The Four Biggies of Second-Party Data
Data is the lifeblood of every marketer. Simple. And a fact.
Today’s consumers are most responsive to targeted, relevant advertising based upon their preferences and needs. In order to meet this need, companies are dedicating significant budget and resources to collecting website audience data and building out robust customer profiles. This first-party data, while valuable and insightful, can be limited in scale.
Increasingly, advertisers and marketers are recognizing that sharing second-party data — that is, gaining transparent access to the first-party data of another brand — can yield significant value. Forrester surveys of North American and European technology decision-makers revealed the percentage of these leaders placing importance on partner data increased from 30% to 47% between 2012 and 2014, with interest only on the rise (plenty more on this later).
According to a recent study conducted by Forrester Consulting on behalf of ownerIQ, today’s marketers recognize that sharing second-party data can provide:
Greater scale. For many advertising and marketing leaders, relying solely on their own first-party data is not sufficient for their marketing needs. Twenty-seven percent of those surveyed are turning to second-party data due to a lack of scalability in their own first-party data; 21% said they don’t collect enough first-party data to leverage it effectively.
“[Second-party data] allows me to potentially reach universes I haven’t been able to reach before and reach at a level that certainly old-school third-party [data] would never have allowed me to get to.” — Digital marketing director at a retail firm
Improved insights into customer wants and needs. Gaining greater insights into customer behaviors and preferences was the No. 1 driver of second-party data sharing strategy adoption, cited by 69% of respondents. As the VP of digital marketing at a retailer told us, “We definitely gain customer insights and data [through second-party data partnerships]. . . . We gain net-new data.”
More transparency than third-party data. Third-party data — that is, syndicated data that is publically available for anyone to buy — can provide consumer insights, but these insights are available to the entire market, with no clear view into data provenance. Thirty-five percent of those surveyed pointed to a lack of transparency in third-party data as a factor in adopting a second-party data strategy.
A competitive advantage. Second-party data sharing can also help advertisers and marketers get a leg up on the competition by providing the means to execute targeted campaigns to highly sought-after audiences. Instead of a blanket campaign to consumers who fit in a general category or demographic, ad and marketing professionals can identify desirable audience segments based on behaviors and preferences captured on a partner’s website and tailor campaigns accordingly, increasing the likelihood for sell-through. Sixty-eight percent reported they look to second-party data to gain a competitive advantage.
Now, as promised, there’s a good deal more the state of all things DATA, including where your industry peers stand today. Download this complimentary study, The Era of Second-Party Data is Here, a September 2016 commissioned study conducted by Forrester Consulting on behalf of ownerIQ, to uncover must-know second-party data strategies, challenges, and benefits.
 Content Marketers Share Data With Other Brands To Close The Loop From
Interest To Sales,” Forrester Research, Inc., November 24, 2014.
Included in this post are some key takeaways from a September 2016 commissioned study conducted by Forrester Consulting on behalf of ownerIQ.