First, Second And Third Party Data How To Choose - image

First, Second And Third Party Data- How To Choose?

Team Onstro on April 12, 2024 in Campaign Management

Why is it crucial to know about different types of data? Well, data plays a huge role in making marketing a success. But which types of data will help you the most? That depends on where you are in your marketing journey and what you aim to achieve.

Around 75% of marketers globally rely on data gathered from third-party cookies to inform their campaigns and advertising endeavors, nurturing brand recognition and sales. Find out the intricacies of first, second, and third-party data, and learn how to use them for maximum campaign efficacy.

What is First-Party Data?

First-party data is the one that a company collects directly from its sources through various channels like the company’s website, app, CRM, social media, and surveys. This data, in fact, provides first-hand insights that come via contact with customers.

It includes demographic details, website visits, purchase history, interests, and time spent on the website. First-party data is obtained compliant, meaning that customers have given the needed consent, and therefore, regulations like GDPR are fulfilled.

Using first-party data in business allows companies to offer personalized experiences to users, run targeted ads, and efficiently partition and monetize the data via platforms such as a DMP.

What is Second-Party Data?

Imagine you are at the neighbor’s party, and your neighbor shares the guest list with you. Second-party data is borrowing nutrients from a trusted data supplier. You can acquire someone else’s first-party data via a partnership or a collaboration. That is very important because it offers data from sources with an audience similar to yours.

This data will be obtained through partnership and data-sharing agreements, which can be anything from demographic information and purchase history to other meaningful insights. Marketers can also mine second-party data to target a particular group of consumers, provided that they share common features such as interests or behavior, thus facilitating the process of audience segmentation and database enrichment.

What is Third-Party Data?

Third-party data is similar to an event where every vendor has their stall, and people come to attend the event. It is data collected from other platforms and organizations, not directly from your interactivities. This information is usually combined and generated from multiple sources, and you can find things like age, interests, or behaviors here. It is broad and diversified. However, it might not be exactly what you want as a person interacting online.

This helps their campaigns to become a lot more effective due to the highly targeted delivery of the ads to the right audience segments. Notably, third-party data now significantly enriches CRM systems and codifies Business Intelligence as it supplies missing data in customer profiles (which improves digital marketing effects).

1st Party vs. 2nd Party vs. Third Party – What’s the Difference?

These types of data differ in their source and ownership, which is a major difference between them.

DATA TYPE

DESCRIPTION

ACCURACY

PRIVACY

MANAGEMENT

 

FIRST PARTY

 

Information is gathered directly from your customers and audience interactions on your own platforms. High quality, accurate. Complies with data privacy regulations. Managed by leveraging a central platform.
 

SECOND PARTY

 

Information obtained from a trusted partner. Known quality and accuracy as it comes from a known partner. Your partner complies with data privacy regulations. Managed similarly to first-party data.
 

THIRD PARTY

Information you acquire from a data aggregator. Quality and accuracy can vary. Compliance with data privacy regulations can vary. Requires validation and cleaning to ensure accuracy and relevance.

How to Integrate 1st, 2nd, and 3rd Party Data on DMP?

Next, let’s talk about how to successfully manage data using a data management platform (DMP). A DMP is one of those central tools that assist you in organizing, examining, and activating your data.

By mixing first, second, and third-party data on a Data Management Platform (DMP), you can reach an extra level of information about the audience, improve the targeting, and, as a result, achieve better business results.

  • We suggest you begin the work by collecting the first-party data in the DMP. It consists of data from your site, apps, CRM systems, and other internal sources.
  • Explore options for implementing second-party data utilization through partnerships or data-sharing arrangements.
  • Collaborate with trusted partners to get relevant ideas that will help you in the progress of your data.
  • Additionally, boost your first and second-party data by adding third-party data to create more detailed audience profiles.

The Final Words

In data marketing, choosing the data type is a critical success factor. The first-party data gives valuable viewpoints derived from your interactions, the second-party data is a valuable source from trusted partners, and the third-party data gives extra scope due to the broad reach and scale.

The service by Onstro is multifaceted, covering the area to tidy up your organizational procedures and stimulate business development. Onstro provides a wide range of functions that allow customers to control their data, implement sales strategies, and promote team collaboration.

Reach out to us now and learn more about how Onstro can work for your company!

Team Onstro