How Walled Gardens Can Changed the Advertising Landscape

How Walled Gardens Can Change the Advertising Landscape

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The ad tech industry is ever-changing. More recently, it would be hard to find an industry analysis without the mere mention of walled gardens. For many who may not know, a walled garden is any type of closed ecosystem where the provider retains control of the content, applications, and hardware.


A more concrete example is Apple’s use of a lightning connector and decision to drop the 3.55 headphone jack. In this case, the company’s move has forced its consumers to use its proprietary product, effectively locking them within their “walled garden.”


The Death of Third-Party Cookies

In the early days of digital advertising, two names have gained prominence—Meta (formerly Facebook) and Google. These two companies have generated a combined ad revenue of more than $200 billion in 2019 alone, effectively surpassing the ad earnings of all other ad tech players in the industry.


How did the two tech giants do it?


Both have a significant hold on their users. Many have used their Google and Meta accounts on more than one device, leading the companies to harvest more targeted data, resulting in higher accuracy in attribution data. Similarly, Google and Meta use first-party user data, giving them a tremendous advantage in the death of third-party cookies. If you factor in the number of users these two platforms have, it makes sense that they can increase their reach even more.


Amazon is set to join the ranks as the company has reported an increase in the digital ad market share, showing over 52.5% year-over-year growth in 2020. Their influence isn’t one to be ignored. Despite entering late in the competition, the e-Commerce giant snagged a good ranking.

Image Source: eMarketer, 2021


Notably, Amazon’s digital ad presence is mainly because of its significant reach among online consumers. This is where Amazon has the edge over Google.


“For advertisers with goods to sell in the marketplace, Amazon ads were a key performance lever throughout 2020,” said Nicole Perrin, eMarketer Insider Intelligence principal analyst. She added, “Amazon advertising has long been a must for marketplace participants, and that hasn’t really changed—though more brands and retailers are considering Amazon from an e-Commerce perspective because of the pandemic.”


Meanwhile, Jungle Scout reported that 74% of online buyers would browse and source information about products on Amazon, not Google.

Image Source: Jungle Scout, 2021


The changes in the digital ad landscape have shifted significant ad budgets to point towards walled gardens to allow them to curate scalable targeted campaigns, and this is precisely what the Triopoly offers. Soon, the advertising landscape will rely mainly on walled gardens and the use of first-party data.


Navigating Walled Gardens

With the success of these ad giants, it’s no longer surprising to see more and more ad tech companies set up walled gardens. Here’s how you can navigate and, hopefully, get a more significant share of the ad market spending:


1. Focus on first-party data

Marketers who want to harvest first-party data should prioritize giving value in exchange for consumer data. For publishers, in walled-garden scenarios, first-party data is even more unique and valuable. You can consider exclusive access to your data as another means to monetize your product. 


2. Foster trustworthy partnerships

Ad fraud is prevalent, and marketers must ensure their partnerships with publishers and other marketers will not compromise data. At the same time, publishers can consider working with reliable monetization partners to help them get the most of value out of their user data. After all, it’s incredibly challenging to build and manage your own walled gardens, and connecting with high-quality advertisers may not be easily achievable without the proper resources. That’s why publishers need to find a balance between securing their data and consumer touchpoints and letting that data remain accessible to advertisers. 


3. Employ transparency

Walled gardens are not a new concept. Previously, walled gardens have been shunned for their lack of transparency. Therefore, for the concept to work this time around, there must be greater focus on providing unbiased measurement and attribution. This calls for all ad tech industry players to ensure everyone actively follows industry standards. For publishers, this means implementing industry solutions set by the IAB, such as ads.text, app-ads.text, sellers.json, and ads.cert. For advertisers, this means absolutely refusing to work with bad actors. 


The growth and success of marketing begin with how deeply you know the consumer, meaning getting information about every context of their journey. Harvesting this data is difficult, and looking at advertising within and beyond the walled garden is even more complex. This is where building and nurturing relationships with customers comes in handy.


Connect with us to learn more about how AlgoriX can help you navigate the complicated world of walled gardens.

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.