The news: Amazon announced it’s dipping further into privacy ad tech by launching a clean room for Amazon Web Services in early 2023, fittingly called AWS Clean Rooms.
This isn’t Amazon’s first foray into clean rooms—Amazon Ads has a clean room called Amazon Marketing Cloud. But while Marketing Cloud is limited to melding first-party data with Amazon’s media properties, AWS Clean Rooms will allow companies to mix their anonymized, first-party data with any other willing user of Amazon Web Services.
Why this matters: Despite mostly being limited to its ecommerce storefront, Amazon’s advertising business has grown to rival that of Google and Meta. Its new clean room products show it’s coming for a larger share, and is a sign that the technology is receiving broad support.
The clean room conundrum: There’s a reason clean rooms are becoming so popular—first-party data is looking to fill the gap left by the phasing out of third party cookies, and clean rooms’ privacy-first framing seems like a safe bet to satisfy regulators cracking down on the digital ad industry.
Our take: Big Tech companies like Google and Amazon throwing their lot in with clean rooms is a sign that industry leaders are fairly confident that these tools fall in line with and won’t be disturbed by increased digital advertising regulation.
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