Data clean rooms have become a major topic of discussion amid ongoing regulatory changes and evolving industry policies. As advertisers navigate these shifts, it’s important to take a step back and understand what’s available – and how to select the right partners to solve real business challenges.
What is a data clean room?
A data clean room is a secure, privacy-compliant environment where multiple parties can analyze and combine their first-party data without directly sharing raw data. These platforms act as neutral intermediaries, allowing companies to match and analyze data sets while maintaining strict control over customer information and complying with regulations like GDPR and CCPA.
Unlike data storage facilities, clean rooms are collaborative platforms designed to query data from multiple sources to surface useful insights and produce better campaign outcomes.
Participating partners can only access aggregated insights and matched audience segments, never the underlying individual-level data. Data clean rooms typically don’t store data but collect and combine data while employing advanced encryption and anonymization techniques. They also provide analytical tools and turn insights into actionable business decisions.
Their effectiveness depends on three factors: the volume and quality of the data they access, the depth of the insights they generate and how quickly those insights can be translated into valuable results.
Advertisers are increasingly turning to data clean rooms as third-party cookies are phased out and privacy regulations tighten. For example, a retailer and media company might collaborate within a clean room to match their customer purchase data with media consumption patterns, enabling more precise audience targeting and campaign measurement.
These platforms help advertisers connect online advertising exposure to offline sales data, compare performance across channels and measure incrementality – all while protecting consumer privacy.
The importance of interoperability
One of the most critical factors in selecting a data clean room partner is interoperability, which is the ability to integrate with various data sources and platforms while maintaining privacy compliance. As organizations seek to unify data from different systems, interoperability ensures they can collaborate with multiple partners and data providers, analyze diverse data sets and gain a more complete view of advertising performance without being restricted to a single vendor’s ecosystem.
For instance, a brand might need to analyze data from both a retail media network and a customer data platform like Adobe or Salesforce. If a clean room lacks interoperability, advertisers may struggle to generate holistic insights. Conversely, a clean room that supports integrations enables advertisers to access and analyze siloed data, creating a clearer picture of the consumer journey.
Interoperability also helps streamline data operations, making data more accessible and actionable. For example, a CPG brand could use a data clean room to safely combine its first-party customer data with purchase data from multiple retailers as well as media exposure insights. This comprehensive view allows advertisers to refine marketing strategies across the entire customer journey, from awareness to conversion.
At Amazon, we offer this solution in the form of Amazon Marketing Cloud on AWS Clean Rooms. With Amazon Marketing Cloud on AWS Clean Rooms, advertisers can generate enhanced insights, discover new audiences and more seamlessly collaborate across their own signals in AWS together with exclusive signals from Amazon Ads – all without having to move their underlying data outside of their Amazon Web Services (AWS) environment.
Innovation as a key differentiator
Another crucial factor in selecting a clean room partner is innovation, which is the ability to evolve alongside changes in privacy regulations, technology and consumer expectations. Advertisers need partners who not only address today’s challenges but also invest in capabilities that will address tomorrow’s needs.
This includes:
- Artificial intelligence and machine learning for predictive modeling and automated optimizations
- Advanced privacy-preserving technologies to ensure secure data collaborations
- Enhanced measurement capabilities for accurate campaign performance tracking
- Expanded integration possibilities to support a wider range of data sources and platforms
For example, while some clean rooms may offer basic audience matching and campaign measurement, advertisers should assess whether their partners have a clear road map for developing more sophisticated tools, such as predictive analytics and advanced cross-platform measurement capabilities.
Advertisers should also evaluate potential partners based on their track record of adaptation, their investment in R&D and their vision for the future of privacy-safe data collaboration.
Defining a clear brand vision
Before implementing a data clean room, advertisers must clearly define their strategic objectives and specific use cases. This vision should extend beyond broad goals like “better targeting” and focus on measurable business outcomes, such as:
- Understanding cross-channel attribution
- Measuring incremental revenue from campaigns
- Developing advanced audience segmentation strategies
Having a well-defined vision ensures that the selected solution aligns with business priorities and allows advertisers to evaluate potential partners based on their ability to meet specific criteria rather than generic feature sets.
Additionally, advertisers should consider their internal data capabilities, resource constraints and timelines. A clean room solution should not only fit the business requirements but also be feasible for the team to implement and manage. Companies should consider factors such as change management, training needs and internal processes to maximize the value of the clean room investment.
Choosing the right partner
Selecting the right data clean room partner requires careful consideration of three critical factors:
- Interoperability: Ensuring seamless integration across multiple platforms and partners
- Innovation: Partnering with providers who are investing in future-proof solutions
- Strategic alignment: Choosing a clean room that supports both immediate and long-term business goals
Amazon Ads can be a strategic partner, providing a comprehensive clean room infrastructure, technical expertise and the guidance needed to achieve advertising goals while maintaining the highest standards of privacy and security.
