What is second-party data?
Second-party data refers to data obtained not from one's own company but from a collaborating business entity. In other words, the data was data acquired from a partner company. For instance, when two companies have data sharing and exchange agreements, they collaborate mutually. Through this cooperative approach, Company A can provide the audience data it collects to Company B, making this data classified as second-party data for Company B.
Why is second-party data important?
In 2018, the Big Data company reported a 460% increase in participants in the second-party data market. This means that more and more companies are recognizing the value brought to their organizations and are willing to invest in and engage in this field. Here are three key reasons why second-party data is important:
Enriched Data: Second-party data can enhance a company's existing data assets by providing more valuable customer data. This enables companies to reach a larger pool of potential customers and effectively expand their customer base.
Higher Data Quality: Second-party data is often more accurate and trustworthy compared to third-party data because the source of the data is clear. This higher data quality can lead to more reliable insights and decision-making.
Cost Efficiency: Acquiring large-scale data is typically a time-consuming and costly endeavor for most businesses. Collaborating with other companies for second-party data can be a cost-effective way to access valuable data resources.
How can second-party data be applied?
Second-party data can be used by brands to gain access to valuable data that can benefit their business development. By leveraging data from other companies, brands can identify consumers who may be interested in their products. They can then target these audiences precisely through advertising or email marketing campaigns. This data-driven approach increases the likelihood of acquiring new customers and expanding the brand's reach in a scientifically logical manner.
Tagtoo's efforts in second-party data:
Tagtoo has recently partnered with different companies from different industries as data partners. The primary focus of these collaborations is to share second-party data. We use data analysis techniques to categorize user behaviors on partner websites and package them into audience segments that help with marketing activities. This helps brands identify the specific audience types they are looking for and fully harness the power of data. Examples of audience segments include consumers with recent purchase intent for curtains/shower curtains and consumers with recent purchase intent for athletic shoes.
Our current data partners include 4gamers, SET News Network, Cmoney, and Price-comparison websites such as Feebee. These partnerships span across many different industries, including Gaming Lifestyle media, news websites, financial and wealth management companies, and price-comparison websites. This diversity in data types allows us to assist multiple brands in reaching their target audiences effectively.
How can brands benefit from second-party data?
While second-party data is valuable, many businesses in Taiwan may not have a clear understanding of how to utilize this type of data cooperation to benefit their brands. Tagtoo's audience segments are created using machine learning, which categorizes, labels, and packages a data partner's data into audience segments. Each audience segment represents consumer interests across multiple industries and products. Brands can choose the audience segments they want and use them in their advertising campaigns, effectively targeting potential customers.
For example, if you are a manufacturer of bathroom products, you can extract an audience segment from a price comparison website that consists of consumers with recent purchase intent for toilets/toilet seats. You can then use this audience segment for Facebook advertising to attract consumers who are currently interested in purchasing bathroom products.
Second-party data is undoubtedly important, but the key lies in how it is effectively utilized. Only by appropriately processing and applying this data can its true value be realized. Otherwise, valuable data may remain untapped because no one understands how to properly handle and apply it, leaving it as dust that could have been refined into gold.
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