V DIGITAL SERVICES
Product Insights

How to Use First-Party Data in Modern Marketing

Featured image for post: How to Use First-Party Data in Modern Marketing

First-party data is all data that companies collect directly from consumers. You can gather first-party data by asking website visitors to create accounts, download gated resources, opt into your email marketing campaign, or complete surveys. The more first-party data you own, the easier it becomes to effectively target your audience. Unfortunately, in 2024, 70% of online advertising occurs on massive platforms, like Google, Facebook, or Amazon, that collect and control all user data in tightly defined platforms known as walled gardens.

For companies, these spaces provide little opportunity for precise targeting and insufficient ability to track and monitor the overall segmentation of their campaigns. Google’s walled garden environment can eat through your marketing budget and often with underwhelming results. Fortunately, by collecting your own first-party data and building robust customer profiles with a tool like Prospect Hub, you can break free of the limitations of walled gardens while still using them to reach massive audiences.

How to Use First-Party Data to Set Your Business Apart from Competitors

If you’re only using the metrics and data provided by programmatic advertising platforms, then your ads are likely being placed in front of the same people who are also viewing your competitors’ ads. Making a connection or closing a deal can depend entirely upon which ad your prospects see first. Advertising platforms don’t always distinguish between interests and real-time needs either. For instance, if you own an HVAC company, your prospects might see ads for general services or new installations when they desperately need urgent repairs. This leaves you with a challenging lack of impactful data to inform your advertising across channels.

Target Audiences That Have Already Shown Intent with First-Party Data

When it comes to converting your prospects, the best people to target are the ones who are ready to take action. First-party data allows you to connect with people who’ve already shown intent. These are prospects who are actively looking for what you offer across your site and need less incentive to complete transactions.

First-party data gives you control over how to effectively target your audience, and with data ownership, you can use your data across multiple platforms, again and again. You can reach people right where they are in the purchasing process, determine how frequently your ads are being seen, and garner new customer information in the process.

How SMBs Can Activate Their Audience Data

Advertising platforms like Google, Facebook, Twitter, and Amazon are restricted by privacy laws, meaning the customer data they collect remains their property and can’t be shared. When you use these platforms for advertising, you’re “borrowing” this data and ultimately relying on the platforms’ algorithms to put you in front of the right people. Even when you do connect with the right people and make conversions and sales as a result, your company is no wiser for it. You exit these transactions with the same amount of data that you had going into them: none.

By leveraging your own first-party data, you can instruct platforms like Google on whom to target, specifically leveraging Customer Match and Smart Bidding strategies. Our first-party data solution, Prospect Hub, enriches identified data with past purchase behavior, firmographic details, and contact information, enhancing your ability to connect with prospects who are primed for sales.

6 Effective Ways To Maximize First-Party Data - image

How Plumbing & HVAC Client Transformed Advertising with First-Party Data

Our client, 1-800-Plumber + Air, faced challenges in effectively promoting their services due to limited audience data access from Google Display Network. To enhance targeting and drive better results, our digital marketing experts utilized Prospect Hub, our advanced first-party data solution. This approach enabled us to resolve approximately 25% of all website visitors, allowing the plumbing and HVAC company to use its own audience data as an account-level signal for precise Google Display ad targeting.

The result? With the enhanced targeting capabilities, 1-800-Plumber + Air saw an astounding 900% increase in total conversions, including phone calls, email clicks, and form submissions.

Marketing Opportunities Using First-Party Data

First-party data offers many opportunities to optimize your marketing strategies by delivering highly relevant ads to specific audiences. For a local pizzeria, analyzing first-party data can reveal that certain customers frequently order pizza on Friday nights, allowing you to time your ads perfectly to catch them when they’re most likely to place an order. Similarly, for sellers of educational materials like e-books or online courses, first-party data can pinpoint individuals who are actively seeking certification or have a pressing need related to your field. This enables you to target ads effectively around industry events or changes, maximizing sales opportunities by reaching those who are most likely to benefit from your offerings. ​​You can target people who’ve attended specific schools, worked at specific types of companies, or have searched multiple times before about how to break into your field.

Leveraging First-Party Data for Your Business

There’s a good reason why collecting first-party data is often referred to as the heavy lifting of marketing. Traditionally, it takes time to set up separate data collection methods whilst adhering to data privacy regulations. It’s an ongoing, multi-pronged effort that requires multiple tools and the undivided attention of multiple people. However, with Prospect Hub, the process is simplified with all of the information you need for optimally effective ad campaigns at your fingertips.

Prospect Hub leverages a world-class data cooperative, an identity resolution graph, and integrates a consent management platform to capture reliable data for your business. With Prospect Hub, you can identify up to 30% of your anonymous website users and learn more about their behaviors, intentions, and needs. You can remarket to high-value prospects, cut your marketing costs, and limit your reliance on the limited data provided by advertising platforms like Google or Facebook. To get started or request a free Prospect Hub demo, get in touch today!