Second-Party Cookie

A second-party cookie represents data shared directly between two organizations, either as part of a direct partnership or through data monetization.

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Unlike first-party and third-party cookies, a second-party cookie isn’t stored on a host website or through a third-party. Instead they are data that is transferred from one company to another. Companies that have second-party data acquired first-party data from a trusted partner. 

Why would someone want to transfer data to another company? Because companies want as much data as possible to understand their customers and target them in a more personalized and engaging way. Companies can use data to run advertising campaigns and hone in on user preferences. When one company collects data, they can sell it to another in a form of data partnership or through data monetization. 

It’s important for users to understand cookies and how they can be shared with other websites besides the one they’re currently visiting. Companies who sell user data need to do so according to legal regulations. Misuse of customer data or data privacy breaches can lead to decreased brand perception and trust. It is a company’s responsibility to protect their customer data as much as possible and work with second-party companies that are trusted. 

Building direct relationships with other companies can help put both parties at a competitive advantage thanks to direct data sharing, without a reliance on purchasing data from third-party vendors or platforms. The more companies know about their users, the better chance they have of converting them into customers.

Benefits of Second-Party Cookies

Obtaining second-party data gives companies insights they wouldn’t typically have about their customers. With this information, they can offer more value tailored to customers’ wants and needs. Second-party cookies can help brands make decisions on ad placement.

For example, if you know your customers read articles about cars, you’ll want to run display ads on car-related websites. If you see that they rarely visit pet websites, you’ll know your ad dollars are better spent elsewhere. Additionally, you can purchase the specific data you need and disregard the rest. 

This data sharing can lead to partnership opportunities for the company providing the first-party data and the company purchasing it. For example, if a hotel company sells information to an airline company, they can eventually partner on other marketing campaigns to reach each other’s shared target audiences. 

Companies will also have more accurate data which helps create more personalized campaigns. When the right people are seeing your ads, you’ll have a better chance of increasing engagement and conversion. Additionally, acquiring another organization’s first-party data saves time with data cleansing. This first-party data has already been organized and cleansed and is ready to use immediately.

More To Explore