Data clean room is a term that encompasses a privacy-safe environment for creating joint datasets, frequently utilized for marketing and advertising purposes..
What is a Data Clean Room?
In brief, a concept of data safe rooms implies its usage for joining a company’s first-party data with the already existing, aggregated (anonymized and\or pseudonymized) quality datasets, while keeping the entire control of how and which of their own data is being utilized, without sharing any of it with unwanted third parties, or moving it elsewhere for further analysis and use.
Types of Data Clean Rooms
According to analysts, the key types of data clean rooms include the following:
- walled gardens (e.g. Amazon Marketing Cloud, Google’s Ads Data Hub, etc.);
- neutral clean rooms (e.g. LiveRamp);
- multi-platform clean room solutions (usually leveraged by several partner companies operating in the somewhat adjacent market verticals).
While each type clearly includes its specific downsides and limitations, all of these imply certain benefits for businesses working in the digital advertising industry.
Benefits & Use Cases
The key benefits of utilizing a data clean room by a brand or agency get more noticeable in context of the future deprecation of third-party cookies.
Still facing the need to efficiently activate their potential target customers across platforms and have an ability to analyze and improve campaign performance along the way, many companies have been shifting much of their focus to working with various clean rooms to get more actionable audience insights in a privacy-centered, transparent digital environment.
From a publisher’s perspective, data clean rooms is what can bring the newly-introduced concept of seller-defined audiences to life, given that these are using Prebid and SDA to define overlapping audience segments and signal those to DSPs, hence helping them to monetize their first-party data smoother.