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
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.
The NCAA basketball tournament tipped off this week much to the delight of fans across the United States. Supporters who have truly caught March Madness often follow more than one game at a time, especially during the first week of the tournament play. Thanks to simulcast streaming of games online and via mobile apps, die-hards are better equipped to keep track of multiple games at once. Those who stream games online live in every corner of the country, but some locales are more likely to log on for their March Madness fix than others. According to Experian Simmons, you are most likely to be streaming the game online if you live in one of these markets:
The social media space continues to evolve. Pinterest, a site launched in March 2010 that describes itself as an online pinboard to organize and share things you love, recently emerged as one of the top 10 websites within the Hitwise Social Networking & Forums category. The invitation only site received nearly 11 million total visits during the week ending December 17, 2011, almost 40 times the number of total visits versus just six months ago (week ending June 18, 2011). Pinterest content has something for everyone, but the site is dominated by images featuring home décor, crafts, fashion, and food. Not surprisingly, visitors to the site in the 12 rolling weeks ending December 17th skewed female (58%) and between the ages of 25 and 44 (59%). Pinterest and the Social Networking & Forums category both receive their highest share of visits from California and Texas. However, the Social Networking category as a whole over-indexes on share of visits from Northeastern states while Pinterest over-indexes on visits from the states in the Northwest and Southeast. This data indicates that Pinterest visitors have a different profile versus their counterparts visiting other social networking sites such as Facebook and YouTube. In fact, nine of the top ten over-indexed states for Pinterest visitors also over-index for the Hobbies and Crafts category (versus the online population) which is expected given the abundance of crafts content on the website. When comparing the Mosaic USA 2011 types that visit both Pinterest.com and Hobbies and Crafts websites during the 12 weeks ending December 17, 2011, the data shows that Boomers and Boomerangs are the group most likely to visit, particularly the Pinterest website (comprising over 10% of visits). This group of consumers is characterized as baby boomers and young adults who are heavy web users who spend time on house and garden, sports and fitness, and family-oriented websites. This information is useful to companies who wish to target their content to be “pinned” by Pinterest users. Thanks to Lauren Rice, an Analyst with the Strategic Services team at Experian Hitwise for today's analysis.