Certain keywords such as Data- gathering and analyzing, customer privacy has helped many marketers understand the onset of change in the field of digital marketing. With EU privacy laws tightening the loose ends giants such as Google, Facebook have always been on the run to revamp their privacy laws. This change has made every publisher, marketer to publicly show information about cookie policies and what kind of data is gathered and how it is used, but only some would want to read this policy, from a user point [DO READ THIS POLICY].
One of the solutions is – First party data.
What is First party data?
Data is divided in 3 buckets: first party, second party and third-party data.
First Party Data(FPD) – Data collected by the advertisers, publishers or marketers directly from the user i.e. either through mails, subscriptions or newsletters, website interaction with cookies, surveys, CRM, customer feedback.
FPD is the valuable data set that any company can collect and leverage. Companies can use it to learn about the users behavior, what kind of advertisements they prefer, how frequently do they interact with the publisher, how much time they spent on each page, what is there social interaction behavior etc, all this information when gathered and carefully analyzed will help the marketers come up with new and innovative formats of advertising.
Second party Data (SPD) – First party data sold in a private marketing place and purchased directly from the source.
Third Party Data: This is the aggregate of data sold and bought from various data exchanges and data providers.
Why to use First party data?
According to Nielsen data research, the attention span for any user is not more than 5 to 10 Secs. In reality, advertisers across the globe are coming up with innovative advertising techniques to capture the 10 sec window.
Tier 1 marketing giants such as Google, FB and Amazon have already established themselves in the market i.e. irrespective of the seasonality users will interact with their webpages. For Tier 2 and 3 , First party data works as a cash cow.
How to collect First party Data(FPD)?
Below are few key elements whilst collecting FPD:
- Enable pixel of your webpage.
- Integrate with DMP
- Create one universal pixel
- Integrate with vendors to use second party data as first party data.
Enable pixel on the webpage: Assume that from home page till the thank you page there are 5 pages: Homepage>product search page>product page> add to cart> Thank you page. When a pixel is put on each category of webpage, the advertiser has successfully created 5 audience sets.
[Audience Set 1]: Those who visited the home page
[Audience Set 2]: Those who search for the correct product.
[Audience Set 3]: Those who are reviewing the product page
[Audience Set 4]: Those who are on the add to cart page
[Audience Set 5]: Those who are viewing the thank you page.
Note: How many pages are there in the advertiser’s website determines the number of audiences sets
Integrate with DMP:
Assume that there are more than 20 pages, creating 20 different pixels and pasting them on each page can be difficult. DMP offers solutions for such cases:
- With a DMP marketers can create a single pixel and piggyback how many pixels they wish under this one pixel.
- Use inbuilt analytics tools in DMP to segregate audience data.
- Use this segregation to create similar audience
Create one universal pixel:
In the case of Universal pixels or global site tags users can add this one pixel across the webpages and later segregate the same in their tool. This is the basis of FB and Google ads to collect first party data.
Integrate with vendors to use second party data as first party data.
For those advertisers who are new in the market and didn’t record any site activity so far, second party data is the key, as this will fill out the gap and also gives the advertisers time to collect first party data. This in turn will help to build relationships between the marketers.
“Oil used to be a billion-dollar industry until the early 20’s , but the 20th century is ruled by data. “