Why a data clean room should be on your radar

Harness the power of a data clean room to boost your marketing strategy. Elevate conversion rates, slash customer acquisition costs, and seamlessly adapt to a cookieless future.

In the fast-evolving landscape of digital marketing, the data clean room has emerged as an indispensable tool. By ensuring you deliver the right message to your target audience at the right time. Data clean rooms provide a competitive edge in a high competitive landscape. Continue reading to discover why a data clean room should be a cornerstone of your digital strategy. We'll guide you through the market.

This guide will cover:

1. Why now?

2. What are your alternatives?

3. Benefits

4. What stats can you expect?

A brief history: The evolution to data clean rooms

History class will be very short, don’t worry! In 1994 the first banner ad appeared (I was born in 1994, damn)! The banner ad had a click through rate of 44%, a number we will probably never see again.

A lot happened since the first banner ad except from me being not cute anymore. The advertising world really kept evolving. We started off with targeting by the kind of content on the website our ad was on. The problem was, on bigger websites with a broad audience, 90% of our reach was probably targeted at the wrong audience.

That’s why we started creating solutions to map out the interests of the consumer and try to show them the right ads, everywhere they went. Throughout the years, these solutions became more and more intrusive until there were serious privacy concerns.

This is what the first banner ad looked like.

Third-party cookie restrictions

Apple and Firefox were the first to counter these concerns with a ban on 3rd party cookies and a battle for your privacy. These browsers make up for around 21% of the market share in internet browsers. They also started to make their users more aware of their privacy with notifications on what apps wanted to track their behavior.

All of this resulted in a global online ad performance drop of more than 50%. Google is starting the same restrictions in Q1 2024 with 1% of their users and want to roll it out to 100% of their users in Q4.

Exploring data clean room alternatives

Faced with AI, contextual targeting, and Data Management Platforms (DMPs), marketers must choose wisely. Stagnation isn't an option if you wish to remain relevant.

Doing nothing:

• Pros: Zero effort.

• Cons: Inevitable decline in marketing impact and competitive positioning.

Customer data platform (CDP) implementation:

• Pros: Directly captures customer interaction data, fostering retargeting and personalization.

• Cons: Limited to self-collected data, may entail high costs.

Artificial intelligence (AI):

• Pros: AI's predictive capabilities can personalize and enhance customer experiences.

• Cons: Success hinges on the quality and quantity of data and expertise available.

DMPs:

• Pros: Manages anonymized data pools, expands audience reach.

• Cons: Dependent on third-party cookies, raising accuracy and privacy issues.

Why data clean rooms are integral to your marketing mix

Pros:

• Data clean rooms use reliable first-party data from trusted sources.

• They enable highly targeted advertising across major platforms.

• They help derive actionable insights while prioritizing privacy and compliance.

Cons:

• Establishing data partnerships, though sometimes automated, requires a little bit of work.

For businesses of a certain scale, implementing a data clean room in tandem with a robust CDP and advanced AI can significantly uplift conversion rates, improved analytics and lower the CAC.

The accuracy imperative: Data clean rooms' role in audience targeting

The inaccuracy of traditional ad platforms that rely on outdated user ‘interests’ and third-party cookies is a challenge data clean rooms are equipped to solve, thanks to their use of precise first party data.

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 source ingestion (CDP/CRM/CSV/…)

2. PII anonymization

3. Safeguarding data from being shared

4. Data consolidation

5. Rule enforcement

6. Query application

7. Visualize the insights in a premade dashboard

8. 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.

The statistical edge of data clean rooms in marketing

Embracing data clean rooms for your first-party data strategy can lead to remarkable gains in marketing efficiency:

• A 27% boost in conversion rates

• An 18% decrease in customer acquisition cost (CAC)

• A 23% uplift in customer satisfaction

• A 20% increase in per-customer spending

These compelling figures underscore the low-effort yet high-impact benefits of integrating data clean rooms into your marketing strategy.

Do you want to see more cases and more results? Take a look at this article.

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!