What is Third Party Data ?
Third Party Data is a type of data collected for marketing and advertising purposes. Unlike First Party Data, where the information is collected directly from the source, and second party data where businesses can buy First Party Data from other companies, Third Party Data is bought from data aggregators who are not the original owners of the data.
Data aggregators typically buy data from publishers in high volume, and sell them to all companies, marketers or advertisers interested in them. This means that the data isn’t unique and doesn’t have the ability of increasing competitive advantage, unlike First Party Data or Second Party Date where data is either directly collected from the source or directly bought from companies who collect their own data.
Third Party Data is often collected from multiple sources and divided based on demographics and behaviors. It’s sold programmatically via a DSP.
While not as accurate as First Party Data and Second Party Data, Third Party Data can be used to improve the reach of First Party Data and increase its scale. Additionally, marketers and advertisers can reach new audiences and understand their behavior at a large scale, as well as narrow their focus and improve their targeting.
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