Paving the way for privacy-first advertising with zero-party data

It may have been tempting for many marketers to let out a sigh of relief when Google announced that it would not be phasing out third-party cookies. But to put a pause on the search for a viable alternative to the identifiers would be to ignore the fact that data privacy is here to stay.

In reality, by giving consumers the choice to opt-out of tracking, Google’s shift aligns with growing consumer concerns around privacy. Already a number of browsers – including Safari and Firefox – have shut these identifiers in response to this, and half of consumers in the UK already deliberately withhold data from brands. 

Additionally, research shows that 87% of the internet could be cookieless by mid-long term, meaning merely a tenth of browsers will be trackable via third-party cookies if this trend holds. Reaching consumers in this new privacy-first paradigm should clearly be a priority for every marketer, and to do so they must first get to grips with one of the bedrocks of privacy-first marketing: zero-party data.
 

Determining zero-party data

As the shift towards privacy continues, third-party identifiers will only become more restricted and expensive for advertisers. Continuing to reach consumers in a privacy-focused manner now means embracing an alternative source of insights: zero-party data.

While zero-party data is nothing new, it has long been overlooked by many advertisers. It consists of all data that a consumer shares willingly and proactively with a brand through methods such as surveys, quizzes, and giveaways. From this, marketers can gain insights around purchase intention, product feedback, personal context, or communication preference while consumers remain anonymous. 

There are some key distinctions between zero-party data and first-party data, which has also been touted as a way for brands to close the attribution gap. First-party data is gathered through on-page consumer behaviour signals – such as purchase history, page clicks, or email opens – as well as identifying information shared with brands like email addresses and phone numbers. This information is contained within the ecosystem in which it is collected, and only through some form of data sharing can it be utilised more widely.
 

Building bridges with consumers

Zero-party data can form the bedrock of forward-thinking advertising strategies not just because of the insights it can provide, but also because of its highly ethical nature. Consumers opting into this consented exchange of information are able to transparently find out where their data is being shared. This in turn helps to build trust between consumer and brand – with 64% of consumers believing that the best way to build trust is through data transparency and protection.

Marketers can also gain incredibly rich information from zero-party data. These insights are truly unique thanks to the information gathered being deterministic by nature, meaning it correlates directly with the intentions of a consumer. Most other forms of consumer data are probabilistic, meaning that consumer preferences are inferred from the data, but may not directly correlate.

For example, if a consumer was to watch a review video of a new laptop, it would be probabilistic to infer that they were in the market for a new device. However, if through a survey they stated that they were looking to buy a new laptop in the next six months, this would be deterministic. In this way, marketers can more clearly see a consumer’s intentions and tailor their strategy accordingly.
 

A new focus on privacy

For marketers, the opportunities that zero-party data can unlock should be clear. But in order for any strategies utilising it to be truly effective in the new privacy focussed landscape, special attention must be paid to ensure careful collection and management of this information. 

Robust security measures as well as stringent and consistent data handling practices are vital to ensuring the data privacy of consumers is protected and respected. Transparency over how data is collected and used is also important, while most crucially, consumers must be able to opt-out if they do not want to share their data. By being as transparent as possible, marketers can foster greater trust with their audiences, ultimately leading to richer data being shared.

When integrated with other targeting information, i.e. semantic and bid request data, zero-party data can give marketers a more superior and holistic overview of consumer behaviour while placing privacy front and centre. Every brand committing to these more ethical data collection practices is helping build an advertising ecosystem that is ultimately healthier for both consumer and brand.

With the power of the cookie already dwindling, marketers must shake off the inertia and look to embrace solutions that can give them precision targeting at scale, in a privacy-conscious way. Zero-party data’s rich insights and privacy-enabled approach makes it a must have for every marketer.