What does the term "first-party data" mean?

The term "first-party data" refers specifically to data that is collected directly from users by the advertiser or the organization itself. This data encompasses a wide range of information about consumer behaviors, preferences, interactions, and transactions that are gathered through direct engagement with users on owned channels, such as websites, mobile apps, and social media platforms.

Utilizing first-party data is particularly valuable for advertisers because it comes directly from their interactions with customers, ensuring a higher level of accuracy and relevance. This type of data can inform targeted advertising strategies, improve customer experiences, and enhance overall marketing effectiveness. The direct connection allows advertisers to build deeper relationships with their audience by leveraging insights that are bespoke to their direct interactions.

In contrast to other types of data, first-party data is not purchased from external sources (thus, it reflects a more authentic understanding of the audience), cannot be legally problematic if handled correctly, and encompasses more than just demographic information, as it also includes aspects such as user behavior and preferences.