Third party data is one of the most heard terms in today’s digital Ads market place. But, before diving deep into the exact definition and uses of the third-party data, let’s first discuss what is first party and second party data.
First Party Data
First party data is a set of consumer data that a business collects from user’s transactions as well as interactions. It is user compiled information that comes from a variety of sources such as websites, apps, CRM (customer relationship management systems), POS systems, etc.
Marketers can use first party data to:
- Predict future patterns
- Gain audience insights
- Personalize content and advertisements
Second Party Data
Second party data is usually described as first party data from another business or organization that can be effortlessly deployed to boost a company’s internal data sets. It can come from partners or other business entities in a supply chain. It can also come from activity on websites, mobile app usage, social media, customer surveys. Marketers/publishers can use second party data to:
- Increase the scale of your data
- Reach new audiences
- Predict behaviours of the users
- Build firm relationships
Finally moving towards third party data…
What is Third Party Data?
Third party data is referred to as the information collected by an individual or an entity that doesn’t have any direct relationship with the user/consumer. It is collected from various sources like websites and platforms and then it is accumulated together by a third-party data provider like a DMP.
A consumer might have initially searched and visited an online sports store and selected his/her favourite Jersey or sports equipment. Then he/she might have gone through a car store website and finally applied for a credit card by filling out the form given in the website. At the end, when the data provider collects data from the consumer as they travel between websites, they offer a complete view of the user’s likes and dislikes.
How has the scenario of using third-party data changed?
Before the advent of constant internet connectivity, the usage of third-party data was relatively limited. Only a few companies used to maintain a list of consumers, and this data was used in snail mail or other telephone campaigns with limited utility as well as acknowledgement capability.
Faster internet accessibility and connectivity has changed everything. Everything that is connected to the internet generates data. Since most people carry a smartphone, they are the key source of generating third parties based upon their location and behaviours.
Benefits of Third-Party Data for Publishers
Authentic revenue-driving user insights
First party data is only limited to the communication or interaction you have with your consumers. Whereas with third-party data, you can learn more about user habits, behaviours, locations which can empower publishers to target their possible users directly.
Identify New Potential End Users
Third party data provides a clearer vision of your highest value end users. You can utilize this information and target new similar types of audiences – those customers who share the same profile as your current customer base.
Create Unique Location intended campaigns
Third-party data has the potential to go beyond your location or else online activity. It includes data that people have recently visited. If you are looking for an innovative method to target a new customer base on the basis of the places that they have recently visited like a retail store or any event, try our third-party data.
Additionally, third party data provides a pile of information that a single entity can’t. it usually helps shift away from using content as a proxy, allowing advertisers to buy audience segments based on key characteristics.
Now that we have listed out different types of audience data, we urge you to start implementing them and begin publishing our multi-format ads campaign. I would recommend you to use a robust and timely proven ad management platform – Muvi Ads.
Muvi Ads allows publishers to host and deliver multi-format ads to websites and applications across several platforms. It can also be referred to as an Ad inventory that helps you deliver action-inducing ads to a wider audience base and drive constant revenue. Try our 14-days free trial to get a clear picture of how you can manage publishing multi-format ads from your Ad Inventory.