While first-party data is collected from your own proprietary sources, third-party data is any data you obtain that is not yours. The information you collect is generally the same, but someone else did the work. Your own data is what you collect directly from your audience, through your own channels. 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. Let's take a look at each of them to better understand the difference between first-party and third-party data. Executing a proprietary data strategy requires the unification of data across the customer lifecycle, which means brands need a digital ecosystem that allows them complete visibility and control of all their different data sources.
But there are a lot of data processors, the third parties we'll talk about most at this party, who organize and sell data. 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. 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. The way the data arrives can have both advantages and disadvantages, though, again, it's about combining these different types of data to get the most information, rather than choosing one or the other.
Data management platforms facilitate the integration of first, second and third party data and create a complete view of customers or, if the DMP owner wants to use different types of data separately, it is also possible. Learning to take control of your own data to gain trust and create personalized experiences starts with understanding the difference between different types of data, as well as the tactics and tools needed to turn this data into valuable customer relationships.