In a world where many rely on third-party data to add scale or enrich their first-party data, second-party data offers a new opportunity for differentiation. While everyone has access to third-party data in the open data marketplace, second-party data is a special members-only offering that can add a new layer of differentiation in an otherwise very crowded data marketplace.
Lotame has created a guide to success with second-party data to help you understand the benefits of 2nd-party data, all the many business use cases available, and some pro-tips to help you make the most. Whether you have amazing data to sell, but only want to share it with specific companies, or you are a marketer looking to reach a niche audience that only specific publishers have access to, second-party data just may be the solutions.
To really understand what second-party data is, you also need to understand the definitions of first- and third-party data.
First-party data is YOUR data. You own it, and have collected it directly from your customers. First-party data comes in many shapes and sizes, and across any media, including anonymous website data, mobile data, CRM data, social, search, and beyond. This is the highest quality data, as it is about your customers and has been gathered directly from the source.
Third-party data is someone else’s first-party data that you have purchased through an exchange. When your first-party data doesn’t fulfill a campaign, third-party data helps you fill in the gaps and scale your audiences. No matter what type of audience you are building, or whatever specific behavior you are looking for, there is likely a company that sells exactly that type of data. You can purchase third-party data directly from many different platforms and exchanges, including the Lotame Data Exchange.
Second-party data is the new kid on the block, and is a new way of buying first-party data directly from another company. It doesn’t go through an exchange, and isn’t aggregated from a variety of sources. It’s a little bit more exclusive – you have to have a specific relationship with the other party in order to get that data.
So glad you asked! Lotame Syndicate is our second-party data product, connecting both Lotame DMP clients and non-DMP clients alike to share second-party data. This data syndication can take place in one of two ways: Syndicate:Direct and Syndicate:DMP.
Syndicate:DMP is the DMP-DMP solution, available to any 2 Lotame DMP clients. Since our DMP clients already have their data aggregated inside our platform, the data exchange is very simple. You agree on the terms and conditions of the sale, and Lotame makes the connection. Then the data can be ported to whatever media activation channel you normally use.
Syndicate:Direct is another alternative for DMP clients who wish to sell their second-party data to a company who is not a Lotame client. Instead of transferring the data inside the DMP, your data can be sent directly to DSPs such as Google or TubeMogul for instant activation.
Tips for Success with Second-Party Data
Well, if you want those, you’ll have to download the guide. Fill out the form below and access all our tips and tricks.