Marketers may be hesitant to invest in third-party big data insights due to poor reputation. Digiday
blasted the products of many big data vendors as 'cheap, plentiful,
[and] inaccurate, citing cases 30-35% inaccuracy rates discovered
through validation testing.' However, even the most outspoken critics of
third-party data admit that not all vendors are equal, and marketers can
drive desired results if they don’t trade 'accuracy for scale.'
With the right vendor, third party big data can be a crucial tool for
generating lift in marketing results. The proof is in the meteoric
growth of programmatic advertising, in which results are largely
dependent on data quality and scale. Perhaps more importantly, marketers
must remember that third-party data purchased from outside parties
isn’t a new concept.
Marketing teams have bought insights for decades as a tool for tailoring
print advertising and direct mail campaigns. While the best advertising
formats and data scale have changed, the importance of outside
perspective hasn’t. Join as we review reasons why validated,
high-quality third party data assets are crucial to marketing results.
1. Third-Party Data Can Be First-Party Data
Third-party that generates poor marketing results or contains vast
inaccuracies is usually far-removed from it’s source. It was purchased
from the organization who originally collected it months prior,
scrubbed, categorized, and distributed. However, with data marketplaces, your team can purchase data from first-party sources
in real-time. Instead of relying on aging insights or questionable
segments, you can combine your data with another organization’s first
party insights, resulting in far broader contacts and understanding.
2. Third-Party Data Introduces You to New Contacts
While emails, mobile, and programmatic advertising are important tools
for customer retention, marketers are in the business of acquiring new
customers. The goal of a marketing department is to attract people who
resemble your most qualified customers. Third-party data can function
much like the contact lists or leads marketers may have purchased in the
past. With exclusive partnerships, you can gain access to the email
addresses of pre-qualified consumers who are actively looking for your
product or services.
3. Your Data isn’t Validated
Third-party data assets from trusted vendors can reveal uncomfortable truths about your organization’s data quality. The most commonly reported data
management challenge is resolving quality problems 'before they become
an issue.' Even if your organization has above-average data management
practices, there are likely inaccuracies in your contact profiles. By
reconciling your insights in a data management platform against a
third-party vendors, you can perform validation and cleansing actions
needed to maintain accurate information.
4. Your Touch Points aren’t the Full Picture
Even if your organization engages in extensive first-party data
collection practices, you’re probably not getting the full picture. Your
insights are limited to what you’re able to collect through Cookies,
user-generated web content, and customer touch points. If you’re in the
finance industry, you may not know that your customer is expecting a
child. If you’re in real estate, you may not know that a client is
actively planning for retirement. In order to understand your consumers
on an individual level, third-party insights are typically necessary.
Ideally, third-party data has the potential to elevate your team’s
insights through validation and the addition of well-rounded insights.
Instead of relying exclusively on your own touch points, you can gain
insights from other organization’s data collection practices.
