Hubspot Custom Styles
October 17, 2022
James Prudhomme

Data Clean Rooms: Why the Industry Needs a New Generation of Privacy-Preserving Data Connectivity Software

The problem is that while they are a viable solution, most traditional DCRs still operate as third-party databases, meaning that users have little to no control over what is being done with their data.

Data Clean Rooms

The culling of the cookie. Increasing consumer awareness. The realization that third-party data isn’t all that effective. All these factors have slowly but surely driven advertisers to implement alternative targeting solutions.

One such alternative is data clean rooms (DCRs).

The problem is that while they are a viable solution, most traditional DCRs still operate as third-party databases, meaning that users have little to no control over what is being done with their data.

The solution? A new generation of privacy-preserving data collaboration software has emerged that is able to provide advertisers with DCRs that measure and match overlaps in data - all without infringing user privacy.

But why should the industry pay attention, and what are the benefits of leveraging this new software?

1. A purpose-limited environment for advertisers

The key here is the phrase ‘purpose-limited.’ These privacy-preserving DCRs are created with advanced cryptography that minimizes data leakage, providing a purpose-limited environment for advertisers in which to work. 

This means users have to explicitly consent to their data being used for things such as analysis, activation or measurement. 

Since these DCRs are limited to the purposes for which the users have consented, they not only give advertisers an opportunity to analyze, activate and measure data - but also to protect the privacy and sovereignty of user data. 

2. Maximum collaboration opportunities for publishers 

Next-generation DCRs stand out for their frictionless collaboration and interoperability capabilities.

In Optable’s case, for instance, only one side of the match needs to be the company’s customer - the other partner can be from any organization, opening up much wider opportunities for collaboration.

The only thing the publisher needs to do is create an identity graph. Once this is set up, they can start collaborating with a number of different partners.

Publishers can invite these partners to join the DCR by either:

  1. utilizing Optable’s open source utility to encrypt their data at source, regardless of the system it sits in - and executing a multi-party computational protocol with their own data set
  2. working with other industry partners such as cloud data warehouses, to allow brands using their services to leverage the DCR without their data ever leaving the data warehouse.

3. Adapting to everchanging consent statuses

A key stand-out for this new breed of DCRs is their ability to collect and push out data in real time.

As well as leveraging privacy-enhancing technologies, DCRs such as Optable have also built real-time programmatic workflows around these technologies. This means they are not only purpose-limited, but are also able to keep up with users’ changing consent statuses.

If, for example, a user who has consented to analytics withdraws that consent at a later stage, Optable is able to gather that information in real time and remove the user from a clean room immediately.

4. Activating data on both the buy-side and sell-side 

By using our ‘data collaboration nodes’, we can ensure that data sets from different partners are physically decentralized from one another. This means, for instance, ensuring that data from the buy-side and sell-side is never merged, and stays inherently separate within the clean room.

Audiences can still be activated and targeted directly outside of the clean room, but none of the data is pushed into the open bitstream or connected to a third-party ID - ultimately preserving the integrity of the DCR.

This is important as it means that brands are able to activate and measure their data - on both sides of the coin - without compromising on privacy standards.

5. Privacy-centric activation 

As well as activating data, brands can also schedule data matches with partners to look at the overlap between publisher data and advertiser data, for example. These create a matched audience over time that brands can analyze to gain useful insights into their customers, enabling them to target them more effectively.

These insights can include specific traits within a customer base that a brand or advertiser might not have known about their audience before. And this can all be done without ever pushing any of the data out of the DCR.

Our publishers, advertisers and brands can effectively send in first-party cookies (and other non-matchable first-party identifiers) that we use to produce a key value. This is then pushed directly back into Google Ad Manager or any other ad server. This allows publishers to invite advertisers into their own DCR without the data leaving its original source - all the while being able to activate campaigns and target their first-party data.

In the age of cookieless, Optable provides customers with a powerful privacy-preserving tool that can match publishers to advertisers and activate audiences in real time. Request a demo today and see how our DCR technology can help you collaborate with ease.

Photo by Timon Studler on Unsplash