essential information while tying in lifestyle and transactional data. Consider marketing to parents. The most basic information includes demographics such as age, income, presence of children, etc. Add to that lifestyle information – the family has two working parents who rely heavily on the Internet for research and purchase convenience. The transactional data can really set apart where a parent falls on the parenting lifecycle. For example, is the parent still purchasing diapers and feeding supplies for their infant or bedding, towels and a coffee maker that might indicate their “baby” is headed to college? Both parents may look similar when comparing demographic and lifestyle information but the transactional data differentiates their needs. According to Experian Marketing Services: Parents use the Internet far more than the average American Moms are 34% more likely to buy products online and 33% more likely to participate in a blog than the average adult. "Marketers are targeting more carefully based on both the parents' life stage and consumer behavior,” says Jan Jindra, senior product market manager at Experian Marketing Services. “Younger parents, and those of smaller children, have different information needs than parents of older or college-age children. It's not only the life stage they're in, but the lifestyle," Jindra says. Read the full article and check out the latest in marketing to parents in DMNews: http://www.dmnews.com/household-brands-observe-parents-needs-in-defining-segmentation-tactics/article/205902/.