Zero-party data brings data sovereignty into practice

Measure Protocol

In AdvertisingWeek360 Measure’s co-founder and CMO Paul Neto writes about the emergence of zero-party data in an article called “The Battle for Data is Over. Everyone Wins with Zero-Party Data (ZPD)”. Historically, consumer data has largely been owned by specific companies, with individuals having little knowledge or control over the use of their data. Trust and compensation for any actively shared data has been low. 

This is changing as “new paradigms and legislation around data ownership and usage are making it into the mainstream.” Things like the decline of cookies means that zero-party data, or data that an individual deliberately and intentionally shares with a brand, is taking on new significance. But consumers must be willing to share it. 

In the article, Paul starts by contextualizing zero-party data by defining other data types such as first, second and third-party data - all collected from consumers with varying levels of transparency (if any). The difference between these data types and zero-party data is ownership. “Companies own first-party data, though consumers own the zero-party data.”

Zero-party data is important because consumers are tired of giving away their data for free. They are worried about privacy and security, as indicated by our recent “Measure Privacy Report.” In addition, many are realizing that their data has real value, and they want to be compensated fairly for its use. This, in addition to outside factors such as the phasing out of cookies and new regulations, is quickly creating an “environment in which zero-party data has become essential.” 

Getting access to this critical data will require a deft balance of transparency, privacy protection and fair rewards - all adding up to the creation of a “trusted environment.” We’ve seen the benefits of this kind of consumer and trust-centric approach in our MSR app, as people are more willing to share data that has higher sensitivity, such as app usage and purchase data. 

Paul concludes the article with: “Those who have adopted a consumer-first approach, implemented privacy by design, and adhered to unprecedented levels of transparency, all while compensating consumers with value for their data approach, are well on their way to the next generation of embracing data in an ecosystem where everyone wins.”

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