Maximizing ROI in retail media and CTV: The critical role of data clean rooms

The decline of third-party cookies has forced the digital marketing industry to rethink its reliance on external data sources, leading to a renewed focus on the value of first-party data. In response, retail media and connected TV (CTV) have emerged as two of the fastest-growing advertising channels, both powered by rich, first-party data insights.

Retail media is expanding rapidly, while streaming (CTV) is becoming increasingly relevant for end consumers in their everyday lives. According to the IAB, growth of 15.6% for retail media and 13.8% for CTV is forecast for 2025. Both channels drive significant advertising investments because they enable data-driven, targeted advertising.

Together, retail media and CTV give brands an incredible opportunity to drive personalized advertising and enhance return on investment (ROI). However, realizing the full potential of these channels requires more than just access to first-party data — it demands a cohesive data strategy and the right tools to harness it.

Challenges for advertisers

Despite the rapid growth of retail media and CTV, many advertisers struggle to optimize ROI on these channels. The biggest challenges stem from fragmented data and a lack of connectivity between different adtech and martech solutions, making cross-channel campaign execution more difficult.

Data silos pose a major obstacle to effective retail media and CTV strategies. Customer data stored in martech stacks (e.g., CRM systems, customer data platforms) is often disconnected from adtech systems, which are responsible for targeting and measurement. This fragmentation prevents advertisers from getting a unified view of their customers across different channels, making it difficult to optimize campaigns and accurately assess their impact.

Another challenge is the maturity level of retail media and CTV, as neither has yet established standardized KPIs across the industry.

Additionally, data privacy regulations such as GDPR impose strict rules on data exchange and usage. Advertisers must carefully leverage privacy-compliant technologies to extract meaningful audience insights and ensure measurable performance uplift.

First-party data: the foundation for sustainable ROI in retail and CTV

Given these challenges, it is increasingly clear that first-party data is the key to overcoming many of these obstacles. Data collected directly from customers not only enables precise targeting but also provides a privacy-compliant way to optimize advertising campaigns across multiple channels.

However, unlocking the full potential of first-party data requires a cohesive data strategy to maximize its value.

Overcoming fragmentation with an integrated data strategy

To harness the full power of first-party data, businesses must implement a unified and integrated data strategy rather than relying on isolated data points.

A unified strategy consolidates data from multiple sources — such as CRM systems, retail media networks, and CTV insights — into a centralized repository to ensure consistency and accuracy.

An integrated strategy, on the other hand, focuses on connecting these data points across various marketing and adtech systems to enable seamless cross-channel activation.

In this context, data clean rooms provide a valuable solution by allowing companies to securely combine and analyze data without compromising customer privacy. They create a privacy-compliant environment where businesses can aggregate data and gain shared insights while remaining fully compliant with regulations like GDPR.

Modern data management platforms, including data clean rooms, ensure that data remains centrally organized while being securely used across multiple systems. These technologies not only support privacy-first principles but also guarantee that valuable data insights can be generated and applied in a compliant and effective way.

Future-proofing with first-party data

By leveraging first-party data within privacy-first technologies, companies can gain valuable insights while safeguarding consumer privacy. This approach strengthens customer trust and ensures compliance with evolving regulatory requirements.

One thing is clear: Brands that adopt a privacy-compliant data strategy early will gain a competitive advantage in the market.

Contact us to learn how Decentriq can enable you to get maximum ROI these channels with our secure data clean rooms.