The Importance and Power of Third-Party Data

February 2, 2023by Samantha Yee

Utilizing programmatic advertising is about finding the right person at the right time, with the right messaging. Third-party audiences can help find that right person – read on to learn more.

Back in the day, with mediums such as print advertising, advertisers were sold on metrics such as HHI and population concentration, hedging their bets that their target customers would happen to be within the radius of the paper’s delivery. Advertising has come a long way since then, with the advent of first- and third-party data. 

Third-party data is collected from various sources on the web, aggregating together to form a ‘persona’ about a particular user on the open web. An example is someone who is perusing for a particular product, say cat food; one provider might label this person a ‘Big Box shopper,’ and another provider might label them a ‘cat lover’ based on the cat food they were searching for. In this way, this user could be targeted as both a ‘Big Box shopper’ and a ‘cat lover,’ so advertisers such as Target and Purina could both target this particular user with an advertisement.

It’s important to think about who your ‘target audience’ is – are users within a certain demographic (age/gender) bracket? Do they require a certain HHI to be able to buy your products or services? Do they exhibit certain characteristics, such as ‘heavy soap opera watcher’ or ‘shopping for cars’? Determining who your target audience will 100% help you reach the right users at the right time. If you are able to pixel your site and/or have first-party CRM data available, this makes it even easier to find users similar to yours (see last week’s blog post for more!).

What’s great about third-party data is that there is a wide breadth of data partners available within any DSP, which allows you to test and learn which segments are performing the best. With real-time campaign data, traders can make decisions about cutting or bidding up on segments that aren’t/are performing, respectively. Utilizing third-party data is an important and powerful tool in a trader’s arsenal; constantly recalibrating your campaigns is the best way to drive performance.

Learn more about third- (and first-party data) from your Ventura team – we are always available to lend an ear and discuss your programmatic media strategies!