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Data Collection is one of the colossal drivers of marketing campaigns today. It can be sourced from First/Second/Third Party audiences making it a valuable asset for the companies to target their ads and highly benefit from it too.

First party data is defined as data which your company has collected directly from your audience made up of customers, site visitors, and social media followers. “First party” refers to the data collected firsthand to use for re-targeting, is cost effective, and as a marketer you own the data outright. Any company not making use of this valuable resource is basically leaving money on the table. It includes subscription/Social/Behavioural/customer feedback on surveys/CRM data systems and it is the most accurate, crucial, relevant for monetisation of your business.

How Can Marketers Use 1st Party Data?

First-Party data is highly valuable because of its quality allows you to predict future patterns about customers interest, personalize the ads they would prefer to watch, promote videos on different subjects and by leveraging data on their past purchases. This strategy has been a key player in Amazon’s profound success: their personalised recommendations of books and other products are a first-data perfect examples.


Second-Party data is much similar to first-party, but it comes from a source other than your own audience i.e. it is sourced from trusted people who are keen to share their customer data and maintain beneficial partnerships on a mutual business agreement. It also plays a major role in customer customisation and hyper-targeting. It could be the data sourced from activity on websites, mobile app usage, social media etc.


This kind of data provides a list of potential customers other than the first-party audiences which gives scope for extending newer customers. It is more accurate and value to your CRM data. The easiest way to find a seller or buyer is through a second party data marketplace where the connection happens and the transaction takes place.

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How can marketers use the 2nd Party Data?

There are many ways that the marketers use up the second data as they are more accurate to gain potential customers for your brand. It also helps the firms to increase the data scale, extend customer reach, predict behaviour, audience re-targeting and to derive more perspective from user profiles.


Third-Party Data is the information collected by an entity which does not have a direct relationship, gathered via a variety of websites/platforms and aggregated together by a third-party data provider.

These Data Management Platforms are able to create comprehensive audience profiles on the basis of web interactions and can distinguish users into different segments.


Providers sell this aggregated information to advertisers to facilitate ad buys. This happens rapidly on a large scale. Large volume and wider scope are the primary benefits of this data. collected primarily by using cookies, the risk is that the data is nor exclusive and the original source is never known.

How marketers use the third-Party Data?

As the third party data is often segregated, targeted campaigns can be run precisely using behavioural data, or with the information you could connect to a broader audience and increase your reach opening up ample opportunities. It becomes very powerful when you combine with the first-data the company has. This combination enables you to connect all the three types of data which helps the company to reach out to newer audiences and helps to optimize the targeting. The buyers must be aware of who their data provider is and whether their information collected is from declared/inferred/or observed sources.

Marketers have been using these three type of data to power their marketing campaigns, but there is a new kind of data called as zero-party data which is making it easier for them. Zero-Party Data is the data in which the customer willingly shares details about his intent, needs, interests, preferences and gives the brands to process this sensitive data to devise highly personalized campaigns that resonates well with their audiences.

Zero party data gives the marketers an opportunity to collect actionable, valuable, and ethically gathered information. Victoria Secret gets this data which they use it to further improve its communications and customer experiences. Another way to get this information is by using social media, Polls, surveys, engaging posts etc. Transparency while using this data helps generate trust in your business and helps reinforce their decision to share their data with you. Letting them to change their data after their preferences have changed also goes a long way into building relationships.

The easiest way to start using the zero party data is to start personalising the newsletters, marketing emails, or curating a page for customers to see when they visit your site, based on the information they have given you. It helps u to create a complex workflow with the right set of tools. It can speed up product identification, customer satisfaction, increase in average order values, less time between repeat purchases and lower cart abandonment rates.

Re-targeting and Look-alike Audience

Perfect Audience gives the option to the agencies to re-target customers who have never been to your website, expanding and exposing you to more potential prospects. The term look-alike has been coined by Facebook to describe a group of customers who resemble your users or visitors, that are likely to be interested in your ad content leading to higher conversions and reduction in lead acquisition costs. Since Facebook has your data, an algorithm helps to create a look-alike audience with the help of identifiers. This is the powerful way of increasing the efficiency of your marketing.

The demographic and behavioural data points of users who complete a transaction takes it to the purchase confirmation page and gets loaded into a centralised platform. This can further be analysed to identify patterns which are most common among users who buy your product. AI tools help to give us an accurate analysis using pre-configured algorithms.


To overcome the demerits of the various types of data, one should opt for combination of the data generated for both precision and scale. It is very vital that the data used for effective targeting is secure and comes from trusted data providers. So the ideal strategy for an agency should be to define their marketing goals, and to make new customers or to engage with a loyal customer base.
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