Blog

By Editorial Department

Introduction

Data Clean Rooms (DCRs), environments where multiple operators can combine and utilize data while protecting privacy, are being rapidly developed and offered around the world, particularly in the field of digital marketing.

In this article, we will highlight companies that are actively supporting the implementation of DCRs. Let’s take a look at which companies are engaging in this initiative.

Data Clean Rooms can be divided into three types. 

First, let’s explain the different types of DCR service models. DCRs can mainly be categorized into the following three types:

1. Walled Garden DCR

2. AdTech DCR

3. Private DCR

 Quoted from the 230830 DCR Study Session Presentation

Walled Garden DCR refers to DCRs provided by large platforms like GAFAM (Google, Apple, Facebook, Amazon, Microsoft). A major benefit of using DCRs from these companies is the ability to analyze data in combination with the vast amount of data that the platform already holds. The results can be directly used for targeted advertising on the platform. However, a disadvantage is that advertisers must continually provide data to the large platforms.

AdTech DCR refers to DCRs that extend the intermediary function between advertisers and ad networks. Ad networks are networks for ad distribution that gather multiple advertising media, such as Google's GDN or Yahoo! Japan's YDA. By connecting various ad networks and the user data held by advertisers via a DCR, it becomes possible to acquire data on user ad exposure. This format allows for a neutral and immediate DCR offering. However, the data targeted by this DCR is limited to the app advertising domain.

Private DCR refers to DCRs built by companies or independent vendors. This type of DCR is attracting attention as a data collaboration environment using each company’s proprietary data. Compared to the other two types, it offers more flexibility and a higher degree of freedom. However, a drawback is that preparing the design and agreement for data exchange with each stakeholder can take time.

When comparing different types of DCRs for various use cases, it's important to understand these three main types.

1. DCR Walled Garden DCR

The following three can be listed as examples of Walled Garden DCRs provided by large platforms.

• Google Ads Data Hub

• Facebook Advanced Analytics

• Amazon Marketing Cloud

Let’s take a look at each of these in detail.

Google Ads Data Hub

Google, the world’s largest online advertising company, offers Google Ads Data Hub (ADH). By using ADH, users can perform analysis aligned with specific business objectives while respecting user privacy.

The greatest strength of ADH is undoubtedly its scale. According to a post on the Google Cloud Blog updated in March 2023, more than 6,000 organizations are using BigQuery each week, sharing a total of 275PB (petabytes) of data. BigQuery refers to the DCR within ADH, and a petabyte is about 1 million times the size of a gigabyte.

Additionally, integration with Google Ads and YouTube Ads is seamless, allowing users to measure the performance of Google and YouTube ads in a privacy-conscious manner.

It appears that ADH's data clean room system is made possible through partnerships with Habu and LiveRamp, which will be discussed later.

Facebook Advance Analytics

Meta, which owns one of the world’s largest social networks, Facebook, offered Facebook Advanced Analytics (FAA) until 2021. By using FAA, it was possible to integrate information such as ad exposure, video views, and banner clicks—data that could not be obtained through cookies—into Facebook and Instagram data. The analysis data was designed to ensure that individuals could not be identified, enabling high-precision analysis while respecting privacy.

However, Meta discontinued FAA in 2021. Currently, Meta seems to be focusing on strengthening PETs (Privacy Enhancing Technologies) rather than utilizing DCRs, in an effort to navigate the growing emphasis on privacy. Like Google’s ADH mentioned earlier, the online advertising industry is now adopting DCRs provided by companies such as Habu to counter the wave of privacy enhancement. Despite this, the author believes that Meta's insistence on managing its own data stems from its desire to become a true platform leader and take control, after having been heavily influenced by Google and Apple in the past.

When considering the use of DCRs, it is important to pay attention to Meta’s moves, especially since Meta does not currently provide a DCR. This is because leveraging Facebook and Instagram is an unavoidable part of online advertising.

It is essential to carefully assess whether Meta’s PET offerings are trustworthy at the same level as DCRs.

Amazon Marketing Cloud

Amazon, the world’s largest e-commerce company, offers Amazon Marketing Cloud (AMC). AMC is a cloud-based DCR built on AWS (Amazon Web Service), primarily used as a tool for measuring the effectiveness of Amazon's advertising services, Amazon Ads.

However, it is not limited to data owned by Amazon. Users can connect their own 1st party data or DMPs (Data Management Platforms) approved by Amazon. Additionally, it integrates with Sizmek, Amazon's 3rd party ad delivery and measurement service, allowing data from sources such as Google search ads and social media ads like Instagram to be incorporated.

