Data in Digital Advertising
Data is constantly transmitted via websites, mobile phones, social media, smart devices, and wearables. It is critical to understand the nature of the data as it provides business professionals with insights that lead to competitive advantages.
Sources of data
There are three sources of digital marketing data known as data parties.
Who Owns It?
1st party data is created and collected by the advertiser or publisher. 2nd Party data IS OWNED BY A SOURCE BUT SHARED DIRECTLY WITH ANOTHER PARTY Through EXCLUSIVE AGREEMENTS.
3RD PARTY DATA IS OWNED BY A SOURCE AND SHARED WITH OUTSIDE PARTNERS.
How Is It Collected?
1ST PARTY DATA IS collected via pixels on advertiser’s or publisher’s site. This can include site registrations/ logins, social media interactions, and participation in surveys.
2ND & 3RD PARTY DATA IS COLLECTED THE SAME WAY AS THE 1ST PARTY DATA, However one is shared with exclusive partners and the other is shared with outside partners.
How Is It Used?
1ST & 2ND PARTY DATA IS Primarily used for direct targeting, such as remarketing or retargeting.
3RD PARTY DATA is usually used for audience measurement.
Advantages
1ST PARTY DATA IS Closest to the source, with little or no latency between collection and analysis/ action. 2ND PARTY DATA PROVIDES A Competitive advantage over 3RD PARTY DATA because of the exclusive nature. 3RD PARTY DATA IS Easy to acquire because it’s collected by many parties and readily available for purchase in the marketplace.
| Nature of Data | Description |
| Profile Data | Data about users and the audience segments they belong to. For example males, females, age groups, purchasing habits, incomes, household metrics, etc. |
| CRM Data | Data that brands usually store in customer relationship management software systems when customers directly interact with them. For example, purchasing or registering a product. |
| Environmental Data | Data about the environment user is in can be determined in real-time and used to deliver tailored messaging. For example, local weather, temperature, geographic location, time of day, or day of the week (e.g., TGIF, go home and have a Bud). |
| Real-Time Events | Events occurring in real-time can be triggers. For example, sporting events (e.g., Super Bowl, U.S. Open), entertainment events (e.g., Grammys). |
| Social Media Data | Data about users’ actions within social media as well as the style or fashion trends, news, and topics being discussed can be triggers. |
| Site/Cookie Data | First-party cookies on consumer websites for product-based retargeting. |
| Search Data | Data obtained when users search for items or interests. |
| Contextual Data | Data about where an ad is being viewed. For example, what section of the website. |
This short concept sample was created by Dr. Manveer Mann & Graduate Assistant Cristian Ramirez. Got questions about our Digital Marketing Certificate? Feel free to message them at [email protected].