There is little doubt that data drives digital marketing. However, an agency is only as effective as the data it relies on to make decisions. That means data sources are more important than ever before. So why are digital marketers now turning to first-party and zero-party data? The answer lies in the end of the third-party cookie.
As an agency specializing in digital marketing in Utah and throughout the United States, we have been following the demise of the third-party cookie for some time now. It was several years ago when Google announced it would be pulling back support for third-party cookies. And now, the departure from said cookies is almost complete.
Addressing Privacy Concerns
The thing to note about third-party cookies is that their demise is not related to their value. In other words, it is not as though the cookies were not producing results. They were. In fact, the results were tremendous. But the success of the third-party cookie model raised legitimate concerns about internet privacy.
Rather than attempting to address those concerns while simultaneously avoiding litigation and regulatory compliance issues, most of the big names in technology simply decided to sunset their use of third-party cookies to gather marketing information. That left digital marketing agencies scrambling to find other sources for the same data being gleaned from the abandoned cookies. Enter first-party and zero-party data.
First-Party Data Defined
As the name implies, third-party data is data collected through third parties that are separate from the individual and the organization that wants the information. First-party data is gleaned by eliminating the third-party middleman. It is data that comes right from the customer through that individual’s direct or implied consent.
Consider an ecommerce website. As a digital marketing company, we might help an ecommerce operator develop and publish a website. We would include on that website statements indicating the types of data the site collects and stores. Any such statements would be included in the site’s privacy notice. By using the site, a customer agrees to the data collection and storage policies.
First-party data includes things like online activity (while on the site), demographic information, purchase information, and even customer feedback. It is data gleaned directly from the customer through their activity on the site.
Zero-Party Data Defined
Zero-party data is also gathered from the individual customer. But here is the difference: it is not a byproduct of online activity. It is solicited directly. The data is solicited through things like customer surveys and feedback forms, not gleaned by tracking user activity and on-site behaviors.
Zero-party data is data that marketers can use to inform their decisions regarding how they will reach existing and potential customers. It is data that helps marketers better understand their target audiences.
Not a Bad Deal
Here at Webtek, we have been doing digital marketing in Utah for years. We have used third-party data to inform our marketing decisions since the very start. Although we understand that transitioning away from third-party data will have its hiccups, doing so isn’t actually a bad deal. Why? Because first- and zero-party data is actually a lot more reliable.
Because first- and zero-party data comes directly from customers rather than unknown third parties, there is a higher trust factor involved. First- and zero-party data can also be collected in a more granular way. You end up with better data that leads to better decisions.
The demise of the third-party cookie has forced digital marketers to source data from elsewhere. In the end, however, first- and zero-party data sources will be better for marketers and consumers alike.
