Information and data are the primary assets for the majority of companies. While businesses can make use of their data to boost their business but their data may be of great value to their own business. Through data marketplaces, customers can purchase data sets to improve their analysis and provide different services to clients, while sellers can monetize their data.
What is the Data Marketplace?
A data marketplace allows users to purchase or sell different kinds of data sets and streams from a variety of sources. Data marketplaces are generally cloud-based services that let companies or individuals upload their information to the cloud. They allow data access for self-service while providing the security, consistency, and high-quality of data for both parties.
What is the significance of this now?
The rise of marketplaces for data is a result of the development of Big Data. Businesses are beginning to see data as valuable assets. Companies are generating more data, either internally or by collecting data from external sources through internet scraping and other initiatives. A portion of this data can be valuable to other businesses also. Data marketplaces allow companies to profit from data. They make money off the data by selling the data to other organizations or to individuals. Through data marketplaces, their monetization could take various forms, including:
Selling the data or products that are derived from the data.
Subscription as in ZoomInfo, Bombora, etc.
Selling the data as in Streamr.
The purchase of data from a marketplace to build and market an AI-based product
Utilizing external data internally to create value: Adding a new dataset to your own data to provide more insights or entirely new work streams
What is the process?
Data marketplaces provide incentives such as gifts or cash to encourage sharing of data. For instance, Freckle IoT lets users cash out when they have a minimum of $5 by using the Amazon gift card or $10 with PayPal. Another instance could be ZoomInfo that gives customers of the community edition access to up to 10 data points each month in exchange for details about their contacts from their email.
With the advances of Blockchain, data marketplaces are changing to become more secure. Data marketplaces such as Datapace and Ocean Protocol integrated the technology in their offerings. Blockchain is used to secure and secure access to uploaded data streams from data suppliers. Then, buyers buy data streams via the use of an automatic electronic smart contract. After the transaction is complete, then the coins are divided to the parties based on the agreed-upon prices.
Personal marketplace for data
Individuals can monetize their personal information by selling it to these platforms. The data they share could be linked to any topic like locations preferences for food, the type of food they prefer, web designs they love, and so on. The user can set the price for their information and then wait for buyers or take incentives like cash for signing up or gift cards from marketplaces. The marketplaces for personal data are GDPR-compliant as individuals share their personal data purposely.
Data marketplace B2B
B2B Data Marketplaces gather and store company information from a myriad of data providers on one platform. They allow data consumers (other organizations) to gain access to an aggregate of data that has been curated from various sources, which can be used to aid in sales, marketing, and BI-related purposes. A more significant number of data sets are shared as compared to marketplaces for personal data.
Sensor/IoT data market
As per Gartner, 80% of businesses do not make use of their data to generate revenue. One method of cashing into IoT data is to offer data to third-party vendors. With a sensor or an IoT marketplace for data, companies can purchase or sell real-time data gathered through the IoT device. Sensor data can help companies understand the behavior of their customer’s increase sales, and create more effective marketing strategies.
What are the most popular marketplaces for data?
These platforms are the most popular platforms to purchase information when an organization is looking for data from outside to improve business processes by combining it with their company data. The data that is offered by these platforms is helpful to enhance B2B marketing that is based on accounts.
Duns and Bradstreet
How Data Marketplaces differ from Data warehouses and Data Lakes?
Data lakes and data warehouses are on-premise solutions that organize the analysis of data. They are beneficial for processing data within the organization. The data offered by marketplaces for data is more remarkable, and you can purchase any kind of data, including customer behavior geolocation, financial, and technologies stacks according to the market you select.
Data marketplaces offer data that can be utilized by a variety of enterprises due to its high degree of quality as well as metadata. Data sources that are internal to the company, such as data warehouses, contain information that is difficult to comprehend (e.g., because of the absence of metadata) because they are kept in order to use internally. Marketplaces provide a catalog of the data and describe its characteristics and how it could be used to aid users so that data scientists do not have to devote time to processing ETL and can focus on getting knowledge from this.
What are the alternatives to the data marketplaces?
A lot of companies that depend on data to run their business (e.g., hedge funds) are equipped with complex operations for data scraping processes to gather information from different sources. However, data scraping is a lot more complicated than collecting data from marketplaces, as many websites are designed to prevent automatic access to their website content (with being able to block search engine robots). It is possible to make use of our prioritized list of data-driven vendors who scrape data to determine the best vendor to start-up reliable data scraping processes as SAAS.
Bright Data's data collector is an internet crawler that collects real-time data from websites and delivers the data to businesses automatically in various formats. It also incorporates multiple proxy services to collect information from websites that shield themselves from scraping.
What are examples of case studies?
Australia as well as New Zealand Banking Group (ANZ)
ANZ is a provider of financial services which wanted to be innovative and enhance the internal analysis of their corporate data. They recognized that sharing data could help them make better business decision-making. However, the process of forming a data-sharing partnership with an organization could take between 12 and 18 months before they can agree on the technology, contracts, and methods.
ANZ uses Data Republic Senate platform to protect data sharing and facilitate any new partnership in data. The