First-Party Data: What It Is + Examples for Advertising

What is First-Party Data?

First-party data is information that your business collects directly from its customers, audiences, or users through interactions with your owned channels. This data is generated from website visits, app usage, customer purchases, surveys, and other direct engagements. Because it comes straight from your audience, first-party data is highly accurate, relevant, and tailored to your specific business needs.

Unlike second or third-party data, first-party data gives you complete control over its collection and use. It’s also a cornerstone of compliance with modern privacy regulations like GDPR and CCPA, as it is gathered with customer consent. For businesses focused on first-party data advertising, this means the ability to create hyper-targeted campaigns that drive better results without compromising user trust.

What is an Example of First-Party Data?

Imagine a customer visits your website to browse a product, subscribes to your newsletter, and later makes a purchase. Here’s how first-party data comes into play:

• Website Interactions: Tracking the pages they visit and the time spent on specific products provides insight into their interests.

• Email Subscriptions: The customer’s email address and any preferences they share during sign-up are added to your CRM.

• Purchase Data: Details about the products they buy, the purchase frequency, and order value help personalize future recommendations.

For instance, if a customer purchases hiking boots from your online store, first-party data allows you to send personalized ads showcasing hiking gear or accessories that complement their purchase. This level of targeting makes first-party data advertising more impactful and cost-effective compared to broader third-party data campaigns.