‍Unlock the Power of First Party Data: The Top 5 Benefits for Digital Marketing and Advertising

by | Mar 14, 2023 | Blog, Advertising, Data and Analytics, Digital Marketing, Facebook, OTT, Paid Advertising, Programmatic Advertising

‍Unlock the Power of First Party Data: The Top 5 Benefits for Digital Marketing and Advertising | Mixed Media Ventures

First Party Data is the lifeblood of modern digital marketing and advertising. Without it, campaigns lack the necessary intelligence to identify and target key audiences, optimize performance, and deliver the best possible results. That’s why first-party data is so important. It’s the most accurate, reliable and up-to-date source of data available, giving marketers and advertisers the insights they need to get ahead of their competitors. But what are the real benefits of using first-party data? Here, we’ll explore the top five benefits of unlocking the power of first-party data for digital marketing and advertising, so you can make more informed and data-driven decisions.

Benefits of using first-party data for digital marketing and advertising

With the right data, you can maximize brand awareness, drive more profitable sales, reduce marketing costs, and boost ROI. First-party data also gives you more control over your data. You can gather data from multiple sources, merge data from different sources, edit data to suit your needs, and track how it’s used. With first-party data, you can also ensure that your data is accurate and delivered to the right people. That’s because first-party data comes directly from your customers. First-party data is also more reliable than other sources. For example, third-party data comes from a source other than your company, whereas first-party data comes from your customers. In order to create first-party data, you must have access to data that customers have provided through a third-party service, like a CRM or e-commerce platform.

Greater Accuracy

As we’ve seen, third-party data is often less accurate than first-party data. That means you might be targeting the wrong people with your ads, which can lower ROI and lead to subpar results. With first-party data, however, you can ensure that your ads appear only on relevant websites. That means your ads get more clicks, which can increase RO than ads from competitors who are targeting the wrong people with their ads.

Increased Data Control

Because they come directly from customers, first-party data means that you have a lot more control over your data. That means you can choose which specific data to include in your ads and which to exclude. With third-party data, you’re usually reliant on the data source, so you may not have any control over which specific data you’re given.

Improved Targeting

With first-party data, you can do more than just target a certain audience; you can target a specific person. That’s because you know the name of the person receiving the ads. That’s helpful for creating more personalized experiences for your customers, including offers and ads that are relevant to their interests. For example, you could provide more relevant content for fans of a certain sports team or tailor ads for homeowners who are looking to buy a new car. Offer different types of ads based on what audiences are likely to be interested in them.

Here are some examples of how first-party data can help with improved targeting in digital marketing:

  1. Personalized messaging: By analyzing first-party data, such as customer behavior and purchase history, companies can create personalized messaging and deliver more relevant content to their audience.
  2. Behavioral targeting: By tracking customer behavior on their website, companies can target individuals based on their specific actions, such as pages visited, products viewed, and time spent on site.
  3. Interest-based targeting: By using first-party data to understand customer interests, companies can create more targeted campaigns and deliver relevant ads to specific audiences.
  4. Location-based targeting: By using first-party data, such as location data from mobile apps, companies can target customers based on their physical location and deliver location-specific offers and promotions.
  5. Re-engagement campaigns: By analyzing customer data, such as purchase history and email engagement, companies can identify customers who may have become inactive and target them with re-engagement campaigns.
  6. Lookalike targeting: By analyzing the characteristics of your best customers, companies can create “lookalike” audiences and target individuals who have similar interests and behaviors.

These are just a few examples of how first-party data can be used to improve targeting in digital marketing. By leveraging this data, companies can create more relevant and personalized campaigns, which can lead to higher engagement and conversions.

Increased Trust with Audiences

With first-party data, you can increase the amount of trust that your brand has with your customers. That’s especially important for e-commerce companies, which rely heavily on the trust of customers. With first-party data, you can authenticate your business and ensure that your brand is who you say it is. That’s helpful in building trust and confidence in your brand, which can have a positive impact on conversion rates and ROI.

