Third-party data sales up as brands go on supplements

Believe everything you read and you might be forgiven for thinking that the market for third-party data is on its knees as advertisers increasingly turn to their own – and publishers’ – first-party customer information to feed the sales funnel.

But, according to new figures from Lotame, third-party data sales have rocketed more than 40% year on year in H1, as brand owners supplement their information with targeting techniques, including a major rise in demographic audience segment tools.

The data was sourced from Lotame Data Exchange, claimed to be one of the world’s largest second- and third-party data marketplaces, comprising billions of monthly unique users.

Lotame saw significant changes in the purchase of various audience segments as strategic marketers invested in data to drive consumer engagement.

The most significant global audience segment across Q1 to Q2 was demographics, which remains Lotame’s highest revenue generating category, with B2B the second highest revenue generating category in Q2, seeing a 45% increase from Q1.

Lotame’s advertiser-specific custom segments have also grown, witnessing a 33% lift in revenue from Q1 to Q2, while Covid-specific segments remained steady between Q1 and Q2.

Overall, the top EMEA third-party data segments in H1 2021 were Precision Demographics 18+; Parents of Toddlers; Cruise Travel; Precision Demographics Male 18-24; Precision Demographics Female 25-54; and Precision Demographics Persons 55-64.

The continuing phase-out of third-party cookies has created a new generation of identity tools that are claimed to be more accurate, privacy forward, and increasingly effective.

While pervasive market narratives push the need to resign to contextual targeting, Lotame is seeing a surge in demand for technologies that enable a complete view of the customer.

New tools are driving sales, sparking marketer interest, and sharply improving yields for sellers. One publisher saw an eightfold lift in yield on Safari and Firefox browsers using cookieless identity solution, Lotame Panorama ID.

Lotame vice-president of data solutions Alison Harding commented: “The data demonstrates how significant third-party data remains for marketers, even while many are shifting towards other solutions, particularly contextual targeting, as well as highlighting interesting shifts in consumer and business life that they are seeking to tap into.

“This continued investment in audience segments and third-party data will remain essential long after third-party cookies are retired because it plays an integral part in creating a holistic view of the consumer. Supplemental data will remain crucial to effectively leveraging first-party data for successful marketing campaigns and consumer experiences post-cookies.”