Tapping into 1st-party data: Leveraging in-house DSPs for enhanced insights

Authored article by Kumar Saurav, Chief Strategy Officer, AdCounty Media

Data is essential to corporate choices and customer service in today's digital age. First-party data, often referred to as 1pd or 1p data, is particularly significant among the many forms of data as it is precise, pertinent, and subject to your control over its usage.

Companies are concentrating more on obtaining and utilising data directly from their clients because third-party cookies are crumbling, leaving a gap in campaign targeting. 92% of marketers believe their success depends on leveraging the first-party data from DSPs (Demand-Side Platforms).

About First-Party Data

First-party data is the information you collect directly from your audience, giving you a unique and reliable understanding of who they are and what they want. It includes all the information they voluntarily provide you, like:

• Names and contact details
• What do they purchase?
• How do they utilize social media or your website?
• Which do they prefer?
• Survey responses 
• Email signups
• Customer service interactions

Using this unique information, you can better understand your clients and provide them with the finest service possible! All this information is collected with consent, making it compliant with data privacy regulations. This information can help you personalise your marketing campaigns, target high-value clients, measure the effectiveness of your campaign and build better customer relations.

But, why does one even need first-party data? Here are some reasons 

• Trusted Information: Information provided directly by customers is more trustworthy than information obtained from third parties. 
• Swift Response: You can notice what your clients like and dislike more quickly since you have direct access to this information. 
• Particular Attention: You may use this information to craft promos and offers that precisely match what your target audience wants. 
• Long-lasting Friendships: By understanding your customers better, you can build stronger relationships.

Distinguishing First-Party Data From Alternative Data Sources

While data is the king in today's digital environment, understanding the source of data is equally crucial. First-party data is what you collect from your own audience through their interactions with your brand, while second-party and third-party data is usually obtained by partnering with other complimentary brands. 

These offer a good means for additional information. This is when additional data sources are useful:

• Second-party data is shared with you by another company. This might assist you in reaching out to potential new clients.
• Purchasing third-party data offers a lot of information about people, but you may not be familiar with all of them.
• Zero-party data is comparable to receiving additional data through surveys or preferences. It is your customers directly telling you what they like and want.

Collection of Data- How Can In-house DSPs Help

Customer data often resides in different platforms (CRM, website analytics, etc.). In-house DSPs can centralize and unify this data, creating a holistic view of your audience. It allows you to activate your first-party data for audience segmentation, targeting, and campaign optimization across various channels. Here are some ways in which DSPs can help:

1. Centralized Management: First-party data often gets siloed across various platforms like CRMs, website analytics, and loyalty programs. DSPs can act as a central hub, unifying this data and creating a holistic view of your audience.
2. Group Your Clients: DSPs can segment your audience into highly specific groups based on demographics, purchase history, website behaviour, and more. This allows for much more targeted advertising campaigns. You can also learn about each group's preferences and tailor specific offers for them.
3. Data-Driven Decisions: DSPs provide insightful reporting and attribution models that track the performance of your campaigns based on your first-party data. This lets you see what's working and what's not, enabling data-driven adjustments and optimizations.
4. Forecast the Future: DSPs can leverage your information to forecast potential consumer actions. This can notify you when a client may cease using your service and help you determine how to satisfy them.
5. Improve Things: Once you've organised your data, it's time to act! Use it to deliver consistent messaging across all channels. This ensures a seamless customer experience regardless of how they interact with your brand (website, email, social media).

Overall, DSPs empower companies to leverage their first-party data for more effective and targeted advertising campaigns. They bridge the gap between having valuable customer data and putting it to work to achieve marketing goals.