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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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Cuebiq’s mission, as an offline intelligence and measurement company, is to quantify how digital marketing impacts offline consumer behavior. This case study shows how Cuebiq partnered with Experian to continue delivering in-store lift analyses despite signal loss. To achieve this, Cuebiq used Experian’s Activity Feed to resolve digital ad exposures to mobile ad IDs, so that marketers could know the effectiveness of their media campaigns on in-store visits and purchases. Even as Google backs away from third-party cookie deprecation, the need for flexible, future-proof identity solutions remains. By working with Experian, Cuebiq could help their clients more accurately measure their campaigns and optimize their media. Challenge: Increasing match rates across digital platforms Cuebiq wanted to enhance how well they connect digital ad exposures, across web, mobile, and connected TV (CTV), to mobile ad IDs (MAIDs), of consumers who visited their clients’ stores. They needed a single technology partner who could collect data across these environments and improve these connections. With the ability to resolve exposures to households, individuals, and MAIDs to then facilitate attribution of digital exposures to offline store visitation, Cuebiq could continue to provide accurate reports on how digital ads impact offline consumer behavior. This clarity in data enables their clients to fine-tune their marketing strategies. Cuebiq’s key objectives included: Resolving digital exposures to MAIDs Increase overlap of offline and online data Improving the effectiveness of offline measurement offerings Activity Feed: The solution to increase match rates Experian’s Activity Feed pulls together fragmented digital event data from all digital channels, including browsers like Safari and Firefox that restrict traditional tracking methods. Activity Feed ingests and ties digital ad exposure and website activity data to household or individual profiles hourly, helping client's associate ad exposures to impact by a household or individual. Activity Feed plays a crucial role in overcoming fragmented data and helping marketers accurately measure their cross-channel marketing efforts. Cuebiq used Activity Feed to resolve exposure data from all environments, even cookieless ones, to a single household or individual and saw significantly higher match rates. Cuebiq received their clients’ ad exposure data resolved to mobile ad IDs (MAIDs) and correlated it to their clients’ in-store visitation and sales. To do so, Cuebiq implemented the Experian pixel, which they placed to track all their marketers’ impressions (mobile, CTV, web traffic, etc.). The Experian pixel collects information in real-time, such as: Timestamp Cookies Device ID (MAID/CTV) when available IP address User-Agent Impression ID “Before we started working with Experian, we couldn’t fully maximize ad views across the complex digital landscape. In just a few weeks, they were able to maximize the match rate across the fragmented digital inventory, solving a huge problem when it comes to cross-channel attribution.” Luca Bocchiardi, Director of Product, Cuebiq Results Activity Feed combines separate data streams and matches them back to a household. This enables Cuebiq to expand household IDs and accurately identify MAIDs that are seen in-store for cross-channel measurement. Over a 21-day period, Cuebiq passed ~1 billion events to Experian. Activity Feed resolved 85% of total events to a household, 91% of which were tied to MAIDs. By implementing Activity Feed, Cuebiq was successfully able to: Gain clearer insights into the success of their client‘s campaigns Match consumer engagements in a privacy-compliant manner Tell the story of the key performance indicators (KPIs) related to their marketing efforts A solution for measurement across cookied and cookieless environments Activity Feed is prepared for whatever the future of signal loss holds in store, capable of using third-party cookies and alternative IDs, like UID2.0s, ID5 IDs, hashed emails, and IPs for identity resolution. Experian remains fully committed to exploring a suite of next-generation solutions and prioritizing continued testing of different industry solutions to help customers maintain consumer visibility amidst signal loss. We’ve identified six viable alternatives to third-party cookies, how these alternatives fall short, and how Experian can help you navigate these alternatives. “Experian’s customer service is extremely efficient and collaborative. We trust them to keep putting our business first long-term.”Luca Bocchiardi, Director of Product, Cuebiq Download the full case study to discover how Cuebiq used Activity Feed to overcome their challenges. Your path to maximizing match rates and resolving data from cookieless environments starts here. Download the full case study Contact us About Cuebiq Cuebiq is transforming the way businesses interact with mobility data to providing a high-quality and transparent currency to map and measure offline behavior. They are at the forefront of all industry privacy standards, establishing an industry-leading data collection framework, and making it safe and easy for businesses to use location data for innovation and growth. To learn more, visit their website at www.cuebiq.com Latest posts
