First party data is very effective for every business than third-party data. But, first party data is not enough to find new potential customers for your business. So, businesses looking for third party data to run their ad campaigns to reach more customers. Through demand side platforms, businesses can access third party data from various data providers. The businesses paid the data cost to the third-party providers on an impression basis.

Many brands are actively collecting first party data from their websites, applications, retail stores purchase data, and social media accounts. But, it is not enough to reach new customers. In this situation, brands can use second party data that is collected from another trusted company or brands can use third party data that is collected from various data sources.

Many third party data providers actively collect user data from various resources and provide various data points to the brands to run their digital ad campaigns more effectively. Eyeota, Lotame, Oracle, Ad Square, Adobe, and Acxiom are some examples of third party data providers.

Topics Covered :

Who needs third party provider’s data?

What kind of user data is available in the third party provider’s data?

How third party providers collect audience data?

How to choose the right third party provider data for your ad campaign?

Conclusion

Who needs third party provider’s data?

Data is the main fuel for every business in this digital world. Companies understand the importance of their customer’s data. So, they are actively collecting their customer’s data from their own resources like company websites, social media accounts, purchase details, etc. In this digital world, many companies follow digital marketing strategies to acquire new customers for their business. One important part of digital marketing is “Digital Advertising”. User information is more important to running a successful digital advertising ad campaign. Normally, companies collect their customer’s data from their own resources like websites, social media accounts, purchase details, etc. These data are called “First Party Data”

Companies can run a remarketing campaign with their first party data. But, the main goal of running a digital ad campaign is “acquiring new customers”. Users available in the first party data is almost a customer for their company. So, companies need more user data to acquire new customers. Companies can collect user information from other companies, but most companies do not share their customer’s information with other companies. So, companies can buy and use third party data provider’s data for their digital advertising campaigns.

Companies can run their digital ad campaign on any demand side platform like DV360, Amobee DSP, Trade Desk DSP, etc. These demand side platforms normally connect with many third party data providers. The marketer who runs the ad campaign needs any third party data then they can create an audience segment using the available data provider and can target the segment to their ad campaign. The marketer should pay a certain amount as data cost per CPM basis. For example, Lotame has the Luxury audience category and kept the data cost as $1 by default. If any advertiser creates a segment by selecting the luxury category from lotame data provider then the advertiser should pay $1 for every 1000 impressions delivered using this segment.

Marketers who have less amount of user data should need third party audience data.
Marketers who need to acquire new consumers need third party audience data

What kind of user data is available in the third party provider’s data?

Marketers need various kinds of data to run their ad campaigns more successfully. So, data providers collect data from various resources and segregate the data into different groups. Below kind of user data available in the third party provider’s data,

User data based on Age Group
User data based on Interest
User data based on Behaviour
User data based on Past Purchases
User data based on Job Role
User data based on Browsing Content, etc

Marketers can use individual categories of data or groups of data as per their campaign needs. For example, marketers can target particular age group audiences or they can target users who are interested in fashion products with the age group 20 – 25.

How third party data providers collect data?

Third party providers never share clear information about the data collection methods and the data owners. But most of the third party data providers collect the user’s data in the below ways.

Purchase user data from various websites & Apps & Social Media platforms. Then group the data based on various data points.
Collect user data from surveys
Buy purchase data from various retailers shops and shopping websites
Third party data providers buy first party data from various data owners and pay for the data
Follow advanced techniques to collect user’s online behavior

How to choose the right third party provider data for your ad campaign?

Demand side platforms are integrated with many third party data providers to provide more availability to the advertisers. If you are an advertiser you may see the same category of audiences available on many third party data providers. In this situation, you may be confused about choosing the category from the right third party data provider. Here, I will provide some suggestions to choose the right data provider that will help you with the digital advertising campaign setup.

Past Experience & Test: Past experience is very important for choosing the right data provider for your campaign. For example, the luxury category is available on Lotame, Eyeota, and other providers. Under which data provider you will choose the luxury category for your audience segment?

If you have used any luxury audience segment in your previous campaigns then check the performance. If the performance is good then choose the same data provider or else choose a different data provider.

If you haven’t used it previously then you should do some tests to identify the best data provider. In your experience, you can identify at least two or three legitimate third party data providers. So, create 2 or 3 audience segments for the same category and run it on individual ad groups. After 5 to 7 days, check the performance and continue to run the best performing ad group and pause the remaining ad group.

Cost Effective: Data Cost is the rate, advertiser needs to pay to the data provider when they serve impression using their data. You should care about the data cost when selecting the data provider. Otherwise, your campaign eCPM will be much higher than the CPM. [eCPM means effective cost per thousand impressions. This is the actual cost for the thousand delivered impressions. If you use any first party or third party data then the data cost will be added to the eCPM]

Relevant Category: Choosing the right category of audiences is very important for the digital ad campaign’s success. So, try to choose the relevant categories even if the cost is high. Normally, very rare category cost is higher in all data providers. So, compare the prices across the data providers and choose the more relevant category even with small differences in data cost.

Conclusion

Third party data is very important for expanding your business in the digital world. Many third party data providers are available here to help the businesses. So, choosing the right third party provider for your business is very important for success. My suggestion to choose a third party data provider will help you when you setup the ad campaigns. If you have any additional suggestions, please share them in the comment section.