There are a lot more options for monetizing data than selling a database.Big data change the way businesses monetize data.Let’s look at general strategies tend to be used for successful data monetization.
Data as a service:
It all comes down to speed at which data moves around.Just think of social media messages going viral in minutes, the speed at which credit card transactions are checked for fraudulent activities or the milliseconds it takes trading systems to analyze social media networks to pick up signals that trigger decisions to buy or sell shares.
There is little argument that social media has influence on stock markets.In a research done by researchers at Palo Alto Labs – “Predicting the Future With Social Media”, the authors conclude that:
We show that a simple model built from the rate at which tweets are created about particular topics can outperform a market-based predictors. We further demonstrate how sentiments extracted from Twitter can be further utilized to improve the forecasting power of social media.
Startups like Flock Data Analytics, DataYes and InfoTrie Financial Solutionsanalyze social media sentiments and conversations to help traders and investors to monetize such events.This data can be use for competitive intelligence,tracking public opinion of key brands and measuring sentiment lift due to marketing programs etc.
Verizon Precision Market Insights collect real time user activity to display targeted ads and offers.It allow companies to perform marketing campaign and analyze real time users activity to help marketers.
Weather Decision Technologies Inc provides comprehensive point-specific current and forecast conditions throughout the globe.
Sell access to the data, rather than the data itself.
Data as a product:
If your data doesn't change frequently then it fit into this category.
DFRC AG and AirSage — pioneer in population analytics— delivers location, movement and flow of people to help Real estate developers,transportation planners,tourism,market researchers and Retailers to understand footfall in their location.
Business information giant Dun & Bradstreet a provider of credit and business data to financial firms, government agencies and other institutions.Dun & Bradstreet provides targeted lead lists with validated contact phone and email data and industry, competitive, and company reports as Sales & Marketing Solutions.
Customers buy the data 'product' once, and continue to use it as is.
Data as an app:
Real estate players like Zillow with big data sets on available properties, home buyers, and home sellers created to shine a light on a traditionally opaque industry. It transformed into a different kind of middleman – a data broker. It aggregate their listing data from individual broker sites(Coldwell Banker's listings automatically syndicate to Zillow) and other sources (e.g. Oodle, hotpads, etc.) to develop their data products.Instead of selling row data, they created app to interact with data and maintained privacy or ownership of data.(Read more:Big Data Monetization Lessons from Zillow)
customers don't get access to the raw data, instead they have to use the app to interact with the information.
So what about you – Have you tested your strategy? What are your experiences? Do you have any additional tips or notes on strategies to sell data ? Any comments gladly appreciated.