18 months on from the Cambridge Analytica scandal and Facebook has been handed a record $5bn fine to settle privacy concerns with the US Federal Trade Commission.
The social network admits that it was “rocked to its very foundations” by the breaches in which 87 million users had their personal data improperly obtained. The fine dwarfs the previous record for the largest fine handed down by the FTC for consumer privacy violations – $275m to consumer credit agency Equifax. It is also one of the largest regulatory penalties ever imposed by the US government on any company, reflecting the scale of the breach.
For too long Facebook and other behemoths played fast-and-loose with consumer data, and marketers were on-board. Abrogating responsibility for knowing who their customers were and relying on Facebook to amass data through its coterie of third-party data partnerships.
As Facebook seeks to rebrand and rebuild consumer trust, and that of the organizations that advertise with it, it’s begun shutting off the use of third-party data-sets to power ad targeting. For brands, it’s time to react too, and lock down a fully-fledged first- and zero-party data strategy that offers a value exchange, and rebuilds trust with consumers.
The Problem With The Third-Party Data Quick Fix
Data scandals and fake news aside, for years Facebook has been powering its ad targeting through third-party data-sets. Now falling foul of privacy legislation that is sweeping the globe, and from a business perspective, bad practice.
Third-party data is commonly aggregated from unreliable sources like credit scores, cookies and click trails. And sadly, this quick fix has led to consumer mistrust as well as stale, useless data loading CRMs and powering DMPs.
As a result users are being targeting with irrelevant ads from incorrect and outdated data that has little to no direct relationship with them. Consumer preferences, budgets, household sizes and many other variables fluctuate over time, credit scores go up and down, and consumer data then becomes antiquated, hampering the quality and effectiveness of your campaigns.
The Solution: Zero-Party Data
Zero-party data is the next step in rebuilding trust and engendering lasting and meaningful connections with privacy-conscious consumers. Business analysts Forrester define it as a form of data intentionally and proactively shared with you by the consumer and never collected through snooping, cookie tracking or inferred through variables like device matching.
“Zero-party data is that which a consumer intentionally and explicitly shares with your company, and it is gold.” – Fatemah Khatibloo, Principal Analyst, Forrester
It is data your customer has willingly shared with you, like purchase desires and preferences to improve personalization and help build up a more complete picture of who they are.
Helping marketers to build direct relationships with consumers, and in turn, better personalize their marketing efforts, services, offers and product recommendations with no guesswork.
And marketers don’t need to advertise on Facebook to acquire it, they can deliver it through interactive experiences that collect preference insights, accrue opt-ins and deliver an altogether better experience with a tangible value exchange for the consumer.
The Value Exchange Economy
Consumers need to be entertained, engaged and receive something in return for their preference data. And by leveraging the right mechanics, and offering a value exchange, your customers will tell you what products they desire, what they look for in a service, and what motivates them to purchase.
Whether an instant win promo, or product recommending quiz in a social story to name but a few, these experience types that can live on the largest screen, or the smallest ad placement incorporate incentive mechanics such as coupons, content, or prizes that quickly and easily collect zero-party data. Arming you with the information you need to make the right connections with your customers.
Wayin, A Cheetah Digital Company
Wayin, a Cheetah Digital Company has always strived to be ahead of the curve. Helping marketers deliver engaging interactive experiences as an antidote to the rise in ad blocking tech and drop in click-through rates for digital ads.
Then championing the first- and zero-party data economy long before the Cambridge Analytica scandal led to the enactment of global privacy legislation and moves away from the use of third-party data sets. We have always believed in building meaningful connections with consumers, where there is a true value exchange in return for engagement and data, establishing direct relationships that last the course of time.
Zero-Party Data Maturity Model
Collect compliant first-party and preference data at scale that build lasting and meaningful connections with consumersDownload Now