Over the last two weeks, we’ve discussed the benefits of publisher first-party and advertiser first-party data. So what happens when two entities want to exchange this data? That’s where second party data comes in.
While second-party data has received less attention over the last few years compared to first- or third-party data, that’s changing. Second-party data is coming out of the shadows and rising in popularity among today’s marketers who want to leverage data partnerships to drive marketing activities and sales.
What is second-party data and how does it work?
Essentially, second-party data is someone else’s first-party data that may be purchased or traded. This allows brands and or publishers to go directly to another complementary source they know will have the most relevant data they are missing. They can share audience data and stitch each other’s information together to build deep insights and to better understand customer profiles in order to reach audiences at scale. Consider last week’s example where lifestylewebsite.com was working with a major shoe retailer. Based on a specific deal between the two companies, the shoe retailer can gain access to lifestylewebsite.com’s audience data and serve shoe enthusiasts like Angie an ad every time this person visits the site. In return, lifestylewebsite.com may decide to allow the shoe retailer to target its users wherever they are found on properties outside of lifestylewebsite.com in exchange for something equally strategic and beneficial. In this case, the publisher may want the shoe retailer’s own first-party data to tailor future content. Either way, it is a symbiotic relationship.
What are the benefits?
Second-party data can provide the best of both first-party and third-party data – accuracy and abundance. As a result, we are beginning to see greater adoption of second-party data in the market.
Second-party data helps marketers with a common challenge: gaining a holistic view of customers across devices and channels. Additionally, by sharing data, marketers can better target ads and publishers can better deliver customized content. With attention spans in short supply and distractions aplenty, creating targeted and unique brand experiences is more imperative than ever to drive deep customer engagement. Finally, second-party data can also help brands monetize their data as it creates an additional revenue stream when they share data with trusted partners.
Read previous posts from our audience series:
- What Are Cookies and How Do They Work on Desktop Vs. Mobile?
- What is First Party Publisher Data?
- What is First Party Advertiser Data?
- What is Second Party Data?
- What is Third-Party Data?
- What is Deterministic and Probabilistic Data Modeling?
- The Skinny on Audience Buying and How it Differs from Contextual
Lucy Xia, Product Marketing Associate