As a digital advertiser looking to improve campaigns and maximize effectiveness of ad networks, you probably spend a great deal of time utilizing DSP solutions to help you simplify the ad buying process.
Your DSP interacts with a DMP, which is just another acronym for a technological platform that aggregates all the data and tells your DSP which media buy is the best option. What you may not know is what the difference between the 1st, 2nd and 3rd party data that your DMP presents, and how that impacts the effectiveness of your campaign.
Luckily we’re here for you!
The best way to think about the different data the DMP aggregates is by thinking of the game telephone (where one person says something and it is whispered throughout the ‘phone lines’ to see what you get at the end). The more you go down the line, the less reliable the information is.
First Party Data: This is the first person hearing the sentence on broken telephone. First party data is based on information taken directly from your site visitors and customers, conveyed through pixels, cookies etc. It is the most accurate and most powerful way to understand your client’s behavior.
Second Party Data: This is the second person in line on the game of broken telephone; the information might be relevant, but it might be wrong.. Why? Because second party data is derived from the first party data of a similar company and the belief that their data is relevant to yours.
Third Party Data: This is everyone else in the game of broken telephone; they may know what’s going on, but chances are they are so far out there it will be ineffective to rely on it. Third party data is everything that isn’t first or second party data and, as one may assume, it is an overwhelming amount of information that may or may not be relevant for your brand.
What is the best data? Of course first party data is most accurate, but there are ways to utilize programmatic tools in order to cross reference 1st and 3rd party data and target your campaigns more effectively.
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