Tips on Informing Your Customer Data Cleanroom Strategy – CMSWire | Mobiz World

Are data cleanrooms the answer to accessing high quality customer data for marketing?

By now, most marketers are aware of the convergence of global factors that will no doubt complicate targeting and measurement in the future.

  1. Google’s rejection of the third-party cookie that is forcing brands to rethink their entire customer data strategy, from zero-party data to first- and second-party data to third-party data.
  2. A by-product of data degradation is the increased creation of “walled gardens,” or data repositories created and owned by large tech companies for data governance and monetization.
  3. New channels like in-game, in-stream, and in-app combined with new environments like the metaverse are causing marketers and advertisers to rethink how they collect and interact with customer data.
  4. Consumer demand for privacy and control over their data has never been higher.

It seems that almost every day new policies, processes and practices are being put in place regarding what and how customer data may be collected, used and shared.

Are data clean rooms the solution?

Can data cleanrooms help us access high quality customer data for marketing and advertising targeting and measurement? The concept of data clean rooms has been around since Google Ads introduced Data Hub in 2017. For those unfamiliar, a data cleanroom is a secure data environment that allows brands to access anonymized marketing and advertising data (usually from third-party providers and collectively from larger technology brands) to manage marketing and advertising interactions with end customers in a privacy-friendly manner extend.

Recent discussion of the devaluation of data has led to a resurgence of discussion of data cleanrooms, as well as discussions of creating private walled gardens.

Related article: 5 targeting recommendations for a post-cookie world

Walled garden vs. data clean rooms

Initially, walled gardens and data clean rooms were considered synonymous, but that is not the case.

Walled Gardens are data stores owned by major tech brands that collect marketing and advertising data and can then monetize that data – both internally and externally.

Data cleanrooms, which can be either private (branded only) or public (shared with partners), offer additional security and privacy protocols that walled gardens don’t always have. You can also purchase data cleanroom software, but walled garden software is not. However, as data cleanrooms continue to gain popularity, their viability remains uncertain – largely due to a lack of customer validation and widespread adoption. Many questions remain unanswered when it comes to data cleanrooms, including:

  • How does a data clean room fit into my marketing and advertising ecosystem?
  • What data details will they provide?
  • How useful is this data for targeting, personalization and measurement purposes?
  • What use cases will I achieve with my data cleanroom software that I can’t achieve today?
  • Do I need a data clean room or are the capabilities present in other solutions within my ecosystem such as B. my customer data platform?

One thing is clear – marketing and advertising technologists should consider several key factors when deciding if and when a data cleanroom makes sense for your brand.

Data security and data protection come first

The entire premise of a data cleanroom is to provide access to collaborative data without compromising consumer privacy or a brand’s data security protocols. For this purpose, security and privacy techniques for customer data must be embedded in the data clean room solution. Data cleanrooms must have techniques such as identity management, graphic representation, obfuscation and resolution.

In some cases, identity management and resolution solutions can be attached to the solution, but this adds complexity to the data movement and consumption processes. Data clean rooms must be able to automatically record, link, store and protect customer profiles.

Ideally, customer data is encrypted both at rest and in transit, so even marketers interacting with the data cleanroom solution are not exposed to the data. For more advanced users who choose to extract audiences from a data cleanroom solution, features like obfuscated cohort creation and fine-grained privacy should be available.

Related article: Is Bad Data Ruining Your Customer Experience?

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