The Internet penetration rate in April 2024 was 67.1%, according to a report by Statista. In a world where more than half of the world has access to the internet, walled gardens have become the choice of many. The term refers to platforms that create closed ecosystems, limiting user access and interaction within their own environment. Some of the notable examples of walled gardens are Apple, Google, Facebook among others. Although walled gardens vouch for an amplified customer experience and ensures the data privacy of their consumers, it also introduces several challenges that impact both consumers and businesses.
Challenges of a walled garden:
One of the challenges that exists in walled gardens is the lack of information exchange. These ecosystems often restrict users and third-party developers to the platform’s own services and products. This means that apps and services must conform to specific guidelines and limitations set by the walled garden, which can stifle innovation.This fragmentation can hinder the development of integrated marketing strategies and limit the effectiveness of cross-platform campaigns.
Analysing data in the walled gardens is another labour intensive task that calls for special skills and sophisticated tools. This proves to be a task for advertisers with a smaller workforce when it comes to competing with big giants who are often given preferential treatment in the walled gardens. This creates an uneven playing field where only those who can navigate or afford to participate in the ecosystem thrive, while others are marginalised.
Another challenge is the dependence of advertisers on the tools and algorithms provided by walled gardens. These amenities limit the advertisers’ control over data and campaign results. Due to this dependence, if the platform decides to change their policy or algorithm, the advertisers will be affected as their strategies will also need to change leaving them vulnerable.
Privacy and data security are additional challenges that arise within walled gardens. While these environments promise enhanced security by centralising data control, they also create a concentrated point of vulnerability. Users’ personal information is often aggregated within the platform, raising concerns about how it is used and protected. Furthermore, from the users’ perspective, walled gardens can result in a constrained digital experience as it offers the benefits at the cost of their freedom. This might feel like they are locked in an ecosystem which ultimately limits their ability to interact with content and service outside of the walled garden they are locked in.