How businesses can party with their first-party data to deliver relevant ads to their customers with Otis AI

##### Otis leveraging first-party data to optimize and target ads to customers

First-party data is the main source that makes Otis run. Otis leverages first-party customer and transaction data for automatic targeting, online-to-offline attribution, and marketing automation.

We run through your customer data and ensure your posts reach the best target audience given your FPD! We even use the data to expand your customer audience with profiles similar to your current customers, helping you expand the reach of your business.

First-party data plays a very crucial role in digital marketing as it has helped marketers learn about their customers and deliver custom personalized ads to them.

##### What is First Party data?

[First party data](9https://signal.co/resources/first-party-data/) is essentially data about the customers of a company which is *collected* and *owned* solely by said company.


This data runs through the company’s systems and is collected through digital interactions, purchases, accounts, surveys, social media, and other interactions that the customers have with the company.

This information is the most reliable data that a company can collect given that it was directly given to the business from the customers as opposed to [second or third party data.](https://blog.treasuredata.com/blog/2021/07/28/the-difference-between-first-party-second-party-and-third-party-data/)

Third party data is data that is *purchased* from various sources, hence the third party phrase.

These sources do not collect this data themselves and have collected data from various other companies and simply aggregated it all into one spot for someone else to buy. ​​  [Image Source](https://www.uniconsent.com/first-party-data)

##### Why should SMBs care?

First party data is very powerful for a company to utilize, as this data can be used to create very targeted ads, content, and other experiences that are specialized for the customers’ interests so as to stimulate loyalty and purchase activity.

It is found that returning customers often spend on average about [33%](https://www.retentionscience.com/blog/customer-retention-should-outweigh-customer-acquisition/) more with the brand than new customers do. Furthermore, [20%](https://www.retentionscience.com/blog/customer-retention-should-outweigh-customer-acquisition/) of current customers make up about [80%](https://www.retentionscience.com/blog/customer-retention-should-outweigh-customer-acquisition/) of future profits for the company.

##### Improve customer loyalty with FPD

This first party data improves your ability to keep your current customers and improves your acquisition strategy to both gain and keep new customers as well from your customer segmentations.

This data explains the customer’s relationship with your brand and their path to purchasing your goods or services over that of your competitors, which is valuable information.

This enables you to further drive brand loyalty and respond to what your customers want. There is no better data for understanding who loves your brand, why they do, and what you can do to keep them and get more of these loyal customers! Also, it's completely free! And who doesn’t like free things…?

Especially when Google is [eliminating third party cookies](https://meetotis.com/blog/google-eliminates-use-of-third-party-cookies-in-an-attempt-to-protect-users-privacy) so as to protect the privacy of users on the internet, first party data becomes even more valuable for your company.