How Does Second-Party Data Increase My Marketing ROI?

second-party data your competitive advantage

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.

 

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