Worldwide, finding a consensus on nearly anything is just about impossible. Yet, when thinking about the way people interact with brands online, there are two glaring truths: consumers demand personalization and privacy in nearly equal measure.

Studies show time and again that nearly 90% of consumers want to do more to protect their online privacy, and almost as many consumers will choose one brand over another if that brand provides a personalized experience. Both of these aspects of digital advertising and commerce are now table stakes. Striking the balance between the two, however, can be difficult, particularly for upstart brands. 

On the privacy front, many brands must contend with increased regulation. Especially in a more globalized marketplace, brands need to conform to international regulations, including GDPR, CCPA, and many more, which can limit the amount and type of consumer data they can collect.

This is all leading to the eventual depreciation of third-party cookies. While it’s true that Google has walked back from its plans to eliminate cookies in Chrome, other browsers have degraded their value, and their continued use in global commerce can run afoul of privacy regulations. Moreover, even if cookie depreciation is slow, brands can find a point of differentiation by offering services that demonstrate respect for consumer privacy. Traditionally, this means turning to transparently collected first-party data.

Yet for smaller advertisers, building up stores of that valuable data can be nearly impossible; third-party cookies are a cheap and abundant way to deliver that needed personalization at scale.

Looking to the future, data clean rooms can be a conduit for advertisers to continue offering highly personalized experiences while also respecting consumer privacy through multiparty collaboration and first-party data access.

What Are Data Clean Rooms?

To understand what a data clean room is, it’s first essential to know why it rose to prominence about a decade ago. For smaller brands and advertisers, there isn’t the luxury of vast amounts of first-party data for targeting and personalization efforts. However, if advertisers could share data with other smaller entities, perhaps everyone could benefit from those insights. 

Data clean rooms provide a secure virtual environment where multiple parties can analyze and collaborate using shared, anonymized data sets without the risk of exposing or sharing the underlying data. These virtual platforms provide the necessary data protections that can enable collective user data programs while remaining above board with regulators.

The Importance of Multiparty Collaboration in Data Clean Rooms

As regulation increases and consumer sentiment moves more towards privacy, brands and advertisers will need to rely more heavily on their first-party customer data. Collection of this data must be ethical and based on a value exchange, with consumers willingly offering their information in exchange for exclusive offers, access to gated content, rewards programs, and much more.

For larger brands with massive customer bases, accessing this first-party data provides a major competitive advantage over smaller brands. If you already have a user base of hundreds of thousands of customers, turning that user data into something actionable is almost as simple as flipping a switch. Smaller brands don’t have that same luxury, which is where collaboration becomes essential.

Data clean rooms level the playing field for smaller advertisers by pooling first-party data to create a unified resource that all contributors can access.

What Advertisers Can Do With Pooled First-Party Data

By working together, small and mid-tier advertisers can enjoy the same insights as larger brands with massive stores of first-party data through data clean rooms.

The utility of this pooled data can’t be understated; bringing in anonymized consumer information from multiple brands can dramatically improve customer experience across each brand’s channels. By analyzing aggregated data, advertisers can identify patterns and trends that might not be evident from their data alone. Zooming out and broadening the pool of insights enables more precise audience targeting, which can improve the effectiveness of marketing campaigns.

Advertisers can also leverage this pooled data for performance tracking and benchmarking campaign efficacy against industry standards or competitors to help identify areas for improvement.

Data clean rooms help facilitate this collaboration, extending beyond data sharing. It can also enable advertisers to co-create targeted campaigns with partners, which can help optimize ad spend and maximize reach.

Why We Need Clean Room Standardization

Once you understand the utility of data clean rooms, it’s pretty easy to see the difference they can make industry-wide. Unfortunately, one of the biggest challenges of data clean rooms that threaten their adoption is a lack of rules and standards for contributors.

Standardization works to ensure consistency and trust across platforms. Establishing uniform protocols and frameworks for data security, privacy, and collaboration can facilitate seamless data sharing and analysis between different parties, reducing complexity, enhancing efficiency, and encouraging continued collaboration.

Additionally, locking in set security protocols guarantees that all parties adhere to the same stringent regulations, thus protecting consumer data more effectively.

In early 2023, the IAB Tech Lab set out to create a set of unified standards for data clean rooms. While this project is still ongoing, it opens up the conversation for parameters of collaboration in the future.

Data clean rooms are not without faults, but their adoption is critical to enable small and mid-sized advertisers to compete with larger companies as the availability of third-party data dwindles. Coming together, creating a standardized methodology for data clean rooms, and using that combined data effectively can be a major win for the entire industry.

The post The Crucial Role of Data Clean Rooms in the Future of Digital Advertising appeared first on AdMonsters.

Everyone in the ad tech industry seems to be talking about user privacy right now, from how to deal with new regulations to how we interact with consumers’ information online, which will change digital advertising. 

A regulation that began as part of the California Consumer Privacy Act, known as the “right to delete,” entitles consumers to ask companies to delete all of their digital data, with some exceptions. This regulation is becoming a privacy standard, necessitating expanding the way our industry addresses these requests. 

