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 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.
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:
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.
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.