Third-party data taxonomies

Data taxonomy is the classification of segments (data elements) into hierarchical groups to create a structure that affects how your data is displayed (and priced in certain use cases) in the data management platform (DMP). A well-designed and organized taxonomy enables advertisers to find your segments in DMP more efficiently. You need to organize only third-party data in taxonomies in the platform; first-party data structure is flat.

Here’s what you need to know about third-party data taxonomies:

Taxonomies typically categorize data in a tree-like structure, with parent and child segments.
The taxonomy hierarchy always starts with a ROOT segment at the top that is automatically created and is hidden from buyers in the platform.
Segments in a taxonomy are more general at the top of the hierarchy and become more specific at the bottom.
The location of a segment in a taxonomy is identified by its full path that starts at the root level. For example, Interest > Technology > Internet > Internet Search.
The Trade Desk recommends creating taxonomies with the in-name hierarchy, where you define the full path in the name of each segment.

Taxonomy types

There are two types of third-party data taxonomies that you can create, syndicated and custom:

A syndicated taxonomy allows you to make your third-party data available to all buyers in the platform, which is why this type is also known in the industry as standard, global, or always-on data taxonomy. The purpose of a syndicated data taxonomy is to establish consistency and a clear, hierarchical organization for your data set.
A custom taxonomy type allows you to make your third-party data available only to certain buyers that you specify within the platform. These segments are often created specifically for certain campaigns, agency partners, or, rarely, advertisers.

The following table lists the comparison aspects between syndicated and custom taxonomies.

Comparison Aspect	Syndicated Taxonomy	Custom Taxonomy	Notes
Segment exposure	All buyers in the platform	Specific buyers you select	You define this by assigning a rate level to your taxonomy when integrating your data.
Rate level	System	Partner or Advertiser	The Advertiser rate level is less commonly used and requires approval for specific use cases by The Trade Desk Data Partnerships Team. To use this level, you need additional permissions. For details and access, please contact your Technical Account Manager.
Rate type	Hybrid	Hybrid	For details, see Third-party data rates. See also Hybrid pricing.
Hierarchy depth	Deep	Shallow	Regardless of the hierarchy depth, the taxonomy design process is the same. So is the integration process, except for the rate level selection.
Parent Element ID	`ROOT`	`ROOT`	The parent element is the starting point of a taxonomy that The Trade Desk creates for you. For details, see Third-party audience data segments and rates.
Rate processing queue eligibility period	24 hours	2 hours	For details, see Third-party data rates.
Taxonomy and rate approval by The Trade Desk Data Partnerships Team	Required	Only in rare cases	For details, see Third-party data rates.
Rate batch frequency	Limited	Unlimited	For details, see Third-party data rates.

For a visual representation of a taxonomy and design guidelines, see Third-party data taxonomy design.