Excerpt shared from Campaign's 'Will zero-party data restore consumers' trust in brand value?':

Allowing individuals to willingly and conveniently share their data in exchange for better experiences can be a win-win. But as Campaign discovers, certain conditions and challenges must be met for all to benefit.

As marketers prepare for the impact of cookie deprecation, there has been a growing interest in zero-party data (ZPD). ZPD is the information consumers willingly and directly share with companies in exchange for specific benefits or values, such as personalised offers and services, as they understand how their shared data will enhance their interactions with a brand. Let’s take James, for example. He is an avid traveller who visits a website to plan his next adventure. By proactively indicating his travel preferences, James provides the travel company with invaluable insights into his specific interests, a prime example of ZPD. Unlike other forms of data, ZPD is characterised by its accuracy and consensual nature, making it a precious source for businesses seeking more profound insights into their customers. ZPD stands out as a beacon of trust and accuracy in a complex data environment. As data privacy regulations like the GDPR and CCPA tighten, businesses can rely on consented and accurate data sources like ZPD to reduce legal risks and dependence on external data pools. Campaign explores how fostering direct communication channels with consumers with ZPD enables companies to personalise experiences and whether they can do so effectively, thereby actually enhancing customer satisfaction and loyalty.

How ZPD will evolve

With regulations developing globally, we will see a similar evolution in the role, impact, and importance of ZPD. As privacy regulations evolve, businesses will be under increasing pressure to keep up with these changes and adhere to them. David Nelson, co-founder and CEO at Limelight, notes that increased privacy regulations and the loss of third-party cookies have broken the connection between advertisers and consumers. “ID-based solutions backed will likely run into the same issues as cookies. There is no single solution to precision targeting across domains. We will work with partners that offer privacy-first solutions that are sustainable, scaleable and ethical,” explains Nelson.

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