In digital marketing, “third-party data” refers to information gathered from outside sources and provided to businesses for use in marketing campaigns. Data providers often gather this information from a variety of sources, including cookies, social media, online surveys, and other internet tracking techniques.
Demographics, interests, behaviour, and other details that are gathered from several sources and combined into a single dataset are examples of third-party data. Frequently, businesses buy this data to use in their marketing campaigns to better target and segment their target markets.
For instance, even if a user has never engaged with the e-commerce website before, it may use third-party data to target advertisements to customers who have expressed interest in a certain product category. The e-commerce website can increase its reach and target customers who may be interested in its products but are not yet in its customer database by utilising third-party data.
Yet, it is important to keep in mind that third-party data might not always be dependable or precise, and it could not be perfectly in line with a company’s marketing objectives or clients’ expectations. To make sure they are utilising the most pertinent and reliable data for their particular purposes, firms should carefully examine and validate third-party data sources before employing them in their marketing campaigns.