Member Article

Web 3.0 and zero party data

With the emergency of Web 3.0 zero party data - which is defined as data that people proactively share with a company - is growing in importance. And the good news for companies is that consumers are increasingly more willing to share their personal information. Recent research by the GDMA reveals that consumers are not only much more comfortable with sharing their data, but now even see a value in it, more so than they ever have done previously.

This is especially true if they see a clear benefit of doing so. More than half of the people surveyed (53 per cent), across 16 countries, agree that the exchange of personal information is essential for the smooth running of modern society. In good news for the marketers, the vast majority of global consumers (82 per cent) are prepared to engage with the data economy.

Trust in an organization remains the most important factor in consumer willingness to share personal information with a company. Over a third (38 per cent) of consumers rank trust in an organization in the top three factors that make them happy to share data with an organization.

Another interesting trend observed since the report was last carried out in 2018, is the rise of Data Unconcerned; a cohort of consumers that display little or no concern about their data privacy. Some 31% of the population now fall into this category, up from 26 per cent four years ago. There has also been a decline of Data Fundamentalists, people who are unwilling to share personal information. The number of people in this category has fallen from 23 per cent in 2018 to 21 per cent today. The largest group (47 per cent) are Data Pragmatists, who are happy to exchange data with businesses so long as there is a clear benefit for doing so.

These finding are very significant for brands looking to capitalize on Web 3.0. One of the key benefits of zero-party data is that by its nature it more trustworthy than third-party data. This is because customers share it willingly and know that it is being used by the brand. Consequently, they are more likely to trust the brand with their personal information. Another benefit of zero-party data is that it is more accurate. Because they are giving it willingly there are unlikely to provide false information and there is also less opportunity for errors or inaccuracies. And the most important element to zero-party data is that it is more engaging – it enables true personalization. And that is what modern marketing is all about. Providing a personalized and engaging experience.

Consequently, organizations should be looking to implement a zero party data strategy now. With increasingly privacy controls being put-on third-party data, such as Apple Privacy and greater GDPR scrutiny, establishing relationships with customers who are happy to share their data makes commercial sense, not just now but for what is to come with the exciting developments that will come about as a result of Web 3.0

This was posted in Bdaily's Members' News section by Richard Calvert .