{"id":18624,"date":"2020-07-07T11:30:33","date_gmt":"2020-07-07T17:30:33","guid":{"rendered":"https:\/\/www.fullcontact.com\/?p=18624"},"modified":"2023-03-28T09:28:15","modified_gmt":"2023-03-28T15:28:15","slug":"whats-the-difference-between-zero-first-second-and-third-party-data","status":"publish","type":"post","link":"https:\/\/www.fullcontact.com\/blog\/identity-resolution\/whats-the-difference-between-zero-first-second-and-third-party-data\/","title":{"rendered":"The Difference Between Zero, First, Second and Third-Party Data"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Since we launched our suite of privacy solutions, it has generated a lot of interest and educational requests regarding the difference between first, second, and third-party data\u2014as well as zero-party data. We thought we would take this opportunity to share the differences, as well as our perspective on the future of the industry.<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#why-data-language-matters\"><span style=\"font-weight: 400;\">Why data language matters<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#what-is-zero-party-data\"><span style=\"font-weight: 400;\">What is zero-party data?\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#what-is-first-party-data\"><span style=\"font-weight: 400;\">What is first-party data?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#what-is-second-party-data\"><span style=\"font-weight: 400;\">What is second-party data?\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#what-is-third-party-data\"><span style=\"font-weight: 400;\">What is third-party data?\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#data-privacy-protocols\"><span style=\"font-weight: 400;\">Privacy protocols and zero-party data are the future<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you\u2019re working in marketing and you\u2019re worth your salt, you won\u2019t be surprised when I say that there are seismic changes happening related to data collection.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With everything going on in the market (third-party identifier deprecation, regulations like GDPR, etc.), companies have to rethink how they approach consumer data. You can no longer just \u201cset it and forget it\u201d when it comes to marketing decisions and spend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You now face the challenge of getting the same conversions in a completely new way\u2014so businesses are investing big in data to drive marketing and other strategic decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But to stay in compliance and generate real trust with your customers, you have to use this data well. <\/span><b>You have to understand the difference between first, second, and third-party data\u2014and especially zero-party data.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Getting a good grip on data sources is key to making smarter decisions as the future of marketing is shaped by technology, legislation, and consumer consent.\u00a0<\/span><\/p>\n<h2 id=\"why-data-language-matters\"><span style=\"font-weight: 400;\">Why data language matters<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As a consumer, I can understand if you\u2019re storing data within a cookie for my login. If you\u2019re storing things in my shopping cart, that makes sense too. I even appreciate it if you\u2019re paying attention to what I\u2019m shopping for on your website. If I buy something and you ship it to me, I\u2019d like for you to remember that so you can expedite the next purchase and delivery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When I engage with your brand, I want you to know something about me and to retain that knowledge to service me in the manner I expect.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, I\u2019d also like to understand what data I generate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And I\u2019d like to be in control.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">My data belongs to me first.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But that\u2019s the end of the line for what the average consumer thinks about their data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As marketers, we think about data a whole lot more and know that <\/span><b>it comes from different places.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the language that we use to identify the different types of data gets a little clunky. We refer to the data as zero-party, first-party, second-party, and third-party. But most average people have likely never heard of these terms before.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18627 size-full\" src=\"https:\/\/www.fullcontact.com\/wp-content\/uploads\/2020\/07\/FullContact_PartyData_Infographic@2x.png\" alt=\"Breaking down the difference between first, second and third-party data. Zero-Party Data: Information that a consumer actively and freely shares. First-Party Data: Information a company directly collects about consumers as the consumer interacts with their brand. Second-Party Data: Another company's first-party data that your company has permission to use, enforced by contractual agreements. Third-Party Data: Information aggregated from a number of public and non-public sources that may not be given explicitly by the consumer.\" width=\"1200\" height=\"858\" srcset=\"https:\/\/www.fullcontact.com\/wp-content\/uploads\/2020\/07\/FullContact_PartyData_Infographic@2x.png 1200w, https:\/\/www.fullcontact.com\/wp-content\/uploads\/2020\/07\/FullContact_PartyData_Infographic@2x-300x215.png 300w, https:\/\/www.fullcontact.com\/wp-content\/uploads\/2020\/07\/FullContact_PartyData_Infographic@2x-1024x732.png 1024w, https:\/\/www.fullcontact.com\/wp-content\/uploads\/2020\/07\/FullContact_PartyData_Infographic@2x-768x549.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><b>The difference between zero, first, second, and third-party data comes down to how it is obtained.<\/b><span style=\"font-weight: 400;\"> Either the consumer gives it up willingly, or it\u2019s shared by another company.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>0-party data: <\/b><span style=\"font-weight: 400;\">Shared with a brand by a consumer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1st-party data:<\/b><span style=\"font-weight: 400;\"> Collected by a brand as the result of consumer interactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2nd-party data: <\/b><span style=\"font-weight: 400;\">First-party data shared with another company through a contractual agreement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>3rd-party data:<\/b><span style=\"font-weight: 400;\"> Aggregated data from a variety of sources.