Data Clean Room Tech Users Satisfied So Far

February 17, 2023

This article is included in these additional categories:

Analytics, Automated & MarTech | Customer-Centric | Data-driven | Privacy & Security

Nine in 10 marketers are testing or considering at least one ID solution, according to a report [download page] from the IAB. Among privacy-preserving technology users, almost two-thirds (64%) use data clean rooms, while another fifth (21%) are considering doing so.

The report suggests broader use of data clean rooms (DCRs) than found in recent research, which indicated that 1 in 5 B2C marketers have adopted the technology. Methodology may play a part, as slightly more than half of respondents to the IAB study have annual ad spend of at least $50 million, and the report separately notes that “DCR costs create a high barrier to entry—a challenge for smaller industry players.”

This market is clearly in its earlier stages, however. The IAB study reveals that 61% of DCR users have used the technology for 2 years or less. By comparison, fewer than half of identity solution (42%) and consent management platform (CMP; 42%) users are new to the technologies, and even fewer say the same about their length of customer data platform (CDP; 35%) and data management platform (28%) use.

What’s clear is that so far, DCR users are happy with the technology. Some two-thirds (67%) say they’re very or somewhat satisfied with the tech, in line with the 69% of identity solution users and 66% of CMP users.

When selecting a third-party DCR, users say that the most important criteria are confidentiality and security of data/IP through privacy protocols, privacy throughout the whole engineering process, and availability of enrichment partners.

As for DCR use cases, data anonymization (47%) and data privacy & compliance (47%) were the most commonly cited, followed by data normalizing and cleaning (41%) and data transformation and enrichment (40%).

The study’s authors note the opportunity to leverage advanced measurement, as few are using DCRs for attribution (26%), ROI/ROAS measurement (23%), media or marketing mix modeling (17%) and propensity modeling & predictive analysis (17%).

The full study can be found here.

About the Data: The results are based on a November 2022 survey of 203 data decision-makers who are engaged with privacy-preserving technology across the following company types: brands; publishers/agencies; and agencies.

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