The AdTech industry is buzzing with discussions about cookie deprecation and effective strategies to tackle it. One of the commonly suggested solutions is the utilization of clean rooms alongside responsibly sourced first-party data.
Above all else, the industry recognizes the importance of respecting consumer data and complying with all privacy laws. Additionally, the industry acknowledges the need for a change in our historical practices. This shift benefits everyone involved, as consumer data is more secure than ever. Tremendous investments have been made to ensure the utmost security of consumer information.
Clean rooms are one of the tools that enable companies to use data securely, ensuring the content that you see is as relevant as possible.
Two ways the AdTech industry is addressing cookie deprecation
The days of sending data directly to partners for usage or for using only third-party data for marketing efforts are gone. Now, the emphasis is on responsibly collecting first-party data and using clean rooms to enrich first-party data to enhance marketing efforts.
First-party data
The industry is starting to lean into first-party data gained through transparent means. This valuable information provides organizations with deeper insights into their customers, allowing for more personalized and effective interactions. By embracing the power of first-party data, either on its own or enriched via partner collaboration, you can cultivate stronger relationships, build trust, and deliver tailored experiences that resonate with your customers on a deeper level.
Clean rooms
Many data lakes and warehouses offer this service, ensuring their clients can not only store their data with them but can connect it with other partners in a secure environment and extract more information through the combined data sets versus their data on its own.
Brands and their partners recognize that they need to work together, and a clean room provides a secure environment to share their first-party data without exposing their sensitive data to their partner.
So, while we’re losing third-party cookies, brands and partners can still get value from first-party data by using a clean room to generate audience insights, segmentation strategies, personalized experiences and offers, media plans, and measurement and attribution.
Three ways data clean rooms can improve
Data clean rooms are a great way to facilitate data collaboration while ensuring sensitive data is not exposed.
Data clean rooms are not yet easy to use nor are they inexpensive. They require investment, both financially and resource allocation-wise, and you are not guaranteed to yield great match results. Let’s dive into three areas for data clean room improvement.
High cost
According to the IAB’s State of Data 2023, nearly two-thirds of data clean room users spent at least $200K on the technology in 2022. In addition, one-third of data clean room users expect the price of data clean rooms to rise in 2023. The high cost of this solution can make it inaccessible to smaller companies in the advertising space.
Resource intensive
Nearly half of the companies using data clean rooms have a team of six or more dedicated to the technology, according to the IAB’s State of Data 2023, while nearly a third of companies using data clean rooms have 11 or more employees focused on the technology. Data clean rooms are not turnkey solutions.
Inefficient matching
Even if companies are using clean rooms does not mean that they are automatically going to achieve great success. Identity fragmentation, data hygiene, and differing identifiers can suppress client match rates in clean rooms, leading to significant investment and a lackluster output.
How to get the most return on your clean room investment
The finish line for data collaboration in clean rooms is not just having a relationship with a clean room. Instead, you should incorporate an identity resolution solution in your clean room. By adding an identity solution to your clean room, you can:
- Resolve and match all your identity data, regardless of the identity data that you or your partner have, giving you a larger data foundation to analyze.
- Generate more valuable insights and information, leading to a better experience for your customers.
- Join data sets to create smarter activation and targeting strategies and produce more holistic measurement.
Experian can help you get started with identity resolution and data clean rooms
If you are investing in data clean rooms, that means you are committed to the best in data practices. Experian recommends going the extra step and that you also invest in finding an identity resolution solution. By doing this, you can see better match rates.
Experian offers this capability and has existing relationships with three clean room partners, Amazon Web Services, InfoSum, and Snowflake. In addition to collaborating in clean rooms, we offer collaboration in two other secure environments.
Contact us today to discuss how we enable identity resolution in clean rooms or to chat about our other collaboration capabilities.
