Data Clean Room is the term used to define a secure environment where data containing Personally Identifiable Information (PII) from different sources is anonymized and aggregated to provide meaningful metrics that can be used to create value. A typical example is driving marketing campaigns without compromising anonymity.
Data is collected from historical sales, CRM systems, and e-commerce platforms that companies upload to a data clean room, anonymizing the information using secure encryption systems. The information from different sources and platforms is then aggregated for companies to plan and understand the entire customer journey, understand consumer behaviors and analyze the true impact of marketing campaigns across platforms. The aggregated information must be able to offer detailed data about impressions and to offer user-level granularity.
Types of Data Clean Rooms
There are two general categories for data clean rooms, which are Walled Gardens and Agency Data Solutions.
Walled Garden Data Rooms
Walled Garden Data Rooms are environments where platforms, like social media, provide companies with details about the advertisements displayed to the users. Companies can then retrieve and analyze the data to evaluate and optimize the performance of marketing campaigns within that specific platform. The challenge with this approach is that most of these platforms aggregate the information and restrict companies from using the information. The restrictions can prevent companies from understanding the customer journey and habits throughout several channels and planning optimized marketing campaigns.
Agency Data Solutions
On the other hand, Agency Data Solutions is a term used to refer to data clean rooms that offer multi-platform data, which allows companies to exert more control and use the data with fewer restrictions. The challenge here is that this data tends to be relatively less detailed than the data obtained through Walled Gardens.
Whether a company will select to use an Agency Data Solution or a Walled Garden as a Data Room will depend on how it runs its campaigns. Choosing a Walled Garden Data Room will make sense if most marketing is funneled through a single platform. However, most companies will run campaigns through multiple platforms and cross-reference data from Agency Data Solutions. Cross-referencing provides a more explicit metric on campaigns’ efficiency, reduces advertisement waste, automates campaigns based on triggers, and helps understand media attribution across several platforms.
Depending on the selected type, Data Clean Rooms can be used by companies to obtain high-level measurements of consumer behavior, analyze trends and anticipate customer needs. In addition, it may be helpful for campaign automation in advertising platforms according to performance, analysis of different audiences acting within a platform, and performing cohort level analysis.