With a new debate each day, the difference between walled gardens and the open internet has become the talk of the town for marketers, consumers, and technology companies alike. Each approach offers distinct advantages and challenges, shaping how information is accessed, shared, and monetized. According to a report by Statista, walled gardens accounted for 62% of time spent online by adults in the United States in 2014. However, in 2023, the share decreased to 39%.
What are walled gardens?
Walled gardens are closed ecosystems where content and data are controlled by a single entity. Major tech giants like Meta (formerly Facebook), Google, and Apple operate within a closed ecosystem, creating environments where user interactions, data and content are confined within their platforms that restricts the user from taking it outside. From what is understood, these ecosystems offer several benefits. For businesses, they provide a highly controlled environment that ensures data consistency and security. Advertisers benefit from detailed analytics and targeted advertising based on a wealth of user data collected within these platforms. According to eMarketer, Meta and Google alone accounted for nearly 60% of global digital ad spending in 2023, underlining the dominance of walled gardens in the advertising market. The controlled nature of these platforms allows for precise targeting and personalised experiences, as they aggregate vast amounts of first-party data directly from users.
However, walled gardens also present significant drawbacks. The concentration of data within these platforms limits transparency and can lead to privacy concerns. Users have less control over their data and how it is used. Additionally, the closed nature of these ecosystems can stifle competition and innovation, as smaller players may struggle to compete with the dominant platforms that control access to vast user bases.
What is the open internet?
The open internet is characterised by a decentralised network where information is freely accessible and distributed across various websites and platforms. The open internet promotes a more diverse and open ecosystem unlike walled gardens. Here, content can be shared, accessed and contributed by anyone across the internet. The open internet facilitates greater competition and innovation, allowing smaller companies and individuals to reach audiences without the constraints of a walled garden. Furthermore, users have the freedom to choose which websites to visit and how their data is shared across different platforms.
Despite the advantages stated above, the open internet can have several disadvantages too. Without the security provided by walled gardens, ensuring data protection and managing user privacy can be a tough act. Moreover, the abundance of data sources can lead to fragmentation, making it harder for businesses to achieve the same level of targeting and analytics as those offered by walled gardens.
What is better?
With several advantages associated with each of the competitors, there are a similar number of disadvantages too. Walled gardens provide a streamlined, controlled environment that benefits both users and businesses in terms of targeted advertising and data security but can limit transparency and competition. On the other hand, the open internet offers greater freedom and diversity but faces challenges in maintaining data security and coherence.
As the future holds major evolutions in the digital ecosystem, the balance between these two models will likely shift. From what is understood, there is an inclining shift to more openness and user control within walled gardens. At the same time, efforts to improve data security and protect the data of the consumers across the open internet are well argued. The future of the digital landscape will depend on how these two approaches adapt to changing regulations, technological advancements, and user expectations.
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