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Why using First Party data is crucial

Why using First Party data is crucial

4min • Jan 31, 2024

Alexandra Augusti

Alexandra Augusti

Strategy & Operations Manager

With the proliferation of privacy regulations and the limitations imposed by browsers on third-party cookies, third-party data is becoming less and less relevant. To succeed in marketing operations, utilizing one's own data becomes essential to continue personalization initiatives and maintain performance.

The activation of First-Party data will be THE trend of 2024. It is therefore urgent to start developing your own strategy now.

Hold on - What are First-party data?

First-party data is collected directly from customers through various touchpoints such as websites, apps, social media, customer surveys, and internal databases. It is considered the most valuable data for understanding the customer experience, as it is reliable, cost-effective, and obtained with proper consent. With first-party data, brands can gain insights into customer behavior, preferences, and interactions, enabling them to deepen customer relationships and enhance the return on investment (ROI) of their digital marketing campaigns.

Examples of 1st party data:

  • Website Analytics: Data collected through tools like Google Analytics, which tracks user behavior on your website, such as page views, clicks, and time spent.

  • Customer Relationship Management (CRM) Data: Information gathered from interactions with customers, including purchase history, contact details, and preferences.

  • Email Subscriptions: Data obtained through users subscribing to your newsletter or providing their email address for updates.

Illustration of what are 1st, 2nd and 3rd parties data

What are 1st, 2nd and 3rd parties data?

Activating First-Party data becomes crucial...

Using one's own data in marketing campaigns has always been a good strategy. That's why Customer Data Platforms are often the most popular option for companies.

However, recent developments, already well underway in 2023, have accelerated the need to activate First-Party data:

  • Browser restrictions are becoming increasingly stringent. Cookies deposited by advertising platforms (where still possible) have limited lifespans. For instance, Safari's Intelligent Tracking Prevention (ITP) functionality defaults to a 7-day limit for third-party cookies and reduces it to 1 day in certain cases. Consequently, a user who visits your website and returns 10 days later is considered as a new visitor.

    👉🏼 It is relevant to find a way to differentiate new visitors from those who have previously visited the site. Fortunately, your First-Party data can help with this!

    💡 If you need to understand how pixels and cookies work, check our article.

  • The end of third-party cookies is approaching rapidly. Following Safari and Firefox, Google Chrome has announced the depreciation of third-party cookies by the third quarter of 2024, impacting retargeting and lookalike campaigns, as well as performance metrics.

    📌 In this article, we detail how activating First-Party data addresses the end of third-party cookies. By enriching the data available to advertising platforms and sending them strong signals (such as conversion events), retargeting and acquisition campaign algorithms can still be effective. Having an overall view of the customer journey also allows for better performance measurement.

  • Artificial intelligence is increasingly predominant in managing advertising campaigns. Advertising platform algorithms decide on bids and audiences to target (especially in the case of lookalike targeting). The finer the knowledge of customers (i.e., fueled by First-Party data), the more campaign results can be optimized through Machine Learning.

Before 2024, collecting customer interactions with an advertiser's website/application was immediate. Advertising platform algorithms could feed on this data and maintain a certain level of performance.

This year, the links between the interactions on the website/application and advertising platforms will be much more limited due to these changes. Activating First-Party data is therefore necessary.

Activating data First Party involves transferring user data, such as the customer's email address, to a third-party tool. If this customer has an account linked to this address, platforms are more likely to identify this user and attribute their interactions to your campaigns.

But activating your own data is not so simple...

Activating First-Party data in advertising platforms already implies being able to centralize, segment, and orchestrate this data. However, this is not so simple!

Marketing touch points with customers/prospects are multiplying. Omnichannelity involves an increasing number of interactions with customers, both online and offline. Consequently, customer data is often scattered across different tools—product backend, CRM, Customer Service tool, etc. It's complex in this context to understand the entire customer journey.

To address this challenge, advertisers will be compelled to create a unified view of all their customers (aka Customer 360) to keep track of all touch points, both online and offline.

Once this 360-degree view is created, it "simply" involves segmenting and orchestrating this data to continue operating effectively on Meta, Google Ads, TikTok, etc.

At the end of 2024, companies will have to manage the centralization, the segmentation and the orchestration their data, as the automatic collection of customer interactions with 3rd party cookies will no longer be possible.

Companies will have to manage the centralization, the segmentation and the orchestration their data

To meet the challenge of Customer 360, over 75,000 companies have already invested in cloud data warehouse solutions.

But there's a catch. Segmenting and orchestrating this data are not that simple. Despite data being centralized in a data warehouse, it is not easily usable across all "business" tools (advertising platforms, customer engagement, support tools, etc.).

First party data is stuck in the Data and IT domain and is then not available to business teams. There are a wide range of untapped opportunities.

The Customer 360 does not deliver value if it is not available to business teams

If a company decides to do everything on its own, operations can prove to be very cumbersome: a significant number of segments, the need for technical knowledge in code and SQL, difficult-to-maintain data pipelines, etc.

💡 Fortunately, tools like modular CDPs allow direct connection to your data warehouse where data is consolidated, segmenting your customer base in minutes, and activating your audiences with a single click.

👉🏼 To learn more on that subject, check our guide on tools for data activation.

What’s next?

In a data-centric world, the activation of First-Party data is no longer an option but a necessity.

Fortunately, with DinMo, starting to activate your data has never been easier and more accessible. We offer a simple and effective approach to data activation. You can leverage your own data across more than 40 different integrations. Simply connect your data model, create segments using our visual Audience Builder tool, and send them wherever you want.

☕️ Want to see how data activation can transform your operations? Feel free to come talk to us.

About the authors

Alexandra Augusti

Alexandra Augusti

Strategy & Operations Manager

A graduate of CentraleSupélec and ESSEC Business School, Alexandra is a data specialists. She worked as Data Marketing Consultant at M13h, where she assisted several companies in leveraging their internal data by creating dedicated platforms. In her role at DinMo, Alexandra optimizes our business operations and works closely with our CEO to provide strategic insights that will help each team bring their A-game.

Table of content

  • Hold on - What are First-party data?
  • Activating First-Party data becomes crucial...
  • But activating your own data is not so simple...
  • What’s next?

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