What You Need To Know To Get Started
In the first part of this article on Data Clean Rooms (DCRs), we focused on explaining DCRs and shared some typical advertiser and publisher applications. Below we’ll take a closer look at the benefits and limitations of DCR before sharing how to go about getting started.
What Benefits Do They Provide?
Advertisers and curators can use DCRs for privacy-first, efficient advertising use cases without the use of third-party cookies.
By combining data from multiple sources, advertisers can refine their understanding of consumer behavior and ultimately create more nuanced and effective audience segments, which leads to highly personalized advertising campaigns.
- Audience extension: With the help of DCRs, or specifically ID graphs that can be implemented within them advertisers and curators can translate hashed emails and other PII data into targetable first-party data, as well as reach their already addressable audiences across other environments, such as in-app or CTV.
- Lookalike modeling: As a further step in audience extension, many DCRs leverage lookalike machine learning models to extend the reach of first-party data sets and maximize the effectiveness of future advertising efforts. Once a particular audience segment performs well in a campaign, DCRs employ the model to identify more potential customers with similar characteristics.
Clean rooms allow the aggregation of data from multiple sources, including various CRMs, and reporting data from multiple platforms enabling a holistic analysis of multiple touchpoints across different devices and channels. This, along with access to more signals from third parties, helps to track a consumer’s path to conversion, significantly improving the effectiveness of advertising campaigns, and thereby delivering higher ROI.
Compliance & Security
DCRs allow you to stay ahead of privacy regulations by using a technology that respects user privacy and allows you to keep 100% ownership and control of your data with no risk of data leakage.
Buyers can enjoy more seamless collaboration with publishers, retailers, and even competitors, in a privacy-safe environment.
In turn, publishers and retailers can leverage DCRs to enable responsible and controlled access to authenticated users and to unlock more revenue streams.
Publishers can create incremental revenue streams by enabling controlled access to their first-party data to drive more advertiser investment into their inventory and platforms.
Compliance & security
Publishers retain 100% ownership of their data and control over how it can be used within the DCR.
Publishers can also benefit from cross-data analytics to optimize content strategies and user experiences on their pages to increase the value of their inventory.
Data Clean Room Limitations
While DCRs offer numerous advantages in terms of data security, compliance, and analytic capabilities, they are not without their limitations. Understanding the key constraints will help identify if a clean room is a missing piece in your addressability strategy.
Complexity and learning curve
DCRs are complex systems that often require specialized skills to operate effectively. Your team may need to undergo training to understand the nuances of working within a DCR.
High barriers of entry
No matter how wonderful DCRs are, they don’t have magic powers. The insight and outcomes they deliver will only be as good as the original data fed into the analysis. Users with a sufficient amount of structured, clean, and valuable first-party data and clear goals are better suited to leverage the technology.
Setting up and operating a DCR can be expensive, especially when considering the extra infrastructure and operational costs.
DCRs need to be compatible with the other technologies used by the business, such as data management platforms (DMPs), customer relationship management systems (CRMs), and analytics tools. Interoperability is key is you want the DCR to grow with your data needs.
How To Get Started
Building your own DCR is both an effort and cost-intensive endeavor. But, partnering with any of the DCR vendors on the market can be an optimal solution.
Your first step should be reviewing the available options and selecting a DCR provider that is compliant with privacy laws and aligns with your business and operational requirements. As mentioned above, the decision to use a DCR and which provider to partner with should be dictated by a well-thought-out, long-term strategy.
Then, once you select a provider, it’s all about the setup and integration of the data pipelines to enable easy data onboarding and seamless activation of matched data sets.
Data Clean Rooms At Equativ
To support our customers and partners working with dedicated DCRs, we offer timely integrations with your chosen partners. As interoperability is the key when it comes to DCRs, we are all in for secure and effective data activation against our premium inventory.
In addition, we offer a turnkey data management and collaboration solution in partnership with Habu, an industry-leading data clean room provider. Thanks to Habu, and the Roqad ID graph, who carry out identity resolution and accurate data linkage within the DCR, our customers will soon benefit from full-scale DCR capabilities for privacy-first audience activation, measurement, and attribution – ultimately skipping a laborious assessment and integration process.
Integrating DCRs into your advertising strategy can be a game-changer, offering a host of benefits that can significantly enhance targeting, personalization, and overall performance, all while maintaining strict compliance with data privacy regulations. DCRs are not just a passing trend. They are rapidly becoming an industry standard for data analysis and sharing.
Whether you’re an advertiser, agency, or publisher, DCRs present an unparalleled opportunity to drive your strategies into the future. And with us, you can explore these opportunities knowing you have the support and expertise of our team behind you.
Ready to get started?