Using Data Clean Rooms to Secure Consumer Privacy Among Marketing Partners
With the (slow) erasure of the third-party tracking cookie, zero, first, and second-party consumer data has emerged as one of the main ways to collect consumer information. But with this large stock of private customer data, marketers now need a secure way to share that data with their partners, while simultaneously maintaining their users' privacy.
Enter the data clean room, which exists as a space where all parties involved can share the data they've collected, can use it to match and compare against one another's collections (which is ideal for targeting), and then also measure it to optimize campaigns on all sides.
The resources here look at what data clean rooms are (and what they're not) as well how they can help marketers and how to go about choosing one.
Resources
- Data Clean Rooms: What Marketers Need To Know. CDP, March 2022.
Data clean rooms aren't exactly a new tool for data management, but they do help resolve some of the biggest data-oriented challenges marketers face today. According to Gartner, 80 percent of advertisers with media budgets of $1 billion or more will be using data clean rooms by 2023. A data clean room is a secure and anonymous private data exchange. It's a database where a company matches its first-party data with aggregated data from a second-or-third-party data source, like a publisher or a trusted partner.
Once the data sources are matched up, one or both parties can analyze the combined data to be leveraged for various applications. Here CDP explains the types of data clean rooms that exist, why they're important, and how to use them effectively. - 5 Myths about Data Clean Rooms Debunked. MarTech Series, January 2022.
Now that third-party cookies are going the way of the rotary phone, Marketing, Technology and Data Executives are looking for alternative methods to use their customer data in fully privacy centric ways. Data clean rooms have emerged as a viable solution for delivering data-driven outcomes.
Not surprisingly, this has led to a plethora of vendors purporting to offer clean room solutions. But it has also led to an equal number of myths with regards to what data clean rooms can and cannot do. It's time to debunk those myths so that companies can get on with the business of making smart, data-driven choices. Here, MarTech series examines five of these myths: - Myth 1: Data clean rooms are only useful to big brands with ample first-party data.
- Myth 2: Clean rooms aren't necessary if a brand has a DMP or CDP.
- Myth 3: Data clean rooms are so complex that only data scientists have the skill set to use them.
- Myth 4: Collaboration partners must be customers of the same platform to leverage the clean room.
- Myth 5: Data clean rooms are limited to advertising applications.
- Looking For The Right Data Clean Room? Don't Overlook The Service Approach. Forbes, April 2022.
It's easy to think about a clean room scenario in which one partner shares data directly with another partner. But the reality is much more complicated. One brand might work with three agencies, two DSPs, two SSPs, 20 direct media companies and six different data companies, not to mention connections to CDPs, CRM systems, shared databases and other internal systems. One DSP likely works with hundreds of advertisers, tech companies, data providers, quality control companies and publishers. A publisher might work with even more than partners, as they are often stuck with accepting whatever buyers want them to use.
Suddenly, the whole idea of a clean room doesn't sound so pristine — more like an entire clean room ecosystem. Some partners might work with the same clean room providers, but many others might not. Managing this complexity takes more than technology; it requires constant management, which should factor into the larger clean room strategy that companies are starting to roll out. In this Forbes article, Nancy Marzouk, CEO and founder of MediaWallah, an identity solutions company, discusses how companies can assess their ability to manage each individual connection in order to help determine if a self-service managed service option works best for their clean rooms. - The Ultimate List of Data Clean Room Providers. Tinuiti, April 2022.
The demise of cookie-based marketing research has prompted brands and data providers to come up with increasingly innovative ways to share market data with each other while adhering to strict privacy laws. One of the potential solutions is the data clean room – a digital space that more and more companies are using as a means to safely gather the marketing insights they need to streamline their ad campaigns, understand their customers, and predict industry trends. No data clean room provider allows advertisers to export – or even access – customer information. Tinuiti reports that as of 2022, the major data clean room providers are: - Google Ads Data Hub
- Amazon Marketing Cloud
- LiveRamp Safe Haven
- Snowflake
- Disney Data Clean Room
- AppsFlyer Privacy Cloud
- Habu CleanML
- Are Data Clean Rooms the Future of CPG Advertising? Toolbox, April 2022.
Despite being some of the biggest advertising spenders, CPG is a historically data-poor industry. Since retailers own the customer relationship and limit the amount of behavioral and transactional data they share, CPG companies often struggle to understand the impact of their advertising on purchases. In lieu of this customer data, CPGs have long relied on DMPs to create segments for targeting and personalization across the web.
But since these technologies rely on third-party data to create these audiences, they will soon be rendered useless in the wake of third-party cookie deprecation. Fortunately, a first-party data strategy that includes sharing second-party data with trusted retailers and partners via data clean rooms could offer a much-needed lifeline. Here, Sam Ngo, director of product marketing at BlueConic, shares how data clean rooms can help.
Josch Chodakowsky is a director of research and innovation at ANA.
The views and opinions expressed in Marketing Futures Pulse are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.
You must be logged in to submit a comment.