Top 5 reasons to move to first party data

The fast-moving online marketplace has seen many changes and innovations over the years, especially in the last decade. Data driven media has changed the way businesses understand and connect with their customers. Third party systems and cookies have spearheaded this drive, becoming an integral feature to all businesses that partake in the online marketplace.

First party data and cookies are set to become the new norm, looking to replace third party methods by 2023. Unlike third party data, first party data exists solely within the domain of the site owner. This allows site owners to directly collect insights, analytics and other customer interactions without having to go through external entities.

While there are myriad reasons why first party systems are the future of data, we’ve distilled down our top five reasons why you should transition away from third party data and move into the realm of first party collection, management, and measurement.

1. The ‘Cookie Apocalypse’

Third party cookies are set to join the dinosaurs in extinction with 2023 marking the date of their expiry. Unfortunately, there is no avoiding this, as the cookie apocalypse was set in motion back in 2020 due to increasing customer privacy fears.

It has inevitability left a lot of businesses (particularly those who’ve been over reliant on third party systems) scratching their heads in how they are going to operate in the digital world going forward. The answer is simple: first party data. By moving to a first party data system today, you prepare your business and marketing teams for the removal of third party cookies. You will build your new data asset in a stress-free environment, knowing that once third party cookies are removed in 2023 you will be unaffected.

Learn more about how Crystal Box can build and activate your first party data asset in just three weeks >

2. Third party data is not what it claims to be

A study featured in Marketing Science, named “Frontiers: How Effective Is Third-Party Consumer Profiling? Evidence from Field Studies” (Nico Neumann, Catherine E. Tucker, Timothy Whitfield (2019)), set out to determine the accuracy of third party data, delving into two primary metrics; gender and age. The research only proved one thing; third party data needs to be replaced. If the data industry wasn’t a multi-billion-dollar enterprise the results from the survey would be laughable. According to the research, accuracy in determining customer gender was at 50%, and to make matters worse this stat was the leader in terms of third party data accuracy. Age precision was further halved, meaning 25% of the time your third party data would correctly pinpoint the age of the correlating customer.

Despite this being a long-time issue with third party sourced data, the deprecation of third party cookies, and the restriction imposed in mobile app tracking will further decrease the quality and scale of third party data collection, demonstrating the importance in building your first party data asset sooner rather than later.

3. Save money and create new revenue streams

Though setting up a new first party system to replace your old (to be redundant) third party process may seem costly in the short run, long term your savings will be immense. No longer will you need to purchase data created and collected by third party entities as you will be producing it on your own at a more accurate level in larger quantities.

Furthermore, by bringing the data collection process into your own environment you have the ability to better measure and analyse your findings, enriching it to create actionable insights. Data enrichment however can take time without the right technology. Should you opt for the Crystal Box first party solution, your business will be provided with AI technology that automates filtering and transforming raw data into actionable insights – saving you both time and money across your marketing operations.

Coupled with saving money you will also create new streams of revenue for your business. More data unlocks new use cases allowing for enhanced personalisation, relevance in communication, leading to improved conversions across all channels. Beyond that, your new unique data creates a new commercialisation opportunity with partners, ensuring you control how your data is used, while keeping the revenue!

4. Take control of your data

Bringing your means of creating, collecting, and storing data into your own domain removes most third party tampering, bringing many benefits to your business. There is a direct correlation between the amount of hands data is passed through and its quality – with first party the only hands that touch your data are your own, also improving security.

Currently third party media platforms/walled gardens who are employed to produce and provide your third party data have control, allowing them to commercialise it as many times as possible and maximise their data driven revenue. Not only will they take the money you paid to use their audience and advertising services, but often they will take the data and make it available to brands willing to pay for it. Facebook describes this as the practice of producing a ‘lookalike audience’. They then promote this as a means by which a business (the competitor) can reach new people who may be interested in your offering as they share similar characteristics to your existing audience.

By taking control of your data and moving to first party systems you are increasing your data’s value and uniqueness as only you have access to that data, removing the commercial power of players like Facebook and Google.

Learn how Crystal Box helps you take control >

5. Privacy for visitors

Third party cookies are being removed for many reasons, with privacy concerns being the ringleader. Big players in the digital world – primarily the big walled gardens – have been using third party cookies to track visitors' browser movements as well as collect information (such as contact details) across all the websites that use their services, without the clear permission of those visitors. This data would then be commercialised for their own benefit, all without the knowledge of the people whose data had been collected. These issues amounted to the impending demise of third party cookies. 

With first party cookies, the right consent and permissioned data, these issues can be mitigated for your customers, while ensuring your business adheres to the ever-present evolving privacy regulation around the globe. By knowing what data you have, where it is, how it is used and why, you can make the right commitments to your visitors, customers and regulators.

Are you ready to move to first party data?