Third-Party Data Providers: Friends or Foes?
Third-party data helps fill in audience gaps to better understand what you don’t know about your consumers. In fact, 85% of professionals who purchase third-party data believe it helps them make informed business decisions.
There are a variety of third-party data providers in the market who may specialize in aggregating specific types of consumer data such as demographic data, mobile app data, purchase data, location data and more.
Based on the unique needs of your brand or client, you can work with different third-party data providers to build a stronger audience base and better target ideal consumers.
If your goal is to acquire new customers or even make more informed, data-driven marketing decisions, why aren’t you relying more on third-party data providers?
3 Key Takeaways from Our Webinar Discussion
1. The quality of a third-party data provider should be determined by their ability to consistently provide relevant and reliable data.
It’s challenging because it can feel like the quality of data and the scale of data can be at odds, making us feel as though we have to choose between quality or quantity.
It’s tempting for marketers to try and measure the quality of a data provider based on how much data you can get, but the truth is that data providers come in all different shapes and sizes and may bring their own unique value to the table. It’s really about what works for you and your changing needs.
In a survey conducted by Nielsen Marketing Cloud, business professionals expressed that the quality of a third-party data provider is about their data being consistently relevant and reliable in filling their audience gaps and driving campaign success.
A one-time successful data purchase doesn’t say much about a partner or the value they bring to your campaigns, consumers and overall KPI goals.
High-quality data providers continuously provide consumer data that is relevant, reliable and works across multiple scenarios and campaigns.
2. Transparency is the most powerful way to create an open dialogue and cultivate trust with your third-party data providers and drive KPI goals.
From the start of your first conversations, create an open dialogue with third-party data providers to talk about what you’re looking for, what your goals are and which data product might be the best fit for your needs. This allows you to centralize the goals and strategy between the data provider, DMP, your agency AND brand.
Also consider the data provider’s transparency about their collection methodology, scale, and campaign analytics.
If these open conversations are happening, it is less likely that there will be distrust, unmet expectations and misaligned campaign expectations.
To further push the need for transparency, consider structuring a quick test to see if the data provider is really right for you and can help facilitate your campaign goals.
3. The right third-party data provider will be engaged, curious and involved.
Make sure your third-party data provider is asking the right discovery questions, getting to know your unique KPI goals and providing the best data solutions to help achieve them.
The discovery process is paramount to start of any campaign and your data provider should be curious and attentive to your specific needs.
While a data provider might provide a standard audience segment, they should also be willing to work with you to create custom audiences for your campaign when necessary.
The difference is that the people who are engaged, curious and involved will distinguish themselves as a true partner instead of just a provider who drops off data at your door.