Why Publishers Should Not Ignore Second-Party Data

Financial data analysis graph showing search findings. Selective focus. Horizontal composition with copy space.

In this opinion piece, Lotame Asia head of client partnerships/commercial director Kevin Huang (pictured below) discusses why publishers should make the most of second-party data.

There are three major types of data that brands and businesses can use to provide engaging and compelling customer experiences: first-, second- and third-party.


First-party data is the information you collect through your own systems, including information from your company website, sales and marketing stats from your online storefront, in-store purchase data, CRM data, and more.

Third-party data comes from a variety of sources, which you can guess are rightful “third parties” in the transaction.

It’s usually a collection or aggregation of data sources, from anonymous parties, as compiled by a data vendor or offered in a DSP.

For these reasons it’s not always transparent, depending on the provider.

The final data type is second-party. Second-party data is high-quality data you’re accessing — directly from the source — that you don’t own.

You can think about it as first-party data to someone, just not you. It has been collected directly by the data owner and is sold directly to the buyer.

For that reason, it’s more reliable for publishers and offers better performance and higher engagement ratings. It also leads to happier advertisers.

The latter contributes to return customers, stronger partner and client relationships and much higher budgets, thanks to an ROI boost.

But how is it so effective? And what can second-party data truly do for publishers?

Value, Value Value – A Big Opportunity for Publishers.

By nature, data creates value where traditionally there is none. For decades, customers were customers and products were products.

Now, it’s about more than that. It’s about the information and insights marketers can gather from customers and products, too, and feeding that back into the marketing cycle to give consumers what they want.

For example, if you know males between the ages of 25 and 35 spend the most time reading the content on your site, that knowledge is valuable in and of itself.

You can use it to create more ad space or advertising opportunities your customers will be interested in buying and using.

But the information alone also has value. You can create a brand-new revenue stream by selling these insights to partners and other organizations to improve their own business strategies.

Also, marketers know it’s useful, and it’s coming from a trustworthy and reliable source – you.

With second-party data, the buyer knows exactly what they’re getting, which can make it more valuable than the other forms of data.

Publishers have full transparency, and buyers can choose what information they need or value most.

Furthermore, it’s already organized and sorted into a usable form.

With first-party data, analysts and data scientists will pore over the information and translate it into something usable, or a tech vendor will do it for you. Second-party data comes pre-analyzed and organized, generally by the data owner.

More Engagement and Trust with Key Partners in the Long Run.

Buying, accessing and sharing second-party data is, for all intents and purposes, networking.

If a marketer or brand is looking to buy data directly from the source, they must first research providers, reach out to them using a marketplace or community forum, then facilitate the transaction.

Another option is to go through second-party data exchange, a service provider that will facilitate the relationships for marketers and publishers.

This cuts down on the required investment and eliminates the need to do added research. These exchanges can make more quality recommendations for publishers and in turn provide reliable, trustworthy insights for buyers.

Reaching out and engaging with a potential customer is the start of the relationship, but once they access and use data they have purchased, you begin to build trust with your customers.

Better Campaign Performance = Happy Advertisers

Because you can better target the correct audience through second-party data, it directly contributes to better-performing campaigns and actions.

How? Higher quality data means more accurate data, which means your campaigns are hitting their intended targets. If the right people are seeing your ads, engagement will go up. And this means more repeat customers who are satisfied and happy.

Better performing campaigns mean advertisers end up happier. Because their campaigns are successful, they are more likely to offer you repeat business or increased budgets, building a stronger relationship with you in the process.

This, of course, leads to a much higher ROI for everyone, including you.

Second-party data has the potential to be more valuable and more disruptive than any other type of customer, marketing and sales data currently available.

It’s trustworthy and accurate, simply because of where it comes from — not to mention, you have full transparency and can plan accordingly before acquiring any data at all.

You can target exactly the niche or audiences you want, and you can purchase just the data you need. All the while, you’re building valuable relationships between your brand and others, and the publishers or data owners.

The possibilities for publishers are enormous.

Latest News

A young boy nerd shouts at the top of his voice to his co-worker through a megaphone trying to talk some sense into him. The young nerds are dressed in bowties and glasses. Retro styling.
  • Opinion

Smart Speakers: The Voice Of A Generation

In this opinion piece, Growth Tank management consultant David Willey looks into research on the usage of voice assistants and access to smart speakers for Generation Z, Millennials and Generation X in Australia. We hear a lot about how Millennials, and now Generation Z, are changing the game on marketing by adopting the latest technology, including digital voice […]


by B&T Magazine

B&T Magazine
Host/Havas Bags Work For Oroton
  • Advertising

Host/Havas Bags Work For Oroton

Host/Havas staff forced to takes lessons on accessorising after snaring Oroton's creative account.

Glenn McGrath & Mike Hussey Join Macquarie Media’s Cricket Commentary Team
  • Media

Glenn McGrath & Mike Hussey Join Macquarie Media’s Cricket Commentary Team

Macquarie Media has announced that two of Australia’s cricketing greats, Glenn McGrath and Mike Hussey, are the latest additions to its cricket commentary line-up. McGrath (pictured above, right) and Hussey (pictured above, left) will join Darren Lehmann and Ian Chappell in the Macquarie Macquarie Sports Radio commentary box this summer, as part of the company’s new six-year […]

SBS Chooses Fairfax’s Andrew Mudgway To Lead Its Commercial Strategy
  • Advertising
  • Media

SBS Chooses Fairfax’s Andrew Mudgway To Lead Its Commercial Strategy

Special Broadcasting Service (SBS) has announced the appointment of Andrew Mudgway as its national sales manager for TV and digital. Mudgway joins SBS from Fairfax Media, where he was responsible for the publisher’s national digital and print sales team. He brings more than 25 years’ experience to SBS, having also held positions at IPG Mediabrands, […]