Big data continues to garner attention, and third-party data vendors in particular have enjoyed celebrity success these past few years due to advances with third-party cookies. But the increasing mobile consumption across multiple devices, most of which do not utilize cookies, combined with a renewed interest in privacy, are bringing a multitude of challenges to third-party providers. To avert the increasing challenges of working with these vendors, digital marketers are activating first-party data and finding opportunity to engage consumers in more transparent, meaningful ways.
What’s Going on With Third-Party Data?
While third-party providers initially blossomed because of their ability to create an efficient marketplace where buyers and sellers could better target and monetize audiences, their business model is crumbling rapidly (in the past year alone, there were countless articles like this that expounded on the shaky third-party data model). Here are the Cliffs Notes on why third-party cookies have fallen from digital marketers’ graces:
The above combine to paint a dim future for pure third-party providers: the depleting pool of cookie-based information essentially nullifies their value proposition. As for the cookies that are left standing, many brands constantly remain weary of data leakage to competitors. First-party data, on the other hand, is increasingly gaining traction in the marketplace.
First-Party Data, Ready for Prime Time
While the third-party model continues to be disrupted, first-party has always, and will continue, to stand its ground against the ever-changing advertising landscape. As MightyHive’s CEO Pete Kim recently noted: “first-party data represents a critical foundation for future marketing plans because it’s the only data that your competition will never have.” CMOs and top digital marketers reflect this same sentiment today. Let’s investigate why:
Continuing the Dialog on Big Data
So where does this leave us? As big data continues to accelerate in this space, there will be infinitely new insights added to the conversation by existing and emerging stakeholders. To continue healthy dialogue, Joanna O’Connell, director of research at AdExchanger, recently articulated: “I think that the ultimate answer, complex and nuanced as it may be, must begin with openness with consumers.” I couldn’t agree more, and I implore fellow colleagues to keep open, honest dialogue about how they are tracking consumers and giving credit where credit is due.