By now, you know that marketers’ ability to use third-party data for ad targeting is going away. And you also know that because of this, growing your first-party data has never been more important. In addition to first- and third-party data, there’s also zero- and second-party data to consider. With all this talk about data, you may be asking yourself, What are all of these parties, and where is this data coming from? Here is a quick overview:
Forrester Research, which coined the term, says zero-party data is “that which a customer intentionally and proactively shares with a brand. It can include preference-center data, purchase intentions, personal context, and how the individual wants the brand to recognize [them].” Fun fact: Zero-party data is also known as explicit data.
First-party data is behavioral data that you collect directly. FPD can include email, website, and app behavior. The types of data included are opens, clicks, scrolls, hovers, active time spent, etc.
This is someone else’s first-party data that they share with you. This data is either shared in a partnership or sold.
Third-party data is obtained from sources that you do not own. It is collected by entities that do not have a direct relationship with the people whose data is being collected. Whether this data is collected by third-party cookies—which are going away in 2023—or by some other means, this data is going to become less available and less relevant over time.
Ultimately, there is data that you own outright and data that you don’t. With the end of third-party data on the horizon, it’s never been more important to assess the data you collect about your customers and prospects to see where your strengths lie (zero- and first-party) and where you are vulnerable (second- and third-party).
Need help assessing your data sources? Contact us to see how we can help.