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First-Party Data, How to Collect it and Use it?

First-Party Data: How to Collect it and Use it for Ad Personalization

Do you want to know about the action, interests, and behaviors of your users to target them with a better marketing campaign? If yes, then you can do it with the help of first-party data.

There are other options available like third-party cookies to gain insights about users. But Google blocked third-party cookies. So, it doesn’t help you anymore.

Have you ever think how big companies like Amazon and Google create marketing campaigns and target their specific users very effectively. They also use cookies and data with the help of apps and websites.

In my opinion, you should use this data to make your business successful with a better marketing strategy. So, in this guide, we will let you know what is first-party data? What are its benefits? How to collect it? And how to use it? Let’s deep dive into it.

What is first party data?

First-Party data is the information collected by companies and organizations to better understand their customers. This data can be collected from lots of available offline and online sources like mobile apps, websites, and social surveys.

Companies collect this data directly from their users. To launch a better marketing campaign and generate more revenue, this data is very helpful because it gives an idea about the actions, likes, interests, and behavior of customers.

You can get this information with this data :

  • Interests
  • Behaviors towards a website
  • Purchase history
  • Time spent on a site
  • Demography
  • No. of sites visited
  • And lots of more

All this information can be quickly gotten through this data without spending a penny. This data is very necessary for every company to personalize marketing campaigns to get better ROI.

First-Party Data – Examples

You can build segments to target specific customers based on their interests, locations, price choice, and location. In simple words, you can create a personalized advertising campaign by knowing your customer completely with the help of first party data.

For example, if you have a business of selling used cars and you also have a website. So, you can use this type of data to know that what type or which brands of cars customers looking for and what prices are from which location. Then you can create a marketing campaign to target these visitors.

Their information will be in the form of segments like:

  • Interests – Mercedez
  • Price choice – $50,000
  • Demography – US

With personalized marketing, customers are likely to click on your ad, and they can turn into customers.

Benefits of First-Party Data

There are very useful benefits you can get from this data:

Improve Measurement and characteristic

With this data, you can better understand your customers easily which is very important for every company. To run a successful marketing campaign, you need to create a personalized campaign based on the customers; interests, behaviors, and locations. So, it helps to improve characteristics and measurements to take proper decisions to grow your business.

Earn Money by Selling Created Segments

After you have created better segments with this data, then you can sell it to earn extra income. You can sell those segments on the global DSPs.

Collect proper data

The collecting of first party data helps you to create better marketing campaigns for your business. This data you can collect on your own so know how you have collected this and how it will be helpful for your business.

Using safe data to reach your audience

We all know that most browsers block third-party cookies, they only enable first-party cookies. So, now it is very hard to get customer data. But with this data, you can also reach the audience with the help of your created segment.

Why is first party data important?

This data is very important after Google blocked third-party cookies to get customers’ data. This also affects various companies that always use third-party data to reach their audience

Google blocked third-party cookies due to some security reasons and gave privacy to the customers. Any customer doesn’t want to share their valuable information with companies. So, to deal with this situation, this data helps you to get valuable information while they are making a purchase from your website.

This data helps to target the audiences with a personal marketing campaign. You can create better campaigns by keeping in mind about demography, interests, actions, behaviors, and purchase intentions of customers.

The main benefit of this data is that you can target your audience after they leave your website with making a purchase or not. That’s why first party data is important to target users with personalized advertising to grow business.

How to collect first party data?

You can collect this data easily with the lots of tools available online. The most popular of them is Google Analytics which gets data about your online traffic and insights of customers.

Apart from that, you can also use a Data Management Platform to gather the data of users. With this platform, you can store all data of users and create a better strategy to target them with personalized ads.

You should use any one of them because it is necessary to collect first-party data to reach an audience with a specific goal and strategy that will actually work to grow your business.

How to use First-Party Data?

After you know what is first-party data? What are their benefits? And how to collect it? Now the main step is how to use it. Let’s know about it.

Create a Plan

First of all, you have to make a plan to gather data about your users. You can easily get data with the help of using lots of tools available online like Google Analytics. Believe me, if you can use Google Analytics in a better way you can get lots of data and insights about customer interests, and actions on a website which is really required for every business to grow.

Before Google blocked third-party cookies, it was easy to buy third-party data without any hassle. But today you can’t get third-party data, so you have to work on your own to collect user information.

You can easily get user’s data through the following ways:

  • Mobile apps
  • Websites
  • Online Surveys
  • Signup for your website
  • Polls
  • Social media platforms

All these ways are easy to use and even a beginner can also work through these ways to get users’ data. It is necessary to get accurate and proper data to create effective personalized ads and provide users with a better brand experience.

Create personalized advertisement

With first party data, you can easily know your user by which you create a personalized advertisement to target them. For example, if 5 people visit your website and 3 people are looking for the same product and the other 2 for another product. So you can easily divide them in a group with their product requirements.

In case, if they leave your website without making any purchase, you can easily target them with a personalized ad to make a conversion for your business. This is very effective if any business works on it with full discipline.

Gather data by Compiling GDPR

It is important to be transparent about the data you collect from your users. With third-party data, any information of the user can be tracked easily, so this can create a bad effect on users who don’t want to share their valuable information without asking their permission.

With first-party data, your customers can easily understand why you are collecting their data and how you will use it? This helps to build trust for any business and with the results, the users will get more engaged with your personalized ads. All these things look good to perform necessarily but it is also a requirement under the GDPR law.

Edit your data and take retest

As we know third-party data only gives us information in exact form. We can’t change the method of collecting and editing data which was a very uncomfortable thing for every marketer. But with the first party data, you can easily edit your data and choose the way of collecting the information which is best suitable for you.

Difference between 1st party, 2nd party, and 3rd party data?

Now, after knowing most things about 1st party, let’s discuss how it is different from 2nd and 3rd party data? First of all, 1st party data is collected by companies with their own sources like websites or mobile apps.

While 2nd party data is the information shared each other by two companies. On the other hand, 3rd party data is collected by one source and shared or sold to a third party that has no connection with the original source.

To define it in simple words, we can say that.

  • The information collected by a company with their own source is first-party data.
  • The information shared by two companies with each other is known as second-party data.
  • And the information collected by one source and sold to a third party is known as third-party data.

Now, you can easily differentiate the three types of data. We have already listed why first-party data is important and how to use it.

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So, In this post, you know about first-party data, why it is important, and how to collect it and use it. These things are very essential to know for creating better and personalized advertising for their users. Before Google blocked third-party cookies, it was very easy to get user information only by paying some fees. But now you have to collect it on your own.

It is helpful if you collect data on your own because you can select what type of data you are looking for and how you want to collect data. With this, you collect data in the proper way which really helps while creating marketing campaigns.

Frequently Asked Questions

How much does it cost to collect first party data?

As we know, companies collect this data from their own sources. So, it doesn’t anything to them.

Why first-party data is effective than third-party data?

When we collect this data of our selected choice in our desired method, then we can make use of that data in an effective way. We can create personalized advertisements with a better strategy.

While third-party data is sold by third parties, so we can’t understand what thing is necessary that we can use for your marketing strategy.

Why does Google block third-party cookies to collect user data?

From the year 2022, To provide security and privacy to the users, Google blocked to use of third-party cookies to get information about users like their interests, actions, behaviors, and purchase intentions.

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