1st, 2nd, & 3rd party data and its effect on your ROI

Sep 8, 2017 4:59:32 PM

Data is the foundation of the brand’s customer relationships today and strategies for tomorrow. The use of first, second, and third party data allowing buyers and sellers to better define audiences and maximize their ROI is rapidly evolving in all industries. In Out-of-home, it enables buyers to better target the most appropriate audience, while sellers benefit from optimization of their media assets.

So what's the difference?

First party data-- the most valuable among marketers

First-party data is the most powerful data. It's also the most valuable among marketers since it's raw data. In a survey conducted by Econsultancy, 81 percent of  302 marketers reported strong ROI by using first-party data. Not only that, what they liked the most was its free-of-use, unregulated composition and uniqueness

One of the benefits associated with 1st party data is that you can exercise complete control over how it’s 
collected, processed, stored, managed and secured. Therefore, you can spot any quality issues. In the end, it’s the quality and transparency of the data that matters.


Let’s be honest – spending money for data that isn’t very specific, offer detailed insights, isn't transparent, and you're not sure about its quality – isn’t ideal.


  • It’s raw data-- the data you collect directly from customers and therefore it’s the most relevant and accurate
  • Provides more detailed insights
  • Its transparent use offers advantages and less problems with data regulations
  • It’s quality offers better and more targetable data, which is key to industry growth
  • The connection between data subject (customer) and data processor (brand) is more direct – thus the trust between the two sides is greater
  • It’s much cheaper than buying data from a 3rd-party vendor
  • You can efficiently use your marketing dollars and know you’re not wasting it


  • It can be limited

Second Party Data - info from trusted partners


Second- party data is essentially a trusted partner's first party data.


  • This sharing of high-quality first-party data gives you access to audiences you might not have previously been able to reach
  • It helps form a larger, more complete view of the customer
  • This data is valuable because competitors most likely won’t have access to it
  • The possibilities are endless if you seek out, form, and maintain mutually beneficial partnerships.


  • Potential integration issues.
  • Can be limited in availability compared to first-party data.

Third Party Data - Broader data sets


Third-party data is the data that you buy from an external source, like a data collection company. The data these large companies provide is typically purchased on a large scale.


  • It’s readily available.
  • You have a broad selection of data sets


  • It lacks transparency--an increasing issue lately.
  • Since the focus is on quantity, quality can vary wildly.
  • It’s not unique. This data is also widely accessible to competitors, so you aren’’t gaining unique audience intelligence when you tap into third party data resources.
  • Higher risk of breaching data regulations --this is a very important factor buyers should be wary of.  
  • Most often 3rd-party data is exchanged (bought or sold) in fixed segments.
  • All of the associated risks can make this option costly. Forrester Consulting noted, “Using ill-gotten or badly aggregated data can be riskier than sharing data carefully and securely with select trusted business partners”



To see a preview of how Measurence uses 1st party data to help you maximize your ROI and make better business decisions, download this Sample Report:
Download Sample OOH Report



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