As the movement towards online user privacy continues to grow and as the demand for high-quality targeted data increases, data acquisition becomes more difficult due to the required complex licensing arrangements and challenging integration issues. This is why more data buyers, looking for timely, reliable, and consistent ways to purchase high-quality audience segments, are leveraging the opportunities provided by third-party data marketplaces. According to Forrester Consulting, companies that leverage data marketplaces will gain an advantage over their competitors.
This article highlights the critical factors that data buyers need to take into account as they consider leveraging the growth potential offered by third-party data marketplaces.
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What are third-party data marketplaces?
Third-party data marketplaces are commerce platforms for buying and selling data under one online “roof.” The birth of data markets is believed to date back to the mid-1800s when Reuters news media began to publicly report stock prices. Data buyers use third-party data marketplaces as a one-stop online platform. They can buy ready-made data from multiple vendors in an easy-to-navigate online store.
For example, BidMind’s data marketplace provides ready-made audience segments that a business can use in an advertising campaign to reach target audiences all around the world.
What is third-party data?
Depending on your needs, you can buy audience data in various forms and from a variety of sources from across the globe. Vendors provide data about consumers’ online behavior, such as the products they purchase, their preferences, browsing interests, and more. To understand how to leverage the power of a third-party data marketplace, it is essential to know what differentiates third-party data from first- and second-party data.
First-party data is acquired by a business from direct transactions with its customers. On the other hand, second-party data is acquired from a company that does not directly interact with the customer. Third-party data is also acquired from companies that do not collect data from customers.
But because the details provided can vary from vendor to vendor, data marketplaces work in a similar way to other online markets, empowering buyers to browse a broad range of data and compare different offerings before they make a purchase.
What are the benefits
While there are a plethora of data and data providers, finding the right data is hard because of the highly distributed nature of consumer experience. Third-party data marketplaces take the guesswork out of targeted personalization across channels by offering three key advantages. Third-party data marketplaces empower buyers with a high degree of control by giving them access to a variety of types of data for various markets and from different sources, all in one integrated platform.
For buyers, the experience of using third-party data marketplaces is similar to using other e-commerce platforms. Buyers can view, compare, and buy data. This creates a seamless end-user experience similar to buying any other product online.
Buyers can find high-quality and timely data in third-party data marketplaces that is ready to be used. This enables data buyers to quickly scale and continue to optimize their programmatic advertising. This empowers them to quickly address new business opportunities and realities as their business evolves.
Data buyers need accurate data to understand consumers and their needs, reach them with more relevant messages, and track and optimize those engagements. Unfortunately, according to a survey by Forrester Consulting, ninety-six percent of companies reported that timeliness and accuracy problems with customer data are now a major concern for many companies.
Thanks to third-party data marketplaces, buyers can purchase higher-quality and more timely customer data that give their business the edge over competitors and increase its marketing return on investment.