What is First Party Data?

In the digital age, marketing professionals collect 1st party data to obtain information about their users and consumers. This is data that comes from their own sources, such as a mobile application or a website. How can you benefit from using 1st party data?

Definition of 1st party data.

They refer to information that companies can collect from their own sources. In other words, all information about customers from both online and offline sources, such as a company’s website, a mobile application, CRM, social media or surveys, are all 1st party data sources.

According to eMarketer, 85% of marketers in the United States and 75% of respondents in Western Europe said that increasing the use of 1st party data is a high priority. For marketers, it is a truly valuable source of user data.

1st party data can include information such as the following:

Demographics.

Websites visited and interactions.

Purchase history.

Users’ interests.

Time spent on our website.

Among others.

Important: the 1st party data can be obtained free of charge and the companies that hold the data must have all the necessary consents from their customers. In the age of GDPR this is extremely important. By using 1st party data, users and customers can be offered personalized experiences, as well as be shown advertisements relevant to their interests, position in the sales funnel or about products in which they have shown interest.

1st party data is one of the most valuable data, so every company should consider collecting and profiting from it. The information is collected for free, which makes it really profitable and can be easily segmented and monetized by using a DMP (Data Management Platform) or a CDP (Customer Data Platform).

Using 3rd party data to leverage 1st party data.

Even if you collect 1st party data, you can look more closely at the 3rd party data to improve your efficiency. The use of both types of data provides help to reach more customers and generate more knowledge about their behavior in a much more accurate way. So how can 3rd party data be used?

1. Find new customers with 3rd party data. The 1st party data allows to reach only the users who visit the companies’ websites. In order to find new customers, the data of third parties can be used: profiles of users from all over the world, which can be bought on the DSPs (as long as it is still allowed by the users). There is another reason why third party data should be analyzed: taxonomies and segment names that can help to build similar own target groups.

2. Enrich 1st party data to improve knowledge about our audience. If you collect data from your own sources, sometimes you get only an email or some other attribute. They don’t always say much about the user. To find out the interests, purchase intentions or demographics of the public, data from third parties can be used. Moreover, in our reality, which is changing rapidly after the COVID-19 pandemic, people’s behavior and needs are changing as well. If users are to be reached with personalized messages, consideration should be given to enriching audiences with external data – through the purchase of such content or from the purchase of segmented media and the capture of audience data.

Source: https://www.onaudience.com/resources/what-is-first-party-data/