“It is a capital mistake to theorize before one has data.”
— Sherlock Holmes
As a brand wouldn’t it be easier to be able to talk directly to all portentous clients rather than depending on a middle man ? This is the core objective in building first party data.
To date with the extensive targeting tools offered by leading search engines and social media platforms the need for extensive party data has been limited. Cookies add the secret layer allowing a brand to follow and categorize any visitor to their website. You can currently easily target all males under the age of 40 interested in water sports but at the moment with further restrictions coming into force due to privacy and confidential laws we need to adapt and prepare for the next wave.
We have 3 layers of party data that one needs to keep in mind: 1st, 2nd and 3rd party data.
This is the data you have collected about your customers or audience you own and manage.
When captured legally within the regulatory GDPR bodies, this has immense power as brands are able to build up there own private database of clients/targets.
The core asset here would be a CRM which reacts, adapts and customizes the user experience of each client associated with your brand. Once you have such a CRM in place, any restrictions imposed on 3rd party adverting platforms such as Facebook will not affect you as a decision maker as you would have already built up a direct communication channel with potential, past and current clients
First party data checklist:
In a nutshell, this is someone else’s first party data that can be utilized for your own marketing bought directly from the source. 2nd party data is imperative should you want to scale up your research in order to increase the effectiveness of your marketing campaigns by further personalizing them.You would be able to identify a greater reach of audiences, delve into cohorts you would have not been able to before and also analyse a market from a whole different angle. Obtaining 2nd party data would be a great means of collaborating with potential business partners as both parties would be able to give and take in the business relationship.
It is important to understand however that each party can only scale their date to the limits of each other’s existent 1st party data. One example of obtaining a second-party data might be a hotel booking website collaborating with an airline to mutually benefit from each other’s data sources.
This is generally aggregated from many different sources and consists of rich behavioral or demographic data. It is often collected by an entity that doesn’t have a direct relationship with consumers.
3rd party data has an incredible reach. A collection of detailed, specific niche information of a user/entity can all be translated into user profiles, cohort targets and illustrious persona profiling as it is all based on collecting detailed behavioral indulges.
Difficulties surrounding 3rd party data are:
This is something that we work with on a daily basis. We are experts in aiding our clients and partners into the right direction on what party data is needed to gather for any specific promotional campaigns of any size.
We fully understand the importance of forward thinking and customer-oriented strategies.