Welcome to the 2nd party!
FutureM Recap: Breaking Down Brands Sharing Data
This week, ownerIQ’s SVP of Marketing Steve Ustaris spoke at the FutureM conference presenting one of the industry’s hottest topic: second-party data. FutureM, viewed as the “must-attend event for discovering what’s next, bringing together marketing and technology innovators to contemplate and celebrate the future of Marketing,” is the perfect place to discuss fresh ideas to the very audience eager to benefit from and utilize marketing concepts. Missed all the FutureM action? You’re in luck. Here’s a recap of Steve’s session, starting with the differences between the big three data parties:
First-party data: The use of an advertiser’s own cookie pool, or audience data. First-party data is highly relevant, but not scalable. Simply put, there’s not enough of this data set.
Third-party data: Advertisers can purchase packaged audience segments from third-party data aggregators, such as BlueKai. Third-party data is scalable, but much less relevant than first-party data. Overall, the relevancy of this data set is determined by the third party vendor, thereby lacking transparency – key in today’s overcrowded marketplace.
Now for the good stuff…
Second-party data: In effect, 2nd party data has been the talk of the town for a while. Problem is, the concept is somewhat of a head scratcher, and not everyone fully understands its many useful applications. In simplified terms, second-party data provides marketers with direct and transparent access to the first-party data source, or audience, of their choosing (eliminating the guessing game found in third-party data). This data set is more scalable than first-party data, and more relevant than third-party data. Sounds pretty darn cool, right? We certainly think so, but some earlier barriers have slowed wider use.
Backtracking a bit, Steve points out that there are actually two versions of second-party data sharing. Version 1.0 is currently underway; common within existing co-operative relationships, such as retailers and suppliers that are sharing their digital marketing assets. With 60% of consumers visiting a product brand’s website on their path to purchase, retailers selling that very brand can drive sell-through and traffic using cooperative data sharing. Likewise, because 83% of shoppers still prefer to purchase at retail, product brands with access to a retailer’s audience (aka first party data) can maximize use of their site traffic, increase sales, and support retail partnerships. Just ask Amazon and Walmart, two leaders who are benefiting from these cooperative initiatives; providing a more transparent level of targeting and measurements of success.
Finally, on to the future, or second-party version 2.0. Second-party data sharing is quite possible – even necessary – for those without existing relationships. It just takes some creative thinking. Because 2nd party data sharing can provide access to deeper, more relevant insights, companies with indistinct commonalities are especially primed to achieve competitive advantage by forming partnerships. For instance, a travel company with flights to tropical destinations shares data with a retailer selling resort-wear, or American Express accessing the Staples audience due to audience similarities. Examples such as these go to show that companies are already taking advantage of this no longer elusive data source!
Wrapping up the session, Steve extends an invite to the second-party, “The second-party is here, and it’s all the rage…don’t fall behind. Join today.” Are you in?
Want to attend the second-party but still not sure where, or how, to start your journey? There are solutions, such as ownerIQ, that can help. ownerIQ provides the technology platform to share data and audiences seamlessly with full transparency. To learn more about how you can get started with 2nd party data sharing, stay tuned for our new eBook (coming soon!): Not All Data Parties Are Created Equal.