The Benefits of Zero-Party Data Versus First-Party Data

In the data and adtech spaces, the term “zero-party data” has created a sufficient amount of buzz this past year. AdExchanger takes a look at the customer relationship it aspires to develop, how it differs from first-party data, and the benefits of using zero-party data within a privacy-focused marketplace.

Coined by Nielsen in 2020, the term zero-party data refers to data that customers provide to brands voluntarily and intentionally. Examples include survey data or indicating purchase intent clearly and directly, when a customer willingly tells a brand about their preferences. This kind of data sharing is completely opt-in, and some brands are creating gamified experiences to encourage and make consumers’ sharing of their preferences more enjoyable.

First-party data also involves sharing consumer data willingly, but the focus is on the brand collecting data rather than the customer volunteering it. Brands use first-party data to track a person’s online behavior; it allows them to monitor that activity. While this kind of data is helpful for brands, zero-party is ideal within a privacy-focused marketplace, since the process is lawful but also paints a more accurate picture of the consumer.

For more on zero-party data and its benefits, read on in AdExhanger.