Marketers have long relied on third-party data for their data-driven marketing efforts. But the most successful data-driven marketers are using first-party data at a significantly higher rate than other marketers, according to a new report from Econsultancy and cross-channel marketing tech company Signal.
“Marketers are under pressure to provide more relevant customer experiences powered by insights from their users,” said Mike Sands, CEO, Signal. “This report highlights a sea change in the industry’s data landscape, as marketers increasingly turn to first-party data – data derived from their own customers – to fuel better personalisation, more precise targeting and improved marketing ROI.”
The survey of North American marketers found that among those who report the strongest ROI from their data-related investments, 81 per cent regularly use first-party data, compared to 71 per cent of their peers.
First-party data provides the richest, highest quality insights into consumer behaviour. It’s data that is collected and stored directly by website publishers about their customers. Marketers across the board are becoming more reliant on this valuable data source, with 82 per cent saying they plan to use more first-party data in their campaigns, and none reporting they will decrease their use of first-party data. In contrast, one in four marketers say they plan to decrease their use of third-party data, data collected by someone else who does not have a direct relationship with the consumer.
The study also sheds light on second-party data, e.g. data shared among trusted partners, as an effective but underutilized data source. Some 77 per cent of the highest-performing marketers regularly use second-party data, versus only 48 per cent of their counterparts. And 60 per cent of marketers plan to increase their use of second-party data, suggesting marketers are becoming more aware of the value in sharing their engagement data.
First-party data is marketers’ top choice for success across key metrics: 74 per cent said it gives the greatest insight into customers, 64 per cent said it offers the highest increase to customer lifetime value, and 62 per cent said it provides the highest lift among data sources. Less than 10 per cent of marketers surveyed reported the same benefits from third-party data.
Not only do companies with the most profitable data-driven initiatives prefer first-party data, they also report stronger capabilities in important data-related practices. For example, 66 per cent excel at campaign targeting and analysis, 60 per cent have strong personalisation capabilities, and 59 per cent are more successful at attribution and audience segmentation.
The report found striking differences in how high-performing marketers manage their data-driven efforts versus their peers. They have adapted to the explosion of new devices and channels by collecting data from beyond the web: 60 per cent collect data from mobile applications, versus 41 per cent of their peers; 61 per cent collect data from email/SMS, versus 47 per cent; and 23 per cent collect data from beacons, versus 8 per cent.
“Stitching together first-party data across devices and channels is the key to building insightful customer identities and supercharging marketing programs,” Sands said. “Signal’s Fuse platform helps make this a reality by powering a single view of the customer across online and offline channels that brands can use for smarter marketing.”
The sexiest singles in the nation (according to Channel Nine, at least) are back on airwaves with Love Island Australia on Monday, October 4, at 9.00pm after The Block on Channel 9 and 9Now. Aussie sweetheart Sophie Monk will return to host (and play Cupid) alongside new addition, comedian Stephen Mullan a narrator, in the world-renowned reality TV […]
Yotpo is officially expanding into Australia, off the back of significant market growth with massive Aussie names, a landmark investment from Shopify and a plan to help local Aussie e-comm explode. Yotpo’s ANZ userbase includes names like Zoe Foster Blake’s $180M Go-To Skin Care, e-commerce fashion queen Princess Polly, and billion-dollar streetwear brand Culture Kings, […]
Progress has today announced the availability of Progress Sitefinity DX 14.0. This agile, flexible and extensible platform allows organisations to create an ideal digital experience platform (DXP) tailored to their unique needs and objectives with new capabilities for low-code integration and chat-driven engagement, as well as enhanced headless content delivery. The digital world is transforming […]
Tangram has announced that they have signed a partnership with monday.com. the work operating system (Work OS) where organizations of any size can create the tools and processes, they need to manage every aspect of their work. Israeli-based monday.com and Australian-based Tangram form an irresistible team of experts offering unique solutions to agency problems. monday.com […]
Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.
Storytelling agency Enthral has appointed Channel 7 reporter and sports presenter Sean Sowerby as its new senior PR and content manager in Melbourne. Sowerby (pictured) started his award-winning career at 3AW before spending more than 15 years in television. Enthral founder and manager director, Cameron Smith, spoke of the significance of Sowerby joining the agency. […]