Brands are looking to understand first-party data but are not necessarily as keen on activating it.
With privacy laws weakening traditional targeting, Investing in first-party data has been gaining momentum over the past few years. However, data from an IAB Europe study reveals that first-party data now trails behind second-party data and third-party data in popularity among advertisers, agencies and publishers.
According to Daniel Knapp, chief economist of IAB Europe, market enthusiasm towards first-party data might have been dampened by the financial costs of getting a robust data corpus, the complexity of vendors and tools and existing culture obstacles within an organisation. Similarly, collecting a range of first-party data and enhancing it with third-party data at scale is challenging for marketers.
Marketers are also increasingly opting for second-party data – sharing consented first-party information with select partners, such as niche publishers or ecommerce outfits, to scale. Despite the imminent death of the cookie, demand for third-party data has increased between 2020 and 2022.
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[6 minute read]