What types of alternative data should digital marketers focus on?

Alternative Data Is Expanding Beyond Investment Use Cases

Credit and debit card transaction data, as well as IoT data, may be two of the best alternative data sources—not only for investment managers, but for advertisers, too.

Though it once helped hedge funds make investment decisions, alternative data has evolved far beyond using satellite imagery to count cars in parking lots. In fact, it now plays a much broader role across industries.

Nowadays, investment firms cite credit and debit card data as one of the most effective and accurate sources of alternative data. At the same time, emerging sources like IoT data are setting the stage for even more reliable insights and future returns.

And it’s not just investment firms that benefit—digital marketers do, too.

Why Alternative Data Matters for Marketers

Today, marketers have access to a wide range of data sources, including:

• Geolocation data
• Web scraping data
• Email receipt data
• Transaction data
• IoT-generated data

These data sets are becoming increasingly important, especially as advertisers look for effective alternatives to cookies.

For now, we’ll focus on two high-potential sources: transaction data and IoT data.

Credit and Debit Transaction Data

What Makes Transaction Data So Valuable?

Transaction data—provided by credit and debit card companies—can help fill the gap left behind by cookies and serve as a strong foundation for audience segmentation.

It enables marketers to identify and target audiences such as:

• High spenders in online home goods
• Consumers who frequently use meal delivery services
• Shoppers loyal to fast-fashion ecommerce brands

When combined with location-based data solutions, transaction data becomes even more powerful—allowing marketers to understand both purchase behavior and geographic context.

Key Advantages Over Cookie-Based Data

Unlike cookies, transaction data provides deeper and more reliable insights:

• Shows actual purchase behavior, not just browsing activity
• Enables highly granular audience segmentation
• Supports location-specific targeting
• Comes anonymized and privacy-compliant

Because of its accuracy and predictive potential, transaction data is widely used by investment firms—and is quickly becoming just as valuable for marketers.

IoT Data

The Rapid Growth of Connected Devices

Last year, there were approximately 42 billion active IoT devices worldwide—and that number continues to grow.

Today, many everyday objects are internet-connected, including:

• Cars
• Refrigerators
• Lightbulbs
• Thermostats
• Door locks
• Smart speakers

Consumers are increasingly adopting these “smart” devices, creating a massive and growing source of behavioral data.

How IoT Data Enhances Audience Insights

IoT data gives marketers a deeper understanding of consumer lifestyles and habits.

For example, data from:

• Smartwatches
• Smart home devices
• Connected TVs (CTV)

…can provide valuable insights into how people live, consume content, and interact with technology.

This helps marketers:

• Build more accurate audience segments
• Understand real-world behavior patterns
• Deliver more relevant and personalized campaigns

The Bigger Picture: Alternative Data Beyond Cookies

Ultimately, the decline of cookies doesn’t signal the end of effective data—it signals a shift toward better solutions.

In many ways, cookies were never ideal to begin with.

As marketers prioritize privacy-compliant strategies, alternative data sources offer more accurate and meaningful insights, including:

• Transaction-based data (actual spending behavior)
• IoT-generated data (real-world interactions)
• Geolocation data
• Web-scraped data
• Social and behavioral analytics

The Future of Data-Driven Marketing

With advancements in AI and machine learning, these alternative data sources are becoming:

• Easier to analyze
• More actionable
• More scalable

The future of marketing may not include cookies—but it will include smarter, more reliable, and more privacy-conscious data strategies.

And ultimately, that’s a win for both marketers and consumers.