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With Google’s Announcement, A Win for Quality, Ethically Sourced Data

With Google’s Announcement, A Win for Quality, Ethically Sourced Data

The future belongs to data platforms that benefit consumers by providing real value in exchange for consented, quality data.


Last Wednesday, Google dropped another cryptic announcement, or non-announcement depending on who you asked. It took some untangling, but the consensus is building that Google’s decision to not support alternative ID solutions in their ad products creates more opportunity for the rest of the ad tech ecosystem. The announcement also further emphasizes the importance of quality, first-party data.

Unified ID and other alternative identification solutions will still work across the rest of the ad ecosystem, but we must remember that these solutions require explicit opt-in from consumers and the handing over of their email addresses. The industry estimates that only 20% of consumers will opt-in, at best.

This is where first-party data comes in.

Publishers that have direct 1 to 1 relationships with their users will be able to build segments and sell them directly to advertisers. Yet, the data collected by publishers is largely contextual, and loose assumptions must be made on how content consumption translates to other behaviors like spending and shopping.

As an advertiser, if you’re lucky enough to have first-party data and the wherewithal to leverage it, you’re probably a sizable brand with resources. Even so, if you have all the first-party data in the world, it still only covers the consumers who have already bought or engaged with your product in some way. What about everyone else you’re trying to acquire as your customer?

There is still one vital piece missing from this conversation.

How does the consumer, or the real person (hopefully) behind the screen, benefit from all this buying and selling of their personal data? Navigating a less exciting version of American Ninja Warrior composed of ads and interruptions to access free content? A teen’s pregnancy revealed to her parents via a Target coupon for diapers? The industry continues to be blind to the fact that the data behind these segments and cohorts comes from real people and has real implications.

The future belongs to data platforms that benefit consumers by providing real value in exchange for consented, quality data. Klover is charting the path by creating a value exchange model that provides users with free or low-cost financial products, transparently in exchange for proactively shared data. 

Zero Party Data

This explicitly shared data is called zero-party data, a term coined by Forrester’s Fatemeh Khatibloo in 2019. The term is still relatively niche, and perhaps this is indicative of the industry and its willingness to care about consumer well-being. By all accounts, zero-party data is superior to first, second, and especially third-party data. Third-party data is gathered in the shadows, its origins and quality unchecked and unknown.  “This class of data is commonly amassed from a host of unrelated and unreliable sources like credit scores, cookies and click trails. As a result, it quickly becomes antiquated and has no direct relationship with the individual consumer, which ultimately hampers the quality and effectiveness of campaigns," says Richard Jones in Ad Age. "Consumer preferences, budgets, household sizes and the like all evolve and change as time passes, and third-party consumer data rapidly becomes limited in value.”

There are several companies that have cropped up to collect zero party data and pay “data dividends” to users, but none have been able to achieve significant scale because the data economy dramatically undervalues consumer data. For example, spending half an hour on one of these apps might get a user 50 cents. For apps that facilitate the data-for-value exchange to get real engagement and scale, tangible value that moves the needle for consumers must be part of the equation. 

Klover's Solution

Alternatively, Klover provides our users with something more meaningful through access to financial services. We connect directly to users’ bank accounts and transaction history to provide budgeting advice, collect receipt-level data to offer personalized deals, and solicit opinions for market research in exchange for access to more features, just to name a few. With these connections, Klover has a 360-degree view of our users, with insight into their holistic buying behavior, preferences, demographics, and affinities. The data is not only collected ethically, it’s verified and 100% deterministic. This quality consented data can then be packaged and sold fairly to advertisers.

Advertisers can access Klover’s zero-party data today through Klover’s Curated PMP offering. Curated PMPs allow first-party data owners like Klover to apply their data on top of programmatic inventory before sending it to a buyer’s DSP. Since the audience targeting is handled on the supply side, curated PMPs are immune to the identification turmoil.

Ready to start participating in a better ecosystem? Email info@joinklover.com.

Claire BeDell
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