First party data (1st party data) is the data your company has directly collected from your own audience and on your own website. The purpose of the data is to be used for retargeting and personalization. This is reliable and accurate data because it comes directly from your audience — sourced on-site or on close proximity touchpoints. You are monitoring your visitor’s behavior and the data is up to date with their most recent website activity.
First party data is collected by adding a tracking pixel to your site or compiling information from any of the following sources:
Whenever a visitor comes across any of these data collecting sources above, their data is being collected and compiled by you, the company. Then you can utilize that data to create personalized experiences on-site.
On a basic level, we are all probably familiar with these 3 terms. We already have a working understanding of first party data. Let’s hash out the difference between the second party and third-party data!
Second party data is another company’s first party data that they’re selling to another company or sharing with a trusted business partner.
For instance, let’s imagine you’re an online lender and you partner with a credit card company to share data. They could provide you with information they had collected first-hand on their site for use in targeting on your own site.
Second party data is different than first party data because it comes from a source other than your own audience — but it is generally the same type of data as first party data.
Third party data is very different from first party or second party data.
This is data that you buy from a large data aggregators (such as Acxiom, Factual, Infogroup, Localeze) who gather the data from other websites and platforms was created. These large data aggregators don’t have a direct connection to the customer.
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