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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.
Contact us
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We’re excited to introduce our new Q&A series, Ask the Expert! Ask the Expert will feature a series of conversations with product experts. We’ll spotlight and dive into the areas you care most about: identity resolution, targeting, attribution, and more. Our first segment features a conversation on Hashed Email. Jeff Tognetti, the Product Development Team Lead at DealerX joins us to chat with Experian’s Chief Revenue Officer, Chris Feo. Chris and Jeff review how to future-proof your identity strategy by exploring Hashed Email use cases, technical details, and offer an expert point of view on the cookieless future. Let’s review a few highlights from their conversation. DealerX’s use case When DealerX first started working with us, we focused on digital identity. DealerX wanted to understand the browsing habits of their first-party shoppers that relate to their clients: What they’re doing How they’re interacting with client sites and products Apply those learnings to target them across the web Eliminate ad fraud and targeting waste Our partnership gave DealerX the ability to take an anonymous consumer from anywhere across their portfolio of customers and understand who they are, while in an anonymous state. Then, they could activate on any channel where that consumer may be in the market for a product. This allowed DealerX to resolve who these people are as they browse the web, leading to reduced ad spend and targeting waste. This was the original and primary use case for DealerX when partnering with us. So, when did Hashed Email come into the mix for DealerX? Before we dive into the specifics, let’s take a step back and understand Hashed Email. What is Hashed Email? Hashed Email is a privacy-safe identifier that can further enrich the connection between the online (digital) and offline (real world) ecosystems. When paired with the Tapad Graph with access to Tapad’s universe of email data, it can provide maximum coverage for targeting and measurement when combined with IDs such as cookies, mobile ad IDs (MAIDs), connected TV (CTV) IDs, and IP addresses. Email hashing uses a method of coding to transform an email address into a jumble of numbers and letters so that it’s fully pseudonymized and privacy safe. Hashed emails can then be used as a digital identifier when a user is logged in to that email and trace their activity – without linking back to the user’s real email address. This allows marketers to collect data on their users and understand their behavior without knowing their email address – a win for both consumer privacy and marketer insight. DealerX & Hashed Email DealerX was one of our first customers to onboard Hashed Email to the Tapad Graph. Adding Hashed Email gave them a privacy-compliant way to work with identity and resolve what a user did on their site. This allowed them to gain insight into where an ad and impression was served; even the day and time these actions occurred. Now, we’re not the only data partner that DealerX works with. Many companies offer the notion of converting email to a digital ID in a privacy-safe way. How does DealerX evaluate the right data partner? Evaluating the right data partner When we say, ‘data partner,’ we’re referring to the data, the service, and the support. The most important characteristics to consider when choosing a data partner, according to DealerX, include: Technical prowess Efficiency Agility Scalability Why did DealerX choose to partner with us? Our services met the characteristics they were looking for in a data partner. We grew the product by iterating on features that worked best for Jeff and his team. The rollout was organized, efficient, and lacked bureaucracy, which can slow down an implementation timeline. While we started our relationship with DealerX as a vendor, now we're partners. How did we transition from vendor to partner? Transitioning from vendor to partner The key to a great partnership is trust. It’s tough to navigate an ecosystem with numerous companies that claim to have the same products and services. The relationship will start off as vendor-client, and both teams will get to know each other’s strengths and weaknesses. As the vendor makes your work seamless and offers an efficient implementation process, the relationship turns into a partnership. There’s more! This is just a taste of Chris and Jeff’s conversation. Visit the Ask the Expert content hub to watch a recording of the conversation. Stay tuned for future segments in our Ask the Expert series. We’re just getting started! Get in touch About DealerXIn just a few short years, DealerX has grown to serve 1,000’s of Tier 3 dealerships across all brands, enterprise partners and OEMs. Their keen approach to data, analytics, machine learning and programmatic initiatives have led DealerX to quickly become the most savvy player in the automotive space. DealerX has helped automotive retailers save 10’s of millions of dollars by avoiding fraud and eliminating wasteful ads pends, while dramatically reducing “cost per sale." In doing so, their partners significantly outperform those leveraging generic “one size fits all” competitive offerings. To learn more, visit their website at Dealerx.com.
While the weather outside is frightfully hot this summer, it’s never too soon to start thinking about the holidays – and consumers are more likely to start their holiday shopping early this year. To get you ready for the 2022 holiday shopping season, we looked back at consumer shopping trends from 2019-2021. What did we learn and what trends do we expect to see this year? Let’s look back. A look back Over the last three years, average consumer spending has increased. Record 2021 holiday sales came amidst a wave of COVID-19 cases, rising inflation, labor shortages, and supply chain problems. Despite these challenges, consumers continued to let it snow when it came to spending during the holiday season. 2022 has been a year with its own economic roadblocks – the war in Ukraine, rising gas prices, and recession concerns. Yet 2021 was a banner year for holiday sales despite its obstacles, and we predict similar trends in the 2022 holiday shopping season. 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Early shoppers made almost half of their holiday purchases in October Random shoppers spread out their holiday purchases evenly across multiple months Late shoppers made almost half of their holiday purchases in December Traditional shoppers made almost half of their holiday purchases in November While December continues to dominate holiday sales, October has started to gain traction over the last three years, and November remains a core shopping month. Everybody knows a turkey and a mistletoe help to make the season bright but knowing when your consumers are most likely to shop will help deck your campaign planning halls. Jingle bell rock your way to holiday sales that shine bright with our tips to prepare for earlier shoppers: Offer targeted promotions earlier in the shopping season Target your ads based on the shopping habits of your customers throughout the season Where consumers shop There’s no place like home for the holidays but most consumers aren’t shopping from home. 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Go down in history like Rudolph with our tips to prepare for more in-store shopping: Focus on in-store shopping experience technology (self-checkout, VR, QR codes, scan to pay, etc.) Offer multiple paths to purchase to connect your online and physical presence through methods such as BOPIS (Buy Online, Pickup In-Store), BORIS (Buy Online, Return In-Store), and ROPO (Research Online, Purchase Offline), etc. What consumers purchase When it comes to holiday gifts, for some, only a hippopotamus will do. Compared to pre-pandemic, shoppers are spending more at apparel stores and mass retailers. Spending at specialty retailers, warehouse clubs, and on office, electronic, and games is almost the same across holiday and non-holiday shopping months. Time for toys and time for cheer may be year-round, but are there any correlations between where consumers shop (online vs. in-store) and what they purchase? Our data found that shoppers who bought from mass retailers were more likely to shop online, while shopping for apparel and warehouse clubs was done at a physical store location. Put this insight to the test by thinking through how you can target your consumer based on where they shop in-store and online. You just might find that hippopotamus at a brick and mortar mass retailer location! Consumer media preferences Do you see what I see? While we are seeing a shift to digital media channel preference, consumers still engage with traditional media channels like direct mail and the traditional newspaper. Successfully connecting with your customers involves capturing their attention through the right channel. We found that our four shopping groups prefer a mix of traditional and digital media channels. What does your media channel mix look like? Hark! The herald angels sing of ways to adapt to the change in holiday spend and media preferences: Align your activation efforts to digital, but don't forget about traditional channels Expand your targeting and activation focus beyond in-store vs. online Download our new 2025 report For a deeper dive into our predictions and actionable insights you can use to take your holiday campaign planning home for the holidays, download our new 2025 report, in collaboration with GroundTruth. Experian data can help you refine your content and creative strategy to achieve maximum ROI for each campaign across all your channels. Download now Get in touch
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