Third-Party Data Suppliers Need to Give Us What We Pay For
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Third-party data suppliers sprouted up a few years ago, looking to ride the wave of big data and offer wider audiences to advertisers. But as advertisers get wise to the fact that they’re sitting atop valuable data of their own, third-party data companies have had to pivot, given their data’s limited effectiveness and high cost.
Many now package first-party data or employ other companies’ data in more helpful ways, but these offerings are still largely ineffective for the amount advertisers pay. If it is to maintain any value to marketers, the third-party data industry will need to change its economic model yet again.
Of course, not all third-party data are ineffective or bad. But it’s so difficult to get scale out of good data that third-party data companies are forced to use proxies that dilute the value. A consumer who visits MotorTrend.com, for example, is often instantly “cookied” as intending to buy a car. Several companies tout 45 million such consumers in their cookie pool, which is hard to believe when only 15 million cars are sold in the United States. The attributes are forced, resulting in less effective data.
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