Data experts have estimated that by 2030, over a million organizations will invest their data assets and unlock over $3.6 trillion in value! This is thanks to the data markets. Data marketplaces are one-stop shops for buying and selling data. Buyers use data marketplaces to browse, compare, and buy data from multiple sources, while sellers invest in their data assets. It is an open platform where individuals or companies upload disparate data, such as business intelligence, advertising, demographics, personal information, research and market data from various sources, while ensuring data security, consistency and high quality for both parties. In this article, get ready to take an in-depth look at how data markets can support data monetization. But first, a description of what monetization is and why it is necessary for your organization will be covered.
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Meaning of data monetization
According to Gartner, data monetization consists of using data to obtain quantifiable economic benefits. It is a strategy many companies use to increase revenue by selling intangible data. Here are two ways to monetize data:
- Direct monetization: It involves direct access of brand data to buyers in exchange for money or other assets. The data is either in a raw format or has already been converted into insights or analysis.
- Indirect data monetization: This method is based on data that originates from the company’s products and services. Indirect data monetization helps brands create new services and business strategies, reduce costs, enhance productivity and efficiency, and even discover new prospects or categories.
In general, data monetization depends on how valuable the company’s internal data is to potential buyers. Hence, before monetizing data assets, it is necessary to assess data quality by asking the following four questions:
- What data do you have?
- Do they yield useful insights?
- Who would be the ideal buyer for your data?
- How much will data buyers pay?
Why is data monetization necessary for B2B organizations?
Effective data monetization helps brands maximize the value of their data. Many of the distinct advantages of data monetization consist of earning more profits, lowering costs, and improving opportunities for a particular company, its shareholders, and its customers. Besides these specific benefits, data monetization also empowers brands in the following ways:
- To discover exploited and untapped information and to develop new sources of revenue generation
- To enhance data exchange and collaboration between internal and external stakeholders
- To improve data usage by providing insights such as market demand, data age, competition, and customers
- Increase productivity, reduce customer attrition, reduce consumption, and reduce waste
Top 3 ways to enable data markets to monetize data
The data market is a game changer in the field of data monetization. By creating concrete paths in order to determine the value of data assets that a company owns or has accumulated, data markets offer key advantages including the three listed below to generate higher market revenue.
1. Provides a chain of potential buyers
The Data Market is an open platform that attracts data buyers in the form of various companies and brands between companies and financial institutions from all over the world. It also enables data sellers to access a network of buyers that creates unparalleled demand generation opportunities for them.
2. Independent and trouble-free treatment
In addition, the data market allows data providers to sell data at their convenience. It does not require any complicated integrations or third-party intermediaries to lure buyers to consume data. In this way, the data market enables a simplified transaction of data between buyers and sellers with additional visibility and the possibility of generating leads.
3. Creates growth opportunities for approved data providers
Overall, data marketplaces are independent platforms that welcome all types of data providers from professional and experienced SaaS companies to market novices looking to exploit their data for revenue generation purposes. As long as data providers meet relevant security measures for data markets, they can effectively join and list their data, creating more growth opportunities.
Data monetization helps B2B marketers gain customers at scale. By using data markets, brands can effectively monetize their data, generate higher revenue, and create win-win situations in an ever-changing, data-driven world. Don’t stop learning now – these two data-focused blogs are worth reading, especially if you’re interested in prioritizing data quality, value, and accuracy.
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