Despite the widespread use of data clean rooms (DCR), less than a third of marketers are leveraging DCRs’ full capabilities, according to a new report.
Nearly half (47%) of marketers are using clean rooms for data privacy, regulatory compliance and audience activation, according to the IAB’s “State of Data 2023” survey. However, 52% of DCR users say they are challenged when it comes to leveraging results and proving ROI.
Dig deeper: How companies are leveraging clean rooms and first-party data as cookies vanish
This explains why only 27% are taking advantage of DCRs’ attribution capacity and even fewer are using them for ROI/ROAS measurement, media or marketing mix modeling, and propensity modeling.
The report also found that the high cost and expertise needed to operate clean rooms is preventing smaller agencies and businesses from using them.
Nearly half (49%) of the companies surveyed have six or more employees dedicated to the technology, 30% have at least 11 people working on it. Nearly two-thirds (62%) of users spent at least $200,000 on clean rooms in 2022, and 23% spent more than $500,000. Those costs are expected to increase by 29% in the coming year.
Why we care. Clean rooms’ importance is clear and will increase as third-party cookies go away. Because of their expense and complexity, it’s essential marketers get all they can out of them. This will require all data providers, including walled gardens, to make their data easily interoperable for measurement and ROI.
Also, smaller agencies and companies provide great value to the marketing ecosystem. Their agility allows them to create and innovate faster than larger operations. We cannot afford to have them shut out of using clean rooms. Making that possible will also lower costs for everyone.
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About the author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
