March 16, 2023 2 min read

Digital marketers are constantly on the hunt for ways to reduce their customer acquisition cost (CAC) by more effectively reaching their target audiences. One approach gaining traction is the use of data clean rooms. Miko is on the forefront of this trend, using data clean rooms to reduce costs and optimize our marketing efforts.

What is a data clean room?

A data clean room is a secure and protected environment where personally identifiable information (PII) is anonymized, processed and stored. Once the data are safe inside the clean room, there’s no way for them to be linked back to an individual person. This allows us to work with the data while remaining totally compliant with privacy standards.

We use the data inside our clean rooms to measure the effectiveness of advertising campaigns without viewing users’ personal information. The room identifies data points by using hashed or encrypted markers instead of PII.

Our clean rooms get 1st party impression data from Amazon, Facebook and Google. As part of our data organization process, we eliminate customers who have already been targeted on other channels and distribute our ad spend more efficiently across different networks. Our analysis process helps to establish the incrementality of each channel with great precision.

What’s the final result?

By using data clean rooms, we improve the accuracy and effectiveness of our marketing campaigns, leading to a lower CAC, an increase in ROI and an improved bottom line. Data clean rooms help us to eliminate wasted ad spend and improve targeting effectiveness exponentially.

At Miko, we see data clean rooms as an essential part of any CAC reduction strategy that operates at scale. By having a secure, privacy-compliant environment in which to work with data, we can optimize our efforts while protecting our customers’ privacy. As businesses scale up and privacy regulations continue to evolve, data clean rooms will become an integral part of any digital marketing toolset.