We have come to a crossroads. There are two paths to take: you can either join in and be part of the team or you can try to stick out and see how things pan out. Typically, we would say standing out is the way to go because you will make more of an impression, but this is not one of those times. It’s about the frenemy battle, keeping your friends close, but your enemies closer.
In the world of advertising, it is important to always be ahead of the curve. It is a necessary measure to continue to grow your shopper base and, with that, revenue. As witnessed at Advertising Week last month, second-party data usage in advertising is gaining momentum, but, to be successful, every company involved must play by the rules. Second-party data would be nothing if companies didn’t participate in the data sharing process. This is an example of keeping your friends close and your enemies, in this case, your competitors, closer.
I’m sure you’re asking now, WHY would you want to share your personal shopper data with competitors in the industry? Technically, you wouldn’t be sharing your shoppers’ personal information with your competitors. If shoppers are converting on your site, we wouldn’t dream of touching them since they have demonstrated loyalty to your brand. However, wouldn’t you want to have access to shoppers who are looking for products like yours, but haven’t given your website a peruse yet? You must be willing to give if you want to take.
Second-party data is about teamwork. Your company works so hard to compile valuable first-party data detailing who your prime shoppers are what qualities or characteristics drive them to your site and stay with your site for conversion. Why wouldn’t your team want a shot at other valuable shoppers who could increase your revenue potential? In return, you just need to let your competitors have access to your unconverted shoppers. And, when we say have access, we simply mean their internet cookie. Their name and any other data you collected are safe. You can continue to advertise to them, just as the new shopper information you receive from a data co-op would be marketed to by your competitors. The question is which site will have the product that ultimately converts the unconverted.
It seems like a painless, yet fruitful wager. If you think about the concept simply, would you prefer to work closely with frenemies to hopefully increase everyone’s revenue or fall victim to the ultimate enemy: Amazon? As we see it, your company has two choices: either work together or watch Amazon dominate the market from their eCommerce superstore. We don’t know about your company, but when the two options are sink alone or swim together, swim sounds pretty tempting, especially when the end goal is everyone surviving stronger than before.
Second-party data would be nothing without a bit of teamwork between competitors. In this situation, straying from the path is futile. If every company strayed from the path, there would be no data to share. The contribution is worth the ROI as keeping the frenemies close will grant access to growth potential for your company and allow your company to stand their ground against the ultimate enemy.
Hivewyre is a forward-thinking programmatic advertising company. Their private data cooperative allows advertisers to share first-party audience data and build targeted campaigns for prospecting new customers based on their competitors’ unconverted shoppers. Hivewyre advertisers have access to fresh, exclusive data that will never be sold to a third party. With over 500 retailers and over 100 million monthly in-market shoppers in our co-op, our distinct advertising strategy allows you to combat rising search engine PPC & PLA costs and the ever-expanding online marketplace growth. In addition to access to the exclusive data, co-op members benefit from full-service account management and detailed reporting of the return from advertising spend. To learn more about Hivewyre, visit www.hivewyre.com.