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Third-Party Data Definition
Third-party data refers to aggregated consumer information collected by external providers who are not directly interacting with the users. It is commonly used for audience targeting, but its availability is declining due to privacy regulations.
How Third-Party Data Works
- Data providers collect information from multiple sources (websites, apps).
- Marketers purchase or access third-party data via platforms or partners.
- Data is used for broader targeting, lookalike audiences, or expansion.
- Usage is subject to privacy laws like GDPR or CCPA.
Example of Third-Party Data
A programmatic advertiser buys third-party audience segments to target frequent travelers across websites.
Why Third-Party Data Matters in Advertising
- Expands audience reach beyond owned channels
- Supports scalable targeting strategies
- Increasingly regulated, requiring cautious, compliant use
- Transitioning toward first- and second-party alternatives in privacy-focused advertising
