First-party data is the new gold — don’t hand it over to just anyone

As privacy regulations tighten and third-party data sources dwindle, marketers are facing a seismic shift in how they connect with their audiences.

Apple’s App Tracking Transparency and Google Chrome’s decision to allow users to make choices about their web-browsing and adjust options are at the forefront of these changes. The main effect felt by advertisers here is signal loss — the reduced ability to track and target consumers across platforms.

This has prompted brands to rethink their strategies, leading to an increased reliance on first-party data, which has become both a valuable resource and a competitive advantage in this new landscape.

The popularity of first-party data continues to rise, with a recent survey revealing that 83% of advertisers expect to increase their reliance on it in the near future. And for good reason: consumers are becoming more protective of their personal data, with 81% expressing concerns about how their information is handled.

These numbers underline a significant shift: brands are moving away from third-party solutions, driven by both necessity and the opportunity to prove their commitment to handling customer data in the most privacy-preserving way possible.

But planning the strategic shift to first-party data is only part of the equation — how advertisers manage and activate it will determine the extent of its contribution to their competitive edge.

The way things were

For over a decade, brands have willingly shared their third-party data with walled gardens like Google and Facebook. These platforms have offered services such as lookalike modelling, where they use proprietary algorithms to find new potential customers who share characteristics with a brand’s existing audience.

Brands were happy to participate, as the results were often compelling. However, what many overlooked was the deeper question: what happens to all that data once it’s uploaded to these platforms?

As a marketer, I’ve asked that question myself, only to be reassured by vague promises that the data would remain isolated in a “safe little room” within a larger ecosystem.

And the stakes get much higher when first-party data is involved, considering the effort that goes into obtaining it and the value it has in this new, post-cookie world.

A competitive advantage you can’t afford to give away

Brands today are investing heavily in mechanisms to collect first-party data. From QR codes on packaging to digital warranty cards, the opportunities to gather insights directly from consumers are abundant. However, the real challenge begins once you’ve accumulated this valuable resource. How do you activate it effectively while maintaining full control?

Many brands make the mistake of repeating old habits — uploading their first-party data directly to walled gardens like Google or Facebook. While these platforms offer tempting tools, the fact is that once your data is uploaded, it’s no longer exclusively yours. It can be used to fuel ad algorithms that benefit not just your brand, but also your competitors.

This loss of control can erode the competitive advantage that first-party data provides. After investing time and effort into collecting consumer data, simply handing it over to a third party risks undermining its value.

In a world where the ability to target is declining due to signal loss, first-party data is one of the few reliable assets left for precise, personalised marketing. Brands that guard this resource closely will be better-positioned to differentiate themselves in an increasingly crowded marketplace.

To fully capitalise on the value of first-party data without losing control, brands need to explore solutions that allow them to activate this data in a secure, privacy-compliant way — without the risk of giving it away to outside platforms.

The role of data clean rooms

The beauty of data clean rooms lies in their ability to preserve the integrity of your data. You can still collaborate with media partners and other brands, but on your terms. Rather than handing over your hard-earned first-party data to a walled garden, where it could be co-mingled with other advertisers’ data, a clean room ensures that your data is used solely for your specified purposes.

However, it’s important to note that not all data clean rooms are created equal. The level of privacy and control varies between platforms and choosing the right partner is critical to maintaining your data’s integrity.

Decentriq, for instance, relies on confidential computing — a technology that secures data during processing by isolating it within a protected hardware environment. This ensures data is encrypted throughout its life cycle, from processing to analysis, making it impossible for anyone other than the data owner to view or access the raw information.

Brands need the confidence that their most valuable asset — their data — remains under their full control while still unlocking its potential for audience-targeting and insights.

By choosing a solution that prioritises privacy and security at every step, brands can harness the full power of their first-party data without the risk of exposing it to competitors or other unintended uses. This approach not only ensures compliance with stringent data privacy regulations but also safeguards a brand’s competitive advantage in the rapidly evolving world of digital marketing.

Shape your data destiny

The digital marketing industry is changing and the days of relying on third-party data are fading.

Brands that invest in first-party data strategies and leverage tools like data clean rooms will be the ones that thrive in this new reality. By maintaining control, they’ll protect the advantage they gain through high-quality first-party data and can also continue to build deeper, more meaningful relationships with their customers.

In a world where 92% of marketers recognise the importance of first-party data for growth, it’s time to embrace the future of data ownership. The brands that succeed will be those that understand the value of their data — and how to protect it.

Gerry D’Angelo is an advisory board member and former media chief at Procter & Gamble and Mondelez International