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Even though most kids haven’t even completed their current school year, now is the time for retailers to start preparing their 2012-2013 back-to-school marketing strategies. I remember growing up as a kid in rural Massachusetts thinking about how “back-to-school” TV ads were so irritating. Back-to-school? In July? I’m not even half way through my summer vacation! Little did I know back then that marketers like to get an early start to the back-to-school sales season by planting seeds with their target audience and hoping those seeds grow into a healthy crop of new customers. This remains true today and planting season starts even earlier. The back-to-school sales season represents a huge opportunity for marketers. Here are some facts and figures that help quantify the size of the market: According to the National Retail Federation, consumers will spend approximately $70 billion on back-to-school merchandise. About $23 billion of this is spending by parents of children in kindergarten through 12th grade. The remainder represents spending by students starting or returning to college. All told, the back-to-school season is the second largest consumer spending event for retailers outside of the winter holidays. According to the U.S. Census Bureau, this year there will be over 55 million students enrolled in schools from pre-kindergarten through high school. About 56% of these students are in grades one through eight, 28% are in high school and 15% are enrolled in preschool or kindergarten. About one-third of households contain children under age 18. That translates to roughly 38 million households. The vast majority of these contain school-age children. The back-to-school season is not just about reaching kids in elementary school, middle school, junior high school and high school. Another 20 million students are expected to be attending college. That’s a huge opportunity to sell things like dorm room furnishings, electronic gadgets and computers, just to name a few. With every marketing opportunity come certain marketing challenges. It’s never easy. Marketers of back-to-school products face their own set of challenges when vying for the attention of parents of school-age children. Here are some specific examples: Who are my key targets and how can I differentiate my marketing message? Targeting a market that includes a vast array of families with contrasting attitudes, opinions, motivations, lifestyles and shopping behaviors is incredibly challenging. Not all of these families are working from the same shopping list. And not all of these families will respond to the same marketing message. Segmenting your market into finer target audiences is highly recommended. How should my marketing budget be allocated across multiple online and offline channels? You have multiple sales and marketing channels to consider. You don’t want to build a marketing plan without a well-defined strategy for reaching your best targets. For instance, moms have a greater propensity to have a smartphone compared to the overall adult population. Thus, marketers should then be thinking about integrating mobile applications into their overall strategy. What can I do to make my message stand out above the crowd? Put yourself in the consumer’s shoes. I’m sure some of you are parents with children in school or in college. It’s a very crowded and cluttered back-to-school marketplace with many, many retailers clamoring for attention. One idea for standing above the crowd is to start by identifying your existing customers who are most likely to have families with children. Then send them an email early in the summer with suggestions for fun things to do this summer season. This can be followed up later with an email campaign containing some tips about getting ready for back-to-school. The key is to grab their attention and start engaging early. What variety of offers and promotions will enable me to capture a significant share of back-to-school expenditures? To capture your fair share of the back-to-school market you’ll need to develop offers and promotions that are both enticing and relevant. This requires learning as much as you can about your prospects and what motivates them to buy. For instance, a typical mom with elementary school-age children might enter the back-to-school season with the following thoughts: “I want to buy him the cool gear to go back to school with: new clothes, shoes, backpack and lunch box. And I don’t mind, I actually LOVE back to school shopping.”* That mom may quickly respond to your marketing message. Or, you could have a mom with these thoughts: “I’m not upper class – we’re in the lower/middle income bracket and money is tight for us. I budget for school expenses as I would anything else…and I won’t have my son miss out because ‘we can’t afford’ something… I’d give up something else first.”* She loves shopping for back-to-school, she has budget limitations, and she’s willing to make certain adjustments to her budget with the best interests of her child in mind. If you knew what she was most likely to be thinking, do you think it would influence the messaging and offers you would use to attract her? Well, of course. Attitudes shape shopping behavior. ___________________________________________________________________________________ Watch our recent webinar about planning your back-to-school marketing campaigns in style. And stay tuned for part two of my blog series on the topic in a few days. *Feedback was compiled from PHD in Parenting: http://www.phdinparenting.com/2011/08/22/who-should-pay-for-school-supplies/
Facebook has become a cultural phenomenon over the years and an object of affection for marketers to connect with its users. Experian Simmons has put together 10 consumer behavioral stats based on their National Consumer Study and New Media Study about the social networking site leading up to its Friday IPO launch: 39% of Facebook users say “this website gives me something to talk about.” Top 3 reasons Facebook users visit social networking sites: 86% to keep in touch with friends 72% for fun 66% to reconnect with/find people they’ve lost touch with 78% of Facebook users have shown support for a group or business on a social networking site. 34% of Facebook users have played games on a social networking site. Among those: 73% play social games (like Farmville, SIMS social, etc) 68% play casual games (like Bejeweled, etc) 73% play games on a social networking site once or more a day 28% of Facebook users with cell phones and 42% of Facebook users with a tablet computer have downloaded a social networking app for the device Adult residents of the following Designated Market Areas (DMAs) with 1,000,000 or more adult residents are the most likely to have visited Facebook in the last 7 days: ) Seattle-Tacoma, WA Austin, TX Salt Lake City, UT Portland, OR Washington, DC 15% of Facebook visitors follow a musical group on a social networking site, 14% follow a TV show, 11% follow a newspaper or news outlet and 4% follow a magazine. The average Facebook user is 39.3 years old. The average Facebook user claims an annual household income of $69,900 with annual household spending on discretionary goods and services of $15,500. Hispanic users of Facebook are 55% more likely than non-Hispanic users to say they like to follow their favorite brands or companies on social networking sites. Don’t miss 15 stats about Facebook, previously posted on the Experian Marketing services blog. . For more information like the data provided above please download the Experian Marketing Services 2012 Digital Marketer report.
Today, it costs more than $40 to send a five pound package from the U.S. to Canada or Mexico. The cost to Europe or South America is even more expensive. For U.S. companies operating on a global scale, such as retail specialists or ecommerce organizations, address accuracy is crucial. Organizations can’t afford undeliverable mail and packages due to a wrong address – the total cost would be unmanageable. Mistakes happen frequently, whether it is an error by the company or the customer. If a mistake is made, companies can’t ask the customer to cover delivery fees, leaving the organization with the bill. Retailers must also consider potential delays due to long distances and custom checks. Altogether, address errors result in a poor customer experience and a decrease in efficiency. Implementing international address verification will save money, time and improve the customer experience. By combining primary address data from national postal authorities with partner-supplied data, businesses can verify international addresses from countries all around the world.