Zero Party Data Strategy in a Near Future Without 3rd Party Cookies
What is zero party data?
In their simplest definition, 3rd party cookies are small pieces of data sent by the web server and stored on the user’s computer. Companies have used them for many years to monitor consumers’ online behaviour.
Cookies help brands identify their customers, target advertisements and campaign creation.
However, this convenience has a price. Especially in recent years, when the sensitivity of personal data security has increased, consumers are increasingly concerned. Questioning who collects their Data, how their online behaviour is monitored, what companies do with this information, and to whom they can sell it.
- A recent Pew Research Center (Pew) survey showed that 79 per cent of US users are concerned about how companies use their personal data.
- According to the report, 41 per cent of consumers in the US regularly delete cookies and 30 per cent use ad blockers on their personal devices.
This increasing trust issue on the consumer side has also prompted regulators to act. The General Data Protection Regulation (GDPR), which was implemented in 2018 and covers EU countries, has comprehensive content on cookies.
Increasing calls on the regulatory side to fully improve ad targeting in Europe were met by the US states of Virginia and California. Perhaps the most crucial step in this regard came from Google. Google Chrome has announced that it will disable third-party cookies by 2023.
The disappearance of third-party cookies from our lives does not mean that personalised advertising practices will end; on the contrary, a new era in advertising management is at hand with better-quality data.
The Rise of Self-Identified Zero Party Data
How do you take advantage of data-driven targeting without getting caught up in the privacy issues (and regulatory hurdles) associated with 3rd party cookies? Answer: Self Identified Data.
- Self Identified Zero Party Data, unlike third-party data, which is collected and recorded by third-party sites other than the websites visited by users, allows content and advertising to be edited. The data is intentionally and proactively shared directly with the brand by consumers.
- Self Identified Zero Party Data can include preference centre data, purchase intentions, personal context, and how the individual wants the brand to recognise them.
- Many brands are already using mechanisms like surveys, quizzes, or interactive social media campaigns to collect Self Identified Data that provides specific insights into consumer preferences.
- Using this Data gives customers more control and transparency over what information about them is collected. It also gives companies access to more helpful information, allowing them to deliver personalised offers more effectively.
Check out our solutions for gathering zero party data https://www.poltio.com/landing/solutions/customer-engagement
- How to build customer DNA with Zero Party Data
At this point, it’s important to remember that the real issue with third-party cookies isn’t personalisation.
Today, consumers are increasingly interested in personalised advertising offers, and Self Identified Data allows for much more targeted campaigns, eliminating privacy issues.
A recent survey of more than 5,000 global respondents reveals a significant 33 per cent year-on-year increase in consumers interested in personalised offers between 2020 and 2021.
While customers are happy to see ads that match their needs and receive campaign offers related to it, collecting their personal data in a non-transparent and insecure manner and then selling them to the highest bidder is something that no consumer wants.
Self Identified Data Offers both greater transparency and more effective personalisation.
The Future of Customer Interaction
The use of Self Identified Data is becoming more and more common. Consumer demand for a more transparent and secure user experience is increasing, and expectations for highly personalised experiences are more important than ever.
At the same time, increasingly strict regulatory arrangements make this situation inevitable. Marketers looking to adapt to the new era are increasingly investing in a Self Identified Data approach.
According to a recent report from Forrester, one in four CMOs will have adopted the Self Identified Data-use approach by the end of 2021 and will run marketing campaigns to take advantage of detailed data provided by customers for free instead of third-party cookies.
These developments in the use of data may seem like a minor technical change in the marketing world. However, this change essentially means a shift in approach that is much more important for businesses regarding their customers’ data.
While cookies run in the background, they passively collect information, often for use in obscure, unethical ways. Therefore, Self Identified Data provides greater personalisation and control for the end-user.
Ultimately, we can see Self Identified Data not only as a way to do targeted ads or email campaigns but also as a new step towards transforming how companies interact with (and respect) their most valuable stakeholders, their customers.
Zero Party Data Collection with the End of 3rd-Party Data
With many different strategies, you can easily collect the data you need without using 3rd party data and take customer-oriented marketing steps.
We can design your company’s data strategy together!