Customer data comes in all shapes, sizes and systems. The data that companies collect directly is source data. Other data comes from partners or is acquired, what we call data from third parties and third parties. And then there's the new data for match zero.
Since second-party data is essentially the same information as first-party data, the only way to get it is to get it from someone else. As we mentioned earlier, one way to do this is by partnering with another organization that shares your goals. Since your interests are aligned, data sharing will only improve your customer service and marketing efforts. The source data is the property of the brand.
It comes directly from the user. It provides marketers with a wider range of benefits, compared to the other two. What is it? Source data is data about a company's customers that are collected and owned by that company. Information about customers is compiled through software and systems owned by the company itself.
The company can use this data (digital interactions, purchase history, behavior, preferences, etc.) What is it? Second-party data is source data from a trusted partner. This data can help a company achieve greater scale than relying solely on its own data, and since data is not sold openly, it can provide greater value than third-party data, which is typically available to anyone who wants to buy it. What is it? Unlike source data, third-party data does not usually come from the direct relationship between a customer and a company, but rather from an external source that has collected the data. Third-party data often comes from a variety of sources on the Web, and this data is aggregated, segmented, and sold to businesses for their own advertising use.
First, you'll want to gain a full understanding of data collection in advertising as a whole, and then how first, second, and third party data can achieve your goals as a marketer in different ways. But how do you find those companies? One of the easiest ways to find a buyer or seller is through a third-party data marketplace, such as the Lotame Private Data Exchange (PDX), which connects both parties to allow third-party data transactions.
