Your own data is what you collect directly from your audience, through your own channels. Third-party data is collected by another entity that is completely independent of your relationship with your audience. So these terms refer to where the data comes from and how it ends up in the hands of a marketer. Third-party data is data that is acquired from a data aggregator.
Data aggregators don't collect data directly, but instead collect it from other companies and compile it into a single data set. As a result, data can come from many different data sources, some big and some small, and there is not always a clear definition of the audience from which the data comes. The difference between source data and third-party data is the collection and the collector. The organization collects its own data from its audience.
An independent organization collects third-party data from multiple audiences, including those that are not related to its audience. It is also more relevant and accurate than third party data, as they provide data that your current and potential customers have voluntarily provided you directly.
While the source datais of high quality, if your audience is small, you may not be able to achieve the scale you expect with your campaigns. Third-party data is also useful for demographic, behavioral, and contextual segmentation and for making segmentation more accurate, especially when it comes to the middle and top of the funnel.
Personalization and second-party data are great for companies that can't turn on source data on their own, but want to carefully customize their approach for specific buyers. To manage all data from various sources, marketers often use technology platforms that help them organize data and find information about users online. Supplementing it with similar data from a third party can make your campaigns go beyond quality. 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.
If you need to know the interests, purchasing intentions, or demographics of your audience, you can use data from third parties. Marketers often enrich their data with external sources (third-party data) to fill gaps in their customer profiles. When you identify your primary audience by collecting your own data and building it from that audience using third-party data, you can reach new potential customers and learn more about the people who are interested in your products or ads. It means that if your potential business partner collects data and wants to share it with you, it will become your second-party data and can be used to segment the audience or enrich your own database.
When you use third-party data from your partner, you get just one brick that can create huge sets of third parties. The integration allows you to connect your first and second party data directly to third-party data so you can easily expand your audience and optimize your segmentation. First-party data is one of the most valuable data, so every company should consider collecting the data and benefiting from it. Data management platforms such as Lotame are used by vendors, agencies and publishers from all industries around the world to help them collect first, second and third party data on a unified platform.