Your Advertiser’s Guide To Data Clean Rooms

All advertisers want to harness customer data in a profitable way. That’s where data clean rooms come in and we have your detailed guide here.

Data clean rooms

All advertisers have one common desire: to harness customer data in a profitable way. However, there’s also the need to keep data safe and secure to protect individuals. That’s where data clean rooms come in.

Data clean rooms are a data management concept designed to balance privacy with the utility to help securely maximize customer data use.

What’s a Data Clean Room?

Data clean rooms are software that allows advertisers and publishers to match user-level data without sharing the raw data with each other.

In other words, it’s a “Switzerland” for data since two parties have access to a neutral zone. Facebook, Amazon, and Google are prime examples of advertising platforms that already offer data clean rooms. They’re also a great way to measure advertising effectiveness without third-party cookies

A data clean room is an encrypted and secure location that enables first-party data to be matched with one or more data providers that can offer additional data for the seeker to act upon. While no Personally Identifiable Information (PII) is available for people to see, it can help advertisers better understand their customer data or reach their audience, i.e., in a cookieless setup. 

Let’s imagine an actual room. There’s a group of people in it, but you can’t see any of them. They’re all anonymous. However, you can slip questions through the door and get generalized responses from them. This allows you to get an aggregate view of the group inside the room without compromising their personal identity. 

And just like that, you’re able to access information and improve your targeting safely, and ad spend, all while staying privacy compliant. 

Why Do Data Clean Rooms Matter?

In three words: better data enablement. If you’re looking to leverage your first-party data, then a new, strategic partnership can help you make smarter advertising decisions. 

It also comes down to security. For example, a data clean room can match first-party data sets between two or more parties to enable new ways of advertising, targeting, and enhanced insights in privacy safe and secure ways. 

The best digital marketing strategies will be the ones that use first-party data as a foundation. To maximize their digital budgets and campaign performance, advertisers need a top-level understanding of their target audiences – who they are and what they want. All while keeping privacy-centric methods at the core.

Data Clean Room Use Cases 

One highlight of data clean rooms is that all involved parties have complete control of the setting. 

Protected data can also be used as needed. Fully automated clean rooms can bridge processes, avoid manual steps, and create frictionless experiences. It can start from the moment an advertiser decides to use their first-party data, all the way through to activation in a campaign. 

Some common data clean room use cases include: 

Improved Reach

Advertisers might want to reach their customers not only on their own pages but when the same customer is elsewhere on a site. Clean rooms allow advertisers to use their own first-party data to match against a publisher’s so they can target their customers as they move to other site pages.

Scaling Audiences

Clean rooms make it possible to enrich your owned data and scale audience segments for increased reach. Machine learning expansions and predictive analytics are applied to first-party data sets between two parties. In addition, lookalike modeling creates prospecting opportunities that aid advertisers in finding new audiences across publisher properties, which are similar to their existing targets.

Privacy Safe and Secure

If there’s one theme, all digital players need to stay on top of their data regulation compliance. Data clean rooms are an efficient way to ensure you’re meeting the relevant regulations at local, regional, and even global levels. Moreover, you can get the necessary data points within this secure environment without tapping into specific identifying information. 

Data providers remain in control of who can access what data and for how long. For example, advertisers can stop sharing their data at any time, and publishers can control what part of their first-party data is leveraged and acted upon by others.

Because privacy is important and constantly evolving, clean rooms allow participants to collaborate in transparent and privacy-safe ways.

Who Benefits from Data Clean Rooms?

Some aspects don’t work for everyone, like all great things in life. So it’s vital to assess and evaluate if a data clean room is the right move for your company. 

While clean rooms are not a new concept, a key challenge is understanding whether you have enough on your customer and first-party data to ensure beneficial collaborations. In addition, addressing everyone’s privacy concerns is also critical. By ensuring that all parties involved follow the same strict guidelines and privacy standards, compliance issues are prevented. 

Platforms and advertisers might also collect data in diverse formats, resulting in work aggregating all the data and maximizing its use. Creating a universal standard is not easy. But, of course, with the right data management software, manual processes can be easily alleviated. 

Finding the right data management partner to get you set up is essential. Not having the right partner might also pose a serious privacy risk. Ensuring your data clean room is as automated as possible and driven by the best artificial intelligence will avoid heavy lifting and resource allocation to load and manage your data.

How to Choose the Best Data Clean Room

If you’re considering a data clean room solution, then you can follow a simple step-by-step process. 

  1. Consider whether a first-party data collaboration would help to empower new marketing use cases and reach a larger audience more sustainably.
  2. Design your data clean room in a customer-centric way. Don’t focus on the short-term but be sure to include a long-term view around your first-party data strategy to make the most of your clean room setup. 
  3. Make sure your solution processes data automatically. Data value can decay quickly. So be sure that you have the freshest insights to get the most out of your data. 

Clean rooms offer significant potential for new data collaborations. Especially when the chosen clean room solution delivers end-to-end privacy safety, starting with data ingestion through to data activation in an ad campaign. Each player will be well prepared not only for today’s privacy challenges but to address and comply with ever-evolving regulations.  

With 1plusX data clean room solutions, you can get this and more. See for yourself.

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