Date
May 3, 2024
Writer
Oliver Wolfs
What is a data clean room and why would I use it?
IData clean rooms probably the marketing buzzword of 2023 but what is it? 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?
Results you can expect
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 visibility of the underlying data itself. It’s a GDPR-compliant way to utilize data for insight generation 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 a fitness nutrition brand, looking to target regular gym attendees to improve ad relevance and conversion rates. Standard advertising platforms fall short as they typically rely on outdated indicators like website cookies or likes and interests.
Fitness centers on the other hand have a goldmine of information in their CRM/CDP systems. Everything from attendance data to contact details and demographics.
The Rationale Behind Data Clean Rooms
Fitness centers cannot just hand over the customer data. It’s illegal to share personal identifiable information (PII) freely, and the deprecation of third-party cookies has further complicated the digital ad space. 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:
Easy data source ingestion (CDP/CRM/CSV/…)
PII anonymization
Safeguarding data from being shared
Data consolidation
Rule enforcement
Query application
Visualize the insights in a premade dashboard
Connection to advertising platforms for precise audience targeting
In this example, the data clean rooms enables both companies to advertise on each other’s audiences or to generate insights without sharing the data with each other. All while keeping user privacy at the forefront.
Expected Outcomes from Data Clean Rooms
The benefits reaped from data clean rooms are directly linked to data quality, the strategic application and every case is different. For online advertising we generally see a big increase in performance. More why you should use data clean rooms in this article or succes stories here.
27% increase in conversion
18% lower CAC
23% better customer satisfaction
20% more spend!
Data clean rooms can significantly enhance marketing performance by leveraging first-party data, especially as the industry navigates beyond cookie-based advertising.
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!
