The pressure on marketing results has never been greater. In every industry the competition is high and the choices are many. The way consumers engage has changed for good – Millennials and Gen Z consumers have new expectations. Personalization, not generalization; conversation, not advertising; people-based messaging, not channel-based messaging.
So, how do you succeed in this new world? Know your customer. More and better data will create a competitive advantage. You will need data that offers breadth, depth, and relevance to learn more about customer and prospects to speak to them with purpose. First-party, second-party, and third-party data: what are these and how can the savvy marketer leverage data to gain unique insights and elevate their marketing campaigns?
When it comes to data, there are choices
First-party data is proprietary data that you collect about your existing customers and their past behaviours. This data is a competitive advantage because it’s high quality, reliable and unique to you.
Third-party data is collected and aggregated by another company that isn’t directly involved in the transaction. It is great if you want to gain a high-level understanding of a particular demographic, but when it comes to optimizing a campaign strategy this data is not enough. What’s more, it’s difficult to gain a competitive advantage from this data because it’s available to anyone who pays for it.
While these are viable options, there is one more option that is gaining ground among marketers:
“Marketers today use second and third-party data about evenly right now for programmatic advertising campaigns, but this ratio is expected to shift towards second-party data in the next five years.” Forrester Consulting, 2016.
Second-party data is collected by a partner who has access to your desired target. This data comes straight from the source, and consequently, it is high quality. As a marketer, you can choose who your partners will be and gain relevant insights that will take your campaign to the next level.
There are many uses for second-party data in addition to increases the effectiveness of your digital advertising. It can be used to provide new insights; create better segmentation, offers, products and content that resonates.
Is second-party data worth the investment?
Compiled results have shown an increase in effectiveness of marketing spend using second-party data.
Source: Marin Global Digital Advertising Index
Second-party data in action: Optimising your student marketing campaigns
Why should you market to Canada’s best and brightest students? Because these students will make part of Canada’s soon-to-be largest consumer group – they are the future consumers, investors, and owners. The sooner you begin building those relationships, the more lifetime value from which you can profit.
Marketers interested in a holistic view of Millennial and Gen Z consumers can leverage second-party data to gain greater insights into consumer behaviours. yconic can provide the right second-party data and insights from over a million active student site visitors each year. Click here to learn more.