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Third party data provider negotiations made easy

The rise of programmatic marketing has led to a demand for more sophisticated audiences and purchasing third-party data from data providers has been until now one of the most popular ways to obtain these audiences. However, knowing which data provider to choose poses a challenge for most businesses. Indaru impartially evaluates data providers and aids negotiations for the best agreements and terms.

Why you should evaluate third-party data providers

When used correctly, third-party data can be a powerful tool for any digital marketer. However, it is important to remember that this data is only as good as the source it comes from. Doing your due diligence and only using data from reputable sources will ensure that you’re making the most of this valuable resource. Here are some advantages of using third-party data in digital marketing:
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Based on the relevancy of the provider you choose, third-party data can generally be inaccurate as it comes from an extensive and diverse pool of sources that don’t use deterministic data.
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Supplement First-Party data
When you collect first-party data, there is potential for there to be information gaps, which third-party data can help fill. Third-party data can help your target audience from awareness all the way through to purchase.
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Hyper-personalised messaging

Third-party data can help you learn more about your audience’s interests, pain points, preferences, used channels, etc. This will help you deliver more relevant content and personalized messages that will engage.
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Cost savings

In some cases, using third-party data can actually be an asset to avoid wasting money on ineffective campaigns that target the wrong people or use the wrong messaging and to improve your ROI.

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Discover new audiences
While first-party data is collected from an existing audience, third-party data can uncover new audiences you haven’t even considered targeting, enabling you to expand your reach and cast the net out wider.
Third-party data does have its complications in that there are restrictions around consent and privacy. Another challenge you may face when trying to select a data provider is the ability to critically evaluate criteria that determines whether the third-party data will help you achieve your objectives. This can include data accuracy, speed of delivery, data flexibility, ease of integration, cost and many other factors which we will expand on below.
In addition, relying too heavily on third-party data can lead to complacency in your data strategy. As with anything in business, it’s important to strike a balance between using others’ expertise and knowledge and relying on your own insights. When it comes to marketing, this means using third-party data as one tool among many, not letting it dictate your entire strategy.
Through our evaluation criteria, selection process and negotiation, we ensure your data management strategy is relevant to your marketing objectives.

How to select the best 3rd party data provider

Define your data needs: Before signing up with any third-party data provider, you need to know exactly what kind of data you need and why you need it. Indaru can help you map out what sort of data would be most useful for your marketing efforts.

Set your budget: Your existing first-party data collection strategy already will be costing you money, so we will help you in deciding what a suitable third-party data acquisition budget would be, based on your marketing objectives.

Research providers: Once you know what sort of data you need, it’s time to start researching different providers. We will research and evaluate data providers on your behalf, using the benchmarks explained later.

Request a demo from shortlisted vendors: Once we have helped you narrow down potential data providers, we will set up a demo to test and evaluate the audiences. We will check whether the data providers meet our above criteria and test integrations with your existing marketing tools. This will also give you a chance to see how the data is presented and how easy it is to use.

Contract Negotiations: Once you have selected which data provider you’d like to partner with, we will assist you in negotiating the terms and conditions into a contract.

Agreement: We thoroughly check the final contract in writing. The final step is for both parties to sign the master service agreement and then the deal is concluded.


Benchmark used to evaluate data providers

We will research and evaluate data providers on your behalf, using the below as benchmarks for evaluation:

1. GDPR/CCPA compliance

Third-party data providers must comply with GDPR/CCPA regulations for legal and ethical data usage. This is a must-have criterion.

2. Pricing

We ensure the data providers pricing structures are in line with your budget, so you don’t overspend. Pricing often depends on the size and characteristics of the audience segment you need data on, and is generally charged on a CPM basis. However, every data provider prices their services differently.

3. Data value

The data you are purchasing should provide the insights you need in order to achieve your marketing goals. For example, if you are targeting renters and the data range is made up of homeowners, this data is not relevant to your objectives.

4. Quality control

Data should be audited regularly by third-party auditors and collected legally in a way that does not infringe on the privacy rights of individuals. We will check that data providers engage with has strict quality control.

5. Fressnesh

It’s important to make sure that the data you’re paying for is accurate and up-to-date. We only engage with data providers who have strict quality control measures in place.

6. Data source

Any trustworthy data provider will gladly share its sources with you. This is an important factor to consider, because if data is pulled from an irrelevant source (such as a specific geographic location), it will not be worthwhile to purchase this data.

7. Customisation

The best data providers will allow you to create your own audience segments for hyper-targeted campaigns.

8. DSP integration

If you use a particular Demand-Side Platform, you’ll want to try partnering with a data provider that integrates with your DSP seat for a seamless flow of information.

9. DMP integrations

Learn to which Data Management Platforms are the data providers integrated with and how they will push the segments.

10. Support

If the data provider cannot offer fast and useful customer support, they are risky to partner with.

11. References

Reputable data vendors will generally have good reviews and recommendations online. For example, a trusted publication like Forbes might review and recommend third-party data providers. We do our due diligence and leave no stone unturned when evaluating a data provider’s reputation.

How Indaru can help you choose a data provider

Some of the most trusted 3rd party data providers you might have heard of include OnAudience, Oracle, Lotame and BlueKai. However, regardless of how well-known a third-party data provider may be, it is hard to know where to begin evaluating the value they could add. At Indaru, we have a diverse and experienced team of marketing experts with enough knowledge about the data providers strengths and weaknesses to be able to impartially vet and select only the most relevant data providers for your business.

Through our evaluation criteria, selection process and negotiation, we ensure your data management strategy is relevant to your marketing objectives.