First Party Data and Modeling
First party data refers to the data that a company has gathered or collected directly from their audience.
These audiences are composed of customers, site viewers or visitors, and social media followers. First party also pertains to the party or group that gathered the data by the firsthand connection for re-targeting purposes.
In terms of retargeting, first party data is one of the most effective channels. It’s because the data collected comes from the party’s audience. The data creates strong reliability and the possibility of predicting and forecasting behavioral trends.
First party data can include data from:
- Actions or behaviors coming from website, applications, and products
- CRM or Customer Relationship Management
- Social media profiles
- Email subscription or products
- Customer feedback
Collection of First Party Data
First party data is gathered through adding a pixel on the first party website, social media profiles, and product.
The information is collected – actions and behaviors which are recorded within the CRM.
When a website visitor or viewer clicks, and enters the page, looks at the products, participates with the social media post, answers a survey, businesses can gather those data.
Using First Party Data
The retargeting audience by means of advertisements, nurturing, and throughout the sales process, uses first party data.
It is also for learning additional insights about the ideal and suitable customer needs and wants. Aside from that, it is to reach new audiences and to connect the sites and social media viewers into the brand. As a result, those visitors and viewers will be possible customers.
While browsing online products, it has become a common experience to see ads coming around through banners and social media ads. That is a first party data retargeting example.
How is First Party Data Used for Marketing?
First party data is greatly beneficial for the quality it brings.
Since it comes from a direct collecting source, it assures accuracy. Also, it is straight from the party’s audience, and that gives relevance to the business.
Another advantage of first party data is the privacy concerns about it remain minimal because the party has knowledge of where the data comes from.
The marketer is the one who collects the information from the audience, thus making him own it. There are various options as to how a marketer can use first party data.
Predicting Possible Patterns
Accurate and relevant first party data allows the prediction of future and possible patterns. The party confidently predicts audience behaviors because the data comes from the direct source. When a marketer sees a revealed data like a customer has been visiting websites about shoes and puts in the cart, then the visitor is likely to buy shoes in the future.
Another instance, the audience does not frequently click banner ads. But she regularly engages with video ads. That audience is likely to continue preferring video ads in the future. Therefore, it gives an idea and option as to what ads will create an appeal to the audience.
Getting Audience Insights
The audience size may be small. However, first party data gathered within this scope offers valuable insight and effect. Data analysis about the traits the audience has in common is recommended. It helps in building audiences with the same characteristics. The expansion of the audience comes along with the improvement of insights for business growth.
Personalizing Ads and Content
First party data can also be used in making personalized ads and content shown to a specific user. The collected data from a visitor to the website gives improved insight with their interest and needs. This allows serving content with a personalized touch.
For example, there are various video advertisements and topics that are targeted to be shared with a potential customer. By seeing the data about the content an audience has viewed, the audience’s interest can be determined through what he frequently visits.
First Party Data vs. Second Party Data vs. Third Party Data
There are significant differences between the three.
First Party Data
First party data is typically defined as the information gathered by the marketer himself. In the display advertising context, first party data is the most frequently cookie-based data. This can involve information collected from the website’s analytics platforms and channels, customer relationship management or CRM, and business analysis tools.
Generally, first party data is the most significant data that can be collected within the audience. It grows into a powerful means linked to display ad campaign models. Since first party data provides particular information about already existing audience, it has become an important element of audience retargeting and CRM retargeting.
In first party data, it is possible to target recurring customers by connecting past purchase and product information into new ones. This technique is a fundamental aspect of big marketing platforms. When ads and content are exceedingly dynamic and personalized, the higher the possibility of market conversion is to occur.
Second Party Data
Second party data is another marketer’s first party data.
Second party data can be worked out by arranging with trusted business partners to willingly share their customer data. For example, a high-end designer bag company might partner with a traveling blog to look for new customers according to demographic links.
Second party data has a remarkable role in audience extension and targeting. In this party data, there are endless possibilities. Seeking out, forming, and maintaining mutually helpful partnerships are the ingredients of effectiveness.
Third Party Data
The companies that use third party data are known to be data aggregators. These large companies that provide such data purchase it on big scales form publishers.
The advantage of third party data is the wide volume of accessible data. On the other hand, this data is also highly available to competing businesses. For that reason, you are not getting exclusive audience intelligence when tapping to this resource.
Demography, behavior, and contextual targets are effective means for third party data collection. Third party data also remove bot traffic. Aside from that, it has a vital role in solutions such as audience targeting and extension. Meanwhile, third party data providers rate a fee for using their segment data.
Data Management Platforms (DMS) in Your Business
Marketers commonly use technological platforms and channels in managing data from different sources.
This helps in organizing the data and finding insights from the audience and user. Data management platforms make proper integration of first, second, and third party data.
Marketers can also choose among the different types of data that they want to use.
Advantage of Data Management Platforms
Gathering All Data In One Place – Data Management Platforms allow the easy collection of data from direct sources and trusted partners. The thing that needs to be achieved here is implementing pixels. Powerful data management platforms automatically rest. You can gather data about audience activity by observing the events and attributes. Data management platform provides an unlimited quantity of data to collect according to the business needs and objectives.
Using Third Party Data to Find New Markets – One of the compelling benefits of the data management platform is acquiring access to third-party data – information about a vast range of users in more than a hundred markets worldwide. It gives a big opportunity to search and find new markets for products through the use of high-quality user and audience profiles. This comprises common interests, purchasing plans, and demographic information.
Working with Analytics for Audience Insights – Insufficient audience data will hinder the designing of the appropriate customer journey. Data management platform carries out light information with regards to audience profiles. It shows knowledge about the visitors’ interest, demography, and purchase plans.
Creating a Complete View of Customers – Data management platform enhances the customer relationship management system. Through the use of data, you can see a complete view of internet users around the globe. By means of data analytics and machine learning, the customer data are linked to the external data system to the overall audience,
Machines are being matched with the user profiles and filling gaps among their interest, purchase intention, and demographic data. This offers enormous help for delivering relevant messages to customers and running more effective ads and campaigns.
Targeting Audience by Custom Segments – Storage and data management is the central role of the data management platform. It makes way to target a particular audience like people who visit product sites and attracted to modern designs.
Complying to General Data Protection Regulations (GDPR)
– General Data Protection Regulations is a governing rule for collecting or gathering and processing data of people. GDPR preparedness will have something to do with:
- In-depth analysis of internal processes related to GDPR.
- Implementation of essential changes
- Legal analysis
- Operational analysis
- Personal data protection