Budget Shift to Walled Gardens

Marketers are increasing their budget allocation towards walled gardens like Meta, TikTok, and Snapchat, driven by the desire for better targeting and performance.

Themes

Authenticity and Transparency Reign Supreme , The Power of Community and Connection

Timeframe

near-term

Subcategories

Business Strategy Digital Content Creation Marketing Social Media

Impact areas

Budget Allocation Media Buying Programmatic Advertising Social Media Platforms

Detailed Analysis

The report indicates a significant shift in budget allocation towards walled gardens. This trend is fueled by the perceived effectiveness of these platforms in reaching specific audiences and delivering measurable results. While programmatic display is seeing a decrease in investment, platforms like Meta, TikTok, Snapchat, and retail media networks are expected to receive increased funding. "2/3 of marketers plan to allocate more to the walled gardens in 2025."

Context Signals

75% of marketers said their budget will go up in 2025. Marketers are seeking higher returns and better audience engagement. Growing budgets are correlated with diversification into new channels beyond programmatic display.

Edge

The increasing dominance of walled gardens could lead to greater competition and higher advertising costs within these platforms. Brands may need to develop specialized strategies for each walled garden to maximize their ROI. The reliance on walled gardens raises concerns about data privacy and the potential for monopolies in the digital advertising space.

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