First-Party vs. Third-Party Data

First-Party vs. Third-Party Data: What's the Difference?

First-party data is collected directly from users by the advertiser or publisher, whereas third-party data is collected by external sources and sold to advertisers for targeting purposes.

Examples of First-Party vs. Third-Party Data

• First-Party Data: User interactions, purchase history, and website behavior.
• Third-Party Data: Demographic information or interest data purchased from data brokers.

Key Points

• First-party data is highly accurate and privacy-compliant.
• Third-party data expands targeting but may raise privacy concerns.
• Many platforms are shifting to prioritize first-party data for better privacy compliance.

Best Practices

• Rely more on first-party data for accurate and privacy-compliant targeting.
• Use third-party data to supplement when first-party data is insufficient.
• Regularly review data sources to maintain compliance and data quality.

Considerations

• Data privacy laws restrict third-party data usage.
• First-party data requires user consent, while third-party data often faces restrictions.
• Changes in browser policies and privacy laws may impact third-party data availability.