By Louis DiGiacomo, Director of Platform Innovation
New term alert! Buzzwords in the marketing and advertising world are constantly cropping up and can be difficult to keep up with. You may have heard of Zero-Party data, which will become even more valuable after alternative data sources are deprecated with the demise of third-party cookies. (ICYMI: Google will sunset support for third-party cookies in late 2023)
While zero-party sounds like a fancy new term, it is not a new concept. And it’s always at your fingertips to activate. People will begin to use it more, to replace the data yielded by third-party cookies.
But first, let’s discuss what types of data there are and how they work.
First-party, second-party, third-party, and zero-party data: what are they?
First-party data is data that businesses own, directly collected from their audiences and customers. It shows a clearer picture of the consumer. This data, while important to own and activate, is not always handed to brands by the consumer.
Second-party data is data that began as first-party data and is then shared, usually by a trusted source. When buying, a relationship must be established with the company who owns the data. There needs to be direct contact before the data is sold or shared between collectors.
Third-party data is data that is bought from a data aggregator and is usually sold in packages. This is less reliable information, as it can be collected through various means. And with third-party cookies being phased out, it will be harder to acquire and use quality third-party data.
Zero-party data is data that is offered to you by the consumer in exchange for something that benefits them. This could be a form fill, download, registering for a webinar or event, or even scheduling a test drive to receive a gift card.
If the definition of zero-party sounds familiar, it’s because it is! Incentives are used for marketing purposes constantly. But for the past decade or more, the on-site promotion space has lacked innovation and disruption. In exchange for their data, your website visitors need more incentives to visit your brick-and-mortar location. The best way to collect zero-party data is by creating value for the consumer, such as giving them utility.
How Zero-Party is Different
In most instances, zero-party doesn’t really fit in with the other three types of data, though it is often grouped in with them. First-, second-, and third-party data refer to WHO originally collected it, while zero-party refers to HOW the data was collected.
Zero-party data is the cleanest of the data sets, as it is directly from the consumer, but keep in mind there is always human error. Something can be misspelled, or an email is used that was created specifically for junk mail.
With technologies advancing, there are ways to keep first-party data hygienic, by offering your customers the chance to clean the data (Activ8). With Activ8, you have the unique ability to convert your first-party data into zero-party data, by allowing your customers to correct and validate their own information that you compiled for them.
To craft a comprehensive and successful marketing plan in a world without 3rd-party cookies, you’ll need both first-party and zero-party data – audiences you own and can activate on.
NitroLeads, powered by FullThrottle’s proprietary, future-proof technology, is an excellent way to gather zero-party data to fuel your marketing efforts. Rewards drive more conversions – it’s really that simple.
How it works
NitroLeads prompts consumers to choose a gift card and sign up for a test drive. When they complete the form, they’ll receive a redeemable coupon by email. The consumer sees all three steps up-front, and the program walks them through the process. The steps include choosing their reward, selecting their car, and confirming their identity.
When you want to evaluate your on-site promotions, real-time reporting is built into the dealer interface. You won’t need to wait on an account manager to hear how your test drive campaign is doing. See lead form submissions and gift card redemptions in real time and track the results monthly.
We can accelerate your business with first- and zero-party data, all that your business owns and can activate on however and whenever you’d like.
To discover how NitroLeads, powered by FullThrottle, can help you collect zero-party data, schedule your free demo here.