Third-party data is information gathered and managed by organizations that do not have direct interactions with users from whom the data originates. Unlike first-party data, which is collected directly from users with their consent, third-party data is often aggregated from various sources without direct user engagement, knowledge of users or permission.
This type of data can include demographics, behavioral insights, and other relevant information used for advertising and marketing purposes. However, the collection and use of third-party data have faced increasing scrutiny from consumer privacy advocates, leading to efforts to limit its use due to concerns over privacy and consent such as CCPA (California Consumer Privacy Act). As a result, many businesses are shifting their focus towards first-party data to build more transparent and trust-based relationships with their customers.