In the age of the mature internet, modern-day consumers are generating an increasing amount of data across various devices and platforms resulting in businesses looking at data as a new source of revenue. Traditionally, businesses monetize their data by using it internally to identify expansion opportunities. However, more and more companies are developing new approaches to utilize data externally as a strategic asset.
A new approach is to sell the data, analytics, and reports as one of a businesses’ primary products or consulting services. Companies are also providing controlled access to other businesses either by using a shared database or using a secure Application Program Interface (API). For example, Google offers access to its API and allows rental cab services to access google map data.
While companies like Google are monetizing the processed data through APIs, there are other major enterprises taking advantage of the trend, such as NASDAQ, which offers raw data through its data on-demand service for consultants who then use the data to make improved investment choices for their clients. As long as it is structured data, enterprises are able to find multiple new ways to monetize their unique database, be it in any form.
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However, modern consumers are generating more unstructured data than ever before and there is too much data to be ignored. With the rise of social media over the last 15 years, consumers have been expressing their opinion, sharing content and information on various platforms. As this data is mostly in text format, companies depend on cognitive technologies such as natural language processing and artificial intelligence to make use of the data. With the help of these technologies, consumer opinion can be transformed into consumer insight, where NLP and AI algorithms analyze the positive or negative emotion expressed in text.
Such data helps to customize ads and marketing communications to serve customers better with a deeper understanding of their opinion towards the brand. With AI and Machine learning, companies can build predictive models to forecast future behaviors of customers, making consumer data increasingly more valuable. This combined with personalization is delivering a far more bespoke experience for the customer, something that is now expected from brands.
However, the rising concerns over privacy have limited the use of personal and demographic data of consumers. This has inspired enterprises to look beyond demographics and personal data. For example, e-retailers tracking the time spent on a product can understand what interests an individual consumer and serve ads based on his interests.
While access to data has become a strategic asset, its optimum utilization can only be possible when it is backed with a well-framed strategy. Identifying what data is worth and what are the different opportunities to monetize it is paramount for strategy building. Be it – raw data, processed data, analytics, reports or an end-to-end data solution, business leaders must decide what creates optimum value for the organization, external data partners and consumers.
As the world is moving towards an era of 5G and internet of things, it is faster and more feasible to collect store, process and distribute large amounts of data with multiple devices involved. This has given rise to growing data monetization not just among giant organizations but also small and medium scale startups.
Proven consult offers bespoke data solutions which suits business needs and data monetization stratergy. To learn more about how we can help you contact us on info@provenconsult.com or +966 11 411 1127.
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