The evolution of the internet and internet marketing has proven to move very quickly. Online marketers have now learned that the best way to optimize productivity is through first-party data. First-party data allows them to gain insights into their consumer’s habits from which *they can benefit*. Even more, optimization is achieved when marketers have access to 1st, 2nd, and 3rd party data. For now, we’ll focus on what exactly is first-party data and what good can come out of it for online marketers.
First-party data is used for the purpose of companies to collect data using their own sources, opposed to purchasing it from a 3rd party. Essentially, it acquires information about customers from both online and offline sources. A few examples would be the company’s website or app, data analysis, surveys, and social media.
Some resources such as eMarketer have demonstrated that 85% of US marketers, as well as 75% of Western Europe, would like to increase their use of first-party data and make it a high priority. The marketers can make great use of this valuable user data and make for a better consumer experience.
First-party data can inform companies of their user’s demography, purchase history, visited websites and interactions, interest, time spent on websites, and much more.
First-party data can be collected at no cost and the company that owns the data has all of the needed consumer consents. With data privacy becoming more strict online, via the GDPR, obtaining user’s data legally is vital. First-party data grants you the ability to give your users a custom and personalized experience by delivering relevant ads.
First-party data is one of the most valuable types of data. Any business online can collect user data and make profits off of it. Considering the information is collected for free, it makes for a cost-effective solution that can easily be monetized and segmented.
How Is First-party Data Used?
The main objective of first-party data is to give your current visitors a personalized experience Moreover, you will be able to collect high-quality data and remain compliant with privacy regulations. You can gain all required consents through your company’s website or app. Here are three benefits of using first-party data as a company
1. Get insights on your audience: Collecting first-party data gives you the opportunity to look deep inside your user’s profiles. Technological platforms can integrate data about your users from various sources; this includes games, apps, surveys, and your website. This will give you a wider view of your customer’s interest. Which products do your users want to buy? What does he or she like? Which websites do they visit after leaving your site? Claravine explains first-party data strategy in mode detail.
2. Create a personalized experience: Using first-party data makes it easy to determine which groups your users may split off into. As a result, you can analyze your web traffic and create audiences who are looking for specific products or are interested in a particular topic such as computer science. This enables you to send users highly personalized and increase efficiency in your marketing strategy.
3. Comply with GDPR: First-party data is the most transparent data as you own it and are responsible and are responsible for collecting all necessary consent. Check with your law department to determine what information is required to give your users to process data compliance with privacy regulations. It is extremely important to collect data legally. First-party data is very trustworthy and valuable.
How To Collect First-party Data?
There are a great deal of tools that allow you to collect first-party data. Google Analytics is one of the more popular digital analytics software. It is typically the go-to as it helps you analyze your online traffic and gives insight into your customers. The proper platform will not only help you gather data but integrate it and store it in one centralized location.
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