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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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CASL will come into force in phases starting July 1, 2014 The information below should not be considered legal advice. Please consult with appropriate legal counsel before relying upon the compliance information provided below. As of December 2013 both regulators responsible for implementing Canada’s Anti-Spam Law have finalized their regulations. Industry Canada’s guidelines confirm all but one of the expected exemptions, provide needed clarifications to key requirements and delay implementation of the more controversial aspects of the law. Over the past two years we have been updating you on CASL’s developments and efforts by industry groups to address unclear or onerous aspects of its proposed regulations. With Industry Canada confirming all but one expected exemptions and providing detailed guidance in its Regulatory Impact Analysis Statement, marketers should now have an easier time preparing. Here is a summary of key points for Industry Canada’s final regulations: i. CASL will be implemented in three phases: a. The majority of CASL comes into force July 1, 2014; b. The rules that apply to computer programs will come into force January 15, 2015; and c. The private right of action takes effect on July 1, 2017. ii. Industry Canada has provided interpretive guidance on several issues under CASL, including: a. The definition of a "CEM"; b. The application of CASL to express consent obtained before CASL comes into force; c. The application of CASL to IP addresses and cookies; and d. The interaction between the unsubscribe requirement and implied consent. iii. New exceptions have been added for: a. Closed platforms, which would appear to apply to platforms such as BlackBerry Messenger and social medial networks; b. Limited-access accounts, where organizations communicate directly with recipients (e.g., online banking); c. Messages targeted at foreign persons; and d. Fundraising by charities and political parties. A surprising exclusion of the ‘Reasonable Knowledge’ exemption In its draft regulations, Industry Canada sought to exempt foreign senders in instances where the sender could not reasonably know that the message would be received in Canada, particularly when the recipient does not typically access email within Canada or through Canadian systems.[1] However, in its final rulemaking the Department chose to nix this exemption as “unnecessary,” choosing instead to exempt messages routed through Canada into a foreign state. [2] This omission may create challenges for marketers in situations where it’s not possible or practical to collect country of origin information.[3] We expect further clarification on this concern from Canadian regulators in the coming months. For detailed information please visit the Canadian Government’s informational website. For summary information please see the following links: http://news.gc.ca/web/article-eng.do?nid=798829 http://blog.deliverability.com/2013/12/canadas-anti-spam-law-casl-is-now-a-done-deal.html http://www.cauce.org/2013/12/canadas-anti-spam-law-coming-into-force-june-2014.html If you would like to discuss CASL’s email-related issues, please email us at digitalprivacy@experian.com or reach out to us through your account teams. [1] Archived http://www.gazette.gc.ca/rp-pr/p1/2013/2013-01-05/html/reg1-eng.html [2] See Limited Exclusions section of Industry Canada’s Regulatory Risk Impact Assessment, http://fightspam.gc.ca/eic/site/030.nsf/eng/00271.html [3] If a consumer uses a global inbox provider like Google a sender will be challenged to determine where the email is accessed. And since reverse IP geo-location records may be outdated or inaccurate, new technologies and customer self-identification processes may be needed.
Watch our video chat with John Fetto as he shares insights from the Deal Seekers Report. This new report provides an analysis on the six deal-seeking consumer segments and information that savvy marketers need to know about them in order to more effectively target, reach and engage each group. Download the free report and watch John Fetto share some of the data:
As more consumers take pictures, make phone calls, read books and listen to music on smartphones and tablets, these devices replace the functions of the traditional gifts of years past. Read on to learn about this holiday’s hottest products and check out our recent Hot Holiday Products webcast to gain insight into how to capture more consumer visits during this busy season. Hot this week: Experian Marketing Services' analysis of online search trends this holiday season indicates that tech gifts are increasing in popularity this season. Smartphones and tablets rise to the top of the hot product list, as their functionality replaces that of traditional holiday gifts like cameras, books, clocks and stereos. New gaming consoles releasing this season, the Xbox One and PlayStation 4, are among the hottest products for 2013, with PlayStation currently in the lead. Tablets are also popular and the iPad is in the lead. Searches for iPad outperform those for Galaxy by a margin of more than 4:1. Hot holiday products With a scant 26 shopping days this holiday season, retailers need to identify hot products even faster than usual in order to run appropriate promotions and keep shoppers happy. Every year, Experian Marketing Services identifies the “hot products” that consumers want based on online searches driving traffic to the Hitwise® Retail 500, a grouping of the top online retail sites. This year, like last, the immediately recognizable footwear brand Ugg claims the top position on our list, as of November 9th. A new pair of cozy boots may sound nice as temperatures dip, but gadgets and electronics are what consumers are really hot for. Driving demand are two new major gaming consoles that hit the market this season. After several years without a major update, Microsoft will release the Xbox One and Sony will release the PlayStation 4. High consumer anticipation for both consoles won the PS4 and Xbox One a spot at number two and number three, respectively, on our hot products list. As of November 9th, variations on searches for PS4 were about 50 percent higher than search variations for Xbox One; however, the new PlayStation hits stores a week before the new Xbox, so this may change once both consoles have shipped. With smartphones and digital tablets performing the functions of traditional gifts of years past, such as cameras, stereos, books, watches, etc., it’s no surprise that the iPhone 5S, iPhone 5C and the new iPad Air are solid contenders on the hot product list. Likewise, the old-fashioned pedometer has been getting increasingly high-tech to the point where Fitbit, the wearable fitness tracker that links to your smartphone via Bluetooth, is the number four item on our list and searches this year are nearly three times what they were at this point in 2012. But not all of this season’s gadgets are high tech. In fact one of the hottest gadgets burning up the Web this season is about as old school as you can get: the loom, the Rainbow Loom, to be exact. We’ll cover this hot product in more detail in a bit, but it’s the number seven product on our list and one that every marketer targeting kids needs to have on their radar. Electronic spotlight With the tablet market heating up, iPads still enjoy a comfortable lead in terms of overall search. In fact, as of November 9th, search variations for iPad were more than four times higher than the nearest tablet competitor, the Samsung Galaxy. The Galaxy, however, overtook the Kindle Fire back in April of this year to become the second most searched for tablet. Tech Junkies, the segment comprised of online adults who visit technology review websites and technology content sites, are naturally more inclined to search for electronics and gadgets of all sorts, but they are even more disproportionately apt to be searching for Google and Microsoft products. For example, while Tech Junkies are 69 percent more likely than the average online adult to be searching for “iPad Air,” they are 2.7 times more likely to be searching for “Nexus 7” and 1.3 times more likely to be searching for “Galaxy Note 3,” two Android-powered tablets. Microsoft’s new tablet, the Surface 2, is also searched for by Tech Junkies at rates double that of the average online adult. Toys! Toys! Toys! When it comes to toys, it’s all about rubber band bracelets. In fact, four of the top 10 hot toy searches are tied to this trend. The Rainbow Loom and Crazy Loom (or Cra-Z-Loom, rather), are handheld looms that the young and the young-at-heart use to make rubber band bracelets (think: friendship bracelets) and other crafty creations. Since the start of the current school year, loom-related searches have taken off much to the ire of school administrators who have increasingly taken to banning the item from school premises. Video games aren’t just for grown-ups; they’re also for kids. The Skylanders SWAP Force and Disney Infinity are two sought after kid-friendly video games this year. Both allow players to bring physical action figures to digital life in video games. This is the third game in the Skylanders series and the first of its sort for Disney. Visit and bookmark http://ex.pn/hhp for up-to-date trends on hot products this holiday season, as well as a list of the top 20 online retailers capturing the greatest share of visits to the Hitwise Retail 500. We’ll update the data every Monday, so check back often!