The Benefits of First-Party Data

The Benefits of First-Party Data

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First-party data is more vital than ever before to advertisers and marketers. New regulations, the demise of third-party cookies, and rising privacy concerns have made first-party data the perfect means to capture customer information.

When brands use their own first-party customer data, they are able to better optimize their ad spend. As first-party data is collected, such as through a brand website or app, subscription or membership, customer transactions, or feedback and surveys, CRM data and social media can bring it together to create rich understandings of individuals and their interests. First-party data is simply more efficient and effective.

Now, the pressure is on to make sure that first-party data is being harnessed effectively—so what exactly ARE the benefits of first-party data?

  1. Increases Accuracy
    First-party data isn’t just the most privacy-friendly option, but also offers marketers and advertisers the most relevant and precise data. When there is a closer connection between the brand and the source of the data, the possibility of errors occurring is reduced and the data is more likely to paint a more complete picture. In turn, brands can build and reach ‘lookalike’ audiences with similar characteristics from the data gathered. By tracking your audiences more accurately, brands can also send better messaging that resonates with each group whether it’s a special discount or secret sale access, people resonate with better messaging.
  2. Privacy-Friendly
    In an age where digital privacy is top of mind, many people prefer first-party data as it feels more upfront and honest. First-party data is the most privacy-friendly option because it is collected with consent, helping it to stand the test of time against further regulation, and is compliant with current regulations. While not all people will opt-in to sharing data with brands regardless of this, being transparent with your intended use, offering a clear value exchange (ex, a coupon code), and providing a positive web experience when collecting said data are all ways to gain the trust of your audience.
  3. Reduces Dependency
    When brands use their own means to collect first-party data, they are gaining control over their own destiny. First-party data enables brands to section specific audiences in multiple channels, while also decreasing dependency on third-party vendors and walled gardens, while also providing flexibility to test and measure addressable campaigns. You can be then more selective with the publishers you want data from.
  4. Custom Segments
    The more information a brand has about its customers, the stronger the connection can be between company and customer. With first-party data, you can formulate niche audiences for custom campaigns, tailor different strategies, and create a bespoke experience. You can also better reach select groups of buyers who visit specific items, purchase some items frequently, or spend a lot on only on your “most popular” items. By being able to segment customers with first-party data, you can grow your business by more granularly understanding and segmenting these groups.

First-party data is the way of the future, and marketers and advertisers need to start adopting these changes fast. Looking to learn more about the privacy-first age and how to adapt to it? Download our White Paper now, A Connected Approach to the Disconnected Identity Ecosystem.

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