CHASING UNICORNS: ARE DATA CLEAN ROOMS ELUSIVE TO MOST MARKETERS?
Author: Alyce Erikson, LinkedIn | Member IAB SEA+India Data Measurement & Impact Regional Council
INTRODUCTION
Data clean rooms (DCRs) have emerged as both a promise and a puzzle. They unleash the mystical trio of data management: protection, privacy and preparation.
But can the power of DCRs unleash, or do they remain elusive unicorns beyond our grasp?
DEFINING DATA CLEAN ROOMS
First things first – what’s a data clean room? There’s a lot of information online on what DCRs are, some easier to read than others. Let’s untangle this enchanted web.
THE TRIO OF DATA MANAGEMENT
Protection: Within walled gardens, a fearsome Dragon of Protection stands sentinel. DCRs control data access for data providers.
This involves control over who gets permission to access the data and what data they can get access to.
For example, choosing to share a subset of CRM data with your DCR, while keeping a boundary to prevent other data providers from accessing it.Privacy: The Guardian of Privacy envelops personal data in a shimmering mist of anonymity.
For example, a digital media platform sharing second-party, aggregated and anonymised insights. Trends surface across datasets without revealing personally identifiable information.Preparation: The Oracle of Preparation transmutes raw data into actionable insights. These insights cannot identify an individual user.
For example, knowing audience overlap by combining marketing data across multiple digital platforms.
Combined, the trio of data management define a DCR as a fortified haven where a company collects and analyses data from many sources.
And in case you were wondering what peanut butter has to do with Data Clean Rooms, take a look at this.
WHAT MAKES A DCR A UNICORN?
DCRs unleash protective dragons, shimmering mists and oracles of wisdom. Yet, they’re a sorcerous trial for marketing crusaders to overcome across people, price and process.
People: The implementation and maintenance of a DCR takes a fellowship beyond Marketing. Teams must unite across Data Analytics, Tech, Finance, Legal, Sales and Customer Success. Beyond aligning these teams, marketers need to show how a DCR can also benefit their worlds.
Source: IAB State of Data 2023 Report here
Price: Though DCRs may seem like a wise wizard's choice, they still demand a dragon's hoard upfront. Whether you choose to craft your own or use a trusted third-party service, DCRs have arcane upkeep. Server infrastructure, data processing, talent, storage, and query usage add up overtime. Finding the coin on a hefty long-term commitment isn’t easy. But for brands already using less cost-effective solutions, a DCR is a budget-wise upgrade.
Source: IAB State of Data 2023 Report here
Process: Launching a DCR is an intricate shadowdance dance in change management. Convincing leadership within and outside of Marketing to invest in a DCR isn't easy. As a fledgling solution, you're not only proving why you need it, you're the product sage educating decision makers on the fundamentals of what it is.
After building the case and collecting resources, you've only completed stage one. DCRs are a long-term investment, taking months to put in place and longer to reveal their value.
ARE WE CHASING UNICORNS?
Well, it depends.
Some organisations conquer these sorcerous trials, but they remain the minority. For many of us, these trials are far too great, for now. To make DCRs accessible we need to balance the promise of what they can unlock while reducing the potency of their barriers. DCRs need to be understood, affordable and effective in transforming data into insights. If you’re considering DCRs, the greatest investment you can make is time to assess the true value of DCRs to your business. From here you can decide if you want to capture the unicorn or let it prance away for now.
