What’s 1st Party Private Data Exchange and Why Should Marketers Care

The FPD is the customers' information that a company collects from its own sources (both online and offline) — like website of the firm, app, social media sites, CRM, or surveys. Consumers’ demography, interests, visited websites and interactions, time spent on the website, purchase history, and other such information are part of FPD, explains, Sunish Kumar, Founder, UTM.

Millennial often say — online is where the people are. But the phrase is certainly fitting for people across ages today. A huge majority, especially in the cities (tier I and tier II), spends so much time online that it can be considered their second job. 

According a recent survey conducted in a metro city, 64% of consumers admitted that they bought a product after being influenced by online advertising. The finding yet again highlights that digital advertising is not just a trend and is here to stay. This advertising method exploits the mass reach of trusted platforms like Facebook, YouTube, Google, and others.

If done right, digital advertising can help entrepreneur turnaround business revenues. However, several businesses still do not ponder over the crucial aspects of their digital marketing strategy. One such aspect is — first-party data (FPD).

Learn More: Advancing Data Privacy: A Collaborative Approach to Better Regulations 

What Is First-Party Data?

The FPD is the customers' information that a company collects from its own sources (both online and offline) — like website of the firm, app, social media sites, CRM, or surveys. Consumers’ demography, interests, visited websites and interactions, time spent on website, purchase history, and other such information are part of FPD. 

Gathering FPD is not an arduous task as one can track virtually every step the customer makes on your website. The best part of FPD is that it can be collected by the company for free and the firm which owns the data has all needed customers’ consents. 

Why Should Marketers Care About FPD?

FPD is important for marketers as it gives insights to a company about its users. It helps an entrepreneur collect high-quality data and ensures that all the privacy rules are complied with. Almost all the e-commerce giants have hailed the role of FPD behind their astonishing success. Some of the major benefits of FPD are:-

Helps you know your audience: FPD lets you look deeply into your users’ profiles. One can integrate data about one's users and know details about customers like — their likes/dislikes, which websites they check after leaving your page, which products they want to buy, among others. 

Give them a customized experience: FPD helps you analyze your web traffic and thus, create highly personalized messages to increase the effectiveness of your marketing efforts. One can use FPD to build a highly effective advertisement campaign. FPD is high-quality information and thus one can advertise using it even when the user leaves a firm’s page. FPD is also a key component of site and CRM retargeting.

Compliance with GDPR: General Data Protection Regulation (or GDPR) is a set of guidelines regarding data usage and data exchange. As FPD is owned and collected by a firm, it is hailed as the most transparent information. FPD is largely created when users agree to process their data by your company because it is usually necessary for making a purchase.

Why FPD Exchange Is Crucial?

FPD is a valuable source of users' data. It helps an entrepreneur deliver personalized experiences to users and display them relevant ads. On the other hand, a company which owns the FPD can easily segment and monetize it by using a Data Management Platform. Thus, an arrangement with trusted partners for FPD exchange helps in maintaining mutually beneficial partnerships.

FPD can be sold to any other organization and both parties benefit from this sharing of data. The advertising decisions which a firm takes on the basis of FPD promises an ROI (return on investment) not possible through other means. 

A firm can share FPD with an entrepreneur who doesn't have first-hand information about the targeted audience. For this entrepreneur, the information regarding his prospective consumers becomes second-party data (SPD). Even the behemoths of the business world draw insights from SPD to drive their business.

And the list doesn’t end here. Businesses also use third party data. This is collected from a variety of sources with no direct connection to the consumers whose credentials, purchase and web browsing history are collected. Although third-party data isn't high-quality information, it surely allows brands to go beyond its usual audience.

Learn More: 5 Key Elements of Customer Data Privacy

FPD — The Game Changer

Given the impact and penetration of digital advertising, an effective marketing strategy is sine qua non for every business. One may think that advertisements via newspapers, flyers, or radio are equally good but it is a proven fact that urban and young consumers are more influenced by digital advertisement campaigns while making purchasing decisions. And as they say — data is the new oil. So, this new oil is driving digital advertising and making it more targeted, customized, and efficient.

FPD and its exchange reduce reliance on third-party cookies to fuel advertising in brand-safe environments. Acknowledging its benefits, firms are working more with FPD either directly or with supply partners that have (or can provide them with) easy access to it.

So, what are you waiting for! Use FPD to get additional insights about your audience and additional revenue from your audience.