Are you unable to reach broader audiences? That’s probably because of your niche audience data. No worries, acquiring second-party data will put you on track.
Surviving only on first-party data may not fulfil all your business goals. You need additional data to carry out an effective marketing strategy and increase traffic to your brand.
In today’s discussion, let’s focus on second-party data and how it’s reshaping the businesses.
Here’s the topics which you can follow in this discussion:
- Let’s Ask a Basic Question, Why Marketers Need Customer Data?
- What is Second-Party Data?
- Differences Between First-Party Data, Second-Party Data and Third-Party Data
- What is the Significance of 2nd-Party Data?
- How Can You Acquire Second-Party Data?
- A Brief Information on Data Marketplace
- Second-Party Data Marketplace
- How 2nd-Party Data is Bought and Sold in the Data Marketplace?
- How Can Marketers Use 2nd-Party Data?
- Benefits of Second-Party Data
- AudiencePrime Audience Marketplace
Let’s Ask a Basic Question, Why Marketers Need Customer Data?
Data is the lifeblood of all data-driven businesses. It provides insights and information about your customer’s journey across the online ecosystem.
You may possess a vast inventory of first-party or second-party data; but, how you make the best out of this data is more important.
And rightly so, as per Leftronic, “Data-driven organizations are 23 times more likely to acquire customers than their peers”, (source 1).
Know why? Because they do a lot of permutations and combinations with different types of data. Meaning, they reach diverse groups of relevant target audiences.
Complex? Let’s dig into the concept of 2nd-party data to understand better.
What is Second-Party Data?
In simple terms, second-party data is some other organization’s first-party data. It helps in personalization, hyper-targeting and expanding the customer reach.
Second-party data is gathered directly from another organization on a mutual business agreement; so that you can legally access your partner business’s first-party data to optimize your campaigns and strategies.
Also, you can buy 2nd-party data segments from a private data marketplace which hosts many publishers, brands and data providers.
Have a look at the below definitions!
Difference Between First-Party Data and Third-Party Data
It is the data which you directly acquire from the audience who interact with your brand, which consists of your site visitors, social media followers and so on. Meaning, it’s your customer data.
For example, cookies of your site visitors or phone numbers of your customers, etc., constitute first-party data.
It is a customized data set which you gather from various sources. Usually, data aggregators collect 3rd-party data from multiple sources and sell them as a package.
Even though all three types of data, i.e., 1st party data, 2nd party data and 3rd-party data have different use cases, second-party data has more weightage when compared to third-party data.
What’s the reason for it? Read further.
The Significance of 2nd-Party Data
Specifically, there are two main elements which put second-party data to the forefront. They are audience extension and data accuracy.
When you consider first-party data, the target audience is limited to your customer base only. It isn’t easy to reach larger audiences with niche audience segments only.
In comparison, second-party data eliminates this limitation by providing a list of potential customers, other than your first-party audiences. Therefore, giving scope for audience extension.
Another aspect is data accuracy which is crucial for you to reach the right audiences. Since you derive 2nd-party data from a trusted source, you need not worry about the transparency/quality of data. 2nd-party data is accurate and adds more value to your CRM data.
Hence, 2nd-party data has a lot of importance in the digital marketing industry.
How Can You Acquire 2nd-Party Data?
The online ecosystem has a lot of brands. Either you can make a business agreement individually or search in a data marketplace. Both options work in a similar fashion where you partner with another business and share 2nd-party data.
However, in a data marketplace, you will have different brands offering varieties of audience data segments, so that you can opt for those audience segments which best suit your business objectives.
It’s secure, and you don’t have to bother about the credibility aspect as the marketplace verifies all.
Furthermore, you will get to know more about the data marketplace.
A Brief on Data Marketplace
Data marketplace is a forum to buy and sell audience data segments. It enables you to find varieties of data from multiple sectors. Data marketplace works like any other marketplace where a buyer finds a suitable seller and buys audience segments.
