The advent of Data Clean Room

The purpose of finding a balance between Data Protection and the need to share it is an issue that is constantly in the spotlight.

Digital platforms, brands… must have access to user data in order to achieve better performance as closely as possible to the consumer’s needs.

Now, what is the limit of access to this data?

The arrival of the Data Clean Room has revolutionized the conciliation between data sharing and data protection, in accordance with the GDPR.

What does Data Clean Room mean?

“Data Clean Room” refers to a secure space for data storage, analysis and data processing, reducing the risk of data contamination.

Up to now, the tools that have served to discover the commercial preferences of users are the famous Cookies. However, their end is coming closer.

Therefore, the Data Clean Room will be the tool that will replace Cookies, allowing companies to store their data in these secure spaces.

Data Clean Rooms allow a comparison between own data sets and third-party data sets. This data, despite not being personal, has useful information for audience segmentation.

In addition, they record user views and interactions, as well as user impressions and transactions.

Advantages of this new tool

Using Data Clean Room provides numerous advantages:

It offers protection against the manipulation of highly valuable and sensitive stored data.
Regulatory compliance. The purpose of the Data Clean Room is to understand the user’s needs in a better way, complying with the privacy rules established in the GDPR.
These data will be accessible only to those who have permissions to operate and consult them.
Information to the user about trends in user groups, demographic and industry segments.
Publishers and advertisers will create personalized audience groups, in order to achieve a better adaptation to the needs of users.
Data analysis. Data Clean Rooms analyze aggregated data to understand as much as possible about user behavior and activity.

How does it work?

Firstly, companies will add their own data to the Data Clean Room. After that, they will apply security and privacy protection measures to that data.

These security measures include pseudonymization, differential privacy and restricted access.

After that, the data will be classified into cohorts (segmented groups of users based on their market behavior). The data will be kept encrypted, which makes it impossible for anyone in the Data Clean Room to access to the Personal Identifiable Information (PII).

After that, this data will activate. It can serve for different advertising and marketing processes, for instance, audience analysis.

Advertisers and publishers will be able to analyze the reports provided by Data Clean Room, in order to improve the campaigns they currently run or those they will work on in the future.

The future of Data Clean Room

In view of the rejection of third-party cookies and the emergence of new consumer privacy rules, Data Clean Room will become an essential tool in the technological, advertising and marketing areas.

Therefore, in the coming years, many companies will be implementing this new tool for storing their data, with the aim of obtaining detailed information about customers and customizing their marketing services to their needs.

In words of Kristi Argyilan, Executive Vice President of SV Retail Media at Albertsons Media Collective:

“We believe using clean rooms can provide our clients with the data they expect to make informed decisions about their advertising in a privacy-preserving manner.”

If you have any questions, Auratech Legal Solutions will be pleased to help you.