Companies are increasingly turning to second-party data – customer information shared on a private basis – due to increased scrutiny triggered by GDPR, according to one of the world’s leading second-party data platforms.
Lotame, which counts Google, Twitter, The Trade Desk, and AppNexus as members of its 2nd-Party Data Marketplace, has witnessed a 1,200% year-over-year growth in the market.
The firm has seen a 300% rise in revenue over the first four months in 2019 and has more than quadrupled its growth over the past several months. However, although exact financial details have not been released.
Lotame head of global data solutions Evgeny Popov claimed: “The explosive growth of second-party data demonstrates the impact privacy regulation, such as GDPR and the new California Consumer Privacy Act, and transparency needs have had on data strategies.
“With the use of second-party data, marketers and publishers gain a much needed sense of security since they know the source and trust the reliability.”
Late last year, Lotame conducted research that found one-third of brands and publishers are actively creating new monetisation opportunities by becoming second-party data sellers, leveraging the demand for data quality for their benefit.
In response to its growth, Lotame has recruited former L’Oréal head of data acquisition and partnerships Aruna Paramasivam as general manager of the Global Data Marketplace.
Paramasivam, who also held the role of head of audience partnerships at MediaMath, joins from Captify, where she was global vice-president of data and publisher partnerships.
She said: “Challenged to compete against the duopoly [of Facebook and Google], publishers are leveraging demand for high-quality audience data to monetise their own first-party data. Clearly, the benefits of second-party data are resonating with marketers and publishers alike and we expect this number to only continue to increase in the coming years.”
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