There is currently no industry standard for completing data deletion requests. To address this, IAB Tech Lab recently called for public opinions and comments to help develop an industry-wide data deletion standard. The comments will inform how IAB Tech Lab moves forward to create a new framework to simplify the process and ensure compliance with privacy laws. 

We caught up with Rowena Lam, IAB Tech Lab’s Senior Director of Privacy & Data, to see how they conducted this research, the findings, and the following steps to make a standard Data Deletion Request Framework a reality. 

Kacey Perinelli: Can you give me an overview of data deletion requests, what systems currently handle them, and how they fit into the privacy landscape? 

Rowena Lam: There isn’t a comprehensive framework to handle these requests throughout the digital ad media ecosystem. We’re seeing players in the ecosystem having to come up with very bespoke solutions because there is no framework to handle these requests. We have yet to finalize the data deletion request framework that we’ve proposed, but it creates a standardized approach to communicate deletion requests. This is particularly relevant as we’ve seen a lot of focus on consumer privacy rights globally. This is both from a consumer perspective and a regulatory standpoint. 

Some of the industry understands, but not everyone understands how much of a challenge dealing with data deletion requests truly is. With no standard framework, everybody’s doing their own thing. In most cases, when a consumer requests the deletion of their personal data, it’s not just one organization affected. Organizations utilize service providers and have CDPs, so other systems need to be touched, and in some cases, this is a manual process. A framework like this helps the industry speak the same language and ensures everybody is implementing this in the same way, removing the challenge for them to properly delete the consumer’s data and do it promptly. 

KP: Why is it important to have an industry standard for these requests? How will standardization benefit both the ad tech industry and consumers? 

RL: There are a few crucial reasons the industry needs standardization for this. The overarching reason is that it provides a practical approach and implementation for handling these deletion requests, which are pretty sensitive because we’re talking about consumers’ personal data. Standardization ensures a consistent approach across the ecosystem, specifically for the ad tech industry; it simplifies their compliance with these privacy laws. The framework is regulation agnostic, which is an added benefit. 

This will ultimately help the ad tech industry continue to foster increased trust with consumers, which is an industry priority. This provides a consumer benefit even though this isn’t a consumer-facing mechanism, per se. It ensures the industry has a more efficient and reliable process for making sure that when the consumer reaches out and wants to exercise their data deletion rights, the deletion request can be communicated appropriately throughout the ecosystem. This ensures that the personal data they want deleted is actually deleted as required by law.

KP: Without revealing any names, can you tell me how many and what types of companies contributed their insight to creating the standardized framework? 

RL: A diverse range of global businesses participated in the original drafting of the data deletion request framework. As we entered a public comment period, we received feedback from a diverse range of organizations, from startups to major industry players, spanning the entire supply chain. That active involvement from these different companies highlights the engagement in shaping this deletion framework. 

KP: How did IAB Tech Lab work to incorporate the many suggestions it received in a way that will be universally applicable?

RL: When we released this, it started with a 30-day public comment period, where we looked for contributions from the perspective of organizations of all sizes. The feedback that we received was mostly positive and sat in a couple of key thematic areas. It touched on subjects like data elements, communication, protocols, signatures, key encryption, acknowledgment of requests, and identifiers. We’re currently working on incorporating these comments to ensure that the framework is universally applicable and that none of these specific vital thematic areas are overly complicated. This guarantees that smaller players, for example, can also utilize the framework. 

KP: You noted four thematic areas that IAB Tech Lab is focusing on as it proceeds to create this standardized framework. Going in, did you know if these would be the key areas to focus on?

RL: These themes were already in our minds during the drafting process, and some of the areas are specific to the Object Parameters and API fields: signature keys and encryption, validation, acknowledgment of the requests, and identifiers. The feedback from the public comment period is informing the details of how they could work. That’s helping expedite the finalization of this standard and help us ensure that when we finalize the framework, it addresses the use cases we’re looking to address. 

KP: What is the next step to creating the standardization and ensuring it works universally? 

RL: The next step for us is to incorporate these specific pieces of feedback in those four thematic areas that I mentioned directly back into the specification. Then, working with the framework’s “working group,” which includes industry representatives, we will reach a final specification that the entire industry can adopt.

We will release a final version once we incorporate all this feedback into the specification. I anticipate that folks will start to adopt, which they can do as soon as we release that final version.

It is very, very exciting. There’s been plenty of engagement. This is a huge positive because it indicates real alignment, at least around the topic. There might be disagreements about the details and specifics of how we view some of it, but there’s a general alignment on the framework itself.

The post What Is Iab Tech Lab’s Data Deletion Request Framework & How Will It Simplify Data Deletion? appeared first on AdMonsters.

Due to its infancy, streamers need help to quantify these diverse audiences’ value and integrate them into the broader media ecosystem. The current state of measurement struggles to fully capture the significance of independent streamers, creating a need to establish common standards to support the “indie” ad marketplace.

