Data clean rooms (DCRs) are a relatively new technology that helps marketers use data in a privacy-compliant way. DCRs create a secure, collaborative environment where two or more parties can use data for specific, mutually agreed upon purposes while protecting the data from exposure to other parties. They are used by brands, agencies and publishers, but they require a high level of data maturity and a substantial team to work with the technology. The cost of setting up a DCR can range from $200,000 to over $2 million annually.
Current uses for DCRs include data privacy compliance, data anonymization, data cleansing and normalization, and data transformation and enrichment. Emerging uses include attribution, ROI measurement and modeling, mixed media modeling, and predictive analytics. DCRs also reduce the complexity of advanced analytics for data scientists.
The DCR sits between the organization’s data layer and activation layer in the stack. Additionally, it centralises business logic that used to live in the data infrastructure or activation layers.
Data clean rooms are an important technology for businesses to consider when using data in a privacy-compliant way. They can help organisations take advantage of first-party data, which is becoming increasingly scarce with the introduction of privacy regulations and the phasing out of third-party cookies.
Originally reported by Martech: https://martech.org/data-clean-rooms-explained/
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