What You Need To Know About 1st Party Data

First-party data is data gathered directly from customers and owned by the business.

In the age of GDPR, it is imperative to collect data legally, and 1st party data is one of the most trusted and valuable users’ data.

First, second, and third-party data make up all the company’s data.

As businesses utilize more dynamic and personalized ads, they increase the chances of conversion.

Using first-party data is comparably more advantageous than second-party and third-party data when dividing customers into groups.

Even if they’re collecting wildly different types of data, your entire tech stack (and the teams that use it) can converge via data standards to build rich, targetable, and multi-dimensional segments.

All marketers will need to get more sophisticated about how to use data from loyalty programs to deepen engagement on owned channels to strengthen customer retention efforts — and turn points of churn or friction within the postpurchase experience into an opportunity to collect valuable data and feedback.

Companies have prioritized this poise for even more market dominance, so there’s little time to spare when addressing your 1st party data management approach.

There are several ways to do this, and we’d like to outline a handful of options.

While none amount to a simple fix, the suggestions provided make the most financial and strategic sense long-term.

Brush up on data integrity and marketing data standards as you ramp up your first-party data strategy.

Likely, you’ll uncover some data to-dos as you transition from a third-party data-led strategy.

What Is Third-Party Data?

Third-party data is usually brought and sold programmatically. Third-party data is beneficial if you are aiming to reach a large volume and have a broad scope of targeting.

3rd party data includes demography, interests, and purchase intentions.

These large data aggregators pay publishers and other data owners for their 1st party data. The aggregators then collect it into one large data set and sell it as 3rd party data.

The downsides of using third-party data are that you don’t know the actual data source. 

3rd party data is aggregated data, and it hasn’t derived from a direct relationship. That’s why the quality of data is moderately lower.

Enhance First-Party Data

While data you collect yourself is valuable because of its precision and relevance, it often lacks scale. Scale, however, is third-party data’s specialty.

When you identify your core audience by collecting first-party data and build on that audience through third-party data, you can reach new potential customers and learn more about the people interested in your products or advertisements.

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How Do You Get 3rd Party Data?

To obtain third-party data, you need to purchase it from data providers.

You can find these providers through DSPs, DMPs, and public data exchanges like the Lotame Data Exchange (LDX).

LDX includes billions of data points from around the world, sold as Lotame segments and over 40 branded data providers.

What Is First-Party Data?

First-party data is the information you collect directly from your audience or customers. It includes:

  • Data from behaviors

  • Actions or interests demonstrated across your website(s) or app(s)

First-party data is the information that companies collect directly from their customers.

This is the company’s most valuable data because they collect it directly rather than relying on an outside party in which the origin of the data can be questioned.

Advertisers are now moving to a first-part data strategy as stronger data collection regulations and platform intermediaries, such as Apple, emphasize customer privacy.

Companies will need to own their customer data directly to make their brand relevant and resonate in the new privacy-first environment.

Almost all companies leverage first-party data in their sales and marketing efforts. Once this is done, companies start to combine several first-party data for further optimizations.

This is a relatively simple marketing optimization that even companies can do with limited scale and resources to improve their marketing.

First-party data can strengthen customer relationships, enabling organizations to provide more personalized, relevant experiences.

Inventory Existing Customer Data

The first step in developing your first-party data strategy is to create an inventory of potential data points across different platforms.

You can also consider leveraging data management platforms (DMPs) to help gather and organize all of your different data sources.

Progressive Profiling

The next step beyond user registration is additional data collection about the user, specifically firmographic, demographic, and other explicit attributes you’d like to know.

Asking for this upfront is challenging and will often kill the user registration process. No one wants to tell their life story in a single form.

Instead, you should collect the bare minimum information about your users and slowly integrate additional data collected during the use of the site.

Easy To Collect Data

Collecting data on your own allows you to gather or necessary consent to use audience data for marketing purposes.

It’s safe to use 1st party data segments for targeting because you know the data source and how it’s gathered.

First-party data is already available in organizations’ CRM systems, or it can easily be collected through a data management platform.

As long as businesses design a method that helps access data, they can process it.

Data Accuracy & Data Quality

First-party data delivers the most accurate intelligence and inspires new ways to tailor messaging and shape the customer experience.

It is also more accurate than other data sources, considering the company collects it directly from the audience.

