By: Scott Kozub, VP, Product at Experian Marketing Services
For years, first-party data has been positioned as the answer to nearly every challenge in digital advertising. Lose cookies? Build first-party relationships. Privacy gets more complicated? Lean into owned data. Measurement becomes murky? Go direct to the source.
That logic still holds, but only up to a point.
What many marketers are discovering in practice is that first-party data alone creates depth without scale. It offers rich insight into customers a brand already knows, but far less visibility into the audiences it still needs to reach. In a fragmented, privacy-conscious ecosystem, relying exclusively on first-party signals often results in limited reach, frequency challenges, and diminishing returns on prospecting
The next phase of targeting will be defined by how well marketers combine first-party, third-party, contextual, and geographic signals to drive growth, improve efficiency, and strengthen customer relationships.
Why first-party and third-party data are better together
The biggest challenge facing modern targeting is not the loss of identifiers. It is the growing fragmentation of signals across devices, channels, and environments. In that reality, identity does not disappear. It becomes more important as the connective layer that brings different data sources together for planning, activation, and measurement
First-party data remains essential. It provides accuracy, consent, and a reliable foundation for personalization and measurement. But on its own, it reflects only a partial view of the market. Most first-party data sets skew toward existing customers, logged-in users, or known devices, leaving significant gaps in reach and understanding.
This is why third-party data is so valuable. Not as a standalone solution, but as a complementary layer that expands perspective beyond what first-party data can capture alone. Responsibly sourced third-party data adds demographic, behavioral, interest, and purchase context that helps marketers understand who they should be reaching next, especially in an environment shaped by privacy constraints and signal fragmentation.
First-party data on its own is limiting. Third-party data on its own is incomplete. The real power comes from connecting the two through identity, allowing marketers to plan, activate, and measure across fragmented environments with greater accuracy and confidence.
Contextual and geographic signals as privacy-safe extensions
Contextual and geographic targeting are not new tactics. They are proven approaches that have evolved alongside changes in technology, privacy expectations, and data availability.
Today, data-informed contextual targeting goes far beyond keywords or simple page adjacency. When contextual signals are combined with audience insights, they help marketers understand where high-indexing audiences naturally spend time, regardless of channel or environment. Certain content consistently attracts users with shared behaviors, demographics, or purchase intent. Identifying those patterns allows advertisers to reach relevant audiences in ways that are both effective and privacy-safe.
Geographic data functions in a similar way. People with similar lifestyles, needs, and behaviors often cluster in similar locations. When geographic signals are informed by behavioral and demographic data, rather than used as blunt radius targeting, they become a meaningful proxy for intent. This is especially important for categories like retail, CPG, and automotive, where location continues to influence decision-making.
These signals are not replacements for first- or third-party data. They are additional layers that strengthen a modern data strategy while supporting privacy-forward activation.
AI as decision intelligence in a fragmented ecosystem
Artificial intelligence plays an increasingly active role in making fragmented signals and multi-source data strategies manageable.
AI is not replacing targeting strategy. It is enabling it. By interpreting fragmented signals at scale, machine learning models help marketers connect identity, first-party data, third-party insights, contextual signals, and geographic information into actionable intelligence. Models trained on both structured and unstructured data can identify patterns across content, timing, device behavior, and location, then optimize delivery in real time.
This shift allows campaigns to move beyond static audience definitions and toward dynamic decisioning. As performance signals change, activation strategies can adapt accordingly, without relying on persistent identifiers or exposing sensitive personal data.
What this means for marketers in 2026
Marketers who want to create and activate campaigns more efficiently in 2026 will need integrated approaches that reflect how fragmented the ecosystem has become. Success will not come from betting on a single data type, but from building flexible systems that connect signals through identity and intelligence.
First-party data alone is no longer sufficient. Marketers who combine it with third-party, contextual, and geographic signals will be better positioned to plan, reach, and measure advertising in an environment defined by fragmentation, evolving privacy standards, and constant change.