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April 5, 2023
Nater Youngchild
Nater Youngchild
Trends & Insights

What Value Can Clean Rooms Bring Amazon Sellers in 2023?

Table of Contents

The term “clean rooms” has been circulating in seller communities for quite some time. But it’s still a little unclear what clean rooms are and what they can do for Amazon sellers, digital marketers, or even customers.

The short answer?

It’s a way to gather game-changing customer (and potential customer) insights and safeguard your Amazon business. 

It’s 2023, and sellers who aren’t leveraging clean rooms — like Amazon Marketing Cloud (AMC) — are simply missing out.

Let’s explore the ins and outs of clean rooms and how they can help you grow your ecommerce business.

What Are Clean Rooms?

It turns out, clean rooms have much less to do with hygiene than they do security. They’re secure, privacy-safe, cloud-based solutions that enable advertisers to store, query, and analyze reporting to optimize performance.

The best part: Clean rooms strengthen the customer-seller relationship.

Privacy has become an increasingly prominent concern for customers over the last few years — and rightfully so. People want to ensure their information isn’t being sold to third parties without their permission. And as more data breaches occur, trust between customers and marketers wanes.

That’s why clean rooms are so critical for today’s sellers.

To gain and maintain customer trust, advertisers and sellers need to work within the confines of certain privacy requirements. Data clean rooms allow marketers to harness the power of first-party and collaborative data to generate new customer insights, while adhering to privacy regulations.

Amazon Marketing Cloud (AMC), for example, benefits both customers and sellers: sellers get invaluable insights and customers can rest assured knowing their data is kept completely private. 

In a clean room, sellers and customers can share data and control exactly how and where other parties can use that data. All parties agree on the access, availability, and usage of data, and the data clean room provider monitors and enforces these agreements.

And with AMC, customers are only shown relevant ads, rather than being bombarded with spam, which boosts the customer experience. Amazon sellers, brands, and marketers, on the other hand, can use clean room data to grow their business and stay compliant with privacy laws.

RELATED: Navigating the Amazon Customer Journey From Search to Purchase

Harnessing the Power of Clean Room Insights

Amazon Marketing Cloud helps advertisers and Amazon Sellers uncover insights into their biggest advertising questions to optimize performance and maximize profits — even when operating in a cookieless world.

Here’s how it works:

AMC allows marketers to combine their own data with Amazon’s first-party data to create combined data sets that offer the most eye-opening insights about the entire customer journey.

Most importantly, clean rooms demonstrate to customers that the brands they trust are only using shared non-personal information — rather than personally identifiable information — to improve their shopping experience. AMC’s clean room data encryption allows the company to analyze, match, and build models based on anonymized data, which can help build customer trust.

RELATED: How To Understand and Reach a Targeted Audience in a Cookieless Ecommerce World

Clean Rooms: Secure, Insightful, Adaptable

Clean rooms aren’t one size fits all. Businesses of any size can determine exactly how they want to formulate insights to fit their business needs. With clean rooms, they can stay nimble and make informed, data-driven decisions throughout the whole customer life cycle.

These secure data rooms also don’t rely on third-party cookies, so sellers can reach and segment audiences. For Amazon sellers, the end of third-party cookies has already begun to open doors for more responsible and innovative marketing strategies, new targeting, and initiatives for identifying new business opportunities.

Clean rooms allow advertisers to dive deeply into user path conversion analyses within the secure AMC environment. They can then observe how consumers move down the conversion funnel and see the synergy across different ad types, including sponsored products, sponsored display ads, and demand-side platform ads, among others.

In short, clean rooms offer sellers a mix of the most important data sets and insights that are protected for the customer and actionable for the brand. Ultimately, this combination of privacy and relevance creates a much stronger value exchange with customers because the brand can be more timely without being intrusive. 

How Clean Rooms Work Hard for Amazon Sellers

The benefit of AMC clean rooms for publishers and advertisers is clear: they can collaborate on their first-party data without actually sharing it.

Publishers can safely use their complete data sets for better analysis and matching, while advertisers get highly targeted first-party data for privacy-focused audience activation at scale.

So what’s in it for Amazon sellers, specifically?

Clean rooms help sellers:

  • Scale their target audiences.
  • Eliminate the guesswork in targeting.
  • Gain direct access to 100% of impressions.
  • Derive high-quality, actionable outcomes from reliable, first-party data.
  • Safely collaborate with other parties.
  • Eliminate manual data analysis, making processes and optimization efforts more efficient.

The Future of Clean Rooms in Ecommerce

For sellers using AMC clean rooms, the future looks bright. Brands, marketers, and sellers can expect to see clean rooms improving ecommerce by:

  • Building trust between consumers and brands.
  • Fine-tuning target audience determination.
  • Ensuring that ads go to the right people at the right times.
RELATED: The Most Important Amazon Metrics You Need to Turn Data Into Profit

With these ecommerce-boosting benefits, AMC clean rooms have the potential to revolutionize the customer, publisher, and advertiser experiences. In many ways, they already have: AMC’s customer base has quadrupled from 2021 to 2022, and Amazon is continually investing in better advertising opportunities for sellers.

Clean rooms give Amazon sellers and marketers a more detailed image of the customer journey. And these efforts will continue to empower brands to utilize AMC’s functionality to guide their business decisions and achieve their marketing goals. 

Better data utilization requires better data management. 

Carbon6’s latest acquisition, D8aDriven, combines the power of aggregate data with top-tier growth management in an easy-to-use, comprehensive platform. D8aDriven users receive weekly executive summaries of their most important data points and immediate action items to help them increase their profitability and stay ahead of the competition. Get on the waitlist today

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Nater Youngchild

Nater Youngchild is founder and CEO of D8aDriven.

Nater Youngchild is founder and CEO of D8aDriven, a growth management software that delivers actionable insights and weekly executive summaries, powered by data. D8aDriven is part of the Carbon6 ecosystem for ecommerce.

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