Third-Party Data
Data collected by entities that have no direct relationship with the user, purchased or aggregated for advertising targeting.
What Third-Party Data means
Third-party data is information collected by organizations that don't have a direct relationship with the data subjects, typically aggregated and sold to advertisers for targeting purposes. Common third-party data sources include data brokers, data aggregators, and data management platforms. Third-party data is facing an existential challenge from multiple directions: GDPR's consent requirements make it difficult to lawfully process third-party data for advertising, CCPA/CPRA gives consumers the right to opt out of data sale/sharing, browser restrictions are eliminating the cookies that enable third-party data collection, and Apple's ATT framework limits mobile data sharing. Major platforms have reduced or eliminated third-party data targeting options. The industry is shifting toward first-party data, contextual targeting, and privacy-preserving technologies as alternatives.
Related terms
First-Party Data
Data collected directly by an organization from its own customers and users through direct interactions.
Cookie
A small text file stored in a user's browser by websites, used for tracking, personalization, and ad targeting.
Privacy Sandbox
Google's initiative to replace third-party cookies with privacy-preserving APIs for advertising targeting and measurement.
Behavioral Targeting
Targeting ads based on users' past online behavior, browsing history, and interaction patterns.