In the ever-evolving world of marketing, data has emerged as the driving force behind successful campaigns. With 55% of the Internet traffic blocking third-party cookies today, the spray and pray approach of third-party cookies / third-party data is no longer sufficient. To set up the most effective marketing campaigns, business executives are centering their marketing campaigns around first-party data to ensure the actual intended target audience is reached. Further, companies are constantly seeking insights into consumer behavior and preferences to create personalized experiences. Among the wealth of data available, first-party data has gained significant prominence as a vital asset for marketers.
Understanding the Difference: First-Party Data vs. Third-Party Data
Before delving into the reasons behind the preference for first-party data, it is crucial to grasp the distinction between first-party data and third-party data.
- First-party data is information that is directly collected by a company or organization from its own audience or customers. It is typically gathered through interactions on the company’s website, email newsletters, subscription databases, or other owned platforms. First-party data is considered the most valuable and reliable because it comes directly from the source. Examples of first-party data include a first-party cookie to track website behavior, purchase history, email address from a newsletter subscription, and user preferences.
- Third-party datarefers to information collected by external parties that are not directly affiliated with the company or organization a user chose to interact with. These external sources can include data aggregators, data brokers and advertising technology providers .
The Data behind First-Party Data:
- 71% of marketers reported that using first-party data for targeting and personalization resulted in higher conversion rates (2).
- Marketers who leveraged their first-party data achieved an 8.7% higher return on ad spend (ROAS) compared to those relying solely on third-party data (4).
- Personalized marketing campaigns based on first-party data achieved a 29% higher open rate and a 41% higher click-through rate compared to generic campaigns (1).
Reasons Why First-Party Data is Preferred for Targeted Marketing
While many companies have first-party data on their own current customers, when it comes to reaching new prospects, partnering with a company that has access to first-party data has many benefits:
Trust and Data Quality: First-party data is collected directly from a company’s own audience, ensuring its accuracy and reliability. Not to mention the company collecting the data has full control over how the data is collected, managed and utilized. This trustworthiness is crucial, particularly in an era where data privacy and security concerns are paramount. By using first-party data, you minimize the risk of relying on potentially flawed or outdated information, allowing for more accurate targeting.
Enhanced Relevance: When partnering with a company that possesses first-party data, you can leverage their data to refine your targeting strategies and reach the right audience segments. This can lead to more effective advertising campaigns, increased conversion rates, and better ROI.
Competitive Advantage: Access to high-quality first-party data can provide a competitive edge in the market. By partnering with a company that possesses unique data assets, you gain the ability to target your true desired audience and stay ahead of your competitors.
BridgeTower Media and First-Party Data
At BridgeTower Media, we pride ourselves on maintaining a vast and ethically collected database of highly accurate first-party data. We have a large audience of verified legal professionals and decision-makers. We also know who our audience is (e.g., name and contact info), what they do (e.g., firmographic data such as company name, industry, address, and more), and what they care about (e.g., types of content they engage with, events attended, and more). Further, our commitment to data privacy and compliance ensures that the information we possess is gathered in a responsible manner. We use our data to empower businesses to forge meaningful connections that ignite growth.
If you’d like more ideas and insights on how to leverage first-party data-driven marketing programs to grow your business, get in touch with one of our marketing experts by filling out the form below.