You may have already read about First-Party Data, and the benefits it can bring to your business. Now we’re going to take a look at what Second-Party data is, where it comes from, and how it is different from other kinds of data.
What is Second-Party Data?
Second-party data is essentially someone else’s first party data that you are accessing directly from that source. There is no data aggregator or other “middleman” in the exchange of second-party data. Through a direct relationship with the owner of the first-party data, you are able to define exactly what data is being bought or sold, the price of the data, and any other commercial terms you may require.
The possibilities with second-party data are endless, and the direct relationships you forge buying and selling second party data can benefit you and your business well into the future.
Second-Party data allows marketers to have the ball in their court. They can choose the data sources they feel are most relevant to their campaign optimization, filtering out all the unnecessary data. By cutting out the middle man, marketers can go directly to companies that they know will have the most important or high-quality data and ask to form a partnership and share. This is where you can take data marketing to a place that is not only unique, but extremely efficient. What second-party data may lack in “scale”, it makes up for with precision, and sometimes, that precision can go very far.
Rather than buying a third-party data segment of “moms” from a data aggregator, you can go directly to the publisher of a parents’ magazine to negotiate a deal with them. If their readers are the people you are looking for, you can go directly to the source and access this data in a private marketplace environment for full control.
Company X wants to take advantage of the data that they have (their First-Party Data), because essentially, this data sets them apart from the rest. They know that their First-Party data is valuable and in demand. In addition to running certain campaigns, they have decided that they want to monetize (sell) their data. One of the easiest ways to do that while maintaining complete control over every aspect of the data transaction is to leverage a private data marketplace such as Lotame Syndicate (Lotame’s proprietary 2nd party data sharing solution, available to all of our DMP clients) to sell their valuable data directly to data buyers.
Company X chooses the audiences they want to sell, determines the price they want to sell them at, and approves the buyers on a case by case basis. Company X ultimately retains full control of their data, without the worry of their data being stolen.
In a second example, a clothing store purchased a list of email addresses directly from a popular nearby shoe store at a price both stores agreed upon. In this transaction, the clothing store gains access to potential customers “in market” for fashion items, they agree upon the scope of the data, and the price.
By transacting directly, the data exchange remains fully transparent to both parties: the shoe store (the seller) can be confident the data will not be mismanaged and the clothing store (the buyer) can be confident the data is accurate and coming from a verified source.
Best of all, these two entities have now established a relationship to further support their future marketing and customer acquisition efforts.
Leveraging Second-Party Data allows marketers to monetize data in an efficient, safe way. Second-Party data creates a marketing-friendly ecosystem, where data is unique, relationships are built, and quality is never an issue.
Transparency is key, and with Lotame Syndicate as an option, your possibilities (as a marketer/publisher) are endless. Lotame Syndicate is a solution that powers the seamless and safe exchange of first-party data between participating Lotame clients. With Lotame Syndicate, you can create a private data marketplace that gives you access to a rich new source of second-party data. This gives you access to audience insights not available to your competitors, and in a market as competitive as digital advertising, every advantage is worth taking.
Want to learn more about Lotame Syndicate, Lotame’s proprietary data-sharing solution? Please feel free to reach out to us for any questions or comments.