First-party data is data that is collected directly from your website by YOU, the owner of the site.
This can include information such as sales conversion user information, the items customers have purchased, and any other interactions they have had with the site that are trackable.
In contrast, third-party data is data that is collected by a company other than the website owner, often through the use of tracking cookies. And cookies are already on their way out the door.
There are several reasons why online advertisers may want to use first-party data instead of third-party data. These include:
1. First-party data is more accurate and reliable.
This is because the data is collected in a controlled environment and is not subject to the same potential biases and errors that can arise from using third-party data.
All of this goes beyond demographics and geography.
How many of your customers are really new? How often are they coming back? How many are attracted by your new products compared to your evergreen staple products?
Harnessing first-party data just gives you more accurate insights to launch, hone, and scale your campaigns far better than third-party data. When you have more control – you can be more accurate.
2. First-party data is more specific and targeted.
This allows advertisers to create more relevant and personalized user advertising experiences.
Customers want their messaging, content, and advertising to be personalized. This personalization builds trust and reduces buyer friction.
We don’t believe it is the use of data that gives customers pause, rather, it is the misuse of data that can disarm and even offend your audiences.
Leveraging first-party data lets you be more agile while being more personalized and attentive to each segment of your customer base.
3. First-party data is more transparent and compliant.
In contrast, third-party data can be collected in a more opaque manner, making it more difficult to ensure compliance.
Let’s face it, even with the best intentions for your business, the source of third-party data is nebulous at best. Meaning that the ability to use this data ethically is just as opaque.
As the rules and regulations surrounding customer data continue to be a moving target – switching your focus to first-party data is more likely to set you up for long-term success without legal intrusions.
4. First-party data is more valuable.
This can allow advertisers to create more effective and profitable advertising campaigns.
With marketing and advertising costs seemingly never relenting in their neediness for “more,” utilizing your first-party data brings you ever closer to honing in on the quality of customers you attract rather than the quantity play we have all become accustomed to.
5. First-party data gives advertisers more control.
This allows advertisers to understand their audience better and tailor their advertising campaigns to meet the specific needs and preferences of their users.
From uncovering more valuable audience segmentation insights to providing more enticing brand content – having control over your data leads to more effective campaign structures and overall results.
Ready to be 1st in 2023?
Overall, there are several reasons why online advertisers may want to use first-party data instead of third-party data.
There are also many ways to utilize the first-party data you collect, from better ad targeting to faster camping optimization. The goal is both to provide a better brand experience for your customers while also keeping your advertising cost in check.
The National Positions team of experts can help you get the ball rolling and get your first-party data working for you. Visit our contact us page to get started!