What Does Walled Garden Technology Mean?
A walled garden is a controlled and closed digital system where the platform provider limits access to outside content, apps, and hardware. This type of system is designed to manage user activity, protect data, and allow only specific content within its environment.
Essentially, the walled garden technology definition explains it as a system that keeps users inside a restricted space.
Key Takeaways
- A walled garden is a closed digital system where platforms control what users can access, helping to improve privacy and cybersecurity and generate income.
- The term was created by John Malone and was first used to describe systems like telecom companies controlling user access, later evolving into today’s tech platforms.
- Platforms like Apple, Google, and Facebook manage their ecosystems by controlling hardware and software, collecting user data, and keeping user activity within their systems while limiting outside access.
- Walled gardens are used for targeted advertising, keeping users engaged through exclusive features, and earning money through subscriptions and premium content.
- Examples of walled gardens include Apple’s App Store, Google’s services like Gmail and YouTube, Amazon Ads, Microsoft Teams, and The New York Times’ subscription model.
History of Walled Gardens
The term walled garden was created by John Malone, the founder of Telecommunications Inc., to describe systems that control what users can access. Early examples came from the telecommunications industry, where companies like AT&T managed both the hardware and the content on their networks. For example, the Bell System only allowed users to use its own devices and services.
Walled gardens have been used for a very long time. Schools and colleges extensively use this method to prevent students from accessing inappropriate content on the Web. Teachers need a password to leave the walled garden environment and browse the Internet without any restrictions on website content.
How Walled Garden Technology Works
Walled garden technology creates a controlled and secure system where the platform owner manages everything, including content, data, and user activity. It keeps users within the platform by restricting access to outside content or services.
Here’s how it works:
- Control of the ecosystem: The platform controls both the hardware and software.
- Data collection: By collecting user data from searches, posts, and other activities, it can use it to advertise within its platforms without allowing others to access it.
- Tracking across devices: Users can generally use platforms across different devices, like laptops or phones while using the same account. This means they are tracked across all those devices to help the platform provide consistent ads.
This setup improves walled garden security, protects user data, and increases profits by keeping users within the system.
For people who want more privacy when browsing outside walled gardens, tools like mobile VPN apps can help. VPNs encrypt data and keep online activity private, giving users extra protection.
Walled Garden Uses
There are several uses for walled gardens, such as:
So, what is the purpose of using walled gardens? They help control content, protect user data, and make money through targeted advertising and user retention.
Walled Garden Technology Examples
Walled gardens are used by many of the biggest companies in technology and publishing.
Below are some key examples of how walled gardens are used:
Apple is a clear example of a walled garden approach. It tightly controls its hardware, like iPhones, and software, such as iOS. The only apps allowed on an Apple device are ones downloaded from the App Store – and for the apps to make it to the store in the first place, they have to adhere to Apple’s stringent rules.
The Amazon walled garden allows the company to track user behavior, including their purchases, which enables them to target ad campaigns.
There are several apps you can download within Microsoft Teams, which allow you to keep all your work centralized on one application.
On PlayStation, you can only download games from the PlayStation Store, with strict content moderation.
Another platform where all games and interactions happen entirely within it. Developers can create games using Roblox Studio, Robux can only be used within the platform, and there are strict content moderation and age restrictions.
Walled Garden Technology Pros & Cons
Pros
- Creates secure environments by keeping data within the platform
- Enables very targeted campaigns for advertisers
- Increases user engagement by offering exclusive content and features
Cons
- Restricts data sharing, which limits cross-platform insights for advertisers and businesses
- Platforms like Google and Amazon dominate their markets, which reduces competition and limits opportunities for smaller companies
- Creating and managing a walled garden is expensive and time-consuming
The Bottom Line
Walled garden technology creates a controlled, secure system where platforms manage content, user activity, and data. This boosts privacy and profits through targeted ads and exclusive features but limits competition and data sharing.
Knowing the walled garden technology definition helps businesses balance user benefits with market opportunities effectively.