Walled Gardens in Digital Advertising

Posted: November 2, 2022

What is a Walled Garden in Advertising?

A walled garden in advertising refers to a closed ecosystem where the platform owner controls all aspects of the advertising process, including the collection, distribution, and exchange of data. Within this environment, the platform restricts the flow of information to external systems, keeping data and user interactions under its strict control. This setup allows the platform to offer highly targeted advertising capabilities based on rich user data that it does not share with outsiders, maximizing both effectiveness for advertisers and revenue for the platform itself.

What is an example of a Walled Garden?

An example of a walled garden is Facebook. As a platform, Facebook controls extensive user data, including demographics, interests, and behavior, which it uses to help advertisers target ads effectively within its ecosystem. Advertisers can access a range of sophisticated tools provided by Facebook to place ads across its network (which includes Instagram and WhatsApp), but they do not have access to raw data or detailed insights into user profiles outside the parameters set by Facebook.

What is a Walled Garden strategy?

A walled garden strategy involves creating a controlled environment where all operations related to data, content, and advertising are managed internally without any data leakage to external parties. This strategy is used by companies to ensure they maintain complete control over the data and the user experience, which allows them to tailor the environment to maximize user engagement and monetization through advertising. It also often leads to enhanced privacy and security controls, which can be a selling point for users, though it sometimes limits their choices and interoperability with other services.

Is Google Ads a Walled Garden?

Yes, Google Ads is considered a part of Google’s walled garden. Google controls a vast amount of user data through its various services, including Search, YouTube, and Google Maps, which it uses to offer targeted advertising opportunities within its network. While Google provides tools for advertisers to measure and optimize their campaigns, the specifics of user data and the inner workings of its algorithms remain proprietary. Advertisers depend on the data and analytics provided by Google, but they cannot access the raw data themselves or use it outside of Google’s platforms, fitting the definition of a walled garden in digital advertising.