Things To Know About First Party, Second Party And Third Party Data

First-party, second-party, third-party data

As a marketer, you will agree that when you dig deeper into data, it reveals multiple layers of information. The key is to make the most of your marketing efforts by taking advantage of all the available forms of data about your customers. In this way, you can determine the way you can most effectively target your potential customers.

Customer data can be collected from different sources and are categorized into three categories based on the way it is collected: First-party data, second-party data and third-party data.

1st party data

First-party data is considered the most common and valuable data source because it is collected directly from the people.

It is raw data about those customers who have a direct relationship with your brand, so there is enough room for you to curate personalized messages for enhancing the customer experience. 

First-party data can be either of people who have interacted with you or are your potential customers.


Now there are multiple ways you can collect the data, from both online and offline platforms.

You can assemble inputs from 

1. Website interactions – When a customer lands to your website, let’s say he is spending significant time on a particular product. 

This is the time you can rope in meaningful interactions through messages to understand his needs and providing him solutions, meanwhile gathering his data.

2. Email registration – As soon as a visitor comes to your website, shoot a pop-up for signing up for account creation. 

With this, you have information like his name and email address.

3. Newsletter subscription – To retain customers, you should keep this option for subscribing to newsletters.

Customers who are willing to get instant updates about your brand will provide their email addresses and phone numbers where you can send them information.

4. Online surveys by filling out forms – To engage with your existing customers, you can go for this method.

The benefit is you get to know your customers choices and also see if there phone number is changed or email id is updated.

The data parameters are typically age, gender, demographics, email id, phone number.

Advantages of first-party data

a. Data is of high quality – Since the data comes straight from your customers, it is genuine and unique.

b. Cost effective – For strategizing an ad campaign for a niche audience, you only require to segment the first-party data appropriately, and you are good to have a nicely targeted approach. Moreover, the data collection is free.

c. Reliable – Since you are collecting the data all by yourself, there is no chance of discrepancy.

In short, marketers have a belief that first-party data moulds the core marketing performance, analysis, and ROI of a brand. 

Now coming down to the question, how can you make full use of first-party data? 

Ok, imagine you are a home furnishing retail, and are planning to open a store at a new location.

You will already be having a good amount of first-party data in hand.

This insight will help you identify, segment and analyze the people who are most likely to turn into customers.

There will be no wastage of time and money as you don’t have to guess who your customers are.

One more is you can go for a site re-targeting campaign reaching them through social media or websites.

Let’s say after checking your campaign metrics you have decided to re-iterate it with a new strategy.

It could either be cross-selling or upselling, by utilizing your first-party subscription data to draw in those customers who still did not purchase.

2nd party data

Second-party data is the data that another brand collects about its customers or business. 

It is first-party data to them, that they have gathered by a personal relationship with their customers.

Eventually this data set becomes second-party data to your company when you acquire it from them.


There are two ways you can have the data by partnering with second-party sources.

1. You can partner with a business that offers services complementary to your brand and only take their data. 

2. You can partner with a brand and share your data to theirs, so that you both can mutually benefit from it and become two brands under a single company.

Advantage of second-party data

a. Win-win situation – You get your desired audience from another agency or company who does all the research work for you.

b. Higher accuracy – The precision of second-party data is more since the collection is from a singular source.

c. Escalates your existing data – The data is an exact match to your desired audience. So it elevates your possibilities of better targeting, and you can even predict future customer behaviour.

How to make full use of second-party data? 

The data you are shared by a second-party provider can either be done in a long-term continuous process or a one-time acquisition.

Your requirement is for the enrichment of your own data.

Let’s say you are a headphone seller, so you will have details of customers who have recently bought headphones from you.

In this case if you partner with a mobile seller, you will get information about all customers who have purchased phones from them.

Further you can connect with an advertiser who would help you in sending advertisements to customers with respect to the phones bought.

Tailored messages will give them the opportunity to collaborate with your brand.

Thus leveraging your data with second-party is an added advantage, you get more customers data and your revenue also doubles up.

85% of retailers and brands will integrate second-party data into their overall marketing strategy within twelve months of service.

3rd party data

Coming to third-party data, it mainly consists of data that is purchased by companies who do not have the resources to collect the information on their own.

It is not necessary that the data will comply with the essence of the brand; they are acquired from other places, usually to resell it.


However, the thing you need to pay attention to is, third-party data is not a refined one.

Many times you will not have a clear picture of its source.

Additionally, since this data is available to anyone who can purchase data, the chances are high that other brands or your competitors have already used it for campaigning.

Advantage of third-party data

a. Less time consuming – Your brand can enjoy the benefits in no time because these data are generally purchased in bulk.

Now coming down to the question, how can you make full use of third-party data? 

You can go for third-party targeting as here you will have a more considerable base of a target audience.

Third-party data is aggregated from a variety of platforms and then stored in a third-party data provider such as a DMP. 

By aggregating this data, DMPs can have single customer views to build unique audience profiles or customer personas.


The road to better marketing is paved by better data.

Remember, every piece of data that a brand possesses is a crucial component in all phases of business.

It doesn’t matter if you want to nurture leads or boost revenue.

The smarter the use of data, the more it adds extra value to the business.

Your job as a marketer is to take the right decision in choosing the correct data to make sure you are in the running.

So, it boils down to the fact that if you want to reach out to more customers, you need to have a comprehensive understanding of first, second and third party data. 

About Sreejani

Sreejani is a biotechnologist by education. She prioritizes in pushing her limits in the online era with her remarkable rationality. An ardent disciple of contemplation and believer of efficacy while writing. Presently she is tweaking her grey cells emphasizing in content marketing and is eventually mutating into a digital nomad. Is enthusiastic about traveling, as nature gives her positive stimuli.

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