In today’s digital age, data is everywhere. Every action generates vast data, from social media interactions to online purchases. This data can be analysed to gain insights into consumer behaviour, market trends, and more. Collecting, analysing, and using this data is known as datafication.
Datafication has become an essential part of modern business operations. Companies use it to improve their products and services by understanding customer needs better. It also helps them make informed decisions about marketing strategies and product development.
However, the value of this data goes beyond just improving business operations; it can also be monetised through a process called Data Monetization.
What is Data Monetization?
Data monetisation refers to generating revenue from collected or processed information. In other words, companies can sell access to their datasets or use them for targeted advertising purposes.
For example, Facebook collects user information such as age range, location history, interests etc., which they then use for targeted advertising campaigns for advertisers who want to reach specific demographics or interest groups.
Another example would be Google Maps’ traffic feature that uses real-time location tracking from users’ smartphones to provide accurate traffic updates in real-time while simultaneously collecting valuable location-based information that could be sold later.
The Benefits of Data Monetization
There are several benefits associated with data monetisation:
1) Increased Revenue: Companies can generate additional revenue streams beyond traditional sales channels by selling access to their datasets or using them for targeted advertising purposes.
2) Improved Customer Experience: With better insights into customer behaviour patterns, businesses can tailor their products/services accordingly, leading towards improved customer satisfaction levels over time
3) Competitive Advantage: Companies that leverage big-data analytics have a competitive advantage over those that don’t since they have access to more comprehensive insights into market trends & consumer preferences than competitors.
Conclusion: In conclusion, datafication & its subsequent monetisation has revolutionised how businesses operate today. It provides valuable insights into consumer behaviour, patterns, trends etc., which help companies to make informed decisions regarding product development, strategy formulation etc. Data monetisation allows companies to generate additional revenue streams and gain competitive advantages over rivals by leveraging big-data analytics. So, these two concepts will continue playing an increasingly important role in shaping future business practices worldwide!