Advertising Week took place at the beginning of October in New York City. One of the biggest themes this year was a topic close to our heart: advertising data. We love to be ahead of the curve when it comes to what is popular in advertising and it looks like we hit the nail on the head with this one. Among the popular topics in advertising data? The benefit of combining first-party and second-party data. We hate to say I told you so… but… we already knew this would be beneficial. However, a gentle reminder is never misadvised.
The SVP of Strategic Operations at GasBuddy, Mark Coffey, advised marketers to focus their efforts first on their first-party data. Not only will this ensure that companies understand who their customer is and what characteristics connect them, but also who their target customer is not and what characteristics are prominent among those not as likely to be a customer. Both sides of the coin are incredibly beneficial for a brand. It helps brands as they continue to grow and seek to expand their reach. However, herein lies the question: how can brands successfully and safely expand their reach without being wary of the validity of the data? Once you leave the comfort of first-party data, it is incredibly important to confirm the data’s accuracy. Otherwise, the effort will be for nothing.
When expanding past first-party data there are two categories to consider, second-party data and third-party data. According to Coffey, he advised marketers to focus efforts on second-party data after first-party data to obtain a well-rounded understanding of what interests your customers and builds meaningful moments of impact.
Third-party data had no mention. Why? Third-party data is not trustworthy. It is as simple as that. When you are putting stock in additional data for your brand, it is best to focus efforts on data you can stand by and believe with high likelihood to be accurate. That is not third-party data. Third-party data is the product of data houses combining sources to create larger databases to sell. What is the likelihood that every single data source used had the same measurements or level of care in collection? Slim. The chances that all data sources that make the full set had been altered to create a “compatible set” in some matter are much greater than with any other type of data.
Second-party data, on the other hand, has a trail to a definite data source and it is given the stamp of approval by a vetted second-party data provider, like a co-op like ours or something similar. In our case, it is not about giving away personal details, like name, email address or credit card number. Instead, it is simply letting eCommerce sites know that the shopper is interested in a specific product based on past browsing that did not end in a conversion. This means the shopper could be more likely to convert since we already know they are interested. No faulty data is exchanged, and no personal information is put at risk, yet those participating in the second-party data partnership win.
At the Hive, we like to be ahead of the curve, whether that is knowing which industries are growing or using the latest technology to help our clients increase their revenue. Nonetheless, we know second-party data would be a ringer for eCommerce sites that choose to participate, especially in busy purchasing seasons like the holiday season. This was once again confirmed by Mark Coffey at Advertising Week. The question is whether your company will be jumping in on the trend or if you will be waiting to play catch-up to your competitors.
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.