Data and intelligence form the crux of digital advertising success. Without the right data about customers, products and markets, brands are lost. The good news is that with the ever-evolving technologies and the rise of Big Data, marketers, if equipped with the right tools have access to a sea of valuable data, which can give a sneak peek into target audience, their behaviour, demographics and even gain valuable information about competition. Marketers need to proactively make use of all available intelligence to determine how to effectively and efficiently serve potential and existing customers. The three most common intelligence data to optimize ad campaigns are first, second, and third party data. All are important.
First Party Data: It reflects you
First party is essentially you. This data is what you yourself have collected about the audience. First party data in the digital ad world refers to data that you collect through cookie-based data, and it can include information gathered from website analytics platforms, CRM systems, and business analysis tools.
Such kind of data becomes a valuable resource for display and campaign design since it provides information on existing users which is otherwise hard to get hold of. You can get insights into consumers’ purchase behaviour, product interest, etc. By leveraging this data, you can implement retargeting and personalized marketing to increase conversions. If you visit a website and get prompts about buying products that are of interest to you, it is all thanks to first party data which communicates to the marketer, your interest area and past purchase history. Based on this data, you get personalized recommendations. This dynamic and personalized system increases the chances for conversion.
First party data is always the most useful and valuable, but eventually you’re likely to find yourself in a position where you want to reach an audience that you don’t have first-hand information about. This is where second party and third party data become useful.
Second Party Data: the next great thing
Second party data is essentially somebody else’s first party data. Second party data isn’t usually commercially available but marketers generally collaborate with trusted partners who are willing to share their customer data and vice versa. For example, a high end watch brand may partner with an airline blog, where the target customers may overlap. Second party also plays a large role in audience extension and audience targeting. The possibilities are endless, and the key is to seek out, form, and maintain mutually beneficial partnerships.
Third Party Data: Important but not unique
Third-party data is data that a marketer acquires from a multitude of outside sources. You may have come across several agencies that sell data or where data is commoditized. These companies are also known as DMPs or Data Aggregators. Third-party data often refers to information gathered from internet interactions. They usually create consumer segments for targeting ads and marketing messages.
Data-management firms collect and aggregate information from sites across the web that show interests in particular topics based on behavior, and that third-party data is used to categorize people into different groups such as travelers or luxury buyers.
Publishers, by using third party data can get insights into valuable consumer information. But keep in that this data is available for purchase by competitors also. By combining it with first and second party data, you can really understand your audience and give them tailored communications for better conversions.