Effective marketing is all about personalization. To target current and potential customers, you first need to know what they’re looking for so you can explain how your company will serve their needs.
Data is the best way to personalize your marketing efforts because it includes real information about your customers that you can transform into actionable insights and tailored campaigns.
We recommend using a variety of data types—including zero, first, second, and third-party data—to capture different elements of your customers’ personas and needs. In this guide, we’ll focus on third-party data and how you can leverage this information to target your audience.
What Is Third-Party Data?
Third-party data (also called 3rd party data, 3p data, or 3pd) is information that external sources or data providers collect and package.
This data does not have a direct connection to the consumers it’s attached to. Instead, providers acquire this information from various sources and compile it to create datasets businesses can leverage. Then, companies append this third-party data to round out their databases and reach new audiences.
Many companies purchase third-party data through a demand-side platform (DSP), data management platform (DMP), or data marketplace. Since you don’t always have insight into where third-party data comes from, you must research your third-party data provider and ensure they follow all data privacy regulations.
To better understand how third-party data differs from other information sources, let’s review the other main data types and their differences.
What Is Zero-Party Data?
Zero-party data is information customers voluntarily share with your business. It may come from surveys, preference centers, or in-person interactions.
For example, when a customer fills out a feedback form or poll, that information is zero-party data.
Businesses can use customers’ honest feedback to improve operations and personalize their marketing campaigns to reflect customer preferences.
What Is First-Party Data?
First-party data is information customers share through interactions with your owned properties, such as your website, app, or physical store. Like zero-party data, this information is sourced directly from customers.
First-party data may include the following data types:
- Demographics
- Communication preferences
- Contact information
- Social media engagement
- Website activity
- Purchase activity
- Preferences and behaviors
Since this data comes from your direct customer relationships, you can typically be confident that it’s accurate and highly actionable.
What Is Second-Party Data?
Second-party data is another organization’s first-party data they share with your business. You may partner with other companies to exchange data or purchase information through a data marketplace.
Let’s say a hotel shares data about customer stay frequency and booking history with a car rental service. The car rental company could use this second-party data to share ads and discounts with customers who stay at the hotel often.
Second-party data is useful because it allows you to learn more about current or potential audiences without spending the time and resources to collect this information yourself. This means that second-party data can also be extremely cost-effective.
Like first-party data, second-party data is reliable because it comes directly from customers. Just verify that the partner sharing this information complies with relevant data privacy regulations.
Zero vs. First vs. Second vs. Third-Party Data: Comparing Different Data Types
Now that you’re familiar with different data sources, let’s review their differences:
Zero-Party Data | First-Party Data | Second-Party Data | Third-Party Data | |
Source | Customers | Customer interactions with owned properties | Partnership or data marketplace | Data provider, demand-side platform (DSP), data management platform (DMP), or data marketplace |
Collection Method | Surveys, preference centers, personal interactions | Website, app, physical store, other owned properties | Website, app, physical stores, other owned properties | Aggregated from various sources |
Collected with Consent | Yes | Yes | Must verify with provider | Must verify with provider |
Accuracy | High | High | High | Depends on provider |
Potential Use Cases | Improving customer experiences based on feedback | Creating tailored marketing campaigns based on customer data and insights | Gaining a deeper understanding of current customers to better target them | Scaling your marketing efforts to broaden your reach |
Examples* | Interests, product feedback | Demographics, contact information | Purchase activity, loyalty program data | Income, home ownership data |
*Note that the same data types can fall under multiple categories depending on how they’re collected. For example, demographic information is considered first-party data if a customer enters it when using your website, as well as third-party data if purchased from an external source.
Third-party data is integral to successful marketing campaigns, with about 61% of digital marketers using this type of data. While you must take extra care to ensure third-party data is accurate and collected following relevant data privacy regulations, it digs deeper into customer insights you may not be able to glean from typical interactions with your audience, allowing you to enrich your database and personalize your campaigns even further.
What Are The Benefits of Third-Party Data?
When you leverage third-party data, your team receives the following benefits:
- Greater efficiency. Third-party data requires little time and effort to acquire. All you have to do is contact a data provider. Plus, 3rd party data companies often package data in a way that eliminates the need for additional organization and categorization, saving your team even more time.
