Data Monetization: Using Data to Increase Revenue
Data monetization is defined as a form of monetization and an act of generating the measurable economic benefits from the available data sources. Data generated by the organization and companies are being used to create economic benefit or convert the corporate data to currency. These currencies are available in various forms of data currency or actual currency which are being used as the means of exchange of data, product or service. Data monetization is sharing of the data between the companies and using it to generate revenue or create new revenue-generating streams. Data monetization control the data generated from various business operation, content or electronic device or sensors being used by the IoT devices.
Some of the players of the data collection market are 1010data, Accenture, Adastra, Adstra, Dawex Systems, Elevondata, EMU Analytics, Gemalto NV, Infosys, Monetize, IBM, Google, SAP, SAS. The global data monetization market is expected to grow at a compound annual growth rate of 6.02% over the analysed period to reach a market size of US$278.234 billion in 2026 from US$184.778 billion in 2019.
Rise in Demand for Data by the Organization
The rising in internet penetration and number of users of the internet around the globe is becoming the primary source for the institutions to gather information in an economic and time convenient way. The amount of available information and data are increasing along with the surge in the number of users are allowing the organization to collect data such as reviews, opinion, experiences, feedbacks, and complaints to enhance their business operations. The faster and speedier connectivity enable analysis and editing and rising cloud computing have huge potential for the data monetization market. The data can be monetized directly by selling the raw data or taking insights from the analysed or processed data. The big giants such as Google are monetizing data through real-time bidding and is continuing to optimize their platform experience by the reinvesting data into their platform. The small and medium enterprises (SMEs) are increasing adopting cloud computing.
According to the World Bank report, 17% of the global SMEs are using the public platform for cloud computing and 11% of the global SMEs are using private cloud services. The rise in the volume of enterprise data is increasing focus to generate new revenue streams. For instance, a ride-hailing organization such as Ola, Uber and Lyft are using location-based analytics to gather insight about its consumer’s data that is collected from the pick-up and drop-off locations. Uber is expected to sell the data collected to other organization with the permission of the user. The data can be used to provide different promotions, vouchers or discounts to boost the market demand.
North America Dominating the Data Monetization Market
Based on geography, the market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. North America region is anticipated to hold a dominating position in the market owing to its state of art infrastructure and technological advancement. Further the presence of the key players such as Microsoft, IBM, Oracle and Salesforce.com in the region are boosting the market growth in this region. For instance, Oracle launched cloud native deployment option Billing and Revenue Management (BRM) in November 2019.
The Asia Pacific region is also forecasted to grow at a significant growth rate. Rising internet connectivity along with growing cloud computing and small and medium enterprises are the prime drivers of the market. In addition, the increasing adoption of the big data technologies, IOT technologies and artificial intelligence (AI) are driving the data monetization market in this region.
COVID-19 Impact
The outbreak of the Covid-19 pandemic and its subsequent lockdown impacted every industry and disrupted the distribution channel curbing the growth of the economy. Every industry was affected in different ways, for instance, manufacturing was impacted negatively but the healthcare industry grew. These variations had a noticeable impact on the data generated and monetized. Most of the business were depending on the online service, work from home practice because of the lockdown and the increase in customer’s indulgence in the online platform providing growth opportunities for the data monetization market. For instance, The National Institutes of Health launched a centralized and secure enclave in June 2020 as a part of the National COVID Cohort Collaborative (N3C) initiative for storage and analyzing a vast amount of medical record data from the patients who were diagnosed with covid-19 and the data is made available to the research and the healthcare providers to further develop and enhance the treatments provided.
