Have you ever thought about the different types of data used in digital advertising? If so, you're not alone. In today's digital world, data plays a crucial role in marketing efforts, and it's important to understand the different types of data that are available and their potential applications. In this blog post, we'll be exploring the differences between first-party data, second-party data, and third-party data.
- First-party data is collected directly by a company and is considered to be of the highest quality.
- Second-party data is collected and shared by a trusted partner and is also typically of high quality.
- Third-party data may be less accurate or relevant because it can be accessed and purchased by multiple companies, including your competitors.
- First-party data allows companies to personalize the user experience, retarget users, segment audiences, and create lookalike audiences.
- To ensure that companies can confidently collect first-party data while ensuring compliance, iPROM Private DMP offers a secure platform for collecting first-party data that complies with the EU GDPR directive.
Types of data that advertisers may use
Second-party data is data that is collected by one company and shared with another, frequently as part of a partnership or collaboration. This data is typically collected in the same way as first-party data and is often used to supplement a company’s proprietary data and provide additional insights and targeting opportunities.
There are a few key differences between these types of data:
- Ownership: First-party data is owned by the company that collects it, second-party data is shared between two companies as part of a partnership or collaboration, and third-party data is owned by the company that gathered it and is sold or shared with other companies.
- Quality: First-party data is generally considered to be of the highest quality because it is collected directly from the source and is more accurate and relevant to the company using it. Second-party data is also typically of high quality, as it is collected and shared by a trusted partner. However, third-party data may be less reliable or useful because it is gathered from a variety of sources and is not tailored specifically to the company using it.
- Control: Companies have the most control over their first-party data, as they are the ones collecting it and have access to all of the relevant information. With second-party data, companies must rely on their partner to accurately gather and manage the data. When it comes to third-party data, they must rely on the data provider to do so. Third-party data can be accessed and purchased by multiple companies, including your competitors, making it difficult to stand out in the market.
In conclusion, first-party data, which is collected directly by the company using it, is considered to be of the highest quality and most useful for personalization and targeting. Second-party data is collected and shared by a trusted partner and is also typically of high quality. Third-party data is gathered by a company other than the one using it and may be less accurate or useful.
Why first-party data is the »new oil« of digital advertising?
Based on our experience in the field of Ad-Tech and numerous tests conducted over the years, the iPROM team can state with confidence that first-party data is the most valuable resource when it comes to digital media buying. This is because first-party data, which is collected directly by a company from its own sources, is accurate and relevant, and allows companies to use machine learning algorithms to personalize the user experience, retarget users, segment their audience, and reach new users through lookalike audiences.
At iPROM, we firmly believe that first-party data is the »new oil« of digital advertising. It is a precious resource that can be used to fuel targeted campaigns and enhance the effectiveness of marketing efforts
Here are a few reasons why first-party data is so valuable:
- Accuracy and relevance: First-party data is collected directly by a company from its sources, such as its website, apps, and customer interactions. This data is more accurate and relevant than third-party data, which is gathered by a company other than the one using it and may not be tailored specifically to the company’s needs.
- Personalization: First-party data can be used to personalize the user experience and tailor ads to individual users based on their interests, behaviors, and demographics. This allows companies to reach their audience with more relevant and engaging ads, which can improve the effectiveness of their campaigns.
- Retargeting: First-party data can be used to retarget users who have visited a company’s website or app but have not made a purchase. By showing relevant ads to these users, businesses can try to bring them back to the site and encourage them to complete a purchase.
- Segmentation: First-party data can be used to segment users into different categories based on their traits and behaviors. This allows companies to create targeted campaigns for specific groups of users, such as new users or high-value customers.
- Lookalike audiences: First-party data can be used to create »lookalike« audiences, which are groups of users with characteristics and behaviors that are similar to those of the company’s existing customers. This can be an effective strategy to reach new users who are likely to be interested in a company’s products or services.
While data promises a host of benefits, it is also subject to strict privacy regulations, such as the EU’s GDPR directive. iPROM Private DMP, a data management platform, allows companies to confidently collect and use their own data in a GDPR-compliant manner.
If you are interested in learning more about how iPROM’s Private DMP can help your business leverage the power of first-party data to drive targeted campaigns and achieve better results, please don’t hesitate to contact us for further information. We would be happy to answer any questions you may have and discuss how we can help your business succeed.