For many years, third-party data was essential information in digital marketing. With the recent changes in privacy regulation and the gradual end of third-party cookies, companies must educate themselves on the importance and usage of first-party data collecting. Why is the relevance of first-party data increasing, and why can first-party data be the most powerful and useful marketing information in 2023?
Constant changes in privacy policy laws and the awareness of customer needs in this field result in the growing importance of first-party data collection. First-party data (also known as 1P data) is the information collected directly from a brand's customers. Understanding the customer behavior patterns, preferences, and purchase history, a brand based on individual interest can ensure personalized offerings, such as specific and tailored content or ads. This tends to lead to higher traction and more intentional interactions with the brand, attaching customers to the product to ultimately increase revenues.
Undoubtedly, data collection is now derived mainly through customer consent. Using first-party data reduces the risk of compliance issues, as users provide their data only with previous consent, acquired when they use websites or social media channels. Of course, collecting and analyzing this type of data may require more time and effort. Still, as this information comes directly from the brand's customers, it offers competitive insight into their needs.
There are many ways through which users can provide first-party data. What data and how you will use it depend only on your ideas and needs. Data collected in this way is owned by the companies and is less expensive than general data purchased from third-party companies.
In times of economic turmoil, it is yet another way of reducing the costs of operating an efficient business and can be a valuable addition to the list of usage of first-party data advantages.