The benefit of using AMC is the ability to leverage data that is difficult to extract through Amazon Ads alone. Previously, only data related to the advertiser's own product ads could be extracted. However, by using AMC, data from other companies’ ad products can also be utilized, enabling the discovery of insights that were previously unseen.

2. AdTech DCR

The following two are primarily cited as AdTech DCRs that mediate between advertisers and ad networks.

• LiveRamp

• AppsFlyer

Now let’s take a deeper look at each one.

LiveRamp

LiveRamp offers LiveRamp Safe Haven, a DCR specialized in common ID solutions. Traditionally, the fragmentation and siloing of customer data have been significant issues. In fact, it is rare for a single company to fully manage the entire supply chain of a product. In most cases, the supply chain is supported by multiple companies, which is why customer data silos occur in businesses that have not yet undergone digital transformation.

However, it is not feasible to completely centralize the management of customer data. The relationships between companies within a supply chain are far more complex than one might imagine.

This is where LiveRamp comes in. LiveRamp handles authenticated data for 250 million consumers worldwide, making the impact of data collaboration substantial.

AppsFlyer

AppsFlyer is a DCR specialized in mobile measurement (MMP). Today, most users access services via mobile apps rather than browsers. However, building a system from scratch to track user behavior within apps can be a significant challenge.

This is where AppsFlyer comes in. By leveraging AppsFlyer, it becomes easier to implement measures to increase user actions. Additionally, it allows for the evaluation of the effectiveness of app installations.

Furthermore, by utilizing DCRs in these efforts, it becomes possible to apply insights gained from other companies' performance evaluations in a privacy-protected manner.

3. Private DCR

In private DCRs built by companies or independent vendors, the following four are primarily cited. Recently, the number of companies constructing private DCRs has been increasing, as seen in articles from TechCrunch.

• Habu

• Snowflake

• Infosum

• AutoPrivacy DataCleanRoom

Once again, we’ll take a deeper look at each one individually.

Habu

Currently, the most trusted data clean room provider in the world might be Habu. Habu was founded by the team that developed Krux, Salesforce’s data management platform. Since then, it has grown rapidly and now offers services that can access various CDPs (Customer Data Platforms) such as AWS, Snowflake, and GCP.

This is Habu’s greatest feature. By its nature, the larger the scale of a DCR, the higher the accuracy of the data. With Habu, multiple companies' DCRs can be displayed through a single interface. Furthermore, it allows the creation of automated processes without any coding.

While data utilization is a very important task, it’s likely not the most crucial one for many companies. Therefore, the time spent on data utilization should be minimized as much as possible. In this context, Habu, which focuses on improving operational efficiency, is likely to be the most powerful option.

Snowflake

Snowflake, a company specializing in global data platforms, is one of the businesses promoting DCRs. Snowflake has long emphasized data collaboration between different companies. However, with the increasing restrictions from 3rd party cookies and the strengthening of privacy laws, Snowflake chose to address these challenges by building a DCR.

A key point is that Snowflake also supports integration with AWS and GCP, enabling collaboration across clouds and regions. Additionally, it offers a high level of architectural flexibility. By limiting the queries that can be run on data, it enhances the protection of highly sensitive data.

Infosum

Founded in 2016, Infosum is a true privacy tech company with a vision to 'connect data without sharing it worldwide.' Currently, Infosum is being utilized by companies such as the travel review site TripAdvisor, Domino's Pizza, and Sony.

Only mathematical data is stored in the DCR, with no raw data being included. Additionally, they completely prohibit data movement and have strengthened differential privacy technology, giving the impression that they are thoroughly committed to privacy protection.

This shows that Infosum places more emphasis on privacy protection than data utilization in its branding efforts.

Acompany

Currently, Acompany offers AutoPrivacy DataCleanRoom, a solution that balances privacy protection with data utilization. AutoPrivacy has three key features: 'utilization of all personal data,' 'PETs × compliance,' and 'support for inter-company data collaboration.' These features are supported by both technology and legal frameworks.

In particular, the most challenging aspect of privacy protection is likely the legal side. The current Personal Information Protection Law contains many expressions that are difficult for the general public to understand. Moreover, aside from the Personal Information Protection Law, there are several other laws that must also be taken into account.

Summary

• Data clean rooms can be broadly divided into three types: Walled Garden DCR, AdTech DCR, and Private DCR. 

• Among these, Private DCRs are particularly gaining attention as data collaboration environments that utilize companies' proprietary data.

Citations

Study Materials for DCR (Data Clean Room) Workshop (Japanese)