Map The Customer Journey

By integrating and accessing first-party data from one customer identity asset, marketers can map the buyer journey, discovering the different steps that consumers take on their path to conversion and the order in which they take them.

Purchase History

First-party data is a gateway to understanding consumer trends so that marketers can influence purchasing decisions with knowledge of what products customers may or may not be interested in.

A Personalized Experience

Gathering first-party data makes it easy to know your users and divide them into specific groups.

You can analyze your web traffic and create audiences looking for specific products or interested in a particular topic, such as sports or automotive.

Gain Audience Insights

First-party data helps organizations understand their customers better.

Collecting first-party data gives you a chance to store data and look deeply into your users’ profiles.

Using technological platforms, such as DMP, you can integrate data about your users from various sources (website, surveys, apps, games) to create a full view of your customers.

Fixing Identity & Building Profiles

Due to the range of channels in which your customers engage with your brand, your customer data exists in multiple profiles across your various platforms.

To unlock the potential of first-party data, these multiple profiles need to merge into a single view of each customer.


After the audience’s consent, businesses can collect data for free.

Lack of A Data Strategy

You can’t resolve your data issues in a single afternoon.

You have to create a strategy first, and that means knowing what sources you have, what you’re collecting, and mapping it across the customer journey as you understand it.

User Registration

Many companies, including publishers, have over-relied on third-party data and avoided the process of asking visitors and users to register to their sites.

This is no longer an option if you want to develop a first-party data strategy.

All the other data you gather will need to be appended to your users’ records if you still want to deliver truly personalized experiences throughout your digital marketing stack.

You’ll need to consider some creative methods for asking the user to register to the site.

Customer Information Stored In Your CRM

You can also leverage customer information and demographics typically stored in your CRM, such as career and education details, family details, the number of purchases the customer has made, the number of times they’ve visited your website, and much more.

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How Do You Collect First-Party Data?

To collect first-party data, you enable a pixel on your website.

The tool receives data about visitors’ activity on your site and can come from various sources, such as an integrated data management platform, or DMP.

You can also pull data from other databases, such as customer relationship management or CRM systems.

Companies can also collect first part data using a DMP. The platform allows you to gather data and store it in one centralized platform.

The data management platform allows organizations to create customer segments and run personalized campaigns.

But DMPs can be a little expensive for companies with smaller budgets.

Organizations can collect first-party data from mobile apps, websites, social media, SMS, email, surveys, beacons, customer feedback, customer service interactions, CRM systems, point of purchase, and direct mail (using digital data to inform your offline campaigns).

Customers might also give you information when they sign up for your email list or buy a product from your website.

To bring this offline customer data online, you can “onboard” the data, which is a service that matches your offline data to online cookies or mobile IDs.

First-Party Data Examples

Examples of first-party data are similar to the data points from which third-party data segments are created.

It contains:

  • Timestamps

  • Visited URLs

  • Localization

  • IP

  • Browser’s language

A credit card company might get customer information from an airline to target its marketing toward specific traveler needs and interests.

Or a publisher might share its first-party audience data with an advertiser who wants to run ads on its site.

You can build segments from these data points and other high-quality data that you collect through your website.

First-party data is collected and owned by the company. In contrast, third-party data is collected by an external source and sold to companies without the users’ direct knowledge.

What Is Second Party Data?

Second-party data is similar to first-party data, but it comes from a source other than your audience. This requires you to work with a data provider by building a relationship with them.

Second-party data is another company’s first-party data. Users can sell it to you or any other organization and both parties benefit from sharing the data.

This data can help a company achieve greater scale than relying on its own data alone. 

Because the data isn’t sold openly, it can provide greater value than third-party data, usually available to anyone who wants to buy it.

In most second-party data exchanged, there is no middle man involved. Second-party data is a relatively new concept, but it is beneficial if you can find a relevant audience platform.

Second-party data poses a bit of a challenge when it comes to relevancy.

Because another company or organization is collecting it, they will tailor it to their goals and interests (which may not be the same as yours).

Second-party data may not give you a full picture of your customer’s preferences.

Reach New Audiences

Second-party data is also useful if you want to reach an audience that isn’t your own or find more new prospective customers.

If you’re a marketer for a cosmetics company that targets women, your 1st party data will mostly come from women.

