The saying may be “content is king,” but marketers are realizing that data has become the true king, especially first-party data and zero-party data collection. Data creates new growth opportunities if companies can collect and use it efficiently while respecting consumers’ privacy.
The importance of first-party data was thrust into the spotlight when Google first announced its intention to phase third-party cookies out in January 2020. Its revelation in July 2024 that cookies wouldn’t be eliminated entirely doesn’t change the fact that marketers need to continue adapting their online targeting strategies for prospects and customers.
Privacy remains a concern for consumers. Brands must respect consumers’ desire to protect their information online and avoid being bombarded by irrelevant ads if they want ongoing loyalty and engagement.
So what can marketers do to both respect consumers’ wishes while also ensuring their messages reach the right audiences? Here are some of the ongoing data privacy trends and tactics marketers should be aware of heading into 2025.
Google’s move toward a cookie-light future
Google intends to let users opt out of online tracking, much like Apple’s App Tracking Transparency feature. It’s also developing its Privacy Sandbox to provide alternative ways for advertisers to target online consumers, one of which is via a Topics feature that identifies users based on their browsing interests. Google’s goal is to offer “a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time,” Google Vice President of Privacy Sandbox Anthony Chavez wrote in a blog post.
Google’s decision not to eliminate third-party cookies entirely presents “a real opportunity for marketers,” says Andrew Pascoe, vice president of data science engineering at NextRoll. Even though it’s likely that most consumers will opt out, even a small proportion opting in will “provide marketers a baseline from which they can draw inferences on the audiences that can’t be reached through the third-party cookie channel,” Pascoe says.
Developing first-party and zero-party data
Brands building their own first-party and zero-party data will continue to be an essential strategy in 2025. According to eMarketer, 77% of marketers are already pursuing first-party data as an alternative to third-party data, and almost 15% plan to in the next year.
Zero-party data collection involves consumers being willing participants to actively share their data. They do so in an effort to help brands shape products, by revealing personal information, purchase intentions and how they want to be recognized by a brand. When it comes to zero-party data, transparency is key.
Forrester once dubbed zero-party data as “gold.” Indeed, zero-party data offers marketers the chance to build trust with consumers, but “it’s going to be important for advertisers to be very clear about value exchange,” Pascoe says. “For example, offering discounts to learn about user preferences.”
Consumers want to know what brands plan to do with their data. USA Today Blueprint showed that 60% of consumers are willing to share their data if they know how brands plan to use it and 63% said they would be open to sharing their data if they had a “clearer understanding of the benefits of sharing data.”
Alternative identifiers
The digital advertising industry will continue to innovate with alternative solutions to cookies. Alternative identifiers, which are privacy-focused and enable first-party data to be gleaned from information the consumer provides, have become an essential tool for buyers to activate their first-party data. Marketers can access cookie-less IDs being rolled out by various vendors, such as The Trade Desk’s Unified ID 2.0, Yahoo’s ConnectID and LiveRamp’s RampID.
“Hands down, the most promising alternate identifiers are the ones that are rooted in user consent,” Pascoe says, advising marketers to “find partners that are suited to the particular audiences you are trying to reach.”
Moreover, that value exchange needs to be rooted in trust, Pascoe advises, adding, “Advertisers should store consumer data securely, only work with trusted partners who value privacy to process it, and use this data for the benefit of the consumer as well.”
Data clean rooms
Data clean rooms also are emerging as a key tech for marketers, Pascoe says. Marketers can use this technology to share their own data, which gets blended with data from other advertisers and sources, enabling targeting at a greater scale while also maintaining user privacy and data security.
The uncertainty surrounding the future of third-party cookies and the sheer volume of alternative strategies can be overwhelming for marketers, but there’s no better way to overcome the confusion than by simply experimenting, Pascoe says.
“I recommend starting with one piece of the puzzle and actually testing it while the stakes are low. ‘Paying attention’ or ‘waiting and seeing’ are simply no match for hard-earned, real-world experience,” he says.
Conclusion
Data-driven marketing will be a key trend for brands and marketers in 2025. In fact, 71% said they have plans to boost their first-party datasets, per an IAB report. That data collection will be driven by the need to meet consumer privacy demand and navigate a cookie-light future.