You can find 2nd-party data and third-party data from various brands. A data marketplace helps you search for relevant segments to scale up your business.
Since it is a centralized system, you can only find those data sellers who have undergone a prior authentication process with the marketplace/platform.
So, data marketplaces are reliable sources to gather different types of data.
Although third-party data has its significance, more businesses are relying on second-party data for amplifying the performance of their ad campaigns. Due to this, 2nd-party data marketplaces are in demand nowadays.
Moving on, let’s understand why second-party data marketplaces are in demand.
Second-Party Data Marketplace
More and more businesses are turning to 2nd-party data marketplaces because it allows you to deal with specific brands in a private and secured way.
Second-party marketplaces give control over audience segments which you don’t usually have with 3rd-party data.
Another aspect is the quality of data and data privacy which become the distinguishing factors for 2nd-party marketplaces.
Hence, the demand for buying and selling second-party audience data segments is increasing.
How is Second-Party Data is Bought and Sold in the Data Marketplace?
Usually, any seller or buyer has to register with this private data marketplace and gain access by providing necessary information.
Once the process is complete, you can enter the data marketplace where you can buy or sell your data.
If you want to sell data, then you need to onboard your data into the platform and make your segments available for sale.
When a buyer searches and finds a specific type of data, then he has to pay the mentioned price (CPM) for that particular segment.
All these negotiations can happen outside the marketplace as well, but it’s much easier to interact in a platform setup itself.
Therefore, making it easier to buy 2nd-party data that is closer to your business funnel. And leverage it in your marketing efforts.
How Can Marketers Use Second-Party Data?
There are many use cases of second-party data. But, mostly, it is used to:
- Extend customer reach
- Derive more insights from user personas
- Enhance targeting
- Increase the customer base
Second-Party Data is one of the most effective ways to gain potential customers for your brand. It also helps in audience retargeting and optimizing ad campaigns to enhance its reach.
Especially when a publisher wants to sell his data, then it creates an alternative revenue stream too.
Benefits of Second-Party Data
Gain More Insights About Potential Customers
You can personalize your ads only when you know your customers better. Hence, it’s essential to derive more insights about your potential audiences.
Second-party data give new insights about the customers, which will help in improving your brand’s performance and provide a good customer experience.
Access to High-Quality Data
As the online space is bombarded with lots and lots of customer data, it’s a hassle to get good-quality data.
By choosing a second-party data from a trusted source helps you gather high-quality data which aids you in customer acquisition and maximized conversions.
Compliance with Data Privacy Policies
Second-party data mostly contains non-PII (anonymized) information of customers. Also, you often tend to derive insights from the first-party data of partnered businesses.
So, it ultimately reduces the usage of PII information and thereby being compliant with data privacy measures.
Furthermore, let’s move on to one of the best audience marketplaces – AudiencePrime
AudiencePrime Audience Marketplace
The Audience Marketplace is nothing but a data marketplace where you can get high-quality second-party data segments from premium brands.
AudiencePrime Audience Marketplace has a wide range of audience data segments from different sectors. You can choose ready-to-campaign segments to scale your campaigns and improve your brand’s performance.
Since AudiencePrime Audience Marketplace is a private and centralized source, we only accept credible brands to sell their data segments.
Overall, it’s an excellent opportunity to find a variety of data segments to enhance your targeting.
Also, you have the option of sharing your data with specific brands, and buyers can make private deals with the sellers.
Thereby, giving you a kind of flexibility which you may not experience with many other data marketplaces.
Register with us today to explore a wide range of second-party data segments to scale up your business!
The online ecosystem is a big world in itself. With the plethora of opportunities and advancement in technologies, it is easier for brands to achieve greater success.
And, no doubt, leveraging second-party data is proving to be extremely efficient and profitable for many customer-centric businesses.
Hence, second-party data has a lot of prominence in digital advertising today.