Want to use first-party or third-party data to launch ad campaigns that reach your ideal customers and clients but don’t know how they’re different or which one you should use?
The difference between first-party vs. third-party data in advertising is how the data is collected and who is collecting it. First-party data is data you collect directly from your audience. Third-party data is data collected by another entity or business and sold for you to purchase or collect.
Keep reading to learn more about the difference between first-party and third-party data and which one you should use to launch sales-boosting ad campaigns for your business!
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What is first, second, and third-party data?
So, what are first-party and third-party data? Find out below:
What is first-party data?
First-party data in advertising is data you collect directly from your audience to use in your ad campaigns. First-party data in advertising can include your audience’s:
- Job role
- Website behavior, like which pages they visit and how much time they spend on your website
What is second-party data?
Second-party data is data that was once first-party data and was then shared with a trusted partner or collaborator. In other words, second-party data is data that you can receive from a business partner who collected it directly from their audience.
For example, let’s say you enter a sweepstakes to win tickets for a show. The company that hosts the sweepstakes will collect your data, like your name and email address. They will then share your data with their partners involved in the sweepstakes, like the theater that provides the tickets.
What is third-party data?
Third-party data in advertising is data collected by another organization or business other than your own that you can collect or purchase to use in your ad campaigns.
Some third-party data is publicly available, like U.S. Census or Bureau of Labor Statistics data. With third-party data, you can learn about your audience’s demographics, company industry, website browsing history, purchase history, and more.
Collection, purpose, and use of data
Curious about the differences between first-party vs. third-party data or not sure which one you should use in your ad campaigns? We’ve got you covered. First-party and third-party data differ in their collection, purpose, and use.
View a breakdown of the key differences between first-party vs. third-party data below:
How you collect the data
Third-party and first-party data can be collected from your audience using similar methods. However, the data is often collected by different tools. Additionally, the person you collect the data from is identified and validated differently for each data type.
With first-party data, you collected the data directly from your website visitors, leads, and current customers or clients using your website and channels.
Because you collect the data yourself, it's stored on your domain so you can decide how you want to use it. You can collect and store first-party data with customer relationship management (CRM) software or a customer data platform (CDP).
Second-party data is collected from your business partner or another collaborator. You can collect second-party data by partnering with another organization that shares your goals. Since both of your interests are aligned, sharing data can benefit both your sales and marketing efforts.
Third-party data is collected by another organization or entity other than your business. Independent researchers can also collect and store third-party data.
Because another organization collected the third-party data, they store it on their domain. You can then opt to purchase or collect it for your own use.