What Is a Data Clean Room and Why Do They Matter?

Data Clean Room

With the demise of third-party cookies on the horizon, data clean rooms are becoming a hot topic in the world of digital ad placement and media buying. Why? Cookies are a great way for publishers to collect data on users, but the sharing of this data with advertisers begins to cross the ethics line.

Data clean rooms are places where publishing platforms can share aggregated user data with advertisers. This sharing is done with strict privacy controls so that no one party can see the data of the other party.

Data clean rooms are places where publishing platforms can share aggregated user data with advertisers.

For example, when a managed media placement firm, like Ad Placement Parters, employs goecapturing and location-based technologies to identify targets in a specified geographic location, that data can be sent to a clean room to identify other information about the user. This might include demographics and behaviors. This allows the parsing of the original data to fine-tune the target.


Here’s more from Seb Joseph, over at digiday.

Advertisers’ attempts to break down data’s walled gardens have found a second wind. The emergence of so-called data clean rooms — safe spaces where insights gleaned from the walled gardens are commingled with first-party data from advertisers for measurement and attribution — is gathering pace as media trading becomes more addressable.

As much as these safe spaces are in demand, they are fraught with adoption issues. Here’s what you need to know.

What is a data clean room?

Data clean rooms are places where walled gardens like Google, Facebook and Amazon share aggregated rather than customer-level data with advertisers, while still exerting strict controls. First-party data from the advertiser is then poured into the same space to see how it matches up with the aggregated data from the platforms. From there, advertisers can see how the different data sets match up, using any inconsistencies between the two to determine whether they’re over-serving ads to the same audiences. In the case of the data clean room Unilever is building, the advertiser should theoretically be able to see the duplicated reach it gets across Google, Facebook and Twitter, all of which have agreed to back it. None of that aggregated data leaves the clean room.

“As you start adding more channels as an advertiser, it gets harder to assign effectiveness and attribution,” said Victor Wong, CEO of Thunder Experience Cloud. “In addition, it’s harder for advertisers to understand what their media spend is doing when it comes to knowing whether it’s hit the desired audience.“

Are data clean rooms new?

These types of data arrangements aren’t new. Facebook has offered them to its largest advertisers for some time, for example. But those deals are expensive and, more important, weren’t scaleable. Having a data clean room that works just as well in mature markets as it does in emerging ones is increasingly important for the likes of Unilever and Procter & Gamble, which are becoming more dependent on the marketing in those regions to kickstart stuttering businesses.

Continue to digiday.com Story >>


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