Big Data-driven Video Targeting Grows in U.S.

By: Staff | May 20 2016
Data Spying Comes to the Set-top Box and to Online Video

We often get asked a lot of questions about data. It’s a confusing space, especially for newcomers, so we created a quick guide to help you get acquainted. 

What is data and why it matters
In the digital advertising space, when we say “data,” we are referring to segmented audience pools used for ad campaign targeting purposes. Data acts as filters that screen the type of people that might be exposed to an ad. Put in another way, this helps refine how wide of a net an advertiser might throw out to reach their desired audience. For example, an audience profile such as males, college recent grads, who earn a certain level of income, who are also in-market to purchase a new vehicle, is a pretty niche group. In order to efficiently reach these audiences and prevent ad dollars from being wasted, audience data segments are typically applied to advertising buys. 

Where it comes from
In general, data is stored in what is known as a data management platform (DMP). DMPs are essentially data warehouses that not only store tons of information, but analyze and restructure that information to make it actionable for advertisers. In most cases, DMPs and DSPs like TubeMogul work hand-in-hand through integrations so advertisers can easily leverage the available data and optimize how audiences are being targeted for their advertising. Data can generally be broken down into three groups: 

1st Party Data
This is the advertiser’s data. In other words, you own it. It could be names, emails, CRM data, subscription data or cookie data from your own website visitors. Every single company is collecting data in one way or another about their own customers, or at least they should be. It’s a company’s secret sauce, their bread and butter, and the most valuable type of data that is available. Why? First of all, it’s high-quality data because you know exactly where it came from and who you’re targeting. Secondly, it’s free! It’s the one type of data that won’t cost you a dime, because you already own it. 

2nd Party Data
Unlike 1st party data, you don’t own 2nd party data. However, it’s just as good at giving you an edge over the competition because it’s unique data. 2nd party data comes directly to you from a source, such as a publisher or a company with whom you’ve established a partnership. This is data proprietary to your partner and will most likely cost you some money to acquire. However, there are many benefits as it gives you another set of high-quality data to target audience groups whom you would otherwise not be able to target. 

3rd Party Data
The most common type of data is 3rd party data. This data is aggregated website and offline information that DMPs and data providers build into customized targeting segments and make available through syndication. What’s important is to understand the accuracy, how the data is derived, whether deterministic or probabilistic, inferred or people-based, modeled or more. Data is only useful data if you understand what you’re using and how to use it.


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