Top Way for Advertisers to Leverage First-Party Data in Personalized Marketing

Top Way for Advertisers to Leverage First-Party Data in Personalized Marketing

Ashwin Krishnakumar
Ashwin Krishnakumar

Chief Technology Officer, Airtory

Published on: 30 Nov 2023

Reading time: 5 minutes

Personalization has become the need of the hour in digital marketing campaigns, with more and more brands starting to leverage data for creating tailored ad experiences for their target audience. The use of data enables advertisers to generate effective ads that are more relevant and engaging. However, launching successful ad campaigns depends significantly on the data that you have as well. There are basically three types of data: -

  1. First-Party Data: By definition, any data about the existing customers of a company that is collected and owned by the same company is known as first-party data, basically meaning information like the purchase history, customer behavior, preferences, digital interactions, etc. that the company has collected using their own systems or software. First-party data can be used by the company to personalize content, ads, and user experiences to cater to the interests and preferences of an individual. Users’ website behavior, demographics, etc. are all examples of first-party data that can be collected.
  2. Second-Party Data: Second-party data refers to the data or information that a company (that owns first-party data) shares ahead with a trusted partner. This data is not sold openly but can help companies expand their understanding and gain deeper user insights than they can use their data alone. Audience data shared by publishers with their advertisers is an example of second-party data.
  3. Third-Party Data: Instead of being a result of a direct relationship between customers and a company, as in the case of first-party data collection, third-party data comes from an outside source. Multiple sources from across the internet are generally used to aggregate, segment, and sell third-party data to companies for their advertising efforts.

For advertisers, it is not always easy to come by first-party data as it is for publishers.

The Power of First-Party Data for Marketing

For digital marketing, first-party data is considered to be a highly valuable asset because of its quality. As can be gleaned from its definition, first-party data collection happens directly at the source. So, you can rest assured of its accuracy and the concerns regarding the privacy of user information are also minimal. In online advertising, first-party data can be used for purposes like:

Predicting Future Patterns: Examples of first-party data, like past behaviors and interactions can be analyzed to predict future trends, helping advertisers tailor their strategies accordingly.

Gaining Audience Insights: Advertisers can gain deep insights into their audience using first-party data to create more personalized ad experiences.

Defining the Customer Journey: Advertisers can easily map the journeys of potential buyers and their target audience using first-party data, to identify pain points and engagement opportunities.

Streamlining Attribution Processes: First-party data helps track the effectiveness of marketing channels and identify which methods have had the best conversions to help with better budget allocation in the future.

Enhanced Multi-Channel Channel Tracking of Marketing Efforts: The gap between multiple digital channels used for ad campaigns can be bridged using first-party data, meaning that advertisers can more easily measure the effectiveness of their campaigns.

Personalizing Ads and Content Through Dynamic Creative Optimization (DCO): To harness the capabilities of DCO effectively, advertisers need accurate first-party data.

How DCO Helps Improve Marketing Performance

Dynamic Creative Optimization or DCO is a display ad technology that advertisers can use to create hyper-personalized online ads. These ads are based on real-time data about individual users based on where the ad is being served and to whom. DCO ads include various dynamic components that are assembled and served in real-time based on first-party data about the used that is collected by the platform where the ad is being served. Implementing DCO offers advertisers a number of benefits, including:


DCO can be used to utilize first-party audience data like demographics, user behavior, location, etc. to develop multiple variants of the same ad unit, which helps advertisers ensure that the ad messaging is personalized and caters to different audience segments. Using the right ad builder platform that synergizes marketing messaging with user insights in real-time can help address production challenges in a time- and cost-effective way, which can help advertisers ensure speed and scale for their campaigns.

Real-Time Response

Dynamic Creative Optimization (DCO) allows brands to customize and optimize ads in real-time using user data and contextual factors. This approach prevents risks of showing wrong, insensitive, or irrelevant ads to different audience segments. By adopting ad creatives based on real-time context, DCO helps drive higher engagement and conversions. 


DCO offers a seamless, automated process that integrates predefined parameters with ad creatives and real-time user insights. This helps easily scale campaigns, with automated processes in place for the production of multiple variants and real-time assembly of dynamic ad creatives.


DCO helps advertisers make real-time data-driven decisions by providing real-time metrics to track the performance of ad campaigns and make necessary changes (if required) instead of having to wait for a campaign to end.

How DCO Works

DCO allows advertisers to optimize their campaigns in real-time and even provides detailed real-time performance metrics. The ads created using this display ad technology are curated specifically for users and audience segments, which in turn helps boost conversion rates and ROI. Creative management platforms form an important part of the whole dynamic creative optimization process, facilitating efficient ad serving for advertisers and allowing them to run, manage, and track multiple digital ad campaigns with complete ease. Essential components of an effective creative management platform that advertisers should look for include:

Ad Builder: A simple-to-use ad builder that does not require technical know-how and allows advertisers to build engaging rich media ads with ease.

Real-Time Analytics: Ability to track important metrics like dwell times, CTR, ad impressions, etc. in real-time.

Campaign Management: Consolidated dashboard to build and manage creatives and campaigns, detailed reports and analytics regarding key performance metrics of live campaigns, and ability to make real-time changes for optimization of live campaigns.

The need to personalize digital ad campaigns is inescapable for brands that want to stand out from their competition and the importance of first-party data cannot be undermined in this context.

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