New Study Reveals Second-Party Data Era is Upon Us
Study found that 85 percent of retailers, brands will have second party data integrated into their marketing strategies over the next 12 months.
BOSTON, Oct. 6, 2016 /PRNewswire/ — ownerIQ, a leading digital marketing solution for retailers and brands, today released a new research study conducted by Forrester Consulting, and commissioned by ownerIQ. The September 2016 study, The Era of Second Party Data is Here, focuses on the adoption and use of second-party data, found half of organizations currently have a second party data strategy, with another 34 percent planning to roll one out within the next 12 months. The study also sheds light on the growing trend of second-party data sharing marketplaces and details how brands and retailers will establish marketing data partnerships.
As brands and retailers continue to recognize the value of their own data, the Forrester study found that more retailers and durable goods companies are placing an increasing level of importance on data sharing to fuel more effective marketing. Beyond the growing use of second-party data in general, the Forrester study also found that second-party data use will increase as a percent of total programmatic advertising campaigns. This increase will be particularly notable among durable goods companies – with a predicted increase of 30 percent over the next five years, up from 23 percent of campaigns in 2016.
“We have seen increased interest in creating shared data marketplaces among these customers,” said Jay Habegger, CEO of ownerIQ. “This research demonstrates the need and importance for businesses to actively pursue this strategy. There’s richness and complexity that can be achieved by bringing datasets together that mutually benefit all parties and we are committed to helping organizations do this successfully.”
Second party era is here
The new study also found that brands and retailers are interested in expanding their use of second-party data and programmatic advertising strategies in the coming years. Specifically finding that:
- 96 percent of marketers with a second-party data strategy today consider it valuable or very valuable to their overall marketing strategy
- 33 percent of respondents with a second-party data strategy will expect their agency to assist them in brokering these partnerships in the future
- 55 percent of companies surveyed report that second-party data is very valuable to the success of their overall marketing strategy
Third party data slump expected
Comparatively, due to the growing use of second-party data over the next five years, use of third-party data will decrease. Third-party data use is expected to experience a decline from an average of 22 percent of programmatic advertising campaigns to 19 percent over the next five years. Thirty-five percent of marketers surveyed pointed to a lack of transparency in third-party data as a major factor in adopting a second-party data strategy, according to the study.
For more of the findings related to the implementation and use of second-party data and programmatic advertising strategies, please visit the ownerIQ website to download the full study.