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Second-Party Data Definition
Second-party data is first-party data collected by another trusted company and shared through a direct relationship. It is more reliable than third-party data and often used to expand audience targeting in a privacy-conscious way.
How Second-Party Data Works
- Company A collects data directly from its users.
- Company A shares or sells the data to Company B through a direct agreement.
- Company B uses this data for ad targeting or audience expansion.
- Typically managed via data partnerships or data clean rooms.
Example of Second-Party Data
An airline shares anonymized customer data with a hotel chain to enable targeted advertising for travelers.
Why Second-Party Data Matters in Advertising
- Provides reliable, high-quality audience data
- Offers privacy-conscious targeting alternatives
- Supports more effective, relevant ad campaigns
- Valuable in a cookieless, privacy-focused advertising landscape
