Let’s Go Clean with Snowflake Data Clean Room

In my last blog, we discussed the need for secure data sharing to enable organizations to share resources without compromising data security. It enables the sharing of sensitive, confidential, restricted information and ensures that the data is protected from unauthorized access. This includes sharing data according to data sharing and privacy security laws (GDPR). It can also be used by companies or data providers who monetize or sell data because it provides secure and revocable access to their customers.

Need for Data Clean Rooms

Data clean rooms offer a wider range of data than existing platforms, thus providing organizations with different ways to forecast what’s happening when money is spent to target users. They help to build audiences using advanced advertising and first-party data. It allows organizations to fine-tune their ad targeting and media spend also allowing them to stay compliant, competitive, and on top of their audiences all at once opening doors for advanced data analysis.

What is a Data Clean Room

Data Clean Room is a secure & encrypted location where large companies store aggregated advertising data. First-party advertiser data is anonymized and matched up with the aggregated data from the clean room provider. This allows multiple companies, or divisions of a single company, to bring data together for joint analysis under defined guidelines and restrictions.

Data clean rooms match the first-party data provided by brands and advertisers together but prevent any user-level data from being accessed outside of the data clean room. In other words, all of the first-party and user-level data stays within the data clean room and isn’t shared with anyone else.

Data Clean Room Types

In general, the Data Clean room is divided into three categories-

a) Partner Data Clean Rooms- This is used by two partners to safely share their data where each party has full control over which data can be shared, for how long, and for what use cases. Both the partners (publisher and advertiser) put their data into the Data Clean Room and share it safely with one another.

b) Media Data Clean Rooms- Commonly used by advertisers that spend significant budgets within the walled gardens to enable them to access user-level data that is only available within a clean room environment. Companies like Google, Amazon, and Facebook run media clean rooms where each company delivers aggregated data to companies that use their advertising platforms.

c) Neutral Data Clean Rooms- This includes companies having massive datasets building their own Data Clean Rooms.

Snowflake Data Clean Room: The Buzz Starts Here

Snowflake powers Distributed Data Clean Rooms where each participant controls their own data while allowing governed, controlled analytics with another party — or even with multiple parties simultaneously.

Architecture & Key Differentiators

Snowflake Data Clean Rooms enables faster real-time data sharing in a way that keeps your customers’ personal information hidden. With Snowflake, advertising companies can build an environment capable of processing shared data sets. The below figure provides an architecture flow of Snowflake Data Clean Room

Snowflake’s data-sharing capabilities power Data Clean Rooms without copying all the data into one database, and without having to trust a single party with all the data. Below are some of the key differentiators of Snowflake Data Clean Rooms.

How to Build Your Snowflake Data Clean Room

If we keep the access control part separate, then building your own Snowflake Data Clean Room is a simple five-step process outlined below.

Industry Use Cases

Data clean rooms provide a good balance between protecting user privacy and allowing companies to reach their target audience and can be used in a variety of industry use cases. Customer profiling and identifying valued customers is one of the most well-known use cases for data clean rooms. You can use them to do a user-level analysis of customers across a range of metrics, resulting in an overall assessment of how valuable that customer is to the organization. Data clean rooms enable organizations to run sophisticated algorithms on customer data shared by a partner organization to determine how likely a customer (of the partner organization) is to engage with its own products which can be used for Customer Scoring. You can also use them for better spend visibility where Retailers can provide their CG partners with better visibility into spend, particularly when they have a loyalty program to identify consumers at the transaction level in-store.

To Summarize, the more businesses collaborate using data clean rooms, the easier it will be for marketers to monitor, attribute, and optimize their campaigns. Snowflake Data Clean Room provides a secured platform where access, availability, and usage of data are agreed upon by all parties, while data governance is enforced by Snowflake ensuring that data cannot be shared between different companies without required approvals. There are strict access policies & safeguards in place to secure data privacy and prevent data leakage, unauthorized user access, and data breaches.

Information contained in this channel are my personal views and Snowflake is in no way affiliated with the same.