Data are generally divided into Zero, First, Second and Third party data. These terms are often used in relation to market evolutions driven by both privacy legislation and changes in consumer attitudes towards their personal data. Zero and First Party Data are clearly gaining in importance, but sometimes your own data is not enough to efficiently achieve your business or marketing objectives. And then you can rely on Second or Third Party Data.
But what exactly is Second Party Data and how can you use it to your advantage?
Second Party Data - creating value through partner data
Non-competitors in a particular industry or companies that target customers with similar characteristics, can work together to create insights and marketing opportunities. They can exchange information, or one party can make its (digital) data available to another for use in a digital strategy.
There are many uses for sharing data with/from a partner:
- lead generation
- creation of a data ecosystem
- enrichment and profiling as extra power for AI-driven personalization, for example
You can ask a neutral party to bring both datasets together (hashed, completely anonymous or readable). Once the overlap between your datasets is known, this neutral party can work out the analysis, insights and data activation for you in function of the agreements you want to make with your partner, always paying attention to the GDPR context.
Third Party Data - 'data market places' as support for lead generation
The possibilities of Third Party Data have become more limited with the advent of GDPR. Data brokers (offering contact data and enrichments) are being replaced by 'data market places'. These market places deliver quality data, quickly and transparently, with verifiable protection of consumer privacy.
This way, companies will still be able to enrich their data (with socio-demographic, geographic or behavioral data), based on specific datasets, to better understand and personally target customers.
Third Party data reference files for data quality
In the context of data quality, Third Party Data reference files still play a major role, as indispensable support for data standardization, matching, validation, identification and the creation of a “single customer view”. Learn more