What's Going To Happen To Third-Party Data Assets?
Originally published on LinkedInA Peek into the Data Future
For many years, companies have built businesses around generating and selling third-party data assets to advertisers and AdTech partners. This model worked well in a cookie-based world, but privacy regulations like GDPR and CCPA are changing the landscape.
As these regulations make data transfer and sales increasingly difficult, third-party data assets face challenges to their business model. Two major trends are emerging in response.
The First Trend
Third-party assets cannot easily acquire new data under stricter privacy laws. Rather than buying data directly, these companies are acquiring entire businesses that already possess data. "If you can't straight up buy data anymore, you can buy the company that already has data."
Eventually, available companies will be exhausted. When consolidation reaches its limit, these mega third-party asset companies will need larger volumes of first-party seed audiences from advertisers to maintain their value and precision.
The Second Trend
Publishers are increasingly collecting and retaining their own audience data rather than transferring it to third parties. Publishers like CNN and smaller content sites now manage their own first-party data strategies, becoming the primary sources generating new data in this environment.
Using Third-Party Data Assets
Brands and advertisers can still leverage third-party audiences while building ownership. Transformation companies can convert third-party and cookie-based audiences into first-party household data — allowing companies to own their data long-term.
Example: Baby Supply Company
A baby supplies retailer could purchase a third-party audience list of recent parents. Using a transformation company, they convert this rented data into owned first-party household data. They then feed their converted audience back to the third-party provider, who uses it to identify better prospects with similar characteristics — creating a "ping pong loop" that refines targeting continuously.
This approach generates "more out of these third-party data assets than you ever have before," yielding increasingly precise in-market audiences regardless of product category.
The Analogy
Building first-party data resembles purchasing a home: while initial investment is substantial, long-term value accumulates over years — unlike renting data.
Reach Data Democracy
FullThrottle aims to democratize audience monetization for publishers in a cookieless future. While large publishers have proprietary solutions, smaller publishers need accessible tools to remain competitive and relevant going forward.
"All the tools of yesterday and today are still super relevant in the future, but you must adopt change in how you strategically deploy them."