The Value of Zero: Accuracy and Trust

Data-driven marketing has always focused on getting as much information on your customers as possible through various channels. As privacy grows increasingly important and tracking becomes increasingly limited, zero-party data (ZPD) is on the rise.

Conventional marketing wisdom has always been that the more you know about your customer, the more effectively you can target them. For that reason, marketers have always been trying to get their hand on as much data as possible, relying not just on their own first-party data but even paying for second-party and third-party data. 

To clarify terms, here’s a rundown on the differences in data sources.
First-party data

First-party data is what a business receives directly from a customer typically as a result of purchases, subscriptions, or points of contact. It can be the result of what a customer actively fills in on a form or passively shares as a result of cookies that the customer accepts by using the brand’s site or the tracking that comes through use of an app.

While a complete record of information given by a customer is valuable, for businesses that haven’t had much time to gain a complete history, it may not suffice to inform truly tailored experiences. That’s why businesses will pay for access to additional information through second and even third parties.
Second-party data

Second-party data is first-party data acquired by another company that is then sold to a business that wants more information about its customer base. Drawing on the more thorough information can fill in more of the customer picture, but it’s still limited to what a single business has been able to gather on the customers, which is why some will pay a broker for data.


Third-party data

Third-party data is different from first and second party in that it draws on multiple sources of data that a separate company puts together into a single dataset to be sold to those in the market for that kind of customer information. Typically, the company in the business of delivering data will purchase first party data from a number of companies to create these data packages for others to buy through the data exchange marketplace.
Data drawbacks

While going from one to three increases your data resources, it’s not without its drawbacks. As anyone can buy third party data, what a business buys is not unique to it. As a result, it is very likely that all businesses competing for the same customers are working off the same data set.

Also since the establishment of GDPR in Europe and CCPA in California, marketers have had to respect consumer-set boundaries for the collection, use, and sale of their data.

The rise of such legislation has shed more light on privacy issues that has created pressure for platforms to stop enabling data collection without users’ knowledge. That is the story behind Google’s resolution to phase out third-party cookies and Apple’s new iOS setup for informed consent on apps.

The new frameworks don’t only curtail marketers from using data obtained from outside sources. They can even limit some first-party data that businesses have obtained without informed consent by tracking consumer behavior with cookies, pixels, or cross-device identification (XDID).

That is why a couple of years ago, we started hearing about zero-party data or ZPD. The term has been credited to Forrester, which presented it in Predictions 2019: B2C Marketing Report.

This approach has gained momentum over the past couple of years. AW360 predicts that a quarter of CMOs will be looking to implement ZPD in 2021.
The zero-party solution

As both zero-party data and first-party data take in information directly from the customer, there is some overlap between the two. The crucial difference between them is that zero-party data only includes what a customer knowingly and willingly shares.

That means that customers are in full control of the information they share with the business. They are willing to give their data if they feel they can trust the brand and are getting something of value in return.

Read more in  Zero to Hero: Providing Personalization & Privacy

A different lookalike strategy to fit GDPR

Privacy concerns, and the need for GDPR compliance for any company that is globally connected has made it necessary for brands to find ad targeting alternatives.

The question is: are marketers going to step back, or take a step forward, with a new paradigm of lookalike data?

The trend in programmatic advertising has been to tap into more -- and more -- data about individuals, to deliver more personalized approaches. But with the rise of GDPR, not all data is fair play in the EU, and that changes the rules of the game.

Some companies are rolling back personalization and reverting to more traditional forms of contextual advertising. Others are looking forward by leveraging data in new ways.  

Earlier this week, Cedato officially released its Contextual Lookalike Targeting technology for programmatic video. 

Read more in 

Redefining Lookalike Strategies For GDPR Compliance

The trust factor for IoT

pic from https://farm8.staticflickr.com/7296/15768208714_9f9376cc7d_o_d.jpg

We talk a lot about IoT, referring of course, to the Internet of Things. But perhaps we should be thinking of making the T stand for trust. That’s what some are working on now in establishing industry standards to be worth of trust by committing to adopt best practices.

Essentially the OTA's best practices and standards boil down to two overarching considerations. One: Device manufacturers have to consider how they will secure the data collected on their devices. Two: The consumer has to be clearly informed about the nature and extent of the data collected. Having that information allows the potential purchaser to know exactly what they would be getting into with the Internet of Things (IoT) device, and whether or not they consider the gains are worth the risk. Having a universal standard also makes it clear how one company compares to another with respect to data privacy and security.

Read more in

Setting the IoT Standards

Is a Smart Barbie a Smart Move?

Today's fashion doll is not your grandmother's Barbie. Nowadays, she comes equipped with WiFi, voice recognition, and access to data stored in the cloud.

Since 1959, the iconic Barbie doll has gone through multiple permutations as it evolved to reflect the fashions and expectations of each generation. Lately, that includes technology to enable conversations with the doll. And Mattel has discovered that a talking Barbie causes trouble. In the last generation, people objected to what Barbie said; now they object to what she hears.

Read more in 

Smart Barbie Puts Child's Play In The Cloud

Data for doctors: should there be limits on it?

This summer, Carolinas HealthCare System made the news rounds as a warning of the new levels of data mining available to healthcare companies. In Hospitals Are Mining Patients' Credit Card Data to Predict Who Will Get Sick, we get a very Big Brother type of picture of the invasiveness of such data mining with an illustrative picture showing a doctor saying, “Don’t lie to me, Susan, I know about the 2 a.m. Papa John’s deliveries.”

