If there is one thing we know for sure, it’s that data is the hot topic on everyone’s table: business owners, regulatory entities, large and small companies, experienced or beginner marketers, and so on.
Despite this, or perhaps precisely because of it, certain concepts in the data field are still misunderstood or poorly grasped. A prime example is the categories into which online collected data is divided and the opportunity of using them. In other words, what parties are out there and how can we join them?
What are 1st party, 2nd party, and 3rd party data?
In short, these data categories name 3 types of information that can be collected and analyzed, defined in relation to the entity collecting them and the sources used.
1. First-Party Data
This information includes:
- Data about online behavior, actions taken, or interests shown on the domain being visited;
- CRM data;
- Authentication and login data on platforms;
- Other information – messages, feedback, completed surveys, etc.
Examples: Data collected by the Facebook platform, data collected by eMag sau de platforme ca Shopify, Shopify Plus, Amazon, Google Analytics, Klaviyo, Attentive, ReCharge.
How it is used in digital marketing: Depending on the specifics of the 1st party data collected, it helps in understanding the customer/user profile, their online behavior, and mapping their interests and needs. The major goal of collecting and analyzing customer/user data is to improve services/products and the way they are presented, with the aim of generating business.
2. Second-Party Data
The 2nd entity—the one that groups, analyzes, processes, and ultimately uses them—is the differentiator that places them in the 2nd party category. This data also includes multiple sources, just like 1st party data:
- User activity on websites;
- Mobile app usage;
- Data accumulated through social media usage;
- Customer surveys and research.
Examples: Salesforce 2nd Party Data Aggregator, Adobe, HubSpot.
How it is used in digital marketing: Like 1st party data, the purpose of accessing this data is to improve the holistic understanding of customers/users and extend market reach by optimizing the offer according to what the data shows. For greater relevance and complex customer/user insights, marketers and businesses seek to access and analyze as much data as possible that is similar to what they collect first-hand (1st party).
3. Third-Party Data
Usually, information aggregators—these 3rd parties—pay data owners who collect 1st party data and use them in an integrated manner for greater relevance and accuracy.
Examples: OnAudience, Lotame, Eyeota, Oracle.
How it is used in digital marketing: As with 2nd party data, data obtained from a 3rd party is used to increase the understanding of the online needs and behavioral patterns of customers/users. While 1st party data is highly relevant and accurate, 3rd party data completes the big picture and can generate business scaling in several ways:
- Building a broader audience with traits similar to those indicated by 1st party data;
- Completing the profile of one’s own customers/users with data that is not collected as 1st party;
- Discovering new audiences that fit the products/services offered;
- Increasing the precision of targeting in communication toward current or prospective customers/users.
Do you need help collecting and using your business data? Join the 1st, 2nd, or 3rd party with an email at hello@datarevolt.agency!