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2024 is the year business must understand 1st Party Data

In 2024, the new systems for tracking and using first-party data correctly will be a game-changer for business who sell things online and want to be ahead of their competition. 

Take Shopify brands as a good example. Correct purchase conversion data being correctly delivered to advertising accounts like TikTok or Meta will make the difference between whether or not these ad systems can algorithmically learn or not. I.e. Good data will power good ads, and make sales. Any interference or blocking of this data, will have a direct impact on the companies bottom line. 

Data

So whats the key difference here? Well first party data is the information collected directly from customers or website visitors using your website. This includes contact details, purchase history, and browsing behaviour that can be a defining navigational tool in understand what works, what doesn’t, and how to effectively find more buyers through an array of online platforms. It your site, your data, and your ads.

Unlike third-party data, this type of data is obtained with user consent, making it more reliable and is kept within the confines of the store/sites and ad operations. It’s used to power online campaigns and effective retargeting of users. 

While second party data is often something bought or shared from a different company (it’s not directly collected by you), and third party data is often the name given to audiences collected from browser pixels on sites which are not controlled by the entity in question at all. 

With this considred, first party data is clearly the kind of data collection most users find palatable, while the idea of other companies you are not even interacting with, taking your data and marketing to you without your consent, can feel a bit odd. They’re essentially monetising your data, without you knowing, or agreeing to is.  

Luckily, most law makers agree this doesn’t sit right, which is why the world is changing, and 3rd party data is firmly in the sights of regulatory bodies to put a stop to this kind of non-consensual data sharing. 

All of this explains the increasing difficulty of capturing third-party data through cookies – because devices are blocking them, laws are being passed to halt their effectiveness, and with this, first-party data is becoming more and more essential for a deeper understanding of customer preferences and highly targeted marketing campaigns. Which is why those who understand it, will win out over others who do not adapt to this changing landscape. 

To collect this data, businesses should focus on server-side tracking, compliant cookie banners, and enabling server based analytics collectors. This approach ensures the collection of accurate customer data all through a verified domain that can prove the exchanges of data are indeed first party. This also helps where domain verification is now commonplace in the major ad account systems.

Getting this right means correct data, better ads, increased revenue, and better marketing attribution. Leveraging first-party data is crucial for future-proofing businesses and driving more value from loyal customers. 

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