It has to do with something called value exchange. Consumers are more willing to tell a brand what matters most to them in exchange for offers more relevant to their interests. What matters to one consumer may not matter to another. When a company can hyper-target to an individual’s interests, they can serve ads that are actually interesting, therefore leading to better click-through rates and eventual purchases.
The opportunities for Zero Party Data are nearly endless. Some companies that use Cheetah Digital’s platform have collected over 200 different data points on specific customers over the course of several years. Cheetah Digital has seen a roughly 25% lift from brands in their intention to collect Zero Party Data. Brands are becoming increasingly aware of this fact—in such a competitive market, customer loyalty and trust are the way forward.
From a marketer’s perspective, the results speak for themselves. For example, one client of Cheetah Digital, Pure Archery Group, was able to realize 50%+ open rates when personalizing subject lines in their email marketing campaigns. They were able to generate a 5x engagement rate lift in ad campaigns using zero-party data and generated as much as $250k from one email campaign.
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