Consumers are demanding more transparency and control over their data, and marketers are juggling increasingly strict privacy regulations while still trying to deliver meaningful, effective campaigns. That’s where data clean rooms and privacy-first technologies come in, offering smarter ways to work with data that build trust and unlock valuable insights.
What are data clean rooms?
Data clean rooms are secure environments that allow multiple parties to collaborate on data without actually sharing or transferring control of it. As Lauren Wetzel, CEO of InfoSum, explains, the concept was first popularised by Google through its Ads Data Hub.
“Data clean rooms began as a concept with the idea of connecting data in a secure way,” she says. They enable organisations to generate insights, activate campaigns, and measure results, without compromising data control or consumer privacy.
Wetzel stresses how important this is for brands navigating today’s regulatory environment. “Privacy-enhancing technologies are critical for brands to stay compliant with regulations and maintain consumer trust,” she explains. “It’s a way to understand your customers without sacrificing their privacy.”
Traditionally, data collaboration meant physically sharing files or sending data to a third party for matching, processes that were not only time-consuming but also introduced significant privacy and security risks.
“Every time you wanted to match data, you had to send it outside of your enterprise,” Wetzel recalls from her time in the telecom industry. “Data clean rooms completely change that narrative.”
In Australia, clean rooms are gaining traction, particularly in sectors like retail and loyalty. Woolworths, through its Cartology division, and Flybuys, via Unpacked by Flybuys, are leading the way by providing advertisers with access to anonymised consumer insights while maintaining high privacy standards.
“InfoSum allows you, as the data owner, to collaborate without actually sharing that data,” Wetzel adds. “This decentralised model supports secure, multi-party collaboration.”
By connecting anonymised datasets, brands can gain a more holistic understanding of their customers—without ever handing over sensitive information.
“This kind of collaboration is especially valuable for CPG brands, which often struggle to form direct relationships with consumers,” Wetzel says. “They typically interact with people only at the point of transaction, so clean rooms offer a rare opportunity to enrich that understanding.”
The risks of “Privacy Washing”
With regulators sharpening their focus globally, from Australia’s incoming Privacy Act reforms to California’s CPRA, brands can no longer afford vague or unsubstantiated claims about data protection. Third-party certification is becoming essential, with frameworks from the IAB Tech Lab and privacy-tech providers like Ketch emerging as new standards for accountability.
As more privacy technologies hit the market, there’s growing concern over “privacy washing”, where companies market solutions as privacy-safe without adequate protections in place. Wetzel urges brands to critically evaluate the technologies they adopt. “It’s vital to ensure they are genuinely protecting consumer data.”
Key questions include whether the technology is decentralised and whether it can prevent the re-identification of individuals.
This need for scrutiny reflects a broader challenge in the industry. “The industry has become careless, often running campaigns without taking appropriate data protection measures,” Wetzel warns. “When using phrases like ‘privacy-safe,’ companies must back it up with real solutions.” If a brand can’t confidently answer questions about data control and security, its credibility is at risk.
The shift to First-Party Data
As the marketing world moves away from third-party cookies, the pressure is on for brands to build robust first-party data strategies. This shift places transparency, trust, and consent at the heart of modern marketing, and significantly raises the stakes for consumer data protection.
In Australia, while many marketers recognise the value of first-party data, execution still lags behind. According to the IAB Australia white paper, too few brands have strong CRM systems or clear, permission-based strategies in place, highlighting the urgent need for long-term investment in data maturity.
“First-party data not only offers more accuracy in targeting but requires brands to handle this data with care,” says Wetzel. She adds that data governance is no longer just a compliance issue, it’s a “CEO-level agenda,” because the cost of losing consumer trust can be catastrophic for a business.
“Investing in first-party data solutions is increasingly vital,” she says. “But with that comes greater responsibility. As the industry moves beyond its reliance on cookies, brands must re-architect their data strategies to protect consumer privacy by default.”
Emerging trends shaping the future
The role of data clean rooms is expanding well beyond measurement and targeting. In 2024, they’re increasingly being used for predictive analytics and even training AI models, enabling smarter audience insights while keeping privacy intact.
There’s also a growing shift toward interoperability. Marketers want clean rooms that work across platforms and identity solutions, not just within walled gardens like Google or Meta. This evolution signals a future where clean rooms are central to marketing strategy, not just a compliance tool.
In markets like Australia, the combination of retail data and connected TV (CTV) insights is opening up powerful opportunities for brands. As Wetzel notes, “Combining insights from loyalty programmes, transaction data, and media consumption enables brands to develop a comprehensive understanding of consumer behaviour.”
One of the most exciting developments locally is the collision of retail media and BVOD (broadcast video on demand). Advertisers are now connecting Woolworths’ loyalty data with CTV campaigns to understand which media exposures drive in-store purchases, bringing a new level of sophistication to attribution and planning.
Wetzel also highlights how the purchase journey itself is evolving. “Understanding how consumers progress from awareness to conversion has never been more crucial. The ability to link data points enables brands to create relevant messaging, making the funnel appear less linear and more dynamic.”
She adds: “The decentralised nature of clean rooms enables brands to keep control of their data, fostering trust and transparency.”