Third party data is information gained from outside sources. When used in advertising the combination of in-house research and third party data can sculpt and paint an ideal picture of your targeted user to refine your advertising efforts.
Third party data comes from a variety of sources. In today’s worth much of it is collected through online methods such as the use of tracking cookies, analytical data, and surveys, but this data can also come from interactions in the real-world such as sales transactions.
Many social media websites, services, and platforms have begun incorporating third party data into ther advertising platforms. This inclusion of data adds items such as online behavior, offline loyalty cards, and a great deal of geographical information.
Here’s the question that’s worth asking: How do you utilize third party data, in social, to drive acquisition?
- Website Conversion. Data collected while a user is on a social platform can be pulled to understand their behavior. This understanding can lead to changing items like copy and design to refine conversion optimization efforts. An example may be how a user interacts with a share button which can then give advertisers an understanding of how to form their site to increase the chances of content (or products) being shares on said network.
- Customer Avatar. An all-important element of any advertising campaign is the ability to target the right individual. The “customer avatar” is an image that businesses create that allows them to align their efforts. Third party data can provide additional information about users (from online and offline sources) which in turn helps refine this image. When applied to the social landscape a business may select highly-targeted keywords and characteristics of a user which will allow them to laser focus their advertising campaign.
- Customer Service. A great reputation will be a defining factors in the chances of your brand becoming a champion in the social sphere. Customers who love a company are likely to share their experiences; this influences others to inquire your business. Third party data can help you understand the experience of these individuals with other companies within your industry. A greater understanding of their experience can allow your business to create a greater customer experience. The process comes full circle – advertise using the copy users want to hear, give them the experience they expect, and they will bring other like-minded individuals into that conversion funnel.
Third party data can be collecting from a variety of sources. Major providers include Acxiom, Datalogix, Experian, comScore, and many others. This information comes at a cost but if it means you can optimize your social efforts to target the right individuals then it’s well worth the investment.