Third-party data companies, particularly those supplying anonymized consumer data from mobile devices, sometimes face skepticism and a negative reputation. While there are valid concerns related to some third-party data services, myths persist that create misunderstandings about the value of third-party data providers.
Let’s play Mythbusters about third-party data providers
We’ve collected – and busted – several common myths and misconceptions about using third-party data providers for marketing data.
Myth #1: Third-Party Data Is Irrelevant in a Cookieless Future
+ Reality: Although third-party cookies are widely being phased out, alternative methods such as device-based identifiers, cohort-based targeting, and anonymized mobile data remain effective. Forward-thinking providers are continuously innovating with solutions tailored to a privacy-centric digital ecosystem.
Myth #2: First-Party Data Alone Is Enough
+ Reality: First-party data is, without question, invaluable. However, it’s often limited in scope and scale. Third-party data complements your first-party data by providing a broader market view, helping to identify trends, and enabling reach into new audience segments beyond your company's immediate customer base.
Myth #3: Privacy Laws are Making Third-Party Data Providers Obsolete
+ Reality: Though privacy regulations have certainly changed the landscape, third-party data is far from obsolete. Third-party data providers are maintaining compliance and respecting consumer privacy and adapting by implementing consent-based methods, partnerships, and anonymization technologies.
Myth #4: All Third-Party Data Providers Are the Same
+ Reality: No, no, no! Providers vary significantly in terms of quality, sourcing, methodologies, and compliance practices. Distinguish reliable partners from subpar ones by thoroughly vetting them, particularly on transparency and compliance certifications.
Myth #5: Third-Party Data Providers Violate Consumer Privacy
+ Reality: Reputable third-party providers comply with privacy laws by obtaining data through consent-based mechanisms and opt-ins. The data is anonymized to remove personally identifiable information (PII), ensuring privacy while maintaining value for advertisers.
Myth #6: Third-Party Data Is Lower Quality Than First-Party Data
+ Reality: Actually, third-party data can be of high quality, especially when sourced from reliable providers that use rigorous validation methods. Combining first-party data with high-quality third-party data can offer more robust insights because third-party data can fill gaps in demographic, behavioral, or geographic information.
Myth #7: Third-Party Data Is Generic and Overused
+ Reality: It’s true that some providers offer generic datasets, but many third-party data services specialize in highly granular, customized data sets tailored for specific industries or campaign goals. Some providers use machine learning to derive sophisticated attributes and features from this data adding even more insights.
Myth #8: Mobile-Derived Data Is Too Vague to Be Useful
+ Reality: Mobile devices generate rich data points, including points of interest app usage, and behavioral patterns. This data can provide precise audience segmentation and actionable insights. Sophisticated analytics, especially with AI, can enhance the value of the data for even more effective targeting.
Myth #9: Third-Party Data Is Too Expensive for the ROI
+ Reality: Your ROI will depend on the quality of the data and its effective integration into well-planned campaigns. High-ROI campaigns are achievable when you use third-party data to complement first-party insights and align that with strategic objectives. Many data providers offer tiered pricing models or custom services to accommodate variable needs and budgets.
Learn more about Third-Party Data Trends and how Mobilewalla can help you learn more about your customers.
About Mobilewalla
Mobilewalla is a leading consumer intelligence provider, providing the most comprehensive consumer data repository in the digital ecosystem.
We aggregate data from multiple sources, then apply data cleansing techniques, fraud detection measures, and a combination of deterministic, artificial intelligence, and machine learning techniques.
Data analysts, researchers, and marketers leverage our highly-accurate consumer data sets for richer, more robust customer profiles including information about their competitors’ customers and consumers.
With app usage, location, and behavior-based data, enterprises can build a complete picture of current and potential customers to connect with them when and where they are ready to engage.
Connect with our consumer intelligence experts to learn how enriching your data can help you better understand your highest-value customers.
