Evaluating data clean rooms for your organization

In the realm of marketing technology, data clean rooms (DCRs) are gaining significant traction as a tool that enables marketers to merge data sets from various sources to effectively target customers while adhering to privacy regulations. With the evolution of this technology, organizations are increasingly considering the use of DCRs for a wide range of applications. When evaluating whether to employ a DCR, there are several key considerations to keep in mind.

3 Types of DCRs

When selecting a DCR provider, organizations can choose from three main types as outlined by Ana Milicevic, principal and co-founder of Sparrow Advisers:

1. Walled gardens: These are large tech companies like Google, Meta, and Amazon with extensive audiences and ad networks.
2. Infrastructure providers: Cloud computing services and cloud-based data service providers such as Snowflake and AWS fall into this category.
3. Stand-alone clean rooms: Companies that specialize in unique clean room solutions like Habu, Optable, and InfoSum.
   

   DCRs as a Product or Feature
   

   Organizations have the option to acquire DCR technology either as a stand-alone product or as a feature integrated into a broader data services offering. The decision between these two options depends on the organization’s specific marketing operations and needs.

   Evaluating Your Organization for DCR Readiness
   

   According to Milicevic, assessing your organization’s readiness for DCR implementation involves a three-pronged approach:

4. People: Success with a DCR hinges on having a skilled team proficient in privacy, data, and security.
5. Data Maturity: The organization must be mature enough to handle complex data assets shared through a DCR.
6. Vendor Matching: Once the people and data maturity aspects are addressed, organizations can narrow down the list of DCR vendors based on their requirements and budget.

   In essence, the decision to utilize a DCR should be guided by the organization’s human resources capabilities, data sophistication, and alignment with vendor offerings.

   FAQs
   

7. What are the primary benefits of using a data clean room?
   • DCRs enable marketers to merge data sets from multiple sources to enhance customer targeting while ensuring compliance with privacy regulations.
8. How do organizations determine the type of DCR provider to choose?
   • Organizations can select from walled gardens, infrastructure providers, or stand-alone clean room specialists based on their specific requirements.
9. What factors should organizations consider when evaluating their readiness for a DCR?
   • Organizations should assess their team’s skills, data handling capabilities, and ability to integrate with DCR vendors.
10. Is it necessary for organizations to have a large team dedicated to privacy-related technology when using a DCR?
    • While having a dedicated team is beneficial, organizations with smaller teams can still leverage DCR technology effectively.
11. How can organizations ensure they select the right DCR vendor for their needs?
    • By evaluating their people, data maturity, and budget constraints, organizations can align their requirements with the offerings of different DCR vendors to make an informed decision.

      By carefully considering these factors and conducting a thorough evaluation, organizations can determine whether integrating a data clean room into their marketing stack is the right strategic move for their business.