Introduction to first-party data for publishers
Cookies are tasty, and not just for hungry publishers. Advertisers have long depended on third-party cookies to track the online activity of audiences before hitting them with tailored, hyper-personalized ads.
Third-party data, which is tracked by cookies, is data collected by entities that don’t have a direct relationship with the user. This data is typically aggregated from various sources and used to enhance audience targeting. But the treatment of third-party cookies is changing and publishers should be aware of what this means for their ads.
In July 2024, Google’s Privacy Sandbox announced that “instead of deprecating third-party cookies, [they] would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.” This new approach means that users are able to choose to browse without third-party cookies.
So what does advertising in a cookieless world look like? This means that advertisers may get less insights from third-party cookies to tailor their campaigns accordingly. That could be tough for publishers that depend on the ad spending from these campaigns as a source of revenue.
This is where the importance of having first-party data comes into play. If publishers themselves can hold onto data about their audience, they could still use it to drive ad and sponsorship deals.
What are the different types of data?
To unpack how first-party data affects your publication, you first need to understand all of the different methods that are used to collect data online.
What is zero-party data?
There is also zero-party data, which refers to any information your audience gives you willingly. Answers to audience surveys are great examples (as is, technically, every letter to the editor). This data is frequently very cheap to acquire and can be invaluable because your audience isn’t just giving you a set of contextless data points — it’s telling you how they feel.
What is first-party data?
It is when your publication (or an advertiser) collects data directly from users. Includes information such as user behavior on a website or app, registration details, and purchase history. This might include time spent on a website, read times on particular stories, or information provided through a subscription.
What is second-party data?
According to The Customer Data Platform Resource, second-party data is anything collected on your audience through another trusted organization or partner, such as a research firm. The crucial difference between second- and third-party data is that the former is the original collector of this information. If a bunch of your readers took, say, a Pew Research Center poll, and you managed to acquire the results, that would be second-party data.
What is third-party data?
Third-party data is any information used by you that came from someone else, who did not collect the information on their own. According to Epsilon, third-party data is usually purchased by marketers looking for some insight into an audience similar to their own. Third-party cookies are used to monitor users who fit a particular profile and target them with relevant ads. (Check our digital advertising glossary here)
Why does first-party data matter to publishers?
According to the Digital Marketing Institute, first-party data is tremendously valuable because you, the publisher, own all of it. You don’t need to worry about competitors buying the same demographic data and competing with you for ad revenue. It’s also a more dependable, accurate and high-quality source of data.
As a publisher, you’ll also find that collecting your own data, or even asking for it from readers, is cheaper than buying it from a third party. This is especially important for indie news organizations that might not have the funds to compete with rival outlets capable of paying for third-party tracking. Leveraging this data can give smaller organizations an edge in an otherwise highly competitive and expensive market.
But this type of data isn’t just about discovering what your audience enjoys. Privacy is increasingly important for many readers, and lawmakers have taken notice. In both the EU and the U.S. state of California, publishers and advertisers are now required to request data from customers and explain how it will be used.
If customers are going to say “yes,” they need to trust you. Understanding how to use first-party data responsibly is the first step. As the International Association of Privacy Professionals explained in a briefing on their website: “Ultimately, greater control of data comes with the greater responsibilities of safeguarding it and meeting applicable compliance requirements.”
How do publishers collect first-party data?
Quite a few ways exist for publishers to collect this type of data — and you’re probably doing some of these already:
- User sign-ups: Such as every time a reader subscribes to your newsletter or registers for a webinar.
- Conducting audience surveys or polls: This is a great way to learn more about your audience and align your marketing efforts with their needs.
- Lead magnets: Offer valuable resources that your audience won’t find anywhere else.
To learn more about how publishers can collect first-party data, check out these articles from Snigel and Setuppad.
Read more: We asked our team for audience survey best practices and expert tips for success.
How can publishers use first-party data?
This term is often discussed in marketing. It helps companies sell more effectively to consumers. But it can also help publishers understand their audience’s editorial preferences, too. By building a custom database of their activity on your website, you can understand them on a granular level through cookieless tracking.
For example, if you post videos, first-party data can tell you how many users watch, and whether investing in post-production software is a good idea. Do many of your readers click on stories about Indigenous issues? With this, you’ll know, and be able to assign more of them accordingly.
There are many tactics that publishers can use to make the most of the first-party data they’re able to collect. Postmedia Solutions outlines the benefits of collecting it to use in marketing, such as creating personalized customer journeys by tailoring campaigns to specific segments of your audience. This helps nurture customers and brings them through the audience funnel.
💡PRO TIP: Watch our recorded webinar, “How to Transform Casual Readers into Loyal Supporters.” Indiegraf experts guide you through the audience funnel—a powerful framework for your community news business.
In the future, publishers will need to rely more and more on their own data and understanding of their audience. However, those that do figure out the strengths and weaknesses of first-party data will be in a much more stable place.
For more resources, check out this article from The Customer Data Platform Resource on how to build a first-party data strategy, and “How Cookies Impact Digital Publishers” curated by journalist, industry disruptor, and media consultant Amanda Zamora on Perplexity.
We understand that news entrepreneurship can feel challenging, but you are not alone!
Book a free chat with us to share your challenges, and we will provide tailored insights on how Indiegraf’s technology and services can help you overcome them. Whether you’re looking to engage your readers for the first time or seeking to enhance existing support, we’ll guide you through proven strategies to convert your audience into sustaining financial contributors.
