The Birth of Zero-Party Data (Or…has it always been here?)
First-party data and that 1:1 relationship with the consumer has been the primary focus of the data world for a while now. Advertisers, platforms and marketers all want the same thing - the highest quality data they can get their hands on - consented data. Of course, they do. That’s nothing new. But over the next few months, you’re going to hear a “new” type of data being spoken about, Zero-Party Data.
So…what is Zero-Party Data?
According to Forrester, zero-party data is what a customer intentionally and proactively shares with a brand. It can include presence center data, purchase intentions, personal context, and how an individual wants the brand to recognize them.
While the above is true, it's a very light definition of consumer participation and lacks any explanation of control or transparency for the user. Yes, you can answer a panel of questions. That constitutes zero-party data, but what is the difference between acceptance of tracking and what visibility and transparency are being provided back to the user around how that data is being used? And one step further - is this type of data actually new or did we just decide to put a title on it now?
What is the difference between first-party data, second-party data and third-party data?
Third-party data means the data is minimum three steps away from where consent was collected. Second, two steps, and first, one step. A publisher like the Wall Street Journal is an excellent example of first-party data. They collect data directly from you to power their site. This is first-party data. Second-party data would be if this same publisher provided this data to a partner or a platform. Think about how Weather applications sell your location data to others. This is first-party data being sold to others. Third-party data is that which is three steps away from the consumer. Unfortunately, thousands of firms aggregate, collect and sell data with no direct line of consent from the user.
so how is zero-party data different than first-party data?
While there are many avenues we can take to categorize data as “zero-party” because of the ways in which they are acquired, isn’t the true distinction between zero-party data and first-party data the fact that it is organically acquired through a consumer journey? Or maybe that is just how the data we get from our consumers at Reklaim stands out from other sources.