Third Party Data
What is Third-Party Data? – Definition Third-party data (or 3rd-party data) is data that brands purchase from other sources, which were not the original collectors of that data. Third-party data is only used if the brand doesn’t have their own original data, and can be less accurate since it is not taken from a direct source. Data is usually bought from aggregators that pull data from various platforms and websites. Third-Party Data vs. First-Party & Second-Party Data First-party data is information collected directly from the source. Any information a company learns directly from their customers, prospects, or anyone associated with their brand is considered first-party data. Second-party data, as the name suggests, is one step removed from first-party data. Any time a company purchases data from a first-party source, they are buying second-party data. It’s not their own customer data, but it is only one step removed from the source. As you might imagine, first-party data is the most accurate and precise, especially when it comes to audience targeting and segmentation. First-party data is always preferred. Third-party data can be useful in some cases, but it mostly fills the gaps in first- and second-party data rather than acts as the most important source. Benefits of Third-Party Data for Targeted Advertising Some companies cannot access enough first-party data to build campaigns around. Whether they are new to the industry or don’t have a product that collects customer data, they must rely on third-party data to run effective campaigns. When it comes to audience segments, any specificity is better than generalizations. If a company can use third-party data based on real-world behaviors and intent, rather than online browsing, it is much more reliable and will make their marketing efforts more efficient. Find third-party data that relies on shopping habits or location, actions…