In today’s data-driven world, businesses rely on data to gain valuable insights, identify trends, and make informed strategic choices. However, have you wondered how to leverage the power of data? The answer lies in data monetization, a remarkable technique that helps organizations determine market opportunities, optimize operational processes, and understand customer behavior from data. So, let’s dive in and explore more about this revolutionary method.
What is Data Monetization?
Data monetization refers to the process of using data to create quantifiable economic benefits. It involves leveraging data to generate measurable economic value, which can result in increased revenue, reduced expenses, new partnerships, improved supplier terms, and even the creation of new products or services.
It serves as the practical basis for evaluating performance, forecasting outcomes, and mitigating risks. By using efficient data monetizing tools, organizations can derive actionable intelligence that guides them in setting goals, allocating resources, and adapting to changing market dynamics.
Whether it’s determining market opportunities, optimizing operational processes, or understanding customer behavior, monetizing data serves as the foundation for decision-making across all aspects of an organization. According to a recent study by Extrapolate, the global data monetization market is likely to be valued at $12.47 billion by 2030.
Understanding the Types of Data Monetization
There are two main types of data monetization. Let’s understand them briefly.
● Internal Data Monetization
Internal monetization of data involves using data and analytics to make informed business decisions that lead to measurable improvements in the way a company operates. This can result in improved profit, cost savings, or the avoidance of risk. It is the most common form of data monetization and typically requires less security, intellectual property, and legal precautions compared to external data monetization.
● External Data Monetization
External monetization of data occurs when a person or organization makes their data available for a fee to external parties or acts as a broker for the data. This type of monetization is less common and involves various methods to distribute the data to potential buyers and consumers. It can involve selling direct access to data to third parties in raw form or in a form that’s already been processed.
Exploring the Benefits of Data Monetization
Monetization of data offers various benefits. Some of them are mentioned below.
● Revenue Generation
Monetization of data can serve as a significant revenue stream for organizations, allowing them to capitalize on the value of their data.
● Informed Decision-Making
Monetizing data enables organizations to make informed, data-driven decisions, leading to better outcomes and strategic choices.
● Enhanced Customer Insights
By monetizing data, organizations can gain deeper insights into customer behavior and preferences. This leads to the development of more targeted and personalized products and services.
● Cost Reduction
Effective data monetization strategies can lead to cost savings through improved operational efficiency and resource allocation.
● Business Expansion
Leveraging data for monetization can facilitate business expansion by identifying new markets and growth opportunities.
● Improved Risk Management
Monetization of data can contribute to better risk management by providing insights that help in identifying and mitigating potential risks.
● Enhanced Operational Performance
Monetizing data can lead to improved operational performance through data-driven optimizations and streamlined processes.
Common Methods Used for Data Monetization
Below are some effective methods that are commonly used to monetize data.
● Data-as-a-Service (DaaS)
This method offers data-driven insights to optimize business performance or package insights for sale to third parties. It also provides a clear path for extracting value from big data.
● Insight as a Service (IaaS)
This method provides data-driven insights as a service to internal or external stakeholders. It also offers valuable information packaged as a viable product.
● Analytics-Enabled Platform as a Service
This method uses analytics-enabled platforms to provide data monetization tools that are flexible, scalable, and meet the organization’s current and future requirements.
● Embedded Analytics
In this method, data-driven insights are integrated into core products and services to enhance their value and relevance, potentially creating new revenue streams.
● Future-Proof Monetization
This method implements flexible, agile, and user-friendly data monetization strategies, ensuring they meet the organization’s evolving needs and scale with its growth.
Top 3 Data Monetization Service Providers
Below are the top three players in this sector whose monetization services are helping companies boost their business growth.
1. Accenture
Accenture provides a range of solutions and expertise in monetizing data, enabling organizations to derive value from their data assets. It offers data monetization consulting for organizations undergoing data-driven transformation, using artificial intelligence to monetize data. It has also been involved in data monetization in the banking sector, including strategies for open banking and accelerating production-scale data lakes. Accenture has been monetizing the data for various industries, such as advertising, banking, and industrial analytics.
2. Infosys
Infosys Data Analytics aims to create a data-driven enterprise that offers sustained monetization of data, enabling 100x possibilities for new markets, enhanced customer experiences, and better risk management. The company’s monetization services include customer engagement, operational efficiency, risk management, and new revenue streams. It employs an insights-as-a-service approach to deliver personalized omnichannel experiences, improve customer loyalty, streamline processes, and detect fraud. It converts data into strategic assets to comply with regulatory policies and generate new revenue streams.
3. Microsoft
In November 2023, Microsoft introduced Monetise Insights a powerful analytics dashboard within Monetise, powered by Xandr. This dashboard provides a holistic view of a publisher’s monetization program, allowing users to access visual graphs, set filters, and view contextual bid rejection details. Monetize Insights enables publishers to identify issues early, diagnose them faster, and ensure that revenue is not left on the table. It also offers actionable data, without needing to configure reporting dashboards or depend on in-depth reporting in order to access high revenue and inventory information.
Bottom Line
Data monetization has become a pivotal strategy for organizations aiming to extract maximum value from their data assets. By using advanced analytics, artificial intelligence, and innovative technologies, businesses can transform raw data into actionable insights. This leads to opening avenues for new revenue streams, improved decision-making, and enhanced customer experiences. However, organizations must choose the ideal method for monetizing their data efficiently.
As the data landscape continues to evolve, companies need to remain agile, innovative, and compliant with regulatory frameworks to effectively capitalize on the potential of data monetization. This approach enables them to fuel sustainable growth and gain a competitive edge in the digital era.
Browse More Posts:-
Arc Flash Protection Apparel Market
Artificial Intelligence Platform Market
At-Home Health Testing Platform Market
ATM as a Services Market