Why data clean rooms are essential for high-margin commerce media

Launching and expanding a media network is a challenging task. These platforms use data in fundamentally different ways than the core business, requiring new strategic partnerships and integration with media buying and selling technologies. Additionally, no CEO will pursue a new business line if it is perceived as a risk to the business, which requires clear answers to privacy, security and data governance questions.

Protecting data from trusted consumer relationships is paramount to the media network’s offering, as is prioritizing addressability, measurability and alignment with business results. Together, this requires a different kind of data store that is inherently secure and performance-enhancing, making data cleanrooms the ideal tool to help new business media networks reach their full potential.

Test and learn, then scale and innovate

Media is not the core competency of companies that implement commercial media networks. A phased and iterative approach is required to build the medial muscle until it is strong enough to drive real growth.

Start by testing with a small number of hand-picked partners and focus on finding one or two new, high-value insights. By using a collaborative clean space, both parties can be confident that access to data will be limited to only what is necessary for the agreed use case.

Next, take action on those insights, even if only in one channel, and measure the results. The results of these tests will form the basis for the initial offering that will be launched on the market. Get ready to replicate and automate these use cases with the next wave of partners and across additional channels.

Once the first iteration is in the market, feedback from brand and inventory partners will be critical to innovation and scaling. Double down on automation and standardization investments to increase the volume and speed of collaboration.

For example, invest in offering self-service features and standardized reports that simplify how the company’s most strategic advertisers and long-term brands can work with the media network. The partner ecosystem can be further enriched by implementing data monetization strategies that appeal to both endemic and non-endemic advertisers.

Cleanrooms add value through ongoing partnerships

Part of what is fueling the growth of business media is their unique ability to foster win-win partnerships where business results drive consumer benefits. Collaborations using clean spaces create an even more virtuous cycle.

Robust cleanroom analytics can uncover new insights into consumer needs or buying patterns to deliver more customized reports and personalized offers. It can also support a media network’s ability to activate data across social platforms and media channels so brands can reach customers wherever they spend time. Additionally, the cleanspace’s ability to securely access more conversion and transaction data enables closed-loop measurement, verifying how well those messages or offers are performing, so businesses can confidently scale program investments.

This cycle of insights, activation and measurement becomes the backbone of partnerships that drive growth for businesses and their brand partners while delivering a better consumer experience that builds brand loyalty over time. As a result, business media is no longer just an additional business opportunity, but a growth engine for the core business.

Cultivating a scalable and mature commercial media offering takes time and resources. It requires a complex interplay of new technical, legal and business concepts that businesses must learn to navigate in order to take advantage of the opportunities.

Overcoming such obstacles starts with the right talent and excellent cross-functional collaboration between technical, legal and business teams. To establish a clear path to growth, businesses should focus on the basic building blocks and core capabilities of combining data and analytics with media activation and measurement. Partners that specialize in space can provide additional catalysts.

For example, one of the biggest hurdles to launching a media network – or any data collaboration partnership – is the long period of negotiation, contracts and legislation, further compounded by the need for data science resources. The right cleanroom partner can provide the technology and expertise to not only accelerate the building of these media network technology suites, but also much needed standardization legal and code templates aligned with the highest value use cases in the business.

Once established, commercial media networks can provide today’s most talked about flywheel. Success breeds success, and as the new muscle is strengthened, when supported by clean spaces, it will take the business to new heights.

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