Past objections to second-party data have since been addressed, making now the perfect time for marketers to leverage that data as part of a holistic data approach.
The benefits of second-party were highlighted in a panel session at the iMedia Commerce Summit, featuring moderator Bob Scaglione, senior vice president of strategic channel development at OwnerIQ, Kevin Lyons, senior vice president & general manager of eCommerce at H.H. Gregg, and Tim Trus, director of search & media at Rosetta.
While first-party data uses advertiser's own cookie pool to "re-market" or "re-target" visitors once they go to their ecommerce website, third-party data involves purchasing packaged audience segments from third-party data aggregators, Scaglione noted.
Then there's second-party data -- someone else's first-party data.
Forrester analysts suggest that "second-party data provides more reach than first-party and more granularity than third-party."
Common objections to second-party data have been addressed, assuring marketers that data won't be used by competitors, doesn't mean you no longer have control of your data, is a strong value for the investment, and is now scalable.
There are opportunities for retailers and brands to take advantage of this new targeting to reach their shoppers.
Lyons, who runs ecommerce for consumer appliances and electronics store H.H. Gregg said, "Having the ability to more target the consumers is really important to us."
"It's really the understanding, the heavy lifting, and the manipulation of the data," Trus from digital agency Rosetta noted. "We just don't want to slap ads out there."
"Second-party data is more efficient," Lyons said. "We can maximize that digital dollar and drive the conversion on the website and in the store."
"Customers are more enabled now than they ever were," Lyons continued. "There can be 17-18 touchpoints before they ever pull the trigger."
Trus said that first-party data is easy. "You follow that guy from the website. But second-party is that extra spoke in the wheel. It opens up a lot more opportunity. It's a good awareness driver. It's just as relevant as first- and third-party data. They complement each other very well."
"It's not the strategy," Lyons noted. "It's a strategy."
Trus noted that this targeting strategy is a strong performer. "Overall, it's our job to bring innovative solutions and strong partnerships." Trus said that it's important to find strong vendors who turn into partners.
The panel also discussed the growing popularity of programmatic
"The traction that programmatic has made in the last few years is not going anywhere," Trus said. "But it's not going to take over everything. It's catapulting display advertising to another level, and I think it's only going to evolve. The adoption of omnichannel is real. You need to be relevant."
Lyons noted that leveraging second-party data is a part of a bigger strategy. "How do we get the right tools in place so that we can more accurately attribute that spend?"