Having accurate data can transform a business. But beyond just leveraging big data in your business decisions across the board, you can earn revenue from such. As a result, big data monetization is a fast-growing industry.
In 2020, the industry was valued at $1.68 billion and expected to reach $7.47 billion by 2026.
Data is everywhere, and every company has almost more than it needs. Hence, it’s only pertinent to develop data monetization strategies.
However, from valuation to building a stable business, the process of selling data is dynamic and laden with regulations and speculations.
Information brokers are learning on the go as the world continues to shape laws and ethics around data. But understanding the fundamentals of data and its monetization guides you in creating a legal data monetization business.
What Is Data Monetization?
Data monetization involves using data to increase revenue. Top companies now build new business models around their available data. For instance, companies with big data sell direct access to partner companies.
Data can either be sold raw or in an interpreted format in the monetization process. The value of data depends on the form in which you sell it.
Large companies are the leading players in the data monetization market because they have the resources to commit to sourcing data.
For example, a company may gain impactful insight into industries and businesses through research and development teams.
Subsequently, such information can be sold to companies that can’t afford the time and resources to do custom-insight gatherings.
Once the data you have can improve the performance of another company, you can sell it. Hence, the aim of data monetization isn’t the quantity of available information but the quality.
For instance, you can deduce ways a company can cut down costs and streamline its operations with the right data.
Data monetization also becomes vital as insightful data can create new businesses and customer segments.
Know that data monetization doesn’t necessarily mean selling data access to a third party. You can embed analytics in your product in ways that aid user experience.
This can directly translate to increased revenue for your business. In addition, giving users access to analytics breeds value and subsequently increases loyalty to your product.
Importance Of Data Monetization
Here are some reasons why it is vital for your business.
- Maximizes profit for your business
- Reduces cost
- Optimizes opportunities for your company
- It helps you extract better insight for your company, its customers, and its partners.
- Forges stronger partnerships
- Heightens productivity
- Improves customer loyalty
- Aids marketing
- Mitigates risks
- Enhances your competitive advantage
The Five Rules Of Data Monetization
Beyond understanding what information brokerage is, there are guiding rules to follow. Experts design these rules with a wealth of experience in the data monetization industry.
Understand What Data Means To Your Business
It’s easy to know that data is essential to a business. However, you should know the real-time impact of data in your data.
You should know how much money you lose to inaccurate data. Finally, you should know what goes wrong when data is undermined.
Knowing the intricacies is vital. Having a perfect understanding of how, where, and when data can improve your business’ performance.
Get Your Data House In Order.
Data is ineffective if it’s not in order. Hence, metadata is crucial. As a company, you shouldn’t joke with a neat inventory of data available in-house.
You can’t maximize what you don’t have active control over. Therefore, understanding the direct value of data on your business is essential.
Build Data Monetization Into Your Business Strategy
Don’t just leave company data to chance. Be deliberate about building corporate data strategies and initiatives into your overall business model. The way you treat data should be premised on your business goals. Always see quality data as an asset.
Be Open To New Opportunities.
Data can be helpful in unprecedented ways. It can work for your business in ways you don’t expect. Hence, it’s essential to be open-minded while exploring data. You could inadvertently hit a goldmine.
As a business, your investment in business expansion shouldn’t only be vertical. You shouldn’t only go deeper into the services you currently deliver.
Through data, you could expand horizontally, taking on new frontiers by taking initiatives on the information. So, it’s better to invest more in your data infrastructure.
Help Employees And Partners Understand Your Data’s Value
If you don’t value something, you won’t maximize it. Hence, information’s value must be communicated appropriately to maximize data monetization.
As a company, it’s vital to conduct aggressive internal and external data education – get your stakeholders on the same page with the management on data usage.
Data monetization is a nascent and evolving industry. Big tech companies are the industry’s early movers, and many of them are suffering data compliance hearings from the legislative arm of governments.
Hence, due diligence is pertinent if your company looks to be actively involved in the data monetization scene.