 It makes for dramatic copy, but it’s still in the realm of fiction rather than fact, as I found our when  I contacted Carolinas HealthCare and got a response from Jason Schneider, Director, Clinical PR. He explained that the article “focused on how providers could use data for in the future and didn't include details what data we are currently using and how we are using it.”

The data they are currently using does not follow an individual’s consumer trail but looks at things like socio-economic circles, neighborhood limitations, and cultural affiliation that could shape one’s access to healthcare. One example of that was identifying why patients in one particular area were not coming in for regular doctor’s visits. It turned out that it didn’t have reliable public transportation to a doctor's office. After identifying the geographic problem, Carolinas HealthCare set up a doctor in the neighborhood itself.

As the person quoted in each of the articles on Carolinas use of data is Dr.  Michael Dulin, chief clinical officer for analytics and outcomes research at Carolinas, I contacted him and spoke with him on the phone. He explained that Carolinas has a decade of experience in using data to improve healthcare by identifying individuals within contexts that could pose obstacles to care.

Read more in 

More Info in the Name of Better Healthcare

Oh the places you'll go and the stories your can can tell about htem

The main problem with the current state of in-car, location-based services is that they aren't required to notify consumers. It's possible that some motorists are completely unaware of who uses their location data, and how. Also, for four out of the six automakers, customers do not have the option to request that their historical data be erased. (The "right to be forgotten" is included in the EU’s data protection laws and recommended by the GAO.) Read more in 

In-Car Tracking: We Know Where You've Been

Cellphone tracking: a matter of protection or loss of privacy?

With the right equipment, anyone can trace where we are through our phones. Whether and how this technology is used has been a source of controversy for years.

One of the latest flare-ups is police use of Stingrays. In this context, it's not a type of fish but the brand name of an International Mobile Subscriber Identity tracking device.

Read more in 

Cellphone Tracking: Protection vs. Privacy

Students on camera -- not for security

We have technology that can use cCameras in Class: Insight vs. Privacy

ameras in the classroom for analysis of lessons. What do you think? Learn more about the concept of  EngageSense in

Data privacy protection subject to law in Europe

Years before the NSA data spying scandal broke in the US, the European Commission turned its attention to the problem posed by data collection, though it took until October 21, 2013, for it to win the vote on the proposal. Read more in

Privacy Rights Progress in Europe

The face of analytics is yours

Do personalized offers make you smile? Or do you value privacy over customized shopping experiences? Read about the facial recognition technology at work to sell you more stuff in

Putting a Face on Retail Analytics

A kind of nutrition label for apps

Your mobile apps know a lot about you: what you buy, how you pay for it, what you browse, and where you are when you do it. To get some idea of just how much data is collected about you and who else gets to see it, click on Target’s privacy policy http://m.target.com/spot/terms/privacy-policy#InformationUsed. While that information on data collection is available, most customers probably never bother to check it.  The question is if a voluntary code of conduct for apps that summarize the information upfront will provide better consumer privacy protection.  The NTIA believes it can, but as it is something companies are not required to opt into, its critics regard it as a diversion from more effective legislation.

Rather like the nutrition facts label on food packages, the short notice on apps is intended to which reveal at a glance how much of what you don’t want in your diet is in it. Also like the packaged food industry, the voluntary code frees companies from a mandatory label that might rate its data collection policies according to a government standard.

Read more in Voluntary Privacy Policy Proposed for Mobile Apps

There's a parallel to the nutrition labels printed on packaged food. If there were a legal mandate, then all apps could have a point rating to reflect how privacy-friendly (or not) they are. But without that, it's up to companies to be self-regulating, as it were, and voluntarily decide to briefly show some of its data collection facts.

This week's Advertising Age includes http://adage.com/article/news/big-food-preps-50m-push-facts-front-labeling/243475/. The food manufacturer want to avoid having a legal mandate, so they are spending $50 million to promote what they call ad "Facts Up Front." The idea is that putting that nutrional summation on the front of the package will satisfy those who are critical of the way they have represented sugary cereals and such as sound nutritional choices without having to accept an offical label that is not within their own control like the grade system recommended by the Institute of Medicine. With such a label, the foods that contain more fat, sodium, or sugar than the benchmarks set for them would get no stars at all. 

Smartphone signals for retail analytics

Shopping online offers customers convenience and price transparency, but it offers retailers even more. As Amazon has demonstrated in its successful model, the information it derives from its customer behavior online gives it insight that it uses to tailor its marketing to the individual. As your online browsing tracks, not only what you buy, but what you considered buying, the retailer gets to learn a lot more about you than the person who rings up your purchase at a store. How can a bricks-and-mortar establishment compete with that kind of analytic edge?

 Read more in In-Store Customer Analytics Get Digital Twist

When Big Data becomes Big Brother

You are being watched. Does that make you feel safe or make you feel exposed? The answer to that question determines whether people applaud or decry New York City Mayor Michael Bloomberg's latest initiative. Not everyone is ready to surrender their privacy to Big Data even for a system supposedly designed for their own good. 

Read more: When big data becomes big brother: New York City's system for crime prevention - FierceBigData http://www.fiercebigdata.com/story/when-big-data-becomes-big-brother-new-york-citys-system-crime-prevention/2012-08-30#ixzz25iNx32rh
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Sensors you swallow

The cliché advice from doctors who don’t want to be bothered after hours by their patients has long been, “Take two pills and call me in the morning.” But soon it might be: "Take a pill, and we’ll call you." Read more at "Take 2 Pills & They'll Call You"