In the five-plus years since Forrester first coined the term \u201czero-party data\u201d \u2014 defined as data that users intentionally share with a company \u2014 the phrase has been met with both eye rolls and enthusiasm, often depending on the audience. Proponents say it\u2019s a more privacy-compliant way to collect and apply consumer data. Skeptics see it as too buzzy, too naive, too nebulous or too disingenuous.<\/p>\n
John Roa, co-founder of Caden \u2014 a new app that lets users share a range of personal data in exchange for money \u2014 said he\u2019s among the term\u2019s skeptics. Although his startup hinges on the collection and use of zero-party data, he admits to not having a name for it yet.<\/p>\n
\u201cI do think that the definition and not the term is righteous,\u201d Roa said. \u201cI think it makes a lot of sense, I think it\u2019s needed, [and] I think it\u2019s here to stay. This concept of giving more complete consent and control across the board \u2014 not just for today but in general \u2014 is going to be a defining factor in the future of the internet to come.\u201d<\/p>\n
Caden arrived in Apple\u2019s App Store this week and comes months after the company opened a waitlist for users in December that Roa said now has around 15,000 people. However, like similar apps that have so far failed to gain traction, the company\u2019s long-term value for consumers and companies alike will depend on how many people download it and the types of personal data they allow it to access.<\/p>\n
For starters, Caden is partnering with a number of major brands \u2014 such as Uber, Airbnb, Netflix, Amazon, Apple\u2019s health kit and various banking and credit card providers \u2014 that will all allow Caden users to connect their accounts to the platform. How much money <\/strong>users can make by sharing their data is still to be determined. Part of it will depend on what data they share and how they\u2019ll allow it to be used. Caden\u2019s initial aim is to have users making $15 or $20 a month, but Roa said that could soon add up to $600 a year and possibly thousands of dollars down the road.<\/p>\n The plan is to roll out the app and expand its capabilities with a multi-tiered approach. Caden\u2019s first tier involves aggregating user data and selling it to financial services firms as alternative data. Later this year and in early 2024, it\u2019ll expand into the ad-tech space and let users consent to having their data pseudoanonymized for targeted ads across various platforms. A third tier for users will be \u201ctrue KYC\u201d \u2014 or know-your-customer data \u2014 that includes ways to opt-in for direct messages from brands based on identifiable information.<\/p>\n Applying users\u2019 data varies based on the person it belongs to and the company looking to use it. Roa gave the example of his fiancee \u2014 an avid Uber user. In her case, Lyft might want to reach out with an offer based on her lifetime value as a customer. Another example: If Netflix knows someone is traveling to Morocco in a few weeks, it might suggest a documentary about the country ahead of their trip rather than making the viewer search for it.<\/p>\n \u201cI can tell you how much money have you spent in your life on Amazon,\u201d Roa said. \u201cAnd do you tend to shop more when it\u2019s raining outside or when it\u2019s sunny, or on days that you exercise? How does that affect your retail behavior or your streaming behavior?\u201d<\/p>\n The overall concept of Caden isn\u2019t entirely novel. Over the past decade, other companies \u2014 such as OzoneAI, Startups Offer and Invisibly \u2014 have tried to find ways to let people share their personal data while earning or saving money. For example, last summer another startup called Pogo raised $14.7 million with a rewards-based model. Brave, the privacy-focused browser, lets users receive a portion of revenue back from the ads they see based on their first-party data. One startup, Swaypay, promises to connect brands with TikTok shoppers who like their products. And Swiss-based qiibee is a zero-party platform that received investment last year from the agency holding company Meet The People<\/a>.<\/p>\n When asked what makes Caden different from these other competitors, Roa said the app makes it easy for users to connect their data and be as active or as passive as they want with it. Caden has also built a Knowledge graph \u2014 built by the former chief ontologist at IBM \u2014 that will help connect the dots on the different data types. Roa also mentioned Caden\u2019s design \u2014 which he likened to \u201cInstagram Stories-style experiences\u201d \u2014 that lets people see charts and graphs of their data. The company also is exploring the idea of incorporating AI such as a possible ChatGPT-style component.<\/p>\n Although Caden touts its privacy controls, the app\u2019s level of transparency only goes so far. For example, when asked which hedge funds will have access to Caden users\u2019 data, the company declined to disclose any examples of companies using the service. When asked if users will get a full list of companies with access to their data, Roa said no, but that it will be a \u201cvery graceful way\u201d of letting users manage their data collection and sharing preferences in ways they feel comfortable with.<\/p>\n \u201cWe won\u2019t go to that granularity, just because it will be impossible to organize and to expect a user to manage,\u201d Roa said. \u201cWe\u2019re going to be more thoughtful on that as we build out that ad tech product.\u201d<\/p>\nControl and transparency \u2014 to an extent<\/strong><\/h2>\n