Digital marketers and advertisers have been using first-party and third-party data for some time. While second-party data is not new, it hasn’t been as readily available for marketers as other types of targeting data. In today’s crowded marketplace, if you haven’t already considered second-party data to amplify and boost the performance of your digital advertising, it’s worth testing. Before heading into a deep-dive on second-party data, it is important that we understand the difference between the three.
First-Party Data: This is the data on your own customers, such as how they interact with your website or what they enter into your online forms. Your Adobe Analytics or Google Analytics houses your first-party data. Typically, you use this data for remarketing. For example, avisitor looks at a company’s insurance page, but doesn’t do a quote; that company can remarket to this user and serve them ads for auto insurance on their Facebook feed or on other websites they visit in order to bring them back to complete a quote.
A solid understanding of your first party-data is imperative because without it, you will likely be unable to identify audiences that would present positive return on paid advertising.
Third-Party Data: This is information purchased or acquired from vendors or aggregators who collect data from different industries, either directly or indirectly. For example,an insurance company is looking to target a certain profile (for instance, male age 35-50) who live in Ontario with a household income of $100K+. They could buy third-party data of this type of segment to find customers like this and layer it onto their digital marketing tactics.
The use of third-party data, however, is becoming less popular among advertisers mainly because of the poor results achieved and the lack of information about how the data was acquired or how to qualify it.
Second-Party Data: This data is best described as a data agreement between you and a trusted company. Second-party data is actually another company’s first-party data that can be used by the advertiser to better target their marketing spend. An insurance company using second-party data from a car dealership, for example, may want to know which car models customers purchased and would, therefore, need insurance for that car.The insurance advertiser would be able to serve tailored creative to those consumers offering them insurance quotes on their specific vehicle.
Advantages of using second-party data:
Unlike third-party data, which is high-level and gives an overall aggregated preference of the audience, second-party data can deliver an audience more advanced in the buying journey and, therefore, promises a higher intent to purchase. For example, a sportswear company buying data on customers who purchase baseball tickets are more likely to find those customers interested in buying their favourite team wear.
Within our industry, when a potential insurance seeker visits Kanetix.ca and starts an auto insurance quote but leaves part way through the process, this customer is anonymously segmented into an audience with visitors who exhibited similar behaviour, called ‘auto insurance intenders’. This audience can then be made available to insurance advertisers looking to acquire new auto insurance customers and can be layered on to that advertiser’s digital marketing tactics.
While third-party data is widely accessible, second-party data is acquired through trusted relationships. Kanetix Ltd.’s suite of search and compare websites attract 8 million customers a year who are researching financial products and quoting for their insurance needs. Consider how access to our data, from insurance to banking, could amplify your audience needs.
How to leverage Kanetix Ltd.’s second-party data solutions to boost your ROI:
- Target high intent shoppers for your products.Reach shoppers for your products including: auto, property, travel, life or commercial insurance, credit cards, mortgages, investment products and day-to-day banking.
- Pinpoint the audiences that fit your targeting strategy.With a wealth of data across our family of search and compare insurance and financial comparison sites, we’ll customize audiences to suit your campaign objectives and provide the best return.
- Test and learn which segments are right for your campaigns.Let us work with you to ensure the return on your investment makes sense, optimizing the segmentation strategy to improve your results.
Including second-party data as part of your audience strategy is a must for digital advertisers looking to precisely target high intent customers and improve ROI in today’s crowded data marketplace.If you’re looking to better identify and target insurance or personal finance customers, we can help.
About the author:
Kole is the Manager, Digital Strategy at Kanetix Ltd. He’s a digital native with over 7 years professional experience in digital marketing and has worked with thousands of Canadian companies to help them get better returns on their digital marketing. Former clients & employers include major players in: Telecommunications (eg. Bell + Rogers), security tech, trend breaking startups (Aquamobile, as seen in Dragon’s Den!), publications, online stores, major affiliates and more.