OPINION | Building Trust in the Digital Age: The first-party data advantage

Brands that prioritise transparency and reciprocity will not only capture attention but also inspire loyalty in an age of digital noise and fleeting interactions.

Indian companies today face emerging challenges as the global landscape shifts. Although recent changes in US trade policies have started to affect international commerce, a deeper, less visible barrier is holding back growth — particularly in digital business models.

The Customer Relationship Dilemma

Customer relationships, once regarded as the foundation of success, are now fragile within the fragmented digital economy. Engagement between brands and audiences is eroding, making those valuable interactions that foster loyalty increasingly rare. Today, effective sales require a profound understanding of customers, but the opportunities to build these relationships are disappearing in a dispersed, digital-first world.

With over five billion social media users globally being served hundreds of ads each day, attention spans have dropped to just eight seconds, making brand equity harder to build than ever. Despite this, digital mindshare is in high demand. In 2024, global social media ad spending surpassed US$230 billion. Indian companies allocated 23% of their digital advertising budgets — over ₹10,000 crore — last year to social platforms, and this figure is projected to grow by at least 20% in 2025.

Social Media: Off the Leash

Since the first banner ad in the mid-1990s, social media advertising has evolved from static images to short videos across platforms such as Facebook, Twitter, Instagram, and Snap. Each platform has amassed billions of dollars, often using unverified inventory and without access to first-party data — a key element in forging customer relationships.

Amid the overwhelming noise and clutter, social media has proven less than ideal for building brand loyalty. Meanwhile, the open web persists with outdated static ads and is steadily losing relevance for marketers.

The Missing Foundation

Trust is the cornerstone of every relationship, yet in today’s saturated digital environment, consumer trust and loyalty are often lost amid constant content snacking. The drive for rapid, unchecked growth frequently overrides the pursuit of sustainable business models. Studies show that only 12% of direct-to-consumer start-ups are profitable, with the high cost of customer acquisition identified as a key factor.

While well-funded marketplaces chasing GMV numbers may prioritise rapid growth, this is certainly not a signal for independent brands to follow. The assumption that acquired customers will remain loyal has consistently failed. As capital becomes scarcer, marketing strategies built on assumptions and optimism make profitability even harder to achieve, trapping businesses in a cycle of unprofitable growth.

The Vicious Circle

Direct-to-consumer businesses are easily enticed by platforms promising vast reach and targeting options, though these often lack transparency. The result: high acquisition costs, high churn, and low revenue per user — compounded by the ongoing expense of retargeting and its diminishing returns.

This endless cycle of acquire–churn–retain–acquire prompted the development of WNNR, a tool designed to help brands transform anonymous social traffic into valuable first-party data. It encourages brands to build direct relationships with potential customers at the pre-purchase stage.

Empowering Brands with First-Party Data

Today’s media landscape rewards brands with deep pockets for perpetual spending, much like major marketplaces. However, brands seeking more effective investment must break away from conventional metrics and embrace innovation.

First-party data, generated through meaningful interaction, is vital to strengthening a brand’s foundation. Access to such data helps reduce inefficiencies, provides insight into potential customers, and enables the customisation of brand messaging.

Studies by Shopify and others indicate that businesses using first-party data strategies see lifetime value increase by 1.5 times compared with those relying solely on traditional advertising. Forrester’s 2025 research found a twofold boost in conversion rates and a 30% drop in acquisition costs for adopters of first-party data.

Innovations

The advertising and marketing industry does not need more reach-oriented platforms; instead, it requires innovations that stand out amidst the noise. WNNR champions gamification to create an environment driven by ethically sourced intelligence. The introduction of the DPDPA has provided clear guidelines for such innovation, giving users greater freedom of expression while enabling brands to invest in communication strategies that create value for all stakeholders.

This approach not only leverages technology for first-party data collection but also nurtures genuine engagement. Creative tactics such as interactive content, gamified engagement, personalised experiences, and community-driven initiatives empower brands to build authentic connections with their audiences.

By shifting focus from relentless acquisition to the cultivation of trust and relevance, brands can establish resilient ecosystems that foster sustainable growth. This transformation calls for a reimagined marketing toolkit — one that moves beyond traditional advertising and ethically harnesses data to create valued customer experiences.

Brands that embrace transparency, prioritise customer consent, and use data to enhance rather than intrude on the consumer journey will lead the way. As regulations evolve and audiences grow more discerning, the future belongs to those championing authenticity and accountability in every interaction.

Looking Ahead

Importantly, the evolution of marketing hinges on a mindset shift from transactional exchanges to relationship-driven strategies. Brands that prioritise transparency and reciprocity will not only capture attention but also inspire loyalty in an age of digital noise and fleeting interactions.

By investing in mechanisms that reward genuine interest and participation, businesses can create virtuous cycles in which every user touchpoint becomes an opportunity to deepen understanding and mutual value.

To succeed, brands must consciously architect experiences that transcend the superficial and foster a sense of belonging. This requires not only collecting first-party data but also treating it as a catalyst for co-creation and personalisation. As ethical standards and consumer expectations continue to rise, forward-thinking marketers will lean into technologies and methodologies that empower rather than exploit — transforming each engagement into a foundation for long-term advocacy.

Ultimately, the brands that thrive will be those that see customers not as targets, but as collaborators in a shared narrative — one where data, creativity, and trust converge to build enduring communities and drive sustainable prosperity.

(Trigam Mukherjee is Cofounder and CEO of Gamified Data Intelligence Platform, WNNR.)

Views are personal, and do not represent the stand of this publication.