Data experts have estimated that by 2030, over one million organizations will monetize their data assets and unlock more than $3.6 trillion in value! The credit for this goes to none other than data marketplaces. Data marketplaces are one-stop shops for buying and selling data. Buyers use data marketplaces to browse, compare, and purchase data from multiple sources, while sellers monetize their data assets. It’s an open platform where individuals or businesses 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, prepare to gain an in-depth look into how data marketplaces support data monetization. But first, a description of what data monetization is and why it is essential for your organization will be covered.
The Meaning of Data Monetization
According to Gartner, data monetization consists of using data to gain quantifiable economic benefits. It’s a strategy numerous companies use to grow revenue by selling intangible data. Below are two approaches for monetizing data:
- Direct Data Monetization: Involves the direct access of a brand’s data to buyers in exchange for money or other assets. The data is either in raw format or already transformed into insights or analysis.
- Indirect Data Monetization: This method depends on data that originates from a 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.
Overall, data monetization relies on how valuable a company’s in-house data is for potential buyers. Hence, before monetizing data assets, it’s essential to evaluate the quality of data by asking these four questions:
- What data do you have?
- Does it yield beneficial insights?
- Who would be the perfect buyer of your data?
- What amount would data buyers pay?
Why Is Data Monetization Essential For B2B Organizations?
Effective data monetization helps brands achieve the utmost value of its data. Several outstanding data monetization benefits consist of earning more profits, reducing costs, and improving opportunities for a specific company, its shareholders, and its customers. Besides these specific benefits, data monetization also empowers brands in the following ways:
- To discover tapped and untapped information and develop new revenue generation sources
- To enhance data sharing and collaboration between internal and external shareholders
- To optimize the usage of data by providing insights such as market demand, data life, competition, and customers
- To increase productivity, reduce customer attrition, minimize consumption, and reduce waste
Top 3 Ways Data Marketplaces Empower Data Monetization
A data marketplace is a game-changer within the field of data monetization. By creating tangible paths in order to determine the value of data assets that a company owns or has compiled, data marketplaces offer essential benefits including the three listed below to generate higher revenue in the market.
1. Provides a Chain of Potential Buyers
A data marketplace is an open platform that attracts data buyers in the form of corporations, various B2B brands, and financial institutions from all over the world. It also enables data sellers to access a network of buyers who create unparalleled demand generation opportunities for them.
2. Independent and Hassle-Free Transaction
Additionally, a data marketplace allows data providers to sell data at their convenience. It doesn’t require any complex integration or third-party brokers to attract buyers for data consumption. This way, a data marketplace enables a streamlined transaction of data between buyers and sellers with added visibility and lead generation potential.
3. Creates Growth Opportunities For Established Data Providers
Overall, data marketplaces are independent platforms that welcome all kinds of data providers ranging from seasoned, professional SaaS companies to newbies on the market that are looking to exploit their data for revenue generation purposes. As long as data providers meet data marketplaces’ relevant security measures, they can effectively join and list their data, creating more growth opportunities.
Data monetization helps B2B marketers win customers at scale. With the use of data marketplaces, brands can effectively monetize their data, generate higher revenue, and create win-win situations within the ever-changing and competitive data-driven world. Don’t stop learning now though–these two data-focused blogs are well worth reading, especially if you’re interested in prioritizing data quality, value, and accuracy.