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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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As many folks within the email eco-system probably know by now, Spamhaus, an organization known for compiling several widely used anti-spam lists, has been extremely active this week. Over the past week, Spamhaus has listed a number of potentially hazardous IP addresses used by some of the world’s largest email service providers due to the way their newsletters signups are set up. According to most of the listings, Spamhaus has stated: Unfortunately, the said newsletter service is not verifying the email address of new subscribers. Due to this, the service can be easily abused to "listbomb" internet users. Problem resolution ============================ The newsletter service needs to clean up their email address list and ensure that bulk emails are only being sent to recipients who have verifiably subscribed to their bulk email service. In addition, the newsletter service should take appropriate actions to prevent further abuse of their service: a) Implementing CAPTCHA to prevent automated subscriptions b) Implementing Confirmed Opt In (COI) to prevent abusers from adding random email addresses to the newsletter service that are not owned by the subscriber For the most part these listings should not directly impact marketers’ current ability to send their campaigns and reach their customers as they are listed as “warnings” within the Spamhaus system. What is important to understand is that these types of listings will likely continue to happen as Spamhaus has seen a dramatic increase in malicious use of newsletter sign-ups to "email bomb" various addresses, especially government (.gov) domains. While we understand that implementing CAPTCHA, or COI into any marketing system is not something that can be done quickly, Experian Marketing Services has recommended that our clients begin to investigate how they can potentially implement this process into their newsletter sign-ups. By asking customers to simply perform the CAPTCHA check, it will not only protect marketers from adding addresses from automated signup systems, but will also reduce the possibility of being listed with Spamhaus for these types of issues in the future. Some additional resources: Massive Email Bombs Target .Gov Addresses Subscription bombing, ESPs and Spamhaus, August 15, 2016 by laura in Best Practices Comment on the latter blog post on WordtotheWise.com from the CEO of Spamhaus: Excellent well summarized article Laura. No, we’ve not changed SBL policy to require COI. It’s something we very strongly advise but we cannot make a requirement. We’ll have to consider it if list-bombing of this magnitude cannot be kept in check by list managers. This incident involved a large number of government addresses belonging to various countries being subscribed to very large numbers of lists in a very short space of time by scripts run by the attacker(s). Most of the lists hit by the attack used COI and therefore only sent confirmation requests and did not subscribe any addresses. The attack undoubtedly also hit lists which used Captcha in addition to COI and thus did not even proceed to COI (those list admins deserve some sort of community ‘hi 5’ award, since one can imagine how hard it is to convince one’s management to implement COI let alone put Captcha in front of it). The issue is the badly-run ‘open’ lists which happily subscribed every address without any consent verification and which now continue as participants in the list-bombing of government addresses. These we are trying to address with SBL listings to prompt resolution by the Senders. As you noticed, most of these particular incident listings are for IPs ending “.0/32” which does not cause any mail issue to the Sender and is deliberately used where we have a good relationship with the Sender and know they will act quickly on the alert. Steve Linford Chief Executive The Spamhaus Project
Five Norwegian startups selected to establish U.S. presence NEW YORK, Aug. 15, 2016 /PRNewswire/ — Tapad, the leader in cross-device marketing technology and now a part of Experian, has announced its new entrepreneurial mentorship initiative, the Propeller Program. Five early-stage startups from Norway have been chosen by Are Traasdahl, native of Norway and Tapad’s CEO and founder. The selected companies will share Tapad’s New York City workspace, receive C-level guidance and help establish a U.S. presence. The following companies have been selected to participate in the inaugural Propeller Program – a 12-month program beginning September 19, 2016: Bubbly – Developers of a platform that enables in-store customer feedback with dashboards and tools that facilitate real-time store response BylineMe – A marketplace for freelancers, publishers and brands to connect for content creation and distribution services Eventum – A property-sharing group that digitally assists in securing venues for meetings and corporate events Socius – A content provider for publishers to tell stories using social media Xeneta – A database that organizes the best contracted freight rates in real time and on demand “We are supporting startups that we feel represent the future of service offerings,” said Traasdahl. “It is with incredible pride that we invite these entrepreneurial teams from Norway to join us in New York Citythis year. Mentorship opportunities for early-stage companies are so important, particularly for those based outside the U.S. I look forward to giving the Propeller Program participants access to the expertise of my seasoned team and to our wide network of resources. Hopefully, it will be a game-changing year for many of them.” Contact us today!
As partnership deals mount, aggressive hiring underway for unified cross-screen technology leaders NEW YORK, July 19, 2016 /PRNewswire/ — Tapad, the leader in cross-device marketing technology and now a part of Experian, has announced plans for aggressive expansion in the Asia Pacific (APAC) region. This move capitalizes on Tapad's exceptional performance for brands and marketing technology companies in North America and Europe. With it's proprietary Tapad Device Graph™, the company will enable global, regional and local clients and partners to understand, monetize and measure marketing to users across screens. The Tapad Device Graph is recognized as the most accurate, scalable cross-screen solution in the market today. The decision to expand into APAC was based on increased demand from global, as well as local, brands and clients, many of which have a strong market presence throughout the region. In addition to expanding its roster of world-class data partners, plans include building a world-class team in Singapore. Over the next few months, Tapad APAC will also establish local entities in additional markets. To accelerate its ramp-up, Tapad APAC is actively recruiting in many areas, ranging from skilled and experienced solutions engineers to seasoned sales and marketing professionals. "Tapad is thrilled to be answering the call for cross-device excellence in APAC," said Pierre Martensson, GM of Tapad APAC. "Our Device Graph is adding millions of devices daily and achieves unmatched levels of scale and accuracy while protecting consumer privacy. This meets a critical need in the region." Tapad appointed Martensson as General Manager of Tapad APAC in May, kicking off expansion in the region. Martensson comes to Tapad with nearly a decade of operations experience throughout APAC, having transformed, developed and grown global organizations. To learn more about partnership and employment opportunities available with Tapad in APAC, visit www.experian.com/careers. Contact us today!