November 20, 2017
Have you joined the party yet? We’re talking about 2nd-party data, and if you haven’t yet explored this powerful source of high-quality, niche data at scale, now is the time to get educated!
Why is second-party data so important? Well, we at Lotame feel that second-party data is the future of scalable data targeting. As a marketer, there is never going to be enough first-party data, no matter how big you are. So you are left with the need to find additional sources of data.
First, let’s start with a definition of 2nd party data.
What is Second-Party Data?
Second-party data is essentially another company’s first-party data that is sold directly from the source. Rather than a company gathering this data and aggregating it to sell it programmatically on the open data marketplace (where it is combined with data from other companies), second-party data is sold in specific 1:1 transactions between sellers. This means you understand where the data is coming from and how reliable it is from the beginning.
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2nd-Party Data Benefits for Data Buyers
So why exactly is second party data so great? Quality, transparency, flexibility, scale….so many reasons. Let’s dig into the benefits of 2nd-party data below:
- Endless Activation Channels: With Lotame Syndicate, 2nd Party data is just as flexible as 1st and 3rd-party data, and can be exported to the DSP of your choice. (We’ll get into the specifics below in Syndicate:DMP vs Syndicate:Direct.)
- Data Transparency for Increased Brand Safety: Data quality being top-of-mind, 2nd party data offers an increased level of transparency. Why? Because buying 2nd party data means buying data directly from the seller, rather than going through a third-party data exchange. This means you can have clarity into the source of the data, how it was collected, and what it is best used for. This means no more guessing if the data segments are accurate or will improve your campaign performance.
- Quality & Niche Audiences at Scale: 3rd party data is great for filling in the gaps of your big data-driven marketing campaigns, if you (like most marketers) are missing 1st-party data. But given the challenges with data quality mentioned in the bullet above, 2nd-party data is a great option for high-quality and niche audiences at scale. Rather than relying on 3rd party data to fill in the gaps, you can go directly to specific publishers who might already reach your target audience and access that high-quality data directly from the source.
- Direct Relationships with Data Sellers: The beauty of 2nd-party data is that it relies on direct relationships between buyers and sellers. (Don’t worry: this doesn’t mean you need to already have relationships with these people. Lotame will help make these connections.) So while you are exploring second-party data options, you can build your network and create stronger relationships with the companies you are looking to connect with.
2nd Party Data Challenges for Data Buyers
Second-party data is great, but it also comes with a few challenges that we should mention. Here are some of the hesitations we’ve heard from data buyer regarding 2nd-party data.
- Quality at scale: For a huge marketer like P&G spending millions of dollars on targeted advertising, second party data is a great high-quality option, but it does have limitations when compared to third-party data. Large marketers will likely still need to supplement 2nd party data with third-party data to fulfill data-driven campaigns, but that doesn’t mean you should avoid this high-quality option altogether.
- Access to data sellers: Some marketers think making connections with quality providers to find new and niche audiences can be challenging. For 2nd-party data buyers who work with Lotame, we are here to help! Our data team is available to connect you with data sellers and point you in the right direction. We have close relationships with all of our data sellers, so we know what data is available and which segments might work best for you.
- Price: Because 2nd-party data is more exclusive and sold directly from the source, the price may be slightly higher than what you are used to paying for 3rd-party data. Your company will need to evaluate where your priorities lay and what your budget may be for your data buys.
Syndicate:DMP vs Syndicate:Direct
There are two “flavors” of Lotame Syndicate, which is Lotame’s 2nd-party data marketplace offering. We have two options to give even greater flexibility and options for your buying and targeting needs.
- Syndicate:DMP is available to all Lotame DMP users. The buyer can export data to any of their activation channels. You can sell 1st party/custom segments.
- Syndicate:Direct means anyone with a DSP account can access your data (if you want them to!) Your data is accessible via the buyers DSP seat across Google, Tubemogul, Appnexus, MediaMath & TradeDesk.
The Lotame Difference
Why is Lotame’s product unique and different from our competitors? So glad you asked! We think there are 3 differences between Lotame and other 2nd-party data marketplaces.
- Relationships with Premium Publishers: Lotame has relationships with many premium publishers which means many sources of amazing high-quality data at your fingertips!
- Superior Technology: Lotame Syndicate is completely automated and self-service, and Lotame handles all billing & payout, taking the heavy lifting off of your team. In addition, audiences are available in REAL-TIME (unlike some of our competitors who require up to 5 days for audiences to be made available).
- Data Sales Experience: Lotame’s Data Team has years of experience pricing, evaluating, and selling data, and they are ready to share this experience with you! Not sure where to start or where to look for the best data? Our data team is happy to help talk you through your options to make sure your campaigns are successful.
Ready to get started? The Lotame Data team would love to chat with you about second-party data, give you a demo, or talk about what data options are available to you. Contact us to set up a time to talk.
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Or, if you’d like more information on 2nd party data, check out our Guide to Success with 2nd party data to learn more about buying and selling second party data in a private data marketplace.