Zero Party Data: What It Is, and Why Marketers Should Care About It

Global data protection regulations, the death of third-party cookies, ad blockers: marketers have ushered in a new era of data protection.

The future of marketing will look very different from what the industry has become accustomed to over the past decade.

Yes, the industry is forcing you to move away from using third-party data, but there’s something better: data that comes straight from your customers.

Such data is not only of higher quality, but also more extensive and makes it easier to guess your target groups. It comes from trust, not third-party cookies.

It’s called zero party data.

Zero, First, Second, and Third Party Data: What’s the Difference?

Data organizations collect four types of data for use in marketing efforts. Although they all have one thing in common – the collection and storage of people’s personal data for targeted campaigns – they differ in the way the data is collected.

Third-party data is often viewed as a subset of first-party data. It is provided directly by consumers and is usually geared towards communication preferences. Other first-party data, while also coming directly from consumers, is collected to aid a transaction or as a support or service request.

Third-party data usually refers to the data of other people’s third-party providers, e.g. B. Purchasing data from another organization or data shared through a partnership.

Third-party data is collected from a variety of sources: behavior, advertising, browsing, etc. Most of the time, this data is collected from tracking third-party cookies – an issue that is controversial for industry professionals.

The move towards zero party data

As consumers become more aware of cookie tracking, they are less comfortable with the idea of ​​being targeted. This is why global governments and big tech are working to “kill” third-party cookie tracking.

Third party data is collected from all sources except (direct) customers. It comes from credit scores, cookies, and click tests; As a result, it is both poorer quality and less effective than zero and first party data.

Third-party data has created a massive knowledge gap between marketers and their customers. Many marketers may feel like their audience is trusting them with their data, but only 28% of consumers know which companies are best at protecting their personal information, studies show.

This is where zero party data comes in. Collecting zero-party data provides a real opportunity for companies to campaign more effectively by collecting data from the source and at the same time
Build trust and transparency in your audience.

An opportunity to build trust

Many marketers, advertisers, and publishers are caught between using old ways to collect data and where to go from here. There is a lot of uncertainty. If one thing applies to marketing, it is an industry full of resilience and creativity.

Collecting data from third parties benefits you and your customers in three ways:

  1. Trust through transparency. The main benefit of zero-party data is that it comes straight from the source: your customers. And if you think they’ll hesitate to hand it over, here’s some good news:
    79% of consumers are willing to share their data if there is a clear benefit to them. If you are transparent about why you are collecting the data, your audience will likely be comfortable when you provide it.
  2. Better quality data – and more of it. You no longer buy data from third parties who may or may not have kept the data clean. Hard jumps, bad aiming, and money flushed down the toilet are third-party data risks that you can avoid. And because you ask customers about it right away, you can request more data than you might have if you bought it. Would you like a customer’s t-shirt size or favorite color? Just ask.
  3. More effective campaigns. As a result of the previous point, by collecting third-party data, you can increase personalized campaigns at all stages of the customer-buyer journey. Information like purchase intentions and preferences will improve your personalization strategy and help create a more accurate picture of who exactly your customer is.

The benefits of zero-party data are obvious: when you capture your audience’s intentions, interests, motivations, and preferences on a large scale, you can create a truly personalized experience for each customer. And when you’re transparent about your intentions with data, you know you are a company to trust.

To start collecting third-party data, your company needs to develop a preference management strategy and establish a trust center where customers can update their preferences and choose to collect data. Complete solutions are available to marketers and publishers to manage their customers’ consent, preferences and first party data.

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