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The ethical lines get a little blurry when it comes to how these other companies are collecting data. Some of it is collected without the consumer&#8217;s knowledge\u2014and that\u2019s why there is some pushback when it comes to consumer data collection for marketing.<\/span><\/p>\n<h2 id=\"what-is-zero-party-data\"><span style=\"font-weight: 400;\">What is zero-party data?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Zero- and first-party data are easily conflated in traditional definitions, so we need to increase our precision.\u00a0<\/span><\/p>\n<p><b>Zero-party data is the data you freely share with a brand.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When you fill out a survey and share your preference with a brand or submit a personal story through a social media competition, that\u2019s zero-party data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In more colloquial terms, it\u2019s your data. You control it (or at least you should). It\u2019s our belief that the arrow of time is bending toward zero-party control and personal identity control.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Will you decide to share your <\/span><a href=\"https:\/\/www.fullcontact.com\/blog\/2022\/02\/21\/mobile-advertising-id\/\"><span style=\"font-weight: 400;\">mobile ad ID<\/span><\/a><span style=\"font-weight: 400;\"> with companies and brands? That possibility didn\u2019t exist ten years ago, and in another decade, we fully believe zero-party control (or personal identity management) will be the new standard.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The trend on the ever-closer horizon is an increased importance of consented relationships on a first-party basis with the brands you deal with, and the partnerships they have with other brands.<\/span><\/p>\n<p><b><i>Related content:<\/i><\/b> <a href=\"https:\/\/www.fullcontact.com\/blog\/2022\/01\/04\/how-people-and-brands-can-take-back-their-data-and-their-relationships\/\"><i><span style=\"font-weight: 400;\">How people and brands can take back their data\u2014and their relationships<\/span><\/i><\/a><\/p>\n<h2 id=\"what-is-first-party-data\"><span style=\"font-weight: 400;\">What is first-party data?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>first-party data definition includes information a company directly collects about you<\/b><span style=\"font-weight: 400;\"> when you\u2019re interacting with their brand, like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What products you\u2019re looking at<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What you subscribe to<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What\u2019s in your shopping cart<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This data <\/span><b>may be collected anonymously<\/b><span style=\"font-weight: 400;\">, but the most valuable interaction happens after you identify yourself to the brand (either through a login, paywall, purchase, consent, and\/or registration). First-party data is used to identify your interests and show you more relevant advertising content.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Out of 1st, 2nd and 3rd party data, first-party is the most important and most valuable to a marketer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most powerful first-party data collectors are Google and Facebook.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Their services are so integrated into our digital lives that they have been able to grow exponentially. Facebook alone reaches a third of the world, and with most users checking in daily, that\u2019s a lot of exposure.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The average brand just doesn\u2019t see you or interact with you that often.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All that audience data and exposure puts Google and Facebook at the top of the digital food chain when it comes to controlling the largest share of the ad-spend market.<\/span><\/p>\n<h2 id=\"what-is-second-party-data\"><span style=\"font-weight: 400;\">What is second-party data?<\/span><\/h2>\n<p><b>Second-party data refers to someone else\u2019s first-party data that your brand has permission to use.<\/b><span style=\"font-weight: 400;\"> This data use is enforced by contractual agreements and occasionally a digital ledger that maintains the permission the consumer has given.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These mutually beneficial partnerships are popping up more frequently, because brands don\u2019t want to be left to the whims of walled gardens\u2014a few large companies like Facebook, Google, Amazon, Apple, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To bring the media control back within their own walls, brands and publishers are:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investing more in their own first-party data and identity technology stacks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating their own secure identity graphs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building trusted relationships with customers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">They\u2019re using the personally identifiable information (PII) shared by their trusting customers to create a common view of that person to serve them better. This view can be used across their brand, within their sub-brands\u2014and with trusted partners (second parties).\u00a0<\/span><\/p>\n<h2 id=\"what-is-third-party-data\"><span style=\"font-weight: 400;\">What is third-party data?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The data that\u2019s been getting all the headlines is third-party data. If there is a marketing boogeyman behind some of the most salacious articles, they\u2019re likely collecting troves and troves of third-party data.<\/span><\/p>\n<p><b>Third-party data is information from people that\u2019s been aggregated from a number of different sources.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The catch is that this data may not have been provided explicitly by the person who created it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Third-party data started getting attention when the Internet created a ton of web behavioral exhaust, which accumulated on vast arrays of servers all over the world. The atomic element for this type of data was a little temporary storage device called a <\/span><b>cookie<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entire advertising industries were invented around acquiring and managing data within cookies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, the <\/span><b>third-party cookie<\/b><span style=\"font-weight: 400;\"> is responsible for many of the shifts happening in marketing today. It all comes down to how these third-party cookies work.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entities you have no direct relationship with as a consumer gather data about you within third-party cookies. These cookies are set by companies other than the site you are visiting. They <\/span><b>collect anonymous information to power advertising, <\/b><span style=\"font-weight: 400;\">driving a large portion of the content the world consumes.\u00a0\u00a0<\/span><\/p>\n<p><b><i>Related content:<\/i><\/b> <a href=\"https:\/\/www.fullcontact.com\/resources\/webinar-no-third-party-cookies-no-problem\/\"><i><span style=\"font-weight: 400;\">No Third-Party Cookies? No Problem [Webinar]<\/span><\/i><\/a><\/p>\n<p><span style=\"font-weight: 400;\">As Google, Apple, and Firefox browsers restrict these third-party cookies, they disrupt a large portion of the monetization of the Internet. Google and Apple have the vast majority of browser usage (~70+%) and a duopoly of mobile devices. They control many of the rules that advertisers must adhere to.\u00a0<\/span><\/p>\n<p><b>And the more they restrict data under the veil of privacy, they also cement their position of power.<\/b><span style=\"font-weight: 400;\"> The rest of the industry built around the cookie slowly dies. With that, companies like MediaMath, Adobe, LiveRamp, and Neustar have to invent new methods for publishers and advertisers to serve relevant ads.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the quality difference between first, second, and third-party data, cookies have been a big part of informing marketing decisions and change will be hard. Now that cookie restrictions make some of those platforms unusable\u2014or at least less responsive\u2014marketers face the challenge of finding a completely new method of achieving the same conversions.<\/span><\/p>\n<h2 id=\"data-privacy-protocols\"><span style=\"font-weight: 400;\">Privacy protocols and zero-party data are the future<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ideally, however, individuals, as in real people, would have more control over how all of this is happening. Often, a person doesn\u2019t truly have a complete view of how their information is being passed around.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Zero-party control will ultimately address this.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You, as a consumer, will maintain your own unique and persistent ID that can be leveraged by platforms, brands, publishers, and anyone else that you give permission to use it. Digital rights to your information and proper pseudonymization should be embedded within the chain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Personal identity and privacy rights should be enforced through trusted proxies that enable them. <\/span><a href=\"https:\/\/www.iab.com\/blog\/project-rearc-an-industry-collaboration-to-rearchitect-digital-marketing\/\"><span style=\"font-weight: 400;\">Project Rearc<\/span><\/a><span style=\"font-weight: 400;\"> from the <\/span><a href=\"https:\/\/www.iab.com\/\"><span style=\"font-weight: 400;\">Interactive Advertising Bureau (IAB)<\/span><\/a><span style=\"font-weight: 400;\">, which begins to define the standards and protocols around such mechanisms, is a start.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But over the next 10 years, there will have to be many inventions created in order for true zero-party control to come to fruition.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is hope that it will happen faster, but there are decades of internet economic debt to rebuild under a new paradigm of personal rights.<\/span><\/p>\n<p><b>Want to learn how FullContact is working to make zero-party control a reality? <\/b><a href=\"https:\/\/www.fullcontact.com\/contact\/\"><b>Let\u2019s talk<\/b><\/a><b>.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019ve got a few solutions up our sleeves that give both brands and consumers more control over their data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Check out:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.fullcontact.com\/solutions\/identity-streme\/\"><span style=\"font-weight: 400;\">FullContact Identity Streme\u2122<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.fullcontact.com\/solutions\/identity-streme-secure-sharing\/\"><span style=\"font-weight: 400;\">Identity Streme: Secure Sharing<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.fullcontact.com\/solutions\/privacy-compliance\/\"><span style=\"font-weight: 400;\">Privacy Compliance<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Since we launched our suite of privacy solutions, it has generated a lot of interest and educational requests regarding the difference between first, second, and third-party data\u2014as well as zero-party data. We thought we would take this opportunity to share the differences, as well as our perspective on the future of the industry. Why data [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_improvement_type_select":"improve_an_existing","_thumb_yes_seoaic":false,"_frame_yes_seoaic":false,"seoaic_generate_description":"","seoaic_improve_instructions_prompt":"","seoaic_rollback_content_improvement":"","seoaic_idea_thumbnail_generator":"","thumbnail_generated":false,"thumbnail_generate_prompt":"","seoaic_article_description":"","seoaic_article_subtitles":[],"footnotes":""},"categories":[6029],"tags":[5714,5708,5709,5710,5711,5712,5713,5693,672,208,98,101,102,108,451],"class_list":["post-18624","post","type-post","status-publish","format-standard","hentry","category-identity-resolution","tag-privacy-protocols","tag-zero-party-data","tag-first-party-data","tag-second-party-data","tag-third-party-data","tag-third-party-cookie-restrictions","tag-private-graphs","tag-second-party-data-sharing","tag-privacy-legislation","tag-privacy","tag-identity-resolution","tag-ccpa","tag-cookies","tag-gdpr","tag-data-privacy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Difference Between First, Second and Third-Party Data | FullContact<\/title>\n<meta name=\"description\" content=\"What\u2019s the difference between first, second, and third-party data? 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