Why You Need to Be Thinking About Second-Party Data
As previously published in Chief Marketer
Data…we’re practically swimming in it. It’s all around us; used for virtually everything. The meaning of data really depends on what it’s being used for and who’s using it. For marketers and advertisers, the most common forms of data are first-party data, second-party data, and third-party data. Here’s a quick rundown of what marketers need to know about data in all forms.
Put simply, first party data is YOUR own data, or data that is collected by your company based on someone’s interactions with your company website. First-party data is essentially free and includes anything from the data your CRM captures to other on-site audience behaviors. The only downside to it is that it’s so scarce, which is a big deal for marketers.
Second-party data happens as a result of transparent access to a trusted and relevant partner’s first-party data. Second-party data assures a cooperative relationship that can be preexisting (a brand that already sells through a retailer) or entirely new (no clearly defined relationship…yet), creating a new means for advertising revenue and greater brand awareness. The benefit of second party data is that it’s trusted, and can be used at scale – which is a boon for marketers.
Third-party data is data that is aggregated through various external platforms and websites and provided by numerous providers. Third-party data is made up of broad segments that a data management platform (DMP) compiles from many different anonymous data sources. This data segment is highly scalable but lacks transparency. It tends to not be exclusive or trusted.
Second-party data is fast-becoming a popular choice for marketers who want to access the best data at scale. Indeed, aside from first-party data, second-party is growing in importance according to eMarketer. Here are eight ways marketers can use second-party data:
- Have a website. A brand’s or a retailer’s website is a critical component in the initial first-party data collection process.
- Select a trusted second-party data partner to start and streamline the process.
- Brands should select retailers with a common target audience. Retailers should select a brand that they sell to that can drive sell-through both online and in-store. Note: be careful to avoid competitors.
- Choose who can advertise against your audience.
- Approve trusted advertisers trust or co-marketing campaigns. Virtual handshake.
- Grant access to brands or retailers of choice to advertise against your audience.
- Select your chosen partner’s first-party data to dramatically expand your advertising and marketing outreach possibilities. Your partner will do the same
- Target unique and relevant audiences that are most relevant.
Interested in learning more? Check out ownerIQ’s Second-Party Education page today.