- Enriched customer profiles. Third-party data allows you to learn valuable insights about your customers that you may not be able to obtain through traditional interactions. You can then use this data about their habits, behaviors, and demographics to personalize your audience targeting.
- Broadened reach. While third-party data helps you learn about your current customers, it can also enable you to identify lookalike audiences composed of consumers who resemble your customer base. You can then target these potential customers and expand your reach to additional people who may engage with your brand.
- Easier scalability. Data providers can grant your business access to extensive datasets, allowing you to expand your customer base quickly. This information can also help you tap into new markets and scale up. For example, if you typically sell to adults but want to start targeting a younger audience, you can use a youth marketing dataset to jumpstart your efforts.
- Competitive edge. The more data you have, the more you’ll understand your customers and industry. Third-party data provides businesses a unique advantage because they can transform this information into actionable insights and hop on consumer trends before they become apparent to other companies.
Third-party data unlocks a myriad of opportunities for your business. Whether you’re looking to enhance your understanding of your current customers, expand your audience, or enter new markets, this information can empower your efforts, personalizing your campaigns and offering a better customer experience.
How Do Companies Obtain Third-Party Data?
To acquire third-party data, companies must work with a data provider. Data providers compile data from a variety of sources, such as:
- Public records
- Court filings
- Postal data
- Real estate transactions
- Surveys
- Magazine subscriptions
- Transactional history
- Charitable donations
Companies can then purchase this information as complete datasets and integrate it with their customer data platforms (CDPs) or demand-side platforms (DSPs) for enhanced audience targeting.
Data providers typically offer a wide array of data to satisfy various business needs. This information may include:
- Demographics
- Contact information
- Education
- Marital status
- Home ownership and property data
- Presence of children in the home
- Income
- Net worth
- Lifestyle information
With an estimated 182 zettabytes of data to be created, captured, copied, and consumed worldwide in 2025, there is an overwhelming amount of information available. Brands can leverage this information to transform their marketing approaches and effectively reach target audiences. Data providers do the heavy lifting of sourcing, organizing, and packaging this information to make it digestible and actionable for companies.
How Can Companies Choose A Quality Third-Party Data Provider?
Like with any critical business decision, conducting research is crucial when selecting a third-party data provider. Compare companies’ offerings and pricing options to determine which best suit your organization’s preferences, budget, and goals.
While different providers may cater to specific niches and specialties, in general, you should look for a 3rd party data provider that:
- Contains a variety of datasets. The best data providers package data for many different purposes and businesses. Their expertise and resources allow them to help any brand with its data needs and propel it in front of its target audiences. Additionally, choosing a data provider with various data types will ensure you can stick to one provider for multiple campaigns instead of continuously searching for new data sources.
- Adheres to data privacy laws. Data experts know security is a top priority for building trust between brands and customers. The right data provider will collect all data legally, follow applicable privacy and compliance guidelines, and note any data security certifications they hold.
- Creates a customized approach. Look for a data provider willing to take the time to discuss your data goals and how they can help you achieve them using third-party data. Working with a data provider should be a partnership in which your company explains its needs and preferences, and the provider develops a customized approach based on your input.
- Offers a range of data solutions. While sourcing and appending third-party data can improve your marketing efforts, providers can support your data goals in many other ways. When you find a data provider that offers a range of data solutions—from data quality reports to identity resolution—you can work with them for the long term to completely transform your data-driven marketing approach.
When you find a data provider that fits your brand’s needs, bring your team together to make the final decision. Getting different perspectives on the provider’s approach and offerings will ensure you choose the right provider for your company.
Wrapping Up
Working with a trusted data provider like Deep Sync enables your company to access a variety of unique third-party datasets, dig deep into customer insights, and supercharge your marketing efforts. To get started with your custom third-party data approach, contact us today.
If you want to learn more about using data to fuel your marketing campaigns, check out these additional resources:
- What Is Marketing Data? How to Leverage These Insights. Get a more general overview of marketing data, the different types, and how you can use it for more targeted campaigns.
- What Is Data Enrichment? How To Unlock Marketing Insights. Explore how you can enrich your database with third-party data following best practices.
- What Is First-Party Data? A Definition and How to Leverage It. Dive deeper into the benefits of first-party data and how to collect and use it.
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