What is a data clean room and why would I care?

'Data clean room' was probably the marketing buzzword of 2023 but what is it and why should you care? In an era where digital marketing is rapidly evolving due to privacy regulations and the decline of third-party cookies, data clean rooms are becoming a key alternative. Let’s explore what a data clean room is and its relevance with a practical example.

• What is a data clean room?

• Why does it exist?

• How does it Work?

• What are the benefits?

• Compliance

Understanding Data Clean Rooms

A data clean room is a secure software environment that enables companies to collaborate on sensitive data without the exchange or exposure of the underlying data itself. It’s a GDPR-compliant way to utilize data for insight generation, measurement and targeted advertising. These platforms are essential for leveraging customer data in a responsible and privacy-centric way.

A Real-World Example

Consider you’re the head of sponsorships of Sunweb and you are sponsoring RSC Anderlecht. What you want to be able to measure how many fans became a customer, the revenue it brought and to target the fans to convert them into customers.

The Rationale Behind Data Clean Rooms

RSC Anderlecht will not just hand over their customer data. It’s illegal to share personal identifiable information (PII) freely and if you would share it, you don't have any control over it. This is where data clean rooms come into play, offering a legal and efficient alternative.

How Data Clean Rooms Work

Data clean rooms strip away personal identifiable information (PII), replacing it with unique identifiers. This allows companies to utilize the rich data for better targeting and insights without compromising individual privacy. The clean room process includes:

1. Easy data ingestion (CDP/CRM/CSV/…)

2. Data normalization

3. PII anonymization

4. Rule enforcement

5. Data collaboration

6. Query application

7. Visualize the insights in a premade dashboard

8. Leveraging the data in digital campaigns via ready made connections to advertising platforms or owned channels if right consent.

Use cases?

1. Partnerships

   1. Measuring conversion, generating insights and targeting acquisition or loyalty campaigns via digital platforms

2. Advertising

   1. Targeting: leveraging data collaboration to personalize and target your advertising efforts

   2. Publishing: Collaborating with publishers to analyze the reading or viewing behavior of your customer to than create, personalize and target your advertising efforts on their platforms.

Compliance and Legal Considerations

Since data clean rooms anonymize personal data and operate under strict usage rules, they offer a GDPR-compliant solution for companies looking to navigate the post-cookie advertising landscape responsibly.

Try a data clean room today

Hey, you can read all day long about data clean rooms but why don’t you just test one for free? (no credit card needed)

Go to wehave.io, create an account and start using it. The only free data clean room on the market.

If you need more information, just leave your email address on the website and we’ll get back to you!