Inside the Case for First-Party Data
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Third-party behavioral data has been a key ingredient of digital-ad targeting for years. Indeed, the maze of ad-tech firms has grown even more complex as new types of companies emerge to serve the third-party-data market, from ad exchanges and data-management platforms to tag-management firms. But not everyone is enamored of cookie-based third-party data.
“Using cookies to drive online advertising is like using a chainsaw to do brain surgery,” said Scott Howe, CEO of data giant Acxiom, at RampUp, the annual event held by data firm LiveRamp, in February.
Put simply, third-party data is information gathered through outside sources and stored on cookies. It might represent web pages users have visited, such as product descriptions, or indicate the types of content they’ve shared via Facebook and Twitter. Audience-targeting firms use this data to segment users for ad targeting and create look-alike models to extend the reach of those audiences.
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