Streamlined Data Management

First-party data also saves time managing your data. With third-party data, you have to manually track and manage data. You have to decide which data to include in your ads, track when and where your ads are viewed, and decide whether or not to continue publishing those ads. With first-party data, those tasks are taken care of by the service that provides your data. You don’t need to manually track or manage your data.

Examples of First-party Data

We’ve looked at a few examples of first-party data. Let’s take a closer look at how retailers are using it to increase sales and profit. In traditional advertising, retailers would recommend products that are likely to resonate with their target audiences. They might also show ads for complementary products, brands, and items that have similar features. But with first-party data, retailers can tap into the data of their customers to help decide which products to recommend. For example, a retailer might use first-party data to see which products are most commonly purchased together when they’re shopping online. That way, the retailer can recommend those products as a set and sell them as a unit. This helps retailers drive more revenue and profits by selecting the right products to recommend and promoting products that are likely to sell well. Some specific examples of first party data are:

  1. Website analytics: Information about website traffic, user behavior, and customer engagement, such as page views, click-through rates, and time spent on site.
  2. Customer data: Information collected from customers during the sales process, such as names, addresses, email addresses, and purchase history.
  3. Surveys and feedback: Data collected from customer surveys and feedback, including customer preferences, opinions, and satisfaction levels.
  4. CRM data: Information stored in customer relationship management (CRM) systems, such as contact information, lead status, and sales history.
  5. Social media data: Information collected from social media platforms, such as demographic information, interests, and behavior patterns.
  6. Mobile app data: Information collected from mobile apps, such as location data, usage patterns, and device information.
  7. Point-of-sale data: Information collected at the point of sale, such as purchase history, transaction data, and customer loyalty information.
  8. Email marketing data: Information collected from email marketing campaigns, such as open rates, click-through rates, and conversion data.

How to Collect First-party Data

To collect first-party data, you need to have access to data that customers have provided through a third-party service, like a CRM or e-commerce platform. Once you have that data, you can begin creating first-party data.

Tips for Using First-party data in Digital Marketing and Advertising

There are a few tips to keep in mind when you’re using first-party data for your digital marketing and advertising. First, do your research to find out which third-party services offer first-party data. That’ll save you time because you don’t have to contact each one individually. Select only the data you need. You can’t get more control over third-party data than you have when you choose to use it. By choosing only the data you need to create first-party data, you’ll have more control over the data you’re getting. Keep track of your data. Make sure that you’re tracking when and where your first-party data is being used. That way, you can monitor its accuracy and make adjustments as needed.  Here are some tips for leveraging first-party data to improve your digital marketing efforts:

  1. Segment your audience: Segmenting your audience allows you to tailor your messages to specific groups and increase the relevance of your campaigns. Use first-party data to create audience segments based on demographics, behaviors, interests, and more.
  2. Personalize your messages: Personalization is key in digital marketing. Use first-party data to deliver highly relevant and personalized experiences to your audience. This could include customizing emails, creating personalized landing pages, and serving personalized ads.
  3. Optimize your website: Use first-party data to analyze user behavior on your website and identify areas for improvement. This could include optimizing your website for better user experience, improving site speed, and streamlining the checkout process.
  4. Monitor and track performance: Use first-party data to monitor the performance of your digital marketing campaigns and track your key metrics. This will help you understand what’s working and what’s not, so you can make informed decisions and adjust your strategy as needed.
  5. Enhance your targeting: Use first-party data to enhance your targeting efforts. For example, you can use data on customer behavior to target individuals who are likely to make a purchase or use your product.
  6. Foster trust: Be transparent about the data you collect and how you use it. Explain how you use first-party data to improve the customer experience and make informed decisions. This will help foster trust and encourage customers to provide even more data in the future.


First-party data gives advertisers a leg up by helping them better understand their audiences and make more informed decisions. With this up-to-date data, you can optimize your campaigns to attract the right customers, while avoiding pesky issues such as click fraud, low CPMs, low ROI, and bad timing. By tapping into first-party data, you can maximize brand awareness, drive more profitable sales, reduce marketing costs, and boost ROI. You can also increase trust with your customers, streamline data management, and reduce the risk of click fraud. The next time you’re considering a third-party data source or setting up your own data collection and management system, consider the benefits of using first-party data first.



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