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Three Ways Data Clean Rooms Are Opening New Doors For Business Growth

by: Jessica Tansey
Blog Data Clean Rooms Open Doors for Business Growth

Historically, sharing data between two companies has been a big risk, and one that many weren't willing to take. Today is a whole new world. 

We now have the tools to collaborate with data in ways that benefit all parties; brands, and consumers alike. What’s more, it’s a durable solution that will withstand the ecosystem changes with the loss of cookies and other identifiers and ever-evolving privacy regulations.

To bring our new world of data collaboration to life, brands are leveraging data clean rooms and collaborating in exciting ways not possible before. Here are three examples of how different kinds of companies are using data clean rooms to open new doors for business growth:

  • A luxury automotive brand reimagines the customer journey.

  • A CPG and a retailer close the attribution loop.

  • A sportswear brand improves media measurement within the walled gardens.

Let’s take a look at each one more closely.

#1: A luxury automotive brand reimagines the customer journey.

A luxury automobile such as BMW, Lexus, or Cadillac is a big purchase. People buy them once every few years. The data that each of these brands has on their potential customers, while extremely rich and valuable, is limited to past customers, and by nature dated, only providing a snapshot of that customer. It doesn't reflect the most recent behaviors, intent signals, and additional attributes that make up a complete consumer profile.

Who does have the data on potential customers who have shown interest in purchasing, say, a Porsche in the near future? All the sites where the customer might be doing research: Kelley Blue Book, Edmonds, CarGurus, Carvana, and J.D. Power are just a select few online locations where their ideal customers might visit.

In the past, these companies may have been hesitant to share proprietary data on their customers with advertisers. This data is highly valuable when exclusive and once it’s broadly out in the world, the information becomes a commodity.

Within a data clean room environment, however, auto endemic publishers can safely share details on upper funnel consumer behavior leading up to a purchase, while maintaining full control over which data is shared and how it can be used by the advertiser.

Governance controls on both sides make this possible. By sharing comprehensive and accurate data about their consumers interests and behaviors, while not revealing personally identifiable information, it enables advertisers, like those luxury automotive brands, to deliver better experiences for consumers and more effective campaign performance.

Identifying the entire customer journey for automotive brands has always been a challenge. When these brands can fill gaps in the journey with high intent signals from endemic publishers, and overlay that with their own first party data, it opens up a whole new world view. Take that one step further by adding a conversion signal from a premium location provider to understand who of those endemic site visitors have also visited dealerships and that customer journey just became a lot more meaningful.

Working within a data clean room environment like this is a win-win-win for the publisher, advertiser, and consumer alike. The publisher unlocks a new revenue channel while protecting its data, the luxury automotive brand taps into premium intent signals, which closes a critical gap in their customer journey, and consumers’ data stays protected while they benefit from more personalized experiences.

#2: A CPG and a retailer close the attribution loop.

When a retail store, such as Walmart, Target, Best Buy, or Home Depot, is able to securely share transaction data with key advertisers, like P&G, Sony, or KitchenAid, it unlocks an infinite number of use cases and possibilities for those partners to collaborate in mutually beneficial ways.

Retailers have always been extremely protective of their rich transaction data asset, as they should be. Just a few years ago, a retailer would never consider sharing their data due to the privacy risk, lack of control, and the potential for diluting the data’s value.

Through privacy- and governance-safe data clean rooms, retailers are now exploring data collaboration opportunities with their most strategic CPG partners, unlocking new opportunities and value for both parties.

CPGs are tapping into premium conversion signals from key retail partners, enabling deeper insights, better targeting, personalization, and closed loop attribution.

Retailers are securely sharing transaction data with full control; eliminating the previous risk concerns and allowing them to forge new revenue streams and deeper partnerships with existing and new CPG partners.

Data clean rooms make these partnerships possible. A retailer and CPG can now come together and can establish the governance rules that allow them to share data that is mutually beneficial, while protecting their consumer’s data and privacy.

#3: A sportswear brand improves media measurement within the walled gardens.

For sportswear companies like Nike, Under Armour, and Adidas, maximizing return on their media investment, particularly in those channels where they spend the most, is critical to business growth. With more than 70% of media spend going to the walled gardens (Google, Facebook, Amazon), marketers are eager to get more granular data and deeper insights out of Google and others in order to eliminate wasteful media spend. Google, Facebook, and Amazon have each created their own clean room environments and brands know they need to embrace the walled garden clean rooms to get the most out of their media investments.

Although the data is vast and the insights are rich within walled garden clean rooms, like Google Ads Data Hub (ADH), these environments can be complex and often require data scientists to run the analysis.

To optimize more quickly, streamline the workflow, and automate the query analysis and visualizations, an intelligence layer like Habu’s, can sit on top of Google ADH to help, resulting in more efficient and effective measurement within that channel.

Now imagine adding more walled garden clean rooms and more advanced measurement use cases such as A-B testing and lift studies across multiple clean room environments. Each environment is unique with its own set of rules and regulations. Having a partner with an intelligence layer that can sit on top of any clean room environment, allows brands to scale quickly across channels and to more advanced use cases.

As their walls continue to grow higher, data clean rooms present a tremendous opportunity for brands to ascend the walled gardens and truly understand the impact of their advertising in those channels within the larger marketing ecosystem.

Open the door to new business opportunities

As the sun sets on the marketing landscape as we’ve known it, it has certainly presented a fair share of challenges for brands. However, on the other side of that horizon new opportunities are emerging, allowing brands to connect and collaborate in ways not imaginable before, which is something every data-driven company should be excited about.

As measurement and other tried and true marketing tactics become increasingly difficult and data continues to remain distributed, innovative brands are seizing the moment to revamp their strategy and explore and test new solutions that will not only evolve, but thrive amidst these changes.

Is a data clean room right for your business? How can you get started? Learn how Habu can help.