Today, Experian announced a suite of next-generation solutions that will help marketers navigate the challenges of cookie deprecation. Powered by the Experian Graph, these solutions will enable marketers to maintain behavioral targeting at scale. In partnership with Audigent, Experian announced the early-stage limited availability of Experian Audiences inside the Privacy Sandbox through the Protected Audiences API. Experian has also co-developed, with Audigent, an AI-driven contextual targeting solution layered with Experian’s rich Experian Marketing Data to continue delivering marketers scale and performance from their campaigns. Finally, Experian continues to evolve its signal-agnostic Graph, including coverage for industry-leading universal IDs, and plans to support IPv6 and phone-based UID2s. 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While the scale of targetable users and ad opportunities is still growing with the adoption of Privacy Sandbox by publishers and SSPs, the results are strong and provide a real-life illustration of how advertisers will be able to reach audiences in this new environment. “As the industry’s leader in building Interest Group segments in PAAPI, Audigent is thrilled to see world-class data partners like Experian work with us to build innovative solutions that deliver value now and will be absolutely critical as third-party cookies are deprecated in 2025.”DREW STEIN, FOUNDER AND CEO, AUDIGENT Data-driven contextual targeting is available through partnerships with Audigent and Peer39 As marketers prepare for cookie deprecation, they are turning to tried and true methods of targeting, like contextual, as they offer targeting strategies based on content and behavior instead of user identity. Experian is co-developing ID-less solutions that upgrade contextual targeting by intelligently indexing and infusing Experian’s rich Experian Marketing Data against contextual signals. By using these products, advertisers gain the ability to reach their audiences with a new and improved solution that delivers scale, performance, and value. We have beta launched a unique solution with Audigent that indexes Experian syndicated audiences against contextual signals through the power of the Experian Graph and Audigent’s Hadron ID to create PMPs that can be activated on any DSP. As part of the beta, a leading national advertiser ran a test via Audigent to see if this fully cookieless solution could deliver results at parity or better than today's ID-based options. The scaled 15-day flight not only met existing campaign delivery targets but also exceeded CTR goals by 25%. Experian has also partnered with Peer39 to make our geo-indexed syndicated audiences (e.g., Purchase Affinity and Demographic data) available through Peer39's contextual integrations. This allows marketers to confidently reach the right audiences in their digital marketing campaigns without third-party cookies. Experian's Graph now includes leading Universal IDs With the ever-changing nature of signal and identity, we’re continuing steps to be interoperable, and Experian's signal-agnostic Graph now supports the leading universal IDs: UID2s, ID5 IDs, and Hadron IDs. This is in addition to hashed e-mails, mobile ad IDs, and Connected TV IDs. Our strong coverage against cookieless identifiers means marketers will maintain addressable advertising as the Graph continues resolving data back to consumers and households in a privacy-centric way. In addition to providing greater breadth and depth of signals to reach US consumers, Experian's Graph is rebuilt weekly, which means our connections are highly accurate, refreshed, and addressable. “Experian is a valued partner in Nexxen's unified identity graph powering the Nexxen data platforms, which bring us the ability to seamlessly onboard client data, activate campaigns, and measure performance while maximizing biddable opportunities for our advertisers. They help ensure our clients can continue reaching audiences at scale and successfully execute campaigns.”Chance Johnson, Chief Commercial Officer, Nexxen Investments planned over the next year continue to ensure a Graph resilient to signal loss As connected TV (CTV) viewing continues to dominate, the importance of being able to match to IPv6 increases. Later this year, we’ll add support for IPv6 in our Graph as well as phone-based UID2s. This is in addition to our current coverage of IPv4 and email-based UID2s. 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Prior to joining Experian, Budi worked at various stakeholders of the ad-tech ecosystem, such as Tapad, Sizmek and StrikeAd. During his career, he held leadership roles in both Product Management and Solution Engineering. Budi has been living in New York for almost 11 years and enjoys being outdoors as well as sailing around NYC whenever possible. Latest posts
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