What is 3rd party data?

3rd party data is information gathered by an entity that does not have a direct relationship with the user. This data is obtained from various sources such as social media, government records, and other public databases. It is then sold to advertisers or other organizations for use in targeted marketing.

In essence, 3rd party data refers to information gathered about individuals without their knowledge or consent. This has become increasingly controversial in recent years due to concerns over privacy and personal information protection.

It's important to note that while 3rd party data can be effective for targeted advertising purposes, it can also be inaccurate or outdated. Additionally, users often have little control over how this data is collected or used.

The Benefits of Using 3rd Party Data

When utilized ethically and effectively, external data sets, including but not limited to "3rd party data", can provide valuable insights into customer behavior and preferences beyond what a company might collect on its own.

This type of external consumer intelligence might hold important clues about ideal audience segments - demographics most likely interested in your brand – which help you create more relevant promotion strategies on various channels such as email campaigns, social media posts/ads etc..

The Risks of Using 3rd Party Data

While there are benefits to using "external" data sets,, it's equally essential for marketers (and anyone who uses this sort of sensitive information) to prioritize protecting consumer privacy rights even if laws still support some interpretations of these kinds of uses today.

An example how this data may look like:

{ 
 "Age": 25, 
 "Gender": "male", 
 "Location": { 
   "City": "New York",  
   "State": "NY" 
 }, 
}

Third-party data can often be inaccurate or outdated which presents problems for marketers attempting to build marketing campaigns from this type of sensitive information.

The Future of Third-Party Data

As privacy concerns continue to mount, it's clear that the regulation around third-party data will evolve and become more robust. Brands that prioritize consumer privacy while still harnessing the benefits of third-party data will find themselves at a great advantage over those who lag behind in adapting and protecting user rights.

Navigating this complex space is not easy - but with consumers increasingly making it clear that they want their personal information protected, brands should take action now to ensure they're not only compliant but ahead of the curve when it comes to creating trust with customers.