Alliant Blog

Data Coops: The Data Collaboration Party Every Brand Should Join

Written by Christopher Morse | Oct 30, 2024 1:29:49 PM

Lately, we’ve been hearing this question a lot: “Is a data coop like a clean room?”  For marketers and those on the programmatic or TV side of the house, they may not have had previous experience with a coop, so comparing the unknown to a known is a great way to explore and understand. 

 

Both data coops and clean rooms are considered collaboration platforms—and excellent ones at that. That said, while they certainly have a lot in common, there are important differences. Those differences can be summed up with a good metaphor – in this case: a party. 

 

Today’s clean rooms are much like the chic loft event space that delivers a bumpin’ event in a bring-your-own (BYO) spirit. Comparatively, data cooperatives are like an expertly hosted house party. In either case, the success of the event depends on the engagement and energy of the guests. Here’s how brands can benefit from clean rooms and data coops by approaching them as they would a well-thrown party. 

 

The Clean Room Loft Party 

The benefit of a loft space is its multipurpose flexibility. You can host a lot of great events there and customize them to your needs. To be most successful, though, you should bring in more than just your guests. In our metaphor, the guests are data – of course, you need to bring those. And this exclusive space is great for that, because you can control who joins the party. Party security measures are also in place to keep each guest’s data safe and secure. 

 

Beyond your data guests, you may also want to bring your own matching or analytics tools. This means marketers can tailor their tool selection to the unique needs of the partnership. Data clean rooms are native to the ad tech space, meaning the best ones are able to support marketers’ preferred tools. Just like a good loft space, they are there to ensure the space can accommodate your needs. 

 

Data clean rooms—like modern loft spaces—also have an aesthetic benefit in the form of their user interfaces and visualization tools. They enable companies to easily customize the views of their data based on preferences and needs. 

 

Data Coops Are a Place to Make Connections 

The clean room lof plays a vital role in the broader data landscape, as to data coops. In the world of data cooperatives (i.e., the " house party"), parties run a little differently. You show up with your data and are immediately surrounded by like-minded guests ready to exchange insights and discover new opportunities by mingling with others. You don’t always know the other guests at first—but that changes quickly. 

 

Imagine stepping into a vibrant party with music, laughter, and a mix of familiar and new faces. A strong data cooperative is similar. It's a well-organized event with a purpose, where every participant has something valuable to offer. A great data coop party includes several key elements: 

  • A Welcoming Host: Every good party has a great host, and the same is true for a data cooperative and a clean room. The host of the data coop party is the coop’s operator. Their role is crucial—they're the ones who ensure that key guests are introduced, that the environment is conducive to collaboration, and that everyone feels welcome, safe, and valued. A successful data coop operator acts as a matchmaker, bringing together brands that can benefit from each other's data. They foster new connections and ensure that all participants are well-fed with data, hydrated with insights, and secure in the knowledge that their data is protected. Given this level of responsibility, it's important to choose a data coop with an operator who has a strong track record of running successful "soirees." The quality and dedication of your host can make or break your experience in the coop
  • Supportive Staff: At any great house party, there are people who help you present yourself in the best possible way—whether it's a friend who assists you with your outfit or a makeup artist who helps you get ready. These people ensure that when you walk into the room, you’re confident, polished, and ready to impress. In the data coop, this supportive staff exists too, but their job is to help you create the best possible version of your first-party data. They work with you to enrich and refine your data, ensuring it's as valuable and actionable as possible. Just as being the most interesting person at the party leads to more connections, being the brand with the most insightful data can elevate your standing, making you the "life of the party" in terms of data collaboration 
  • Security Measures: No one wants to attend a party where they feel unsafe or at risk. Similarly, a data cooperative has a robust "security team" in place, ensuring that your data is protected and that privacy regulations are strictly adhered to. Like what clean rooms are known for today, data cooperative house parties have been keeping data safe for decades. This peace of mind allows brands to collaborate confidently, knowing that their valuable information is in safe hands. 
  • Facilitation of Collaboration: A great party often has activities, games, or spaces designed to encourage interaction among guests. In a data coop, there are various tools and platforms designed to facilitate data sharing and collaboration. These tools help brands gain the insights they need to elevate their marketing strategies, just as a well-organized activity at a party might help guests bond and have fun together.  

Within this party environment, you’ll meet interesting and diverse guests—other brands whose data, when combined with yours, can unlock new insights and opportunities. You'll learn new things about your own brand, your customers, and the market, all while developing valuable "social" connections that can lead to long-term partnerships. 

 

The More Parties, the More Fun 

There’s a time and a place for both the exclusive loft party (i.e., data clean room) and the house party (i.e., data coops), and brands should ensure they’re striking the right blend of social engagements to meet their needs.  

 

When it comes to coops, brands shouldn’t be too narrow in their social engagement planning. Just as there are many different types of house parties—each with its own vibe, crowd, and activities—there are also many different types of data cooperatives. From not-for-profit data coops to direct-to-consumer (DTC) coops and more, brands should look for data cooperatives that align with their niche and business objectives. 

 

But here's the key: Don't limit yourself to just one party. Just as a social butterfly might enjoy attending various types of gatherings, brands can amplify their success by joining more than one data coop. By participating in multiple coops, you can access a wider range of data, collaborate with a more diverse set of marketers, and gain insights that might not be available in just one coop.  

 

The Winterberry Group, which recently forecasted a compound annual growth rate of 24 percent for data collaboration platform adoption over the next three years, advises that brands achieve the "greatest benefit from the cooperative model" when they participate in two or three coops. This approach allows brands to access a diverse set of collaborators, much like a partygoer benefits from mingling with different groups at different events. 

 

Within the digital marketing landscape, data cooperatives offer a powerful way for brands to collaborate, innovate, and thrive. By thinking of data coops as house parties, brands can approach them with the right mindset—one of engagement, collaboration, and mutual benefit. Whether you're a brand looking to deepen your customer insights, expand your reach, or simply stay ahead of the competition, joining the right data coop (or two or three) could be the key to unlocking new opportunities. 

 

So, next time you're considering how to make the most of your data, think of it as an invitation to a party. Choose your host wisely, mingle with a diverse crowd, and don't be afraid to attend more than one event. After all, in the world of data coops, the more parties you join, the more fun—and success—you'll have. 

 

If this sounds interesting, explore the Alliant DataHub – a unique Member database built on billions of consumer transactions, an expansive identity map, advanced data science, and high-performance technology — enabling marketers to execute omnichannel campaigns with responsive consumers at the center.