What is First, Second or Third-Party Data?

In the data world, some new words pop up and it will be hard to understand if you don’t have the necessary foundation, this article is jumping in the definition of the data type that brands can use to target their potential consumers

What is a first party data?

First party data is simply information your brand collects from your audience. It can be an email or a phone number. For example, it’s the information that users will provide when they sign up on your app or website.

Who collects the data : You
Who owns the data: You
What do you collect : email, phone number, name or address
When do you collect it: whenever the user interacts with you
Do you pay for the data: No

Example: whenever someone else is going on Amazon and registers an account, Amazon will collect the email from the user. Amazon collects the email in its database when the user provides it on the website or app.

What is a second party data?

Second party data is simply information another company has collected and matches your audience. As a brand, you might be interested to partner with for some branding activities in exchange of some deals. The nature of the partnership doesn’t require a financial transaction for the data acquisition.

Who collects the data : the company the brand partners with
Who owns the data: the company the brand partners with
What do you collect : leads or transactions
When do you collect it: when the lead or customers interacts with the partner
Do you pay for the data: Yes or No

Example: whenever someone subscribes to WisePass and will redeem a bottle from the brand Jacob’s Creek, WisePass will let Jacob’s Creek to reach that subscriber again through the app. WisePass does the data collection and provides the brand the tools to perform the branding activity subsequently.

What is third party data?

Third party data is simply information another company has aggregated from other companies that have collected and sold. As a brand, you might be interested to purchase the data from to perform some specific branding activities if the data matches your target audience.

Who collects the data : the company the brand partners with
Who owns the data: another company
What do you collect : new leads or customers
When do you collect it: when you pay the company
Do you pay for the data: Yes

Example: Lillet is looking to purchase third party data that will be an audience that is female, Vietnamese with an age ranging between 25 to 35 living in Ho Chi Minh City using iOS devices. With the company Lotame, Lillet can go and purchase the data on that platform and retrieve the data you use it later.