At the CIMM Summit, industry experts Stuart Schwartzapfel, EVP, Media Partnerships at iSpot.TV;  Katya Shkolnik, Head of Partnerships at Future Today; Timothy Ware, Senior Vice President, Programmatic Sales and Partnerships, at Crackle; and Evan Bregman, General Manager, Streaming at Tastemade, discussed the need to address these challenges and the uphill battle publishers will face addressing consumer targeting in the independent streaming wars.

Will organizations like the IAB, the government, or entities like The Trade Desk establish industry standards to help mitigate the complexities? Whatever the solution, independent streamers need help connecting with their hyper-engaged audiences. 

Essence of Hyper-Engaged Audiences

In this age, viewers demand top-quality content that keeps them engaged, entertained, and glued to their screens. Various streaming platforms like YouTube have succeeded at this, providing better content that captures their audience’s attention. Advertisers can leverage such platforms to reach contextually relevant audiences. However, the downside is that the ecosystem needs more infrastructure to connect advertisers with these hyper-engaged audiences, and building this infrastructure will take time.

“…But right now, the ecosystem is not necessarily set up in such a way that you could find them,” said one of the Summit panelists.

The good news is that the potential for success is vast since advertisers are increasingly encouraged to invest in streaming alongside traditional linear TV. 

On the Birth of the Independent Streaming Alliance 

At the heart of the streaming revolution is the Independent Streaming Alliance, a collective of independent streamers determined to challenge the dominance of prominent players. The ISA’s genesis was rooted in shared concerns, fueling a collaborative effort to amplify the impact of independent streamers. Through strategic partnerships and joint initiatives, the ISA represents the collective strength of independent streaming platforms.

Bregman said that independent streamers are actively forging partnerships to bolster their presence in the market. Collaborations between various platforms, data providers, and advertisers are pivotal in building an efficient ecosystem. These partnerships enhance content offerings and facilitate knowledge exchange, helping participants stay ahead of industry trends and challenges.

Collaborations with measurement companies like ISPOT.TV enabled these streamers to gather invaluable data, including reach, impressions, and frequency. Their collaborative endeavors yielded a profound insight: independent streamers collectively reach approximately 15% of US TV households, indicating a substantial and engaged audience base.

Challenges in Measurement and Standardization

Despite their impressive reach, independent streamers encounter challenges in measurement and standardization. The absence of common standards hampers their seamless integration. Addressing issues related to ad pods, impressions, and metrics necessitates concerted efforts to establish foundational standards for measurement.

“So if we kind of put on the buyer hat, it’s vital to note that diversifying offerings of different publishers and supply are important to the brand,” said one of the panelists.

They pointed out the dominance of a handful of agencies, with a staggering 80 to 90% of revenue allocated among them. However, their anticipation rested on the paradigm shift expected among smaller, local brands. 

Independent streamers are pioneering innovative approaches, such as contextual relevance, to enhance the value proposition for advertisers. By offering transparent and detailed insights into their content metadata, these streamers provide advertisers with a clearer understanding of their offerings. Transparency ensures advertisers can make well-informed decisions when investing in independent streaming platforms.

Schwartzapfel asserts that achieving measurement standardization involves standardizing big data and set-top box data. Standardization ensures accurate targeting and personalization of ads and enhances ad effectiveness and monetization potential.

Ad Pods, Impressions, and the Future of Indie Streaming

While ad pods and impressions remain integral components of the discussion, the broader focus lies in unlocking the potential of independent streaming. Independent streamers can redefine the streaming landscape by emphasizing the value of partnerships, contextual relevance, and transparent measurement practices, paving the way for a diverse and thriving ecosystem.

“We’ve got advertisers who traditionally buy in linear. They’re being told by the likes of Paramount and others who have spoken today very eloquently, hey, you can buy streaming as well,” added one of the panelists.

Traditional linear TV buyers are adapting to purchasing streaming inventory, and digital buyers are venturing into the CTV space. However, challenges persist in the measurement and buying process, including inconsistent measurement metrics, attribution difficulties, and the need for inventory transparency. These challenges hinder effective decision-making and necessitate collaborative solutions.

Importance of Diversification in Offerings and Looking Ahead

Diversifying offerings is instrumental in expanding reach and engaging new audiences, strengthening the position of independent streamers in the industry. Diversification increases reach, captures niche markets, enhances revenue streams through various content formats like podcasts and on-demand videos, boosts user engagement, and ensures a competitive edge. Diversification is vital; different publishers and supply options are essential for brand success.

Independent streaming must rely on collaboration, innovation, and a collective commitment to overcoming challenges. As they continue to forge ahead, their collaborative initiatives and strategic partnerships drive the indie streaming industry toward a vibrant and prosperous future.

YouTube channels present an opportunity for advertisers to reach contextually relevant audiences. However, the lack of infrastructure to find these audiences and the absence of standardization in measurement pose setbacks. Forming partnerships and alliances among independent streamers is a positive stride toward measuring audience size, diversifying offerings, and bolstering a robust indie ad marketplace.

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