First-Party v. Third-Party Data
Third-party data, on the other hand, is received indirectly from consumers and costs money to target. Third-party data, also known as publisher first-party data, is sold to companies from data collection companies such as BlueKai and eXelate. It is collected from companies that do not have a direct relationship with consumers. A third-party data provider (BlueKai) will pay publishers (ESPN.com) to let it collect information about its site visitors (you). This information is then used to create profiles of your audience’s web behaviors, which can then be sold to advertisers to target ad buys.
While third-party data enables you to expand your program’s reach and awareness, it comes at a cost. First-party data is free to target, and promises a greater chance of conversions. Conversions are higher on a known “warm” audience than on unknown “cold” prospects found through third-party data.
What About Retargeting?
We see retargeting as one application of first-party data. In this case, the “data” is that the prospect has an interest in a specific product. But first-party data has the ability to build a much broader profile of a visitor, encompassing both their browsing history on your site as well as data in your CRM or marketing automation platform. By using all of the available information you already own you can personalize your advertising offers to the wants and needs of your prospects.
When leveraged correctly, data is an invaluable marketing asset that helps focus and continuously improve your marketing programs. Through these assets, you can expand your advertising’s reach while nurturing an existing audience to help create brand loyalty and affinity.