Commonly accepted definitions of 1st, 2nd and 3rd party data have been around for a while, taking hold in the early 2010’s and becoming more prevalent in the last 5 years. Unlike its siblings though, the concept of 2nd party data has never quite solidified itself in the lexicon of marketers. That is all going to change in the face of an evolving marketplace and 2nd party data isn’t likely to suffer from middle child syndrome much longer.
Several related but distinct factors are reshaping digital marketing and advertising in the U.S.: the deprecation of the 3rd party cookie, Apple restrictions on IDFA, regulations such as CCPA and consumer demand for data transparency. These collective changes will increasingly limit the availability of 3rd party data and place greater emphasis on a brand’s 1st party data. There is acknowledgement however, that to maintain a competitive advantage and continue to grow, brands will need to go beyond their 1st party data.
These seismic shifts, especially over a relatively short period of time, prompted the Winterberry Group to explore how the marketplace is responding in their latest research paper, Collaborative Data Solutions: The Evolution of Identity in a Privacy-First, Post-Cookie World. Haven’t had a chance to check out the paper? Check out the link below for easy access.
Focusing on the collaboration use case, Winterberry set out to update the definition of 2nd party data to reflect the range of participants and required permissions as the data flows from the primary owner to a shared environment.
The updated definition and supporting details establish a more sophisticated framework for a common understanding of 2nd party data. Additionally, Winterberry provides helpful distinctions that 2nd party data can involve 1st party data from more than two parties and that it can change state to 3rd party data once it is commercialized (licensed). While it will have an impact on permissions and rights, the definition notably leaves out the type of data being shared, such as PII and anonymous linkages or IDs. This intentionally creates coverage for more use cases.
Alliant’s perspective, as a data cooperative at its core – is that this basic definition is a foundational component that will reduce semantics and pave the way for more strategic conversations among partners. Our Members benefit from a secure and fully permissioned collaborative marketing environment and we are excited for this concept to be more understandable and accessible to a wider group of marketers.
Be sure to download the Winterberry Group’s Collaborative Data Solutions: The Evolution of Identity in a Privacy-First, Post-Cookie World for a deep look into the future of data-driven marketing. Interested in learning more about how Alliant can jumpstart your collaboration initiatives? Reach out to us to set up time to connect!
ABOUT THE AUTHOR
Chris Hemick, Director, Product Marketing & Content
Chris has a decade of media experience and drives product development for Alliant’s suite of audience and optimization solutions. Prior to joining Alliant, he ran the Media Strategy, East team at TubeMogul (acquired by Adobe) and negotiated national television buys at OptiMedia (now Blue 449). His mission is to bring together technical expertise and creativity to produce innovative product and campaign strategies. Chris is also an avid photographer & golfer, enjoying how both hobbies keep him outdoors.