If your company comes out with new beard oil and you want to market it to men, you won’t have the 1st party data to reach the new audience.

You might team with a men’s health or fashion website and buy the data you need from them.

How Does GDPR Change First-Party Data Collection?

Companies need to be transparent about data collection due to the General Data Protection Regulation (GDPR). 

Companies need to take the audience’s consent before collecting personal data.

To comply with GDPR, businesses can use data management platforms (DMP) to make data available for targeted advertising, personalization, and content customization.

DMPs can also improve data security and provide an audit trail regarding how personal data has processed.

DMP helps organizations further enrich the data to fill gaps in the user’s profile.

By using DMPs, organizations can easily create audience segments and send personalized ads to their customer even if they leave your website.

It is a powerful platform to gain knowledge about your users and deliver them a unique brand experience.

1st party data can be the most transparent because you own it, and you are responsible for collecting all necessary consents.

Your law department can give you the best instructions on what information you should give your users to process their data in compliance with privacy regulations.

This is a DMP that allows you to collect first-party data, and automatically anonymize all gathered data to use it in compliance with data privacy regulations, such as GDPR and CCPA.

It provides over 27 billion anonymous user profiles from 200 markets globally. You can view available audience segments 1st, 2nd, and 3rd – integrating data on DMP.

To manage all data from various sources, marketers often use technology platforms that help them organize the data and find customer insights.

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What Is Mobile Data?

Although the mobile version of a website can collect most of the same data as the full version, not all mobile devices, allow the use of JavaScript or cookies.

Encouraging users to log in to a site allows marketers to collect meaningful user interactions, even in a cookie-less environment.

The Problem(s) With Data Management Platforms

According to a data and marketing analytics survey, 64% of respondents said that data management, integration, and formatting were among their top three most time-consuming activities.

The challenge of effectively integrating and utilizing customer data will only become more pressing as regulations on third-party sources increase.

Marketers will need to tackle technologies and capabilities, including the best use of customer data platforms vs. other technologies and the most effective processes for customer acquisition, organization, and storage.

There are many areas of the business where you have no choice but to require human-created data, e.g., content development, digital/media campaigns, promotion codes, or product catalogs.

These data/content objects require extensive metadata that is often input by internal or external team members.

And while there is a finite amount of major data/content objects an organization needs to manage, the number of underlying records, data points, and hands creating them is significantly higher.

Companies are ditching their DMPs and investing in more flexible customer data platforms to help turn data into actionable business results.

In other words, you can have all of the data collected on customers in one place and organize the kind of content to release and when to release it.

By connecting data from all channels, brands can see how a customer moved from an email to a website to a mobile app before purchasing in-store.

With a complete view of this process and its many variants, marketers can segment and optimize for different audiences and guide behaviors that lead to conversion.

Moving away from third-party cookies is highly uncomfortable for advertisers and the digital advertising industry.

However, you must make this move before it’s made for you by Google or government regulators.

What Is A Customer Engagement Platform (CEP)?

A customer engagement platform (CEP) can create comprehensive customer profiles from multiple data sources and systems.

In doing so, marketers can understand where, when, and how customers like to interact.

You can leverage CEPs to help pull essential customer data from disparate sources so you can draw more precise conclusions about customers.

Hop-On The Kennected Train

According to HubSpot, 61% of companies name their top marketing challenge is generating traffic and leads.

If you’re part of that 61%, keep reading because what you’re about to discover could be a game-changer for you and your business (like it has for thousands of people before you).

So many business owners & sales professionals that come to us are struggling to get ahead because they’re stuck relying on referrals, lead lists, or manual prospecting.

This is taking up too much of their time and isn’t creating the consistent income they’re looking for to fund the lifestyle they want for themselves and their families.

Four years ago, the founders of Kennected had the same struggles. They found that lead generation was way too complicated, expensive, and time-consuming, knowing there had to be a better way.

So they developed a new way of getting qualified leads that turn into new customers on the #1 platform for B2B lead generation… LinkedIn.

In the four years since we developed this lead gen strategy, we’ve earned a spot on the Inc. 5,000 list of Fastest Growing Companies in America.

And more importantly, it helped over 17,000 businesses get new leads and sales for THEIR businesses.

Want to see how it works?

Click here to see how you can use Kennected to fill your sales pipeline with qualified leads in less than 10 minutes per day.

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