Brands can continue to deliver on consumers’ expectations for personalized experiences in a privacy-safe manner. And marketers can accurately and measurably achieve ROI with new walled gardens and across the open web. How? They can do it with this identity alternative – the data clean room.
What Is a Data Clean Room?
Think of a data clean room as the Switzerland of data. It’s a neutral environment where two parties can securely share and analyze data with full control of how, where and when the data can be used.
Clean room environments overlap a brand’s first-party data with secure privacy-compliant impression-level data aggregated from the open internet and the specific platform’s data. User level data goes into the clean room and aggregated insights come out in a comingled audience group called a cohort.
This allows brands to securely match their first-party data with a partner like Amazon’s or Google’s data for developing insights, identifying new targeting opportunities and creating efficiencies through audience segmentation.
Why Are Clean Rooms Important?
Clean rooms have existed in various forms for decades. In response to well-known privacy laws recently, targeting and measurement options are being removed from the table such as Google’s deprecation of third-party cookies. As a result, the data version of clean rooms has become particularly relevant and important to the marketing industry.
Each clean room environment has different requirements and are technically complex in how data is moved, managed and used to measure outcomes. It’s also time-consuming to set up, test and analyze data, in some cases, taking weeks or longer to get insights so you know how to act.
How Do You Implement a Data Clean Room?
Here’s what you need to know about implementing a data clean room strategy: Clean rooms such as Amazon Marketing Cloud or Google Ads Data Hub can be complex. Each clean room has its own set of requirements and functionality. Engineers and data scientists are often needed. It takes time to organize and fortify data, perform analyses and get the data and insights you need to act.
To take a deeper dive into the technical aspects of data clean rooms and to understand how to more easily set up clean rooms, follow these six steps to successful data clean room implementation from our Nick Gaudio, director of data strategy and business planning here at Goodway Group:
6 Steps of Data Clean Room Implementation
1. Organize Your Data.
Move log-level data used for analytics and reporting into a clean room environment. For example, data metrics may be those used for attribution or incrementality, reach and frequency, viewability or cross-channel measurement.
2. Clean, Manage and Fortify Your Data.
This may seem obvious, but its table stakes. Make sure your data is good. The value gained through clean rooms is completely dictated by how current, well-manicured and how consistent the data set is. Clean rooms aside, this will only help you in spades as consumer privacy laws continue to pervade.
3. Learn Some SQL.
By and large, this scripting language is pervasive in the world of analytics. Data clean rooms are no different. It’s a great place to start as it’s foundational to working with large data sets. At Goodway, we empower our cross-functional teams outside of data analytics in the name of data democratization. This allows more team members to use the power of analytics to create meaningful campaign insights.
4. Get Comfortable With the Cloud.
With data clean rooms, data will live and move in the cloud environment. This is a good thing. It’s highly secure, you’re able to connect numerous inputs and it’s well understood by the second-party data providers you’ll want to work with.
5. Find the Right Second-Party Data Partners.
Finding the right second-party data partnerships will be key. Plenty of large corporations have consumer data that may provide you insights directly actionable for your business. For example, large retailers with loyalty programs might give you insight into product affinity among your consumers. Entertainment and telecom companies could help you understand how to capture your audiences by appealing to their hobbies. The options are as vast as your imagination and your partnership roster.
6. Lean on Your Agency.
Think of Goodway as your clean room liaison. We’re here to make navigating data and clean rooms easier and have the team of strategists, engineers and data scientists needed to ensure you get the maximum value out of your data. Bottom line? Data clean rooms open up the opportunity for brands to take control of their data and use it more effectively to impact campaigns and audience understanding and drive ROI.
Or for more info or to discuss how you can benefit from using a data clean room, reach out to us to receive a customized recommendation for strengthening your data strategy and evaluating the best future-state audience and measurement solutions for your business.