Data in all its glory - 1st, 2nd and 3rd party data
A data management platform (DMP) pulls information from three sources of data -- first party, second party and third party. This data is necessary to provide businesses with the information they need to in order to identify the audiences that drive their marketing strategy. By successfully implementing a DMP in New Zealand, for example, a business can then develop a core set of data to draw from when developing their strategy. Not surprisingly, it's important to know the types of data that are gathered for use in a DMP.
First-party data is that information that is captured by a particular company. Some examples of how this data might be obtained include specific internet behaviours, offline data that comes from the management of the relationship with a consumer and onsite analytics. This type of data enables a NZ business to establish a baseline about their audience.
Second-party data is the information that is captured by a partner company. By establishing connections with existing companies that provide complementary services to NZ consumers, a business can often easily access the data that is collected. Second-party data tends to be more unique and well defined because it's customised to the consumers that the partner companies are trying to tap.
Using first-party data to establish a consumer base and expanding the understanding of that audience by using second-party data provides a business with the ability to find demographic gaps and other missing information that could limit their understanding of their customer base.
Third-party data is typically obtained by businesses who then sell the information to other businesses. Valuable to businesses that are trying fill in the gaps left by first- and second-party data, this type of information can be derived from nearly any source. It's useful, for example, for those businesses who are attempting to find brand-new customers who haven't made purchases or shared their information with them or their partners.
A caveat about third-party data that all NZ businesses must keep in mind is that the information might not be as reliable as the other two types. Regardless of this, using a combination of first-party, second-party and third-party data provides a rich source of consumer information.