“Dataisthe new oil,” data is the new oil, a famous quote reminds us.
Strategic decision-making, streamlining activities and processes, increasing productivity: more and more companies are choosing to adopt data-driven strategies.
But while data exploitation is an increasingly relevant asset inside organizations, its potential outside is not yet well exploited, primarily as a resource to be shared or acquired even by actors outside the organization.
This is what is technically referred to as “data monetization,” but let’s go into more detail.
Data monetization: when data creates value, including economic value Data monetization with Blendee: turn your data into economic value Data monetization in the Italian market
Data monetization : what is it?
The term “data monetization” is defined as the process by which the strategic data asset belonging to a company or organization is transformed into an economically relevant asset through sharing, exchange and with parties outside the organization.
In such a context, data becomes for a company not only the driver of data-driven strategies, but the enabler for new business opportunities.
TheBig Data & Business Analytics Observatory of the Politecnico di Milano, has developed a synthesis model inherent to the different data monetization strategies that can materialize at three different junctures.
- Direct Sale Data represent the true exchange value between two parties and are made available against a direct flow of money, obviously in full compliance with current regulations on privacy and processing of personal data.
- Enrichment of the Offering In this case, the value of a data monetization deal lies in the ability to offer the data in conjunction with a given service/product to increase the value itself and differentiate it from the competition.
- Sharing In the case of sharing, data become free exchange and sharing material for specific purposes that can range from brand reputation to product improvement and development rather than cross-selling and up-selling activities.
Data monetization with Blendee: turn your data into economic value
Data ingestion, actionable insights through artificial intelligence and machine learning algorithms, data monetization: the Blendee Marketing Operating System enables publishers, companies, and data-driven companies to make the most of the value of data along the entire supply chain through the use of different technologies and approaches.
In addition to the above activities ranging from direct data sales to free data sharing, Blendee also offers the possibility of building data-driven business models by leveraging the Data Lake, which allows data to flow in native format within a dynamic and secure environment for effective data analysis, governance and sharing activities.
But Blendee’s features in terms of the data monetization and data collaboration aspect do not end there: Blendee also makes it possible to manage requests and activations of particular audience packages directly in the platform for even more effective and profiled advertising campaigns.
Monetization of data in the Italian market
Although the value of data is set to grow more and more in the coming years, so much so that it is estimated to make up about 11.5 percent of the value of national GDP for Southern European countries, including Italy, by 2030 (source: Bahrain FinTech Bay – PwC), many companies have not yet fully realized the potential that data monetization can bring even in strictly economic terms.
In 2019 alone, Politecnico di Milano’sBig Data & Business Analytics Observatory noted that more than 72 percent of companies were making their data available to third parties and acquiring it in turn, completely free of charge.
However, the picture is set to change. An international study published in 2023 by Deloitte(Global Technology Leadership Study 2023) of 1179 CIOs, 245 of whom were Italian, reports how the global data monetization market is set to reach a value of $15.5 billion by 2030, with an average compound growth rate of 22.1 percent.
Growing investments, but not only that: about 36 percent of respondents say they are already able to generate the profits from data monetization today.
Analytics, data activation, and more: companies, and organizations hold enormous potential in their hands that they are not always able to fully exploit. The first step is to consider the data and information you have as a true internal asset.
This is what you build your competitive advantage on in an increasingly dynamic marketplace, but you need the right technology stack.
