Why is third-party data so important for marketers?

Q: Why is third-party data so important for marketers?

A: Third-party data is so important for marketers because it gives them information they can use to reach a wider field of users without direct interaction. Third-party data allows marketers to create a more targeted and personalized experience across the internet, leading to more conversions.

Where third-party data comes from

Third-party data is collected by an aggregator, not with direct consent from one of your customers. The fact that the data is collected and stored on a separate domain and server gives the data its third-party designation.

Where marketers get third-party data

Marketers purchase third-party data from demand-side platforms like Facebook Ads Manager, Media Math, LiveRamp, and the like, or from an advertising data management platform (DMP), depending on the tactics they plan to use. Many marketers use both demand-side platforms and DMPs.

Limitations of third-party data

Because it is taken at the aggregate level, third-party data is by nature opaque and less complete than data you collect directly from a person with consent. For this reason, third-party data is not well suited for targeting at the individual level. Instead, it is used to find groups that match certain criteria or have similar behaviors.

What third-party data can do for marketers

By narrowing down the vast field of internet users to only those that match a given set of criteria — such as location, demographics, or interests — marketers can target their material to people who are most likely to be interested and can retarget ads to follow user groups across the internet. This approach often leads to more visibility with the right audience, and more conversions, than generic approaches.

When third-party data is so important for marketers, how can your team plan for a new strategy before Google phases cookies out completely?
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