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Is Data Collaboration Right for Your Business? Explore the Benefits

We don’t need to tell you first-party data is gold. Digital marketers know that by now. But while some brands and publishers have succeeded in gathering valuable email addresses and mobile IDs, many struggle with scaling and enriching their authenticated user data. This challenge often pushes businesses towards the walled gardens of social media and retail platforms. However, the benefits of data collaboration present a broader horizon worth exploring.

Understanding the Benefits of Data Collaboration

First-party data, though valuable, often lacks the scale and detail needed for comprehensive audience targeting. To fully realize the benefits of data collaboration, businesses need to look beyond their CRM systems and tap into a wider data universe: campaign data, website and app visitation data, panel data, second-party data from collaborations, and third-party data from marketplaces. This broader approach unlocks new opportunities and insights otherwise inaccessible.

By utilizing smart sampling and AI-driven modeling, seemingly disconnected data fragments can be transformed into valuable insights and audiences. These insights can then fuel partnerships that transcend the boundaries of your CRM and even your business.

The New Data Ecosystem: Breaking Down Barriers

Before AI took center stage in marketing, data clean rooms were praised for their secure data sharing and audience overlap identification capabilities. They offered a solution to the gaps left by the decline of third-party cookies and increasing privacy regulations. However, their utility seemed limited to businesses with large datasets of authenticated emails.

Today, clean rooms are part of a growing data collaboration ecosystem. Emerging platforms are designed to maximize the variety of data that can be onboarded, analyzed, and securely shared. The benefits of data collaboration extend far beyond large email or mobile ID databases.

Contrary to popular belief, businesses lacking extensive email or mobile ID databases stand to gain the most from data collaboration. Consider a local news publisher: unlike national publications with extensive user bases driving email sign-ups and subscriptions, local publishers prioritize accessibility and often avoid content paywalls. While they may have some authenticated emails, the volume is usually insufficient for valuable commercial partnerships.

Unlocking the Full Potential of Data Collaboration

Valuable data extends beyond email addresses. Anonymous site engagement and geolocation data, for instance, can uncover the interests of specific audiences in particular locations, regardless of login status. This is one of the key benefits of data collaboration.

For example, by analyzing how topics related to prospective home buyers—like local sports guides or community activities—perform in various towns, publishers can create tailored advertising products for real estate companies. These companies, often struggling to grow their first-party audiences, would find partnerships with local publishers revealing exclusive prospecting opportunities extremely beneficial.

Data collection isn’t limited to site usage. Local news readers, often highly engaged and trusting, are likely to respond to anonymous surveys, providing rich consumer preference data, from preferred car models to income brackets. This further illustrates the benefits of data collaboration.

Strategic Advantages of Data Collaboration

For the real estate company in this scenario, data collaboration offers numerous opportunities. Unlike data from walled gardens, the second-party data generated through collaborations is unique and proprietary, allowing brands to influence publishers’ strategies to align with their objectives.

Collaborating with businesses that possess strong subject matter expertise but operate in different industries offers access to exclusive audiences. For instance, an auto dealer can provide insights into trending car sales in specific areas, which can inform marketing strategies for a real estate company.

Panel data from national measurement bodies can offer insights into audience composition through simple tagging, and even small datasets of emails or mobile IDs can be modeled probabilistically and linked to universal identifiers to uncover off-site activities. These are significant benefits of data collaboration that can enhance marketing effectiveness.

Implementing Data Collaboration in Your Business

  1. Compile Your Data: To start with data collaboration, assess the data you currently possess. Look beyond just emails and mobile IDs. Identify anonymous engagement data, geolocation data, and any other user interactions that could provide insights into audience behavior. Consider conducting surveys to gather additional preference data.
  2. Find Your Partner: Next, seek out potential partners who can complement your data with their own. These could be businesses in related industries or those with strong subject matter expertise. For example, if you’re a real estate company, partnering with an auto dealer or a local news publisher could provide valuable audience insights.
  3. Invest in Your Platform: Just as you’d partner with experts, invest in a robust data collaboration platform. This becomes your central hub for collecting, analyzing, and sharing insights in a secure, privacy-compliant way. Look for a platform that can handle ID-agnostic data (meaning it doesn’t rely on personally identifiable information) and offers tools for in-depth analysis.

Finally, continuously monitor and refine your data collaboration use cases. Analyze the results of your partnerships and adjust your approach based on what works best. The goal is to create a dynamic and adaptable data ecosystem that evolves with your business needs.

The Future of Data Collaboration

The benefits of data collaboration offer a powerful solution to the limitations of first-party data. By expanding your data sources and partnering with other businesses, you can unlock new insights and opportunities that drive growth and innovation. Embracing a collaborative approach to data management not only enhances your marketing strategies but also positions your business for long-term success in an increasingly data-driven world.

Invest in the right platforms, seek out strategic partnerships, and continuously innovate your data strategies to stay competitive and create a more interconnected and collaborative data ecosystem.

Learn more about Lotame’s end-to-end data collaboration Spherical, and how it can help you onboard, connect, enrich, and activate data — whether you have it or need it — to better understand and engage consumers. Contact us today!