Data clean rooms with advanced AI capabilities enrich publisher first-party data and give advertisers lookalike matches. This article explains how advertisers can redefine how they target and reach audiences.
Why it matters — AI-powered data clean rooms are putting advertisers in control of their first-party data for more accurate audience reach. With the continued deprecation of third-party cookies, advertisers need new ways to reach Safari and Firefox users in a privacy-compliant manner. Simultaneously, they need to improve their outcomes. AI-powered data clean rooms are a technology that advertisers can use to improve their targeting and prospecting. Data clean rooms powered by artificial intelligence (AI) are a new way to solve for data modeling needs to improve advertiser business objectives. This article explains how this technology works and how advertisers can take advantage.
AI-Powered Data Clean Rooms Do More Than Just Match Data
While data clean rooms may not be new, they have evolved with the addition of artificial intelligence (AI) to play a role in the entire value chain: from creating value through activating data to more precise targeting without third-party cookies.
Many data clean room set-ups support data onboarding, identity analytics, and insights reporting based on queries. For example, an AI-powered data clean room uses advanced data modeling to expand the scale of the data matches with audience lookalikes. In addition, it lets advertisers use their first-party data for privacy-forward audience activation based on the complete set of publisher first-party data.
AI-powered data clean rooms’ retargeting and prospecting capabilities let advertisers decide how far they want to go and who and where they target. In addition, relying on first-party data removes the restrictions of third-party cookies and allows advertisers to reach 100% of impressions.
Attributes of AI-powered Data Clean Rooms
- Creates a privacy-forward and secure environment
- Uses first-party data for collaborations
- Works with AI to create advanced data models unique to first-party data sets
- Outputs a highly relevant, lookalike audiences
- Handles audience activation without third-party cookies
How AI-Powered Data Clean Rooms Work for Advertisers
A safe and secure AI-powered data clean room lets publishers and advertisers collaborate on their first-party data without explicitly sharing it. This model allows publishers to safely use their complete data sets for better analysis and matching results. Likewise, advertisers use their highly targeted first-party seed data for privacy-forward audience activation at scale.
Advanced machine learning delivers extremely accurate lookalike audiences for prospecting opportunities. This is high-performance audience expansion and segmentation at speed and scale. With the actionable audiences created by the AI-powered data clean room, advertisers can overcome ID matching issues with publishers that best fit their brand and campaign needs. High-quality audience reach and performance follow when activated on the most relevant and trusted websites.
The Details of Data Clean Room Collaboration
- Goals and terms established – Every data clean room second-party data collaboration first agrees on the partnership terms, such as accepted ways to automatically activate audiences and whether retargeting and/or prospecting is allowed. This is towards redefining a zero-touch way for both parties to target and reach audiences.
- Second-party data used for matches – Advertiser’s hashed emails, or other universal IDs enable exclusive second-party data partnerships that don’t require other integrations. This works without any explicit data sharing between the collaborating parties.
- Advanced data model created – Advanced machine learning builds a dedicated data model for each request. Matches are expanded to find high-quality lookalike target audiences.
- Actionable audience created – The data model creates an attribute-rich audience that can be activated based on mutually agreed terms.
- Audience activated – Based on the mutually agreed terms, the expanded audience is activated on an AdServer or SSP. Because of the publisher’s first-party data set-up, impressions that form part of this audience don’t require third-party cookies or other consortium IDs to see the advertiser’s ad.
Why Advertisers Are Using Data Clean Rooms
An AI-powered data clean room is an excellent way for first-party data collaboration that improves targeting and reach in a privacy-forward way. Advertisers have direct control over who they’re targeting, unlike other data collaborations. It starts with their first-party data and addresses fragmented user bases without relying on third-party cookies. In addition, advertisers can use AI-powered data clean rooms to match their first-party data audiences (retargeting) or expand them with lookalikes (prospecting). This gives advertisers even more ways to balance their audience reach objectives.
8 Key Benefits for Advertisers
- Scale target audiences – From a small amount of first-party data, AI can be used to identify high-quality lookalikes at scale. Regardless of the quantity of first-party data, advertisers can multiply that audience. This overcomes the issue of having a fragmented ID landscape.
- Eliminates targeting guesswork – Advertisers are in control of the actionable audience that the data clean room creates. This eliminates the black box of purchased segments and gives advertisers confidence in what they are bidding on.
- Reach 100% of impressions – While first-party data might be fragmented, it can be consolidated to create a bigger audience and address up to 50% of impressions that are currently not identifiable without third-party cookies.
- High quality from “fresh” data – AI-powered data clean rooms use “fresh” first-party data from all publisher sources, making the outcomes for advertisers much higher quality—and directly actionable—compared with traditional data clean rooms lacking activation capabilities.
- Ensures safe collaboration – Gives advertisers the right tools to collaborate effectively in privacy-forward ways on their first-party data.
- Work with multiple publishers – The ideal data clean room can bridge across publishers so that an advertiser can use the same seed data with many publishers to create an overall campaign across publishers.
- Work outside of walled gardens – AI-powered data clean rooms provide an easy way to work effectively with publishers beyond the walled gardens.
- Eliminates manual data analysis – Traditional data clean rooms involve a lot of complex, manually-intensive data-sharing processes. These are removed with an AI-powered data clean room.
Fundamentally, AI-powered data clean rooms enable advertisers to maximize their first-party data, collaborate at scale, address fragmented user bases, and achieve high-quality reach and targeting.
How Advertisers Can Get Started with AI-Powered Data Clean Rooms
AI-powered data clean rooms are the answer to improving advertising outcomes and reaching audiences that are no longer identifiable with third-party cookies. It’s time for advertisers to use their first-party data to drive incredible value.
Wondering what AI-powered data clean rooms do for publishers? Then check into our Privacy & Identity Hub next week to read about publisher benefits.
