Part 3 – What does your DATA bring to the party
Talking third-party data – otherwise known as everyone’s data.
The last – and in our opinion, quite possibly least – data segment is third-party data. But we’ll let you be the judge.
Third-party data is aggregated through various external platforms and websites, and provided by numerous providers. This data set can be especially useful for driving campaigns to new audience segments, providing an increased understanding of prospects outside of a company’s first-party data. Third-party data is also the most scalable of the three types of data, but lacks transparency, since, as you know, not all data is created equal (hint: always question the freshness of your data and the ways in which it was gathered).
Third-party data is made up of broad segments that a data management platform (DMP) compiles from many different anonymous data sources that are perceived as relevant to the advertiser. For example, marketers use third-party data to drastically increase the coverage of their campaigns. But as the data set increases in size, its relevancy can sometimes decrease in tandem. What’s more: you’re not the only one with access to this large data pool – which can have an effect on your competitive advantage. All in all, third-party data is good to have depending on your advertising initiatives, but it’s wise to be very strategic when putting it to use.
There you have it – you’re armed with the power of choice. Deciding between first, second or third-party data can be challenging; and in reality, you can certainly choose to utilize all three. At the same time, it’s smart to stay away from costly data sets that don’t bring much real worth (e.g. relevance and scale).
Here’s our take on a grading scale of what data guest should accompany you to the marketing and advertising VIP party:
With this in mind, consider placing your highest emphasis on value – what drives the biggest bang for your buck? Accordingly, many in the industry are turning their attention to 2nd party data. As AdExchanger recently reported, “second-party is about to go mainstream.” But don’t just take it from us, learn more about the ins and outs of second-party data to see how you can benefit.
So, what does your data bring to the party?
Need more data party favors? Access our FREE eBook Not All Data Parties are Created Equal to explore:
- First-party, second-party, and third-party data
- The key differences between the three data sets
- Where each type of data comes from and how you can access the data you need
- The Pros and Cons of each type of data
- And most importantly – getting started with the data that’s right for YOU
Learn more about ownerIQ here.