Benefits of Data Clean Rooms in a Cookieless Future

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Learn how data clean rooms can help you solve the pain caused by a cookieless future

As the digital advertising ecosystem continues to evolve, third-party cookies and their impact on long-term campaign strategies continue to crumble. With Apple’s Intelligent Tracking Prevention (ITP) and Google’s Privacy Sandbox, the industry is quickly moving away from the reliance on third-party cookies for advertising and marketing purposes. But how do marketers navigate this cookieless future? One solution is data clean rooms, which can help bridge the gap between a brand’s first-party data and the ever-scarce third-party data required to take campaign performance to the next level. In this blog post, we’ll take a look at how data clean rooms work, why they’re an important solution for the cookieless future, and how they can help future-proof your engagement campaigns.

Benefits of Data Clean Rooms

Data clean rooms offer a secure environment that allows marketers to safely combine first-party data with third-party data for more accurate consumer targeting and richer customer insights. By securely drawing insights from partner brands, marketers access valuable information about their customers’ preferences, behavior, and demographic characteristics without having to rely on third-party cookies. For advertising or marketing-specific use cases, data clean rooms offer four key benefits:

      • Consumer Insights – In a cookieless world, buyer intent is everything. Organizations want to leverage data from across the customer journey to learn more about their audiences, where to reach them, and how they connect with the brand in the wider world. That means moving beyond first-party data and incorporating high-value signals from brand partners for granular insights that provide a more complete picture of custom behavior — while also enabling effective experiences that match your customers’ needs and preferences.

      • Data and Model Enrichment – Organizations understand it’s crucial to expand access to data to develop, train, and run machine learning models. They need to supercharge acquisition and retention with a secure approach to data science. That means building better models by training them on high-fidelity partner data and improving the customer experience with better offers and recommendations. It means speeding acquisition by automating deployment across partner channels and cutting through all the noise to understand the data that really matters.

      • Advanced Segmentation and Activation – Enriching datasets and customer profiles are only the first phase. Organizations need to move seamlessly from insight to business outcomes to securely build audiences for private activation across channels. They need to improve targeting via more relevant and efficient messaging (without compromising consumer privacy), create experiences that reward consumers for loyalty across engagement channels, and reach consumers instantly through direct collaboration with strategic channel partners.

      • Optimization and Measurement – By working in data clean rooms, enterprises seek to drive more value from marketing investments with accurate insights into reach, frequency, attribution, and lift that enable them to optimize their investment mix. This involves finding efficiency and waste through granular analysis of user- and event-level datasets, as well as connecting first-party data with data from walled gardens and other platforms to see exactly who is driving conversions. To truly understand ROI, it’s crucial for organizations to adopt a holistic measurement approach built on direct engagement with relevant data.

    Best Practices for Data Clean Rooms

    As companies explore data clean rooms, and embarking on a data collaboration journey requires careful consideration of both technical and non-technical factors. On the business side, you’ll need to map out what channels and insights you want to access through collaborative intelligence — whether that’s from existing walled gardens (like Facebook, AMC, Google ADH) or a partner brand’s retail media network or walled garden. On the technical side, you’ll want to select a vendor that can ensure privacy-compliant integration with your chosen data sources, allow you to frictionlessly connect with partner brands/ walled gardens, and help you scale your business needs.

    Once your data clean room is up and running, there are several ways you can maximize its effectiveness and take it to the next level. First, make sure that all stakeholders are aware of their responsibilities when it comes to working with the data stored in the platform. Establish clear roles and expectations so everyone knows what they need to do in order to maintain compliance with privacy regulations. In addition, it’s important to stay up-to-date on the latest developments in AdTech and MarTech so you can adjust your strategy as necessary. Finally, continuously review performance metrics in order to identify opportunities for improvement or areas where additional resources may be necessary.

    Data Clean Room: Next Steps

    Data clean rooms are an increasingly important solution for navigating customer privacy regulations, personalizing campaigns to meet buyer expectations, and optimizing campaign performance. Marketers with greater access to external customer data allows them to have more accurate targeting, better insights into customer behavior, and improved understanding of customer preferences. By optimizing their use of this powerful technology, businesses can navigate the challenging cookieless future effectively – ensuring continued success in their digital marketing efforts now and into the future.

    To learn more about the benefits and steps around selecting a data clean room, download our Buyer’s Guide.

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