The importance of all-party data: understanding types of data and why owning yours matters

0-party data: customer-provided information

Let’s start with 0-party data. Although it might seem like a recent concept, 0-party data has existed for a long time—we just didn’t always recognise it by this name. This is data that your customers intentionally and proactively share with you, such as information gathered for instance through surveys, preference centers, or quizzes. It is given to us willingly and with purpose.  0-party data is valuable because it comes directly from the customer, providing accurate and actionable insights.

Why does this matter? Well, because this data is as accurate as it gets. When someone tells you what they like, dislike, and what they’re interested in, you’re not guessing; you’re working with the truth. In a world where privacy concerns are increasing, 0-party data shines because it’s given with full consent, making it not just useful but also ethical. This is the gold standard of data, and if you’re not actively collecting it, you are missing out on valuable insights that can significantly enhance your marketing strategy.

1st-party data: information collected from your own channels

1st-party data is the information you collect directly from your own channels—such as website interactions, purchase history, CRM data, email engagement, and more. It’s the foundation of any robust data strategy because it’s data you own, and it’s specific to your brand.

Owning and effectively utilising your 1st-party data is crucial. It allows you to create targeted marketing campaigns that resonate with your audience, leading to better engagement and higher ROI. With the decline of third-party cookies, 1st-party data is becoming even more important as it helps ensure that your marketing strategies remain effective in a changing digital landscape.

2nd-party data: data shared by trusted partners

2nd-party data is essentially another company’s 1st-party data that you access through a direct relationship or partnership. For instance, if you partner with a company that sells complementary products, you might share data to help both parties better target their audiences.

2nd-party data is valuable because it allows you to expand your audience reach without compromising quality. It’s particularly useful for finding new customers who are likely to be interested in your products or services, based on their interactions with a complementary brand. The key here is trust. You need to ensure that your partner is reliable and that the data exchange is mutually beneficial. When done right, 2nd-party data can significantly enhance your marketing efforts and help you step into new markets.

3rd-party data: information collected from external sources

3rd-party data is information that is collected from sources or channels that are not owned by your business. This includes data aggregated by third-party entities and sold to companies looking to enhance their audience targeting. A common example is data obtained from social media platforms or data brokers who gather information across various websites and channels.

When you use data from social media platforms, for instance, the data is most often considered 3rd-party because it is collected and owned by the platform, not by you directly on your own channels. While you may use this data to enrich your marketing strategies, you don’t have direct control over how it’s collected or maintained. At times it could be argued that data from social media related to our profiles could be considered 1^st party, but let that be up for discussion.

As privacy regulations tighten and browsers phase out third-party cookies, the reliability and availability of 3rd-party data are becoming more limited. Relying on 3rd-party data is becoming riskier and less effective. It’s not dead yet, but it’s definitely on life support. As marketers, we need to recognise this shift and start moving towards more sustainable data strategies.

Why owning your data matters

So, why is all of this important? The future of marketing is even more data-driven, but not just by any data—by your data. Owning your data gives you control over your marketing strategies. It means having control over your marketing, allowing you to create personalised, meaningful experiences for your customers without relying on external sources that may soon become obsolete.

By focusing on owning the all-party data, you can build a robust and future-proof data strategy. This approach not only enhances your marketing efforts but also ensures that you remain compliant with privacy regulations while respecting your customers' data. Plus, when you own your data, you own the narrative. You get to decide how it’s used, who gets access to it, and how it drives your business forward.

Ready to dive deeper?

We’re here to help you navigate this complex data landscape. Whether you’re looking to optimise your 1st-party data strategy or explore the benefits of 0-party data, we’re ready to assist. Let’s discuss how you can take control of your data and turn it into your most valuable marketing asset.