To use a data clean room, do brands need a lot of data?
Many brands assume that employing a clean room requires a lot of existing first-party data. If they don’t have it, they may not consider data clean rooms as a viable solution to reach in-market customers. The truth is brands could have little to no first-party data and use martech tools like clean rooms to make a huge impact on their marketing success.
To have the best marketing performance, brands need to identify and leverage their first-party data even if they need to supplement it. Some clean room solutions act as empty boxes and can only work with a brand’s limited first-party data. But the best solutions help brands harmonize, cleanse and augment their first-party data for a holistic view of their current and prospective buyers, and in turn deliver personalized marketing campaigns across owned and paid channels.
How? By linking and aggregating different pseudonymized data sources in privacy-safe spaces where brands can access partner and third-party data for exploration and media activation.
Not all brands have a lot of data at their disposal. Let’s look at a real-world example using CPG brands.
So what do they do about it?
Data clean rooms offer a privacy-safe space for data collaboration. Brands can take their data and glean deeper insights using partner or third-party data.
Once you incorporate first-party, second-party and premium third-party data, like Epsilon’s proprietary data, you will know who your customers are, what they buy (and why), where to find them and when to engage with them, driving retention and growth.
A leading pet food company wanted to message specific in-market customers for a niche set of products but were relying on category purchasers and current customers. When they used Epsilon’s clean room, they used purchase behavior data as well as custom data from Circana—a consumer brand and retail market research and data provider—to find competitive conquests.
Understanding purchase behavior helped the brand identify the best people to reach. Campaigns to these new shoppers drove high return on advertising spend—more than 8x their benchmark—and these shoppers became the brand’s second-best performing group of shoppers overall, including their existing clientele.
Identity resolution within a clean room helps to harmonize data and ensure that the same user is recognized consistently across various data sets, platforms and devices.
Many clean rooms can enable some level of data enrichment, but the strongest solutions go a step further. Using a clean room with persistent identity resolution allows brands to go beyond basic audience capabilities and create one-to-one connections with in-market and prospective customers. And it helps identify customers who aren't interested or in-market, helping brands avoid wasting their marketing budgets and spend their marketing dollars more wisely.
Clean rooms can facilitate the creation of dynamic, personalized content in real time and at scale, using AI and predictive modeling. Marketers can not only reach the right people with more relevant messages, but also adapt messaging based on user behavior. The ability to deliver a variety of messages at key moments, tailored to a customer's needs at a specific point in time, drives better personalization through more engaging and relevant campaigns
A strong clean room solution should give marketers expanded access to data and data science so they can react faster, localize to their markets, and execute cross-channel campaigns without sacrificing data security.
No matter how much or little data a brand has, Epsilon's clean room find and connect them with a brand's universe of buyers through use of top-notch, privacy-protected consumer data.
