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Data Clean Rooms Glossary of Terms
1st Party Data
Data collected directly by an organization from its customers, visitors, or users. This includes data from actions, behaviors, or interactions on a company’s own websites, apps, or through CRM systems. This type of data is valuable for its accuracy, relevance, and uniqueness. Example use case: Credit Card Company A uses their own data collected from existing cardholders to upsell them on new services and rewards.
2nd Party Data
Data that is shared directly between organizations with a mutual agreement. It is essentially first-party data that one entity collects and then shares directly with another entity, typically in a partnership arrangement. This type of data is beneficial because it is generally more reliable and relevant than third-party data while allowing both parties to benefit from the enhanced insights without broader public distribution. Example use case: Credit Card Company A can buy Retailer data about Credit Card Company B to prospect new customers.
3rd Party Data
Data that is collected by an entity that does not have a direct relationship with the user the data is collected about. This data is often purchased from external sources that aggregate data from various other platforms and providers, and is used for broad targeting purposes in marketing. Example use case: Credit Card Company A buys data from a 3rd party broker like Oracle about Credit Card Company B's consumers to prospect new customers.
CDP (Customer Data Platform)
A system that consolidates and organizes customer data across multiple touchpoints to create a single, comprehensive customer profile for use in marketing and analytics.
Data Clean Room
A secure collaboration environment which allows two or more participants to leverage data assets for specific, mutually agreed upon uses, while guaranteeing enforcement of strict data access limitations. Common use case: Takes two or more sets of data with specific user info / PII and overlays them with each other while removing the PII. A client could use a Clean Room to bridge the gap between CDPs that have PII (but only the marketer's first party data) and allow that data to be utilized with other datasets for a variety of use cases while preserving user privacy.
Data Governance
The overall management of the availability, usability, integrity, and security of the data employed in an enterprise, a crucial part of managing data clean rooms.
Data Lake
A storage repository that holds a vast amount of raw data in its native format until it is needed. When used in conjunction with data clean rooms, data lakes can be valuable for deep analytics.
Data Onboarding
The process of transferring offline data to an online environment securely, which is often analyzed within a data clean room.
Data Silo
An isolated point in a system where data is kept and separate from other parts of the architecture. Integrating these silos in a secure manner is a function of data clean rooms.
Deterministic Data
Information that is based on exact and direct matches between user identifiers. This type of data is obtained through explicit and verifiable connections, ensuring high accuracy in identifying and targeting specific individuals or user segments.
DMP (Data Management Platform)
A tool used to collect and manage large sets of data, primarily for digital marketing purposes, helping organizations to segment and target audiences more effectively. Common use case: Traditionally used to co-mingle pools of anonymized audiences and push to platforms for targeting. A client could use a DMP to overlay their homepage visitors with a 3rd party data set of high household income people and boom, they've got an interesting audience segment to target!
Identity Resolution
The process of connecting multiple identifiers across devices and platforms to a single consumer profile, enhancing the ability to collaborate on data analysis in a privacy-compliant manner.
Incrementality
The measure of the lift that can be directly attributed to marketing efforts, distinguishing the impact of a specific action from other variables.
Lookalike Audience
A segment of users identified to resemble another group of users in certain behaviors or traits, often used in marketing to extend reach beyond existing customers.
Match Key
A unique identifier used to link different datasets or records in data integration tasks, crucial for ensuring accurate matching in environments like data clean rooms.
Match Rates
In the context of data clean rooms, match rates refer to the percentage of records from different data sets that can be accurately matched or linked without revealing underlying data.
MMM (Marketing Mix Modeling)
A statistical analysis technique used to estimate the impact of various marketing tactics on sales and then forecast the impact of future sets of tactics.
PII (Personally Identifiable Information)
Information that can be used on its own or with other information to identify, contact, or locate a single person, or to identify an individual in context.
Privacy-Preserving Data Analysis
Techniques that allow data to be analyzed without compromising the privacy of the individuals to whom the data belongs. These techniques are often used within data clean rooms.
Probabilistic Data
Information derived from statistical algorithms and models that predict the likelihood of certain characteristics or behaviors of users based on aggregated and anonymized data. Unlike deterministic data, which is based on exact matches and direct user identifiers (e.g., email addresses, login information), probabilistic data relies on patterns and correlations from large datasets to infer user profiles and behaviors.
Regression
A statistical method used to determine the relationships among variables, often employed to predict the outcome of a variable based on the value of another.
Secure Data Sharing
Methods or technologies that enable the safe exchange of data between different parties, ensuring that data is not exposed to unauthorized entities.
SKU (Stock Keeping Unit)
A unique code that identifies each distinct product and service that can be purchased in business, used to track inventory on hand, in orders, or in sales.