As the digital marketing landscape evolves, the phase-out of third-party cookies has prompted marketers to reevaluate their strategies. While some platforms have adjusted their timelines, the trend toward privacy-first marketing continues to gain momentum. A significant shift is occurring towards zero-party data (ZPD), which is information that customers intentionally and proactively share with a brand. This data includes preferences, purchase intentions, and personal context, providing a more direct and compliant way to understand and engage audiences.
Industry Trends & Budget Shifts
- Increased Investment in Email Marketing: As third-party cookies become less reliable, many marketers are allocating more resources to email marketing. According to a survey by The Ricciardi Group, 23% of marketing experts plan on investing in email marketing software due to Google’s new policy to phase out third-party cookies (thericciardigroup.com).
- Adoption of Customer Data Platforms (CDPs): To manage and activate zero-party and first-party data effectively, brands are investing in CDPs. These platforms help in creating unified customer profiles, enabling personalized marketing efforts without relying on third-party data sources.
Strategic Adaptations
- Enhanced Personalization: With direct access to customer preferences and behaviors, marketers can craft more personalized experiences, leading to higher engagement and conversion rates.
- Compliance and Trust: By focusing on zero-party data, brands can ensure compliance with privacy regulations like GDPR and CCPA, building trust with their audience.
- Integration of AI and Automation: Leveraging artificial intelligence and automation tools allows for the efficient processing and utilization of zero-party data, optimizing marketing campaigns and customer interactions.
Recommendations for Marketers
- Invest in Data Collection Tools: Implement tools that facilitate the collection of zero-party data, such as preference centers and interactive surveys.
- Focus on First-Party Data: Enhance strategies that gather first-party data through direct customer interactions on your platforms.
- Embrace Privacy-First Technologies: Adopt technologies that prioritize user privacy and comply with emerging regulations.
- Educate and Engage Customers: Communicate the value of data sharing to customers, ensuring transparency and building trust.
- Monitor and Adapt: Continuously assess the effectiveness of your data strategies and remain adaptable to changes in the digital marketing environment.
In summary, while the deprecation of third-party cookies presents challenges, it also offers an opportunity for marketers to build more direct and trusted relationships with their audiences. By shifting focus to zero-party data, brands can navigate the evolving landscape effectively and maintain personalized, compliant, and engaging market
The trend of Digital Marketers shifting budgets to Zero-Party Data (ZPD) is a strategic response to the decline of third-party cookies, driven by evolving privacy regulations and increased consumer demand for transparency and control.1
While Google has paused the full phase-out of third-party cookies in Chrome, the consensus among marketers is that the overall utility and reliability of third-party data is diminishing.2 This makes investing in ZPD and First-Party Data an essential move for future-proofing marketing strategies.3
What is Zero-Party Data?
Zero-party data is information that a customer intentionally and proactively shares with a brand.4 This data is explicit, accurate, and provides direct insight into customer preferences, intentions, and context.5
| Data Type | Description | Collection Method |
| Zero-Party Data | Information explicitly shared by the customer. | Quizzes, preference centers, surveys, polls, interactive product configurators. |
| First-Party Data | Information a brand collects directly from audience interactions on its owned channels. | Website browsing behavior, purchase history, email engagement, CRM data. |
| Third-Party Data | Information collected by an entity with no direct relationship with the user and then bought from a data broker. | Purchased lists, data used for cross-site targeting. |
Case Studies: Successful Zero-Party Data Implementation
Brands that have invested in ZPD strategies are seeing measurable improvements in key marketing metrics, mainly through highly personalized experiences.6
| Brand Example | ZPD Strategy | Observed Results/Comments |
| Kellanova (formerly Kellogg’s) | Capturing zero-party data to deeply understand consumer behavior and personalize marketing efforts across various touchpoints. | The brand adapted to the decline of cookies by implementing a refreshed, comprehensive data strategy prioritizing customer intelligence. |
| My Jewellery (Dutch Retailer) | Implemented an Interactive Style Quiz (style profile test) to help shoppers define their fashion preferences. | Led to personalized shopping journeys that cut browsing time and boosted revenue. |
| Sephora | Utilizes its multi-tiered Beauty Insider Loyalty Program with progressive profiling. | Encourages members (Insider, VIB, Rouge) to share deeper beauty preferences as they progress, allowing for hyper-personalized recommendations and greater loyalty. |
| Beauty Brand (Single Grain Client) | Implemented a “Skin Type Analyzer” quiz to collect data on skin concerns, factors, and product preferences. | Generated a reported 217% increase in product recommendation click-through rates compared to previous category-based recommendations. |
| E-commerce Client (Single Grain Client) | Implemented a tiered preference center allowing customers to control communication frequency, content topics, and product recommendations. | Resulted in a reported 189% increase in email engagement and a 76% reduction in unsubscribe rates. |
Digital Marketers’ Comments and Consensus
The marketing community views the investment in ZPD as a long-term strategic imperative, regardless of the evolving (and sometimes inconsistent) timeline for the third-party cookie phase-out.
1. Privacy-First is Here to Stay
- “The quality and reach of third-party cookie data continue to degrade,” even with Google’s temporary reprieve.7 Marketers realize the general trend toward privacy and consumer control (driven by regulations like GDPR and CCPA) makes relying on third-party tracking unsustainable.8
- The shift to ZPD is seen as an opportunity to move from “snooping, tracking, and relying on advertising” to building direct, authentic relationships with consumers.9
2. Focus on Value Exchange
- Marketers acknowledge that collecting ZPD requires a clear, tangible value exchange.10 Customers are willing to share data when they receive an immediate benefit, such as:
- Personalized recommendations.11
- Exclusive access or instant savings.12
- More relevant content.
- Personalized recommendations.11
- This transparent exchange fosters trust and transparency, which is critical as 59% of consumers view indirect tracking tools as “creepy.”13
3. ZPD Offers Superior Data Quality14
- Because ZPD is provided directly and with explicit intent, it’s considered the “most reliable and valuable form of data.”15
- It provides the missing “why” behind the “what” of first-party behavioral data (e.g., first-party data shows a customer bought a product; zero-party data reveals they bought it because of a stated interest in sustainable materials).16 This allows for hyper-personalization that is more likely to drive conversions and reduce wasted ad spend.
4. Zero-Party Data is the Future-Proof Foundation17
- Even with the uncertainty around Google Chrome’s final decision, digital leaders stress that focusing on ZPD and first-party data keeps a brand “in control of your own destiny, rather than beholden to any vendor or browser’s decision.”18
- This investment is a defensive move against external policy shifts and a proactive move toward more efficient, privacy-compliant, and ultimately more effective marketing.