eters lose money if they don’t get the best out of their data clean rooms

A new report shows that despite widespread use of Data Clean Room (DCR), only a third of marketers are fully leveraging DCRs’ capabilities.

According to the IAB’s survey “State of Data 2023”, nearly half (47%) of marketers use clean rooms to protect their data, comply with regulatory compliance, and activate their audience. However, 52% say that they face challenges in proving ROI and leveraging results.

Deeper: Companies are using clean rooms and first-party information as cookies to vanish

This is why only 27% of DCRs are being used for attribution, while even fewer are using them to measure ROI/ROAS, media mix modeling, or propensity modeling.

It was also revealed that smaller businesses and agencies are not able to use clean rooms due to the high costs and lack of expertise.

Nearly half (49%) have six employees or more dedicated to technology. 30% have at most 11 people working on it. Nearly two-thirds (62%) of respondents spent at least $200,000 in clean rooms in 2022. 23% spent more. These costs will rise by 29% over the next year.

Why we care. Clean rooms are important and will continue to grow in importance as third-party cookies disappear. Marketers must make the most of clean rooms due to their complexity and cost. All data providers, even those in walled gardens will need to make their data interoperable for measurement purposes and ROI.

Smaller agencies and companies can also add great value to the marketing ecosystem. They are more agile than larger companies and can create and innovate quicker than larger ones. It is impossible to afford to keep them from using clean rooms. This will reduce costs for everyone.

The post Marketers are losing money originally appeared on MarTech.