Nearly two-thirds of marketing leaders state that their use of online customer data has increased over the past two years. And, 70% of them also said that they were planning to make use of more customer data in the coming years, according to the 2018 CMO Survey conducted by Duke University’s Fuqua School of Business.
There is no doubt that data is king and has become an essential part of formulating successful marketing campaigns. While there may be several options available for such data, in the form of first-party and third-party data, the important thing is to choose the one that can be trusted and works well.
Advantages of Using First Party Data
Both first- and third-party data can be used to create an advertising strategy, but the main thing is to ensure that the data can be verified. Since first-party data comes directly from your target customer base, its accuracy and authenticity are definitely more trustworthy. In fact, relying on third-party data to create target-based ads has been seeing an increasing level of mistrust among marketers.
Bottom line: connecting with an audience is important, but speaking to the right audience is what makes a marketing campaign successful. And, hyper-targeting audiences on a 1:1 basis is critical. If you are able to convey the right message directly to the targeted base, there is a greater chance of getting a positive response.
Why is the Use of Third-Party Data Declining?
This cloud of uncertainty hovering over third-party data, combined with increasingly stringent regulations regarding the use of such data, such as the General Data Protection Regulation (GDPR), have led to a massive paradigm shift. Now third-party data has become the least preferred option for audience targeting via marketing efforts.
Many internet browsers, such as Firefox and Safari, have tweaked their technology to make it more difficult for companies to track consumer activity on the Internet. Social networking giant Facebook has followed suit by removing the third party data targeting feature from its ad manager.
Due to these drastic measures, third-party data is no longer easy to collect or access, and if at all you can do so, it will not serve your purpose as well as first-party data.
How Media Vendors Use First Party Data
We can now call it People-Based Marketing using first-party deterministic data. Select vendors can aggregate the data, narrow the target and then overlay over programmatic media, including display, video, social, email, OTT, and more. In 2017, MediaMax introduced maxIQ, using first-party data and it’s now one of our most popular targeting solutions for our clients.