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.
Latest posts
As sure as the sun rises and sets, Tax Day comes around every year, whether it falls on April 15th or a day or two thereafter. As part of the Simmons National Consumer Study, Experian Simmons collects information on the various ways Americans file their taxes. In the following post, we will explore a few tax trends in the Land of the Free as well as some deductions available to many. Software for the Hard Stuff Long gone are the days of preparing our taxes the old-fashioned way using pen and paper (and hopefully a calculator). Last year, just 8.7% of U.S. tax filers prepared their taxes manually, down from 16.4% of filers who prepared their taxes this way in 2006. Software (including both online and offline versions, such as Turbo Tax or H&R Block At Home) have risen to replace their graphite-powered ancestors. In 2005, 21.5% of tax filers said they used software to prepare their taxes. Specifically, 6.8% used offline software and another 14.7% used online software. Today, 21.5% of filers use online tax software and 7.4% use offline software, bringing the total share of software preparers to 28.9%. But tax software isn’t just replacing at-home pencil pushers. The share of filers using a CPA, a private accountant or a notary public to prepare their taxes has also declined slightly in recent years as has the share of filers that use a professional on-site service, like H&R Block of Jackson Hewitt. In 2011, 30.8% of filers had their taxes prepared by a CPA, private accountant or notary, down from 32.9% who employed this type of professional in 2006. Likewise, 17.7% of last year’s filers used a professional on-site service to prepare their taxes, compared with 19% who used such a service in 2006. Filing Trends of Business Owners Much attention in Washington has been paid to small business owners, especially when the topic of tax policy is concerned. Rest assured, we’re not going to explore the political implications of proposed tax code changes on business owners, but we will examine the way these Americans prepare their personal taxes. A business owner’s tax prep work depends a lot on how many employees they have working for them. Those who own very small companies with between 2 and 9 employees, including the owner, are the most likely to have a CPA, private accountant or notary prepare their taxes. In fact, 65% of these small business owners do their taxes this way, compared with 52% of those who own companies with between 10 and 99 employees. Interestingly, only 35% of tax filers who own companies with 100 employees or more use a CPA, a private accountant or a notary to prepare their taxes, a rate equal to that of the national average. Larger business owners are actually more likely than average to have their taxes done by an on-site professional. While few business owners do their taxed by hand, the self-employed who have no employees are actually among the few that still do their taxes the old-fashioned way. In fact, 11% of business owners who list only themselves as employees say they did their taxes manually last year, a rate 30% above than the U.S. average. Most of those who don’t to their taxes themselves have them done by a CPA, a private accountant or a notary. Fifty-two percent of the self-employed with no other employees chose this method to prepare their taxes last year, which is a rate 45% higher than the average filer. Deduction Time Deductions are a common way for reducing one’s tax liability. Here we’ll explore how many Americans could benefit from several common deductions allowed by the Internal Revenue Service. For more information about consumer trends, visit www.experian.com/simmons.
Yesterday, Facebook announced the acquisition of Instagram, a popular photo sharing network with over 30 million users, for $1 billion. Visits to the Instagram website have steadily increased over the past 24 weeks and reached 3.8 million last week, up from 68,800 visits for the week ending October 22, 2012. While the majority of activity takes place within the Instagram application, the website provides links to the Apple App Store and Google Play as well as some account management tools, so the growth marks increased consumer interest. The audience for Instagram is relatively young, with over half of the visitors to the Instagram website are under the age of 35. This is an interesting contrast to the visitors of Facebook’s website, which reflects a more mainstream audience with a higher share of older users. These differences can certainly offer opportunities to promote and grow usage of each of the networks across age groups. Many users of Instagram share their photos across a number of social networks since within the Instagram application, you can link to your share photos with Twitter, Facebook, Flickr, Tumblr, Posterous (recently acquired by Twitter) and Foursquare accounts. As a result of this integration and heavy use of social networks in general, social networks refer the majority of traffic to the Instagram website. Last week, 25% of the traffic to Instagram from social networks was from new visitors, most likely interested in learning more about Instagram after seeing photos within the feeds of their friends. Last week, there was considerable excitement around the launch of Instagram app for Android phones, which became available on Google’s recently relaunched digital media store, Google Play. The app reached over 1 million downloads on the first day of availability. Visits to the Instagram website increased 59% over the previous week and Google Play ranked 6th among the downstream websites visited immediately after the Instagram website. Please note this data does not include mobile traffic.
According to Epsilon Targeting’s latest Consumer Channel Preference Study of 5,000 consumers in North America, 60% of consumers report an "emotional boost" from receiving direct mail, agreeing that they enjoying checking their mailbox. This report showed that across all categories, direct mail continues to be a trusted source of information. It's always good to reach out to consumers via email, but the disadvantage to this is that the consumer has the ability to receive emails from you on their own terms, which may be infrequent or not at all. The use of direct mail has shown to be a pleasing emotional hook. Even with the ever growing digital world, consumers are still responding to your direct mail pieces. Don't let your businesses address contact data fall to the wayside – this is still just as important as ever to have. To ensure as timely delivery, make sure you're using address validation tools to make sure you're saving money and getting the most out of your direct mail campaigns.