What is 2nd Party Data?
2nd Party Data is the type of data collected and stored about customers, and it’s commonly used for marketing and advertising purposes. Unlike 1stt Party Data which is owned and used by the business collecting and storing it, 2nd Party Data defines data that is 1st Party Data from a different source.
2nd Party Data is typically bought directly from a company that owns it, and it consists of data such as: behavioral data and social media data. It comes from sources typical for 1st Party Data: websites, social media, surveys and apps. 2nd Party Data can be used to improve insight and increase the scale of a business’ own data. It’s also useful for companies who want to reach new customers they haven’t had previous access to, and increase their market share.
In order to acquire 2nd Party Data, marketers and advertisers can’t rely on intermediaries. It’s necessary to directly contact the companies who possess the needed and relevant 2nd Party Data. There are marketplaces for buying 2nd Party Data that facilitate such connections.
While 1st Party Data is the most valuable for marketers, advertisers and business owners, 2nd Party Data allows them to predict new customers’ behavior, reducing the amount of time needed to get the return on their advertising investment.