What Is Third-Party Data?
Posted: Sat May 24, 2025 5:54 am
Third-party data is collected by entities that do not have a direct relationship with the users the data is about. These data aggregators or brokers gather information from a variety of sources (websites, apps, offline transactions) and then sell or lease it to companies looking to enhance their marketing or analytics efforts.
Examples
Demographic data from a data broker
Behavioral data aggregated across many websites
Location data sold by app developers to third parties
Advantages
Scale and Breadth: Offers massive datasets covering a wide vietnam phone number list range of audiences, behaviors, and segments.
Audience Targeting: Helps marketers reach people beyond their existing user base.
Fast Deployment: Companies can quickly integrate data sets without the time needed to build up their own.
Limitations
Data Quality: Because it’s collected indirectly, third-party data can be outdated, inaccurate, or irrelevant.
Privacy Risks: Increasingly under scrutiny due to lack of transparency in how and where data is collected.
Regulatory Risk: Many governments are introducing legislation to restrict the collection and sale of third-party data.
Examples
Demographic data from a data broker
Behavioral data aggregated across many websites
Location data sold by app developers to third parties
Advantages
Scale and Breadth: Offers massive datasets covering a wide vietnam phone number list range of audiences, behaviors, and segments.
Audience Targeting: Helps marketers reach people beyond their existing user base.
Fast Deployment: Companies can quickly integrate data sets without the time needed to build up their own.
Limitations
Data Quality: Because it’s collected indirectly, third-party data can be outdated, inaccurate, or irrelevant.
Privacy Risks: Increasingly under scrutiny due to lack of transparency in how and where data is collected.
Regulatory Risk: Many governments are introducing legislation to restrict the collection and sale of third-party data.