Thinking Space

Enterprises have been using cookies (small text files that are stored on your device) to monitor consumer behaviour. However, consumers are increasingly concerned about who is collecting this data and how it is being used.

Regulators are increasingly tightening measures. For example, GDPR regulations are being considered to expand for a complete ban on ad targeting. However, enterprises need ways to connect with consumers, and that’s where concepts such as zero-party are becoming more prevalent.

While cookies passively collect data, zero-party data refers to information that is intentionally and proactively shared directly by individual consumers. Many brands have begun using mechanisms such as polls, quizzes, sweepstakes questionnaires, or interactive social media stories to collect explicitly opt-in data that provides highly specific insights into consumer preferences. This type of data collection is a win-win: it offers customers greater control and transparency into exactly what data is being collected, while giving companies access to more useful information that enables them to target personalized offers much more effectively.

Cookies have enabled companies to track their customers’ web activity and use that data to personalize ads and product offerings, but they also pose serious privacy issues. Regulators and governments have started to crack down, and tech leaders have already started to pivot to approaches such as zero-party data.