The walled garden’s data advantage is over. Here’s why.

For years, a single narrative has dominated digital advertising: walled gardens have an insurmountable data advantage. Their sheer scale of user data was considered an unassailable competitive moat. But in the new outcomes era, the ground is shifting. The nature of “valuable data” is changing, and new technology is leveling the playing field.

The most sophisticated advertisers no longer ask “how many users can I reach?” but “how can I reach the right user at the right moment to drive an outcome?” Answering that question requires a different kind of data – a kind that premium publishers are uniquely positioned to provide.

The myth of scale vs. the power of depth

The data held by walled gardens is vast, but it’s often passive and historical. A social media “like” on a car brand from three years ago is a fleeting signal. Contrast that with the privacy-compliant, first-party data from a premium publisher. A user who spends three minutes reading an in-depth review of an electric vehicle, uses an on-site calculator to compare charging costs, and watches a 90-second video of a test drive is generating powerful, active signals of deep engagement and clear intent right now. For advertisers, this data is orders of magnitude more predictive.

From a fragmented audience to 100% addressability

The historical challenge for publishers has been activating this rich data at scale. Signal loss meant that publishers could often only monetize the 30% of their audience that was addressable with cookies. This is no longer the case. A modern data strategy closes this gap by unifying multiple sources of information into a single, powerful view that combines three types of signals:

• Identity signals: These are the knowns – a login, a subscription, or a hashed email. They are essential for understanding your loyal, known users, but they only represent a fraction of your total audience.
• Contextual signals: This is the ‘what’ and ‘where’ – understanding the content and environment a user is engaging with at this very moment. It provides powerful clues about their current interests.
• Cohort signals: This is the key to predictive power. By grouping anonymous users based on shared, real-time behaviours, you can predict future actions and interests without ever knowing who the user is.

By unifying these three signals, you can understand and monetize your entire audience, not just a small fraction of it.

The economic argument for publishers

This technological shift has profound economic implications. For too long, the programmatic ecosystem has forced publishers to compete on volume and price, a race to the bottom on CPMs that commoditizes valuable inventory. Proving the value of a fully addressable audience, rich with intent signals, allows you to change this dynamic entirely.

It empowers you to move from a volume-based to a value-based sales proposition. You can defend your premium, command higher yields, and build more sustainable, high-margin revenue streams. It’s a durable competitive advantage in a market that demands more than just scale; it demands results.

In my next post, I’ll explore how to package these unique data capabilities into a product that wins bigger budgets.

I partner with leading publishers across Germany, Austria, and Switzerland to build sustainable revenue strategies for the outcomes era. At Permutive, we help advertisers and publishers collaborate securely to unlock the full potential of the open internet.