Marketers across the globe are increasingly asking how they can gain a competitive advantage. The rise of digital technologies has levelled the playing field. Every brand – small or large – has access to the same tools. It means it’s harder than ever to stand out.
The answer lies in harnessing the power of second-party data. In the simplest of terms, second-party data is a trusted partner’s first-party data. It has all the benefits of first-party data without having to collect or organise it. And it’s also unique to you and your data partner, giving you the opportunity to build market advantage.
The marketing world is increasingly recognising the benefits of second-party data – and its use looks set to be huge.
So if using second-party data sounds like it might be the competitive advantage you’ve been looking for, read on get started. You should also check out our latest ebook – Second-Party Data IdeaBook: Creative ways to unleash the power of your data.
Understand where your business sits in the industry
The first step to assessing second-party data readiness is to understand the role your business plays in the marketing industry.
Ask yourself if any of the following statements apply to you. If they do, you’re in an excellent position to move forward with second-party data.
- I work or partner with other companies for marketing, sponsorships, or strategic partnerships.
- I run marketing campaigns that promote products sold through third-party point-of-sale locations.
- I run and/or own my comarketing or sponsorship programs.
- I run an internal marketing platform and have vendors who pay me for better placement.
- I want to evaluate a data provider by running an audience overlap to better understand potential match before starting a program.
Conduct a data assessment
Once you know you’re a good candidate, the next step is to explore and evaluate your existing data assets, and those you may be missing. Here, you’re looking to establish three things:
- the data you have
- the data you need
- the data strategic partners might find of value.
There are essentially five ways you can use second-party data to add value – partnership evaluation, measurement, customer acquisition, audience augmentation, and custom audiences. How could other brands’ data help you achieve one or more of them? And how could your data help other brands to achieve one or more of them in return?
Start the journey
The next step is to identify the partners who will accompany you on your second-party data journey. There are two types of partnership to forge.
The first is the strategic partnerships with the partners (e.g. brands, retailers, data providers) that will add most value to your own data. The second is the technology partnership with the provider who will enable your use of second-party data: They should provide a neutral environment that:
- is trusted by both parties
- can administer sharing permissions
- can resolve data from multiple sources to a single user ID
For steps #2 and #3 you need look no further. LiveRamp IdentityLink connects people, data, and devices across the digital and physical world, powering the people-based marketing revolution and allowing consumers to safely connect with the brands and products they love.
Start your second-party data journey today – download our ebook, Second-Party Data IdeaBook: Creative ways to unleash the power of your data.