What is First Party, Second Party And Third Party Data?

First Party Data:

Who other can be first within different parties then you yourself, YES first party data is YOUR data and the data can include of all the user data e.g. Behavior, Demo, Interests, etc.

These are the cookie based data that you collect from your own website which can later be used to re target. Of all the data first party data is considered to be the most valuable as these data are from your own customers who lands to your website searches for some information which indirectly means the most interested and exact users. Another the best part about this data above accuracy is ‘Free of cost’ available to you as it is your own data only.

First party data is the most powerful data specially when synched up with an online ad campaign as the users targeted are the most accurate ones, thus concludes if someone is not making use of first party data then it is not indirectly but directly losing money thereby affecting ROI. These data are generally stored in CRM, loyalty program database or site analytic tools

Always remember there is no difference between publisher first party data and advertiser first party data because when a publisher collects it’s data it’s his first party data whereas when an advertiser collects it’s data via its own site it’s his first party data but yes when we talk about first party data it’s generally the advertiser data which is of their customers and can be useful retargeting them where as there is no use of publisher data (reader’s data) directly in running an ad campaign

E.g. Microsoft as a client saves its customer data which is nothing but their first party data

Advantages:

• Accurate
• Free of Cost
• Future is always safe i.e. no privacy debates as for third party data

 

Second Party Data:

Another data which is not that well known like first party or third party data but is quite useful when used. It is actually a first party data that you get directly from the source (publisher). i.e. if we take the first party data from another source like any other website will become a second party data to us as the first party for us is our own data, similarly if we share our own first party data to someone, that will become second party to the one we have shared. Let me explain this with an example:

E.g. Suppose Microsoft has its own data which is their first party and is looking for some more data which if they tie up with someone (formal agreement) like with eBay, the same first party data of eBay will be considered as second party data for Microsoft which they can use to re target the potential users.

Second party data is new as compared to other two data but has almost same potential like first party and third party data. The second party data isn’t usually commoditized, but can often work out an arrangement or deal with trusted partners who are willing to share their customer data with you (and vice versa) and by doing this both expand their data pool whilst maintaining some exclusivity.

Advantages:

• Less Accurate then first party but is still quite relevant to the product
• Helps in increasing the ROI

Third Party Data:

This data is a generalized data collected from different websites and is sold to them who are looking for more data, there are many companies who works in data collection and selling by which they run their complete business. The famous ones are Bizo, DataLogix, BluKai, etc.

The data collected is fragmented into channels like Auto, Female centric, Sports, Entertainment, Tech, etc. The major disadvantage about this data is that it is available to competitors also so there is no unique targeting that is being done but still targeting the large scale of potential users is much better then targeting the unknown or categorized users. It also helps in removing the bot traffic as the data provided are filtered and clean

They generally use cookies to track users across web and build individual profiles based on their activity and also buy data in large scale from publishers and are then filtered, also some companies make use offline sources to form accurate data. Though the competition is increasing these third party data providers use different ways to form perfect data for their clients.

Advantage:

• You can data as per your requirement or targeting
• Mass data provider
• Filters bot traffic