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Digital marketers face an ongoing challenge in the form of “walled gardens,” closed online ecosystems where it is difficult to access user data. As we get ready for 2024, it’s more important than ever for marketers to evaluate the current challenges and opportunities surrounding walled gardens and to take stock of the impact of walled gardens in marketing as an industry.
What is a walled garden?
A walled garden is a closed online ecosystem controlled entirely by one tech company. Advertising on these ecosystems is fairly locked down, as major tech companies with walled gardens tend to tightly control access to the user data, content, and advertising that appears within the ecosystems.
Some examples of walled garden ecosystems include Google, Facebook, Amazon, and Apple. These walled gardens have particular advantages, like access to massive user bases and precise targeting within the individual ecosystems. It can also be difficult to reach said audiences outside of the ecosystems, reducing the amount of control you have over your advertising strategies.
Learn more about walled gardens.
Learn the differences between walled gardens and hedged gardens.
Integrated marketing is more important than ever
Today, it’s become more crucial to connect with consumers over multiple touchpoints, which can be done from tech like connected TV (CTV) to websites, mobile devices, and even shopping in a physical store. However, as integrated marketing gains utility, many platforms with walled garden ecosystems have increased, making a truly integrated and personalized marketing strategy more difficult in many situations. As a result, many marketers have realized the value of a more streamlined marketing approach, emphasizing the importance of fully integrated advertising strategies.
Though there are surely marketing advantages to gain from walled garden ecosystems, especially in audience size, the challenges they pose will require you to innovate and find more creative ways to engage with your audience from platform to platform.
Perspectives on walled gardens from Cannes Lions 2023
Offering a poignant view of industry trends and ideas, the Cannes Lions International Festival of Creativity of 2023 had much to say about the significance of walled gardens in the marketing world. Let’s look at two key takeaways from this year’s festival.
Retail media
In recent years, many retail companies have started selling ad space within their own walled garden shopping platforms, dubbed “retail media.” Platforms like Amazon and Walmart have developed their own particular advertising ecosystems where they sell ads to marketers within the shopping environment itself.
Navigating the sell-side of retail media’s walled gardens
While retail media offers marketers unique opportunities, it’s not without its challenges. For one, ad space in these environments is limited, so the competition can be difficult on the sell-side, leading to higher ad costs. Additionally, this shift in dynamic also forces marketers to change how they prioritize their marketing channels, looking closer at the results of their efforts rather than focusing on particular channels within the platforms themselves.
Opportunities in the buy-side of retail media’s walled gardens
Brands on the buy-side see various benefits from advertising within retail media channels and walled gardens. By browsing in an online shopping environment, the users in these ecosystems are likely high-intent shoppers, people who are further down the sales funnel and who are ready to make a purchase soon. Shoppers can also be precisely targeted within these environments, as marketers are given the ability to access very specific audience segments based on details like shopping behavior, preferences, and even purchase history.
Omnichannel marketing
To more effectively engage audiences even among an abundance of walled garden ecosystems, speakers at the 2023 Cannes Lions Festival discussed the importance of omnichannel marketing. By emphasizing strategies that reach the consumer through multiple touchpoints, marketers can deliver a unified brand experience across channels. This allows marketers to focus more on results than specific advertising channels, including walled garden platforms.
Walled gardens aren’t going away in the near future
Though various challenges are associated with walled gardens in advertising, they aren’t going anywhere. So, what’s the current state of these environments throughout the industry?
Efforts are being made to break down walled gardens in tech
In a handful of countries, regulatory actions have been put forward to address how dominant many major tech companies are in their respective markets. One major example of this is Meta and Google’s entanglements in Canada. Currently, neither company can display news on their websites in the Canadian market. This decision was reached to give Canadian news agencies more control over their advertising revenue since, previously, the tech giants received more views and, therefore, gained the ad revenue. Though relatively small, this does indicate a certain shift in dynamic.
Why companies are resisting
Despite their challenges, walled gardens in 2023 persisted, mainly because they are particularly adept at generating revenue for the tech companies that control them. In 2022, 78 percent of global digital advertising revenue came from these closed ecosystems, and projections expect that figure to rise to 83 percent by 2027. From the viewpoint of a company that operates in a walled garden, the idea of releasing their control over their environment represents losing out on a stream of vast revenue, making letting go of a walled garden ecosystem an unattractive prospect.
The future of walled gardens
As time progresses, what can digital marketers like you expect from walled garden ecosystems in the near future?
A cookieless future
A huge element to consider is the transition to a cookieless future. Many major browsers have begun phasing out the use of third-party cookies. In the wake of this decision, many are looking for reasonable alternatives that allow for behavior tracking and more personalized advertising experiences. Solutions like Experian’s identity resolution can provide a strong alternative option, allowing marketing strategies to adapt to the current landscape.
An influx of mini gardens
You should also anticipate the proliferation of various smaller, specialized walled garden ecosystems in the future. These so-called “mini gardens” specialize in more niche audiences and industries, and they can present their own challenges and opportunities.
Alternative IDs
As you search for new identification methods outside cookies, various alternatives have presented themselves, requiring further exploration and experimentation. Among these are privacy-compliant solutions like Unified ID 2.0, which allow you to serve more personalized ads without compromising the consumer’s privacy.
Navigating the evolving landscape of walled gardens in 2024
As we begin 2024, you will continue facing opportunities and challenges regarding walled gardens. The 2023 Cannes Lions International Festival of Creativity re-emphasized how important it is for marketers to stress omnichannel marketing within walled garden environments and become well acquainted with identity resolution solutions as we move into a cookie-less future. All of this requires you to become comfortable with walled gardens being here to stay and innovate to navigate an evolving and developing landscape.
We’re here to help you navigate the evolving landscape of walled gardens in 2024. Contact us today.
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There’s no question that COVID-19 has changed the shopping landscape forever. While the initial onset of quarantines and lockdowns negatively impacted brick and mortar retailers, online shopping soared to levels higher than 2019’s Black Friday/Cyber Monday extravaganza, accounting for $153 billion in spending over April and May1. Many consumers will continue to shop online for the foreseeable future for various reasons, which means marketers must have a greater focus on providing a positive online customer experience. Despite MSN Money’s claim that COVID may have made holiday shopping extinct2—in part because retailers such as Walmart, Target, Best Buy and more are keeping their doors closed on Thanksgiving—it turns out that’s not the case. According to polls taken by Chain Store Age, the pandemic hasn’t impacted consumers’ holiday spending plans, but it has affected how they intend to shop. This sentiment is echoed by Radial, who shared that 60% of consumers plan to shop less in-store this season. Even so, Salesforce noted that respondents to their poll found that consumers value safety and health above all else in their in-store shopping experiences, with 60% stating that social distancing measures were important to them3. So how can you navigate this new shopping normal and make the most of the 2020 holiday season? 1. Leverage data to strengthen communicationsData has always been an important component to a successful marketing plan, but it’s even more important now that shoppers are scattered across multiple devices and shifting their preference from offline to online—or a hybrid of the two. Connecting consumer identities across devices and channels means you can reach customers more effectively, promoting events, items and experiences that are most relevant to them on the channels they frequent most. You can also leverage mobile location data to understand consumer traffic patterns, including understanding which competitors they may visit. Not only will this help you to anticipate their behaviors, but you’ll learn more about their habits and preferences, which in turn helps you to craft messaging that speaks directly to their needs—and encourages their loyalty. 2. Be transparent in your messagingBrick and mortar holiday shopping isn’t totally out of the question this year, it’s just going to look a little different. If you’re still offering customers an offline experience, be open and honest with them about what they can expect. Use your outreach to share information about how you’re protecting employees, sanitizing the store, and making for a safer in-store experience so your customers feel comfortable walking through your doors. (The NRF has excellent resources to help you navigate this as required by state guidelines.)Also, let them know if there are any changes to shopping policies, such as wearing masks, contactless payment, the number of people allowed in the store at one time, return windows and more. The more transparent you can be in your messaging, the more comfortable customers will feel in keeping you in mind for their holiday shopping plans. And if your online business is booming, make sure you communicate any changes in fulfillment or shipping due to safety measures or delivery delays. This will be important messaging to those who may not be traveling to see family this year and are shopping online to have gifts shipped to their loved ones. 3. Offer positive new experiences and perksWhether you’re online or offline or both, customers will feel encouraged to shop when you offer them a little something extra to help make their shopping experience more enjoyable. Curbside pick-up has become an important aspect of this new normal in retail, so make sure you share with your customer whether that option is available to them. If “try before you buy” isn’t available like it may have been in the past, see what you can do to offer a similar experience—for example, many fashion retailers are offering virtual styling services that allow customers to connect with an expert for further insight on fits and cuts that may work for them (or the friends and family they’re shopping for). Some home furnishing retailers provide the ability to “visualize” an accessory or piece of furniture in your home.Free gift-wrapping services are always appreciated, as are in-store experiences for shoppers with kids (but they must be socially distant, of course). Be creative and use data to help inform your decisions so you can create perks and experiences that will really connect with your customer. Even with new challenges, retailers have the opportunity to offer a positive shopping experience through the holiday season and beyond, whether online or offline. And given the stressors of the season, it’s likely consumers will be shopping for themselves as much as they’re shopping for friends and family. As Business Insider put it, “…retailers will need to be more targeted and creative in their approach to Black Friday to get customers to spend,” and having the right data will be key. Download our new Holiday Marketing eBook for trends, tips and tricks to help you plan and execute powerful holiday marketing campaigns. 1https://theblog.adobe.com/online-shopping-during-covid-19-exceeds-2019-holiday-season-levels/ 2https://www.msn.com/en-us/money/companies/covid-19-may-have-made-thanksgiving-day-holiday-shopping-extinct/ar-BB17fmtm 3https://www.zdnet.com/article/covid-19-has-permanently-changed-shopping-behavior/
Tapad, part of Experian, and Reveal Mobile partner to launch new audience and attribution capabilities for ad buyers
FeaturedCross-device matching and pixel-based foot traffic attribution reporting empower digital marketers with greater control of location-based campaigns.RALEIGH, N.C. (PRWEB) AUGUST 04, 2020 Tapad, part of Experian a global leader in digital identity resolution, and Reveal Mobile, a leader in location-based marketing, today announced a collaboration that combines Tapad’s digital cross-device matching technology and pixel-based attribution features with Reveal Mobile’s VISIT Local, the software that hundreds of digital agencies and brands use for location-based analytics. The partnership is designed to drive improved performance by optimizing ad targeting and messaging for location-based campaigns. Powered by Tapad’s privacy-safe cross device matching, marketers using VISIT Local to power location-based campaigns can enhance how they reach shoppers. When one member of a household shops for groceries, clothes, household goods or any other consumer item, a conversation between multiple members of the household typically takes place beforehand. With cross device matching, marketers can reach everyone who has influence over what to buy and where to buy it. VISIT Local users can expand location-based services with a single click to include devices that share the same household, including targeting across multiple devices owned by the same user, allowing advertisers to maximize messaging and increase their share of wallet among consumers. “VISIT Local has always given our customers access to high-intent location-based audiences. With the addition of cross device matching from Tapad, advertisers can boost audience sizes up to 300 percent while maintaining full confidence in quality and relevance,” says Brian Handly, CEO of Reveal Mobile. “VISIT Local users can now apply multiple criteria and attributes to a single location-based audience, giving them the advanced control and transparency they need.” As reliable attribution becomes increasingly complex for marketers and ad buyers who need to prove value, the addition of Tapad’s pixel-based foot traffic attribution to VISIT Local enables the measurement of actual campaign effectiveness by tying ad views to in-store foot traffic. This new feature, which will be available in VISIT Local this fall, lets Reveal Mobile customers understand who visited a retail location as a result of being served an ad, providing a more accurate view into return on ad spend during and after advertising campaigns. “Tapad’s goal is to empower marketers with digital advertising efficiencies at scale across devices,” says Mark Connon, COO of Tapad. “With cross device matching and pixel-based foot traffic attribution, marketers using VISIT Local can better address the consumer’s preferences and habits, and deliver them consistently actionable information on user behavior. These capabilities advance location-based advertising in ways marketers need and want.” In addition to these new features, VISIT Local’s location-based audience builder now enables marketers to create custom audiences made up of people who have visited different places on different dates. This gives VISIT Local users the ability to segment and create the most highly targeted audiences possible. For example, a marketer who wants to advertise for a chain of restaurants can easily target visitors of different competitors in different cities. Or a marketer who wants to advertise vacation destinations can target people who have been to various resorts at different times of year. Or a marketer who wants to advertise the release of new music can target people who have been to concert venues in different cities on different dates. “Many of our customers need to create highly custom audiences so they can run experiments, test messaging, and run increasingly competitive campaigns,” says Handly. “Everyone who uses VISIT Local can now apply multiple criteria and attributes to a single location-based audience, giving them the advanced control and transparency they need.”To learn more about Tapad’s digital identity resolution products, visit our identity solution page. To learn more about Reveal Mobile’s location-based marketing offerings, visit http://www.revealmobile.com. About TapadTapad, Inc. is a global leader in digital identity resolution. The Tapad Graph, and its related solutions, provide a transparent, privacy-safe approach connecting brands to consumers through their devices globally. Our one-of-a-kind Graph Select offering enables marketers the flexibility and freedom of choice to correlate devices to varied objectives, driving campaign effectiveness and business results. Tapad is recognized across the industry for its product innovation, workplace culture and talent, and has earned numerous awards including One World Identity’s 2019 Top 100 Influencers in Identity Award. Headquartered in New York, Tapad also has offices in Chicago, London, Oslo, Singapore and Tokyo. About Reveal MobileReveal Mobile is a leader in location-based marketing, analytics, audiences, and attribution. Creator of VISIT Local, VISIT Match and VISIT Data, the company’s products help digital agencies, brands and retailers of any size leverage location data to understand and reach the right audiences. Reveal Mobile is CCPA compliant and a member of the Network Advertising Initiative, which conducts an annual privacy certification. The company is based in Raleigh, NC. For more information, visit https://revealmobile.com. Contact us today
As the pandemic took hold of the country and stay-at-home orders were put in place, one of the consumer categories that was most adversely affected was the restaurant industry. But while sit-down restaurants were forced to pivot to curbside delivery and other inventive means to make ends meet, quick-service restaurants (QSRs) that already had a solid delivery program or drive-through in place saw a surge in new guests. “Dinner and a movie” took on a different meaning as people either picked up or ordered in to make date night happen, and QSRs rose to the occasion like never before. With some states beginning phased re-openings of non-essential businesses, some restaurants are now allowed to open so long as they follow social distancing rules or allow for outdoor dining areas. But that doesn’t mean consumers will be ready to race out and participate in this new dining experience. Many may remain apprehensive about safety and continue to “dine at a distance” until they’re confident that they can remain healthy, or until a successful vaccine goes into use. Even as states begin their phased re-opening plans, many continue to work from home—which has greatly affected both dine-in and QSR venues. Those who saw a robust lunchtime crowd probably saw a drop-off while business-based locals shifted their office plans. However, new opportunities have emerged for restaurants to reach out to their regular lunch crowd to offer delivery or attract a whole new lunch crowd who may not have thought to order from them before. Between the challenges of a post-pandemic world, a shifting of diner priority, and an uncertain future facing the restaurant world, it’s now more important than ever before to leverage an intelligent, data-driven marketing strategy to ensure your campaigns reach the right consumers, and also attract new customers to expand your customer base over time. All of this can be done using the power of data, but having the right data is key to making the most of your marketing efforts. As you’re crafting your current marketing plans, it’s important to look at all the variables you need to address to create more targeted messaging, thus helping you zero in on your most desired consumer base. The first thing to consider is, how well do you know your guests, and what do you know about them? If you have no insight into their dining habits or preferences, it will be challenging to come up with messaging that will speak to them. But with the right data, you can discover if they frequent your competitor’s locations (and if so, how often), which apps they’re using to order food, which days of the week, and even which meals they are most likely to order. You can also use this information to better understand how often you factor into your customer’s dining plans by understanding if they are beginning to commute again, or continuing to work from home, and if the latter, do they live near one of your locations. Data can also help you discover more about who they are, so you can even further tailor your messaging to their needs. Let’s say your target customer is married with children. Addressing their busy life as a professional and a parent, and sharing how you can ease the burden of dinnertime to make life easier for them, may be exactly the kind of message of support they need to encourage them to reach out to you. Using data based on demographics, lifestyle, behavior, attitudinal and mobile location data can help you cook up a marketing strategy with precision and success, resulting in more diners knocking on your door (or at least, calling for take-out). Another key component to consider is the use of mobile location data, which Zeta Global cites1 as being the most important data chain restaurants can use for their marketing plans. Not only can this data be used to better understand share of wallet and potential up-sell opportunities, but it can also be leveraged to reach out directly to potential new customers that have historically frequented your top competitors. You can also use mobile location data to connect with consumers who may be more drawn to your restaurant because of your delivery or curbside pick-up options, and craft outreach based on that information that will encourage them to order with you. As Hospitality Tech pointed out2, building trust in a post-pandemic world is key for QSRs who want to continue to encourage loyalty with current guests, and entice new ones to place orders. The key to making that happen is data. By deploying marketing messages that resonate, activating them on the channels your guests use most, then measuring the impact of your campaigns, QSRs can create more opportunities for success and customer connection that can translate into real, long-term results. Plus, the right data can help you increase store traffic with high value guests, reactivate guests who haven’t visited in a while and find new individuals who live nearby that closely resemble your current high value guests. Experian has decades of experience in helping organizations better communicate with their customers across all marketing channels. How can we help you? Find out more about our restaurant marketing solutions. 1https://zetaglobal.com/blog/chain-restaurants-need-customer-data/ 2https://hospitalitytech.com/new-marketing-communications-playbook-during-covid-19