First-Party data – everything you should know

29.11.2022 Angelika Siczek
user network

Internet marketing in the age of advanced technology makes it possible to target ads very precisely. Developing e-commerce or other types of e-businesses today have the ability to personalize the advertising message so that it is not an empty message that does not meet the expectations of the user, but so that it interests him and will respond to his needs.

Data personalization

We have the ability to personalize the aforementioned messages thanks to data to which we have fairly free access. The information contained in the 1st, 2nd and 3rd party data files, relates, among other things, to the sites visited by the user, his interests, or what purchases he has previously made. It is thanks to first-, third- or second-party data files that we can properly design marketing activities, so that their message actually reaches the recipient, who will actually be interested in the product or service. So let’s take a closer look at what first-party data, second-party data and third-party data are.

1-st party data – what does it mean?

1st party data? The definition boils down to the fact that this type of data is most often information collected through mailing lists, as well as collected on its own in CRMs. We can also access such data by analyzing user activity on a company’s website. For this purpose, for example, a free tool in the form of Google Analytics can be used. Here we have access to very detailed data, we can verify which sub-pages, products, tools are the most popular among users accessing the site. Having first-party data, we have the opportunity to create personalized messages that will allow to obtain even better sales results.

If we take a closer look at information acquisition in the context of first-party data, spaces such as the website, surveys, call centers, Google Analytics and Google Search Console are being used.

 Second-party data

Strongly simplifying the issue of data acquisition in the context of second-party data, we can say that this data is acquired by entering into cooperation with trusted partners. Taking a closer look at the phenomenon, depending on the business being conducted, these will be partners from the automotive, travel, clothing or electronics industries, respectively. It will be no less important to enter into cooperation with, for example, a publisher who has the data desired for the business being conducted.

Third-party data

This kind of data already requires a financial commitment. This is external data, which opens up a completely different spectrum for the company to obtain information from a very large set of users. Thus, data is collected from a great many sources, including websites that are thematically related to the company. Such detailed information cannot be obtained solely by analyzing one’s own website. 

Before third-party data is provided, comprehensive segmentation and classification is carried out before it is distributed. Once this is done, so-called user clusters are provided, these can be, for example, lovers of spinning fishing, or admirers of purebred dogs. There are basically no restrictions here and the information collected is not limited to only those data that manage to gather online. The information is completed by those resulting from users’ offline behavior, i.e., for example, relating to where they used the service. The acquisition of third-party data thus leads to deeper data about the user.

In the context of the above-mentioned types of data, it is worth noting that first-, second- and third-party data can intermingle. That is, using the three tiers of data acquisition, optimal data can be obtained to develop sources of extremely valuable information about potential customers.

1st, 2nd and 3rd party data – how to use the acquired data?

The current marketing landscape is a rather dense thicket of opportunities. If just a few years ago offline marketing was a very important source of customer acquisition, today the offline-based marketing model seems downright archaic. In the context of the discussed methods of data acquisition and how precise information can be obtained, online advertising appears to be extremely effective, enabling the development of campaigns targeted at users who are genuinely interested in the company’s offer, i.e. those who are more likely to make a purchase, which will translate into increased profits.

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