What is Data Monetization? How Is It Done?

The concept of making money from data refers to businesses making money in creative ways from data obtained on a daily basis in recent years. The method in question can also be explained as providing economic benefits from the data of measurable quality that the institution has. The concept, called data monetization in English, involves companies improving their data processes, adopting new techniques, and marketing data to third parties.

The data held by enterprises may be in its sole form or in its entirety, containing important analysis and insights. Relevant data may also include data that create potential business opportunities and ease of buying and selling. In this aspect, said business data has become one of the methods of monetization for companies in direct or indirect ways. Companies that successfully implement the data monetization method gain the advantage of increasing their revenue ratios, as well as reducing their costs while exploring new opportunities related to data. So, what are the methods of monetizing data, also defined as monetization, and what are the benefits of this concept for businesses?

What is Monetization from Data?

Data monetization can be defined as the process of generating income from data held by companies. Businesses often choose the way to share their data in the framework of new collaborations or business opportunities by agreeing with third parties. Thus, many organizations generate income through the data they have, while reducing their internal costs. Today, countless organizations that care about customer relationships are aware of the wealth of data at their disposal and want to use the advantages of offering it to the benefit of other companies. Among the companies that are the pioneers of the monetization trend in the world, Google and Facebook take the lead.

‍

What are the methods of monetization?

Data monetization increases the opportunity and flexibility to make the most of big data when used efficiently by businesses. Businesses need to decide on the best monetization approach to their data strategy. At this point, organizations must clearly identify situations such as considering different methods, determining which method suits current and future business requirements. Below you can find ways to monetize data:

Data Service

Data service, known as Data as a Service (DaaS), is one of the simplest monetization methods. The data is sold directly to buyers or customers in lean or processed form. Buyers can then research the data and make use of relevant information using some techniques in their own company. This method does not provide buyers with insights or analytics from the data. Recipient businesses use their own custom methods to create meaningful information from data.

Insight Service

In the insight data method, enterprises combine external and internal data sources and use analytical processes to obtain various insights. These insights can be sold or converted directly. The data in question contains datasets or information on a specific topic.

Analytical Data Service

Analytical data service, on the other hand, is one of the most advanced data monetization services of organizations. The corresponding method provides the company with the most useful information to customers and buyers. In analytical data services, businesses transform data into meaningful information with business intelligence applications such as analytics tools, reporting, and visualization. With this information, the buyer obtains applicable data about the product/service and can integrate said information into various areas of the company. Buyer companies that acquire analytical data services can also gain a significant competitive advantage in the market, in addition to new earnings opportunities.

What are the benefits of making money from data?

The technique of monetizing data is one of the tools used by many companies around the world in recent years. Businesses generate numerous benefits by monetizing through the data they have. You can also check out the details to find out what benefits the concept of data monetization provides to businesses.

Creates New Opportunities in the Industry

With the emergence of the trend of generating income from data, organizations have a better understanding of the importance of the data they have. Businesses understand the value of the data they obtain in their fields better every day, while at the same time trying to make a difference in the industry. Therefore, companies with sufficient data create an easier chance to capture new opportunities in the market.

The Value of Data Increases

With the spread of monetization, important companies around the world are focusing on making the most of the data they have. The work of businesses on their customers' interests, income level, or purchasing preferences generated by various analyses helps improve internal data and increase the market value of the data.

Contributes to Company Operation

Turning important data into meaningful information helps businesses optimize the data to use it in other areas of the company. Data in the field of marketing can also benefit the sales and supply department. Businesses that take full advantage of data, on the other hand, can gain an industry advantage by making more accurate decisions.

Company Productivity Increases

Companies that opt for the data monetization method can use the data they have to increase company productivity and potential growth volume. Firms that improve sales performance and reduce customer loss begin to create more useful strategies. Thus, internal productivity can be brought to the top point, while consumption and cost items can be reduced at the same rate. Thus, there is a noticeable improvement in the overall productivity and efficiency of the enterprise.

Improves Customer Relationships

Thanks to the method of generating income from data, businesses can analyze the data they obtain to better understand the customer. Firms that work on customer trends gain clearer insights into potential trends and habits of customers. In this way, it is possible to bring products and services to a better level and improve the customer experience. In the evolving customer experience journey, the commitment to product and service also increases significantly.

New Collaborations Develop

Companies that have valuable data stock have a market where they can sell their data through monetization. In the relevant market there is a chance to enter into cooperation with many different companies and develop different partnerships. Carrying out data sharing through the monetization method increases the possibility of exchanging ideas with new companies and creating new business opportunities.

Increases Revenue Flow

Businesses that prefer the data monetization technique separate their data according to criteria such as gender, age, education status, income level and tend to create meaningful information. These types of information classifications allow businesses to develop more personalized sales methods for their customers and to make more qualified user experience investments. All of this creates a huge revenue opportunity for companies.

In-house Planning Made Easy

Organizations that segment their data into meaningful segments based on audiences have a better understanding of which data to use for which customer group. This could mean new plans, areas of activity and new investments for the company. Companies that understand and interpret the customer audience more clearly can also clearly determine the future goals of the company with informed planning.

The data that companies acquire over the years is a valuable resource for them. Applying the data monetization method also brings the development potential in many areas of the company. If you want to take advantage of monetization for your company, you can review Komtaş's data analytics solutions. Komtaş contributes to the digital transformation of your business with end-to-end solutions in its data and analytics ecosystem. You can also take advantage of Komtaş privileges to add value to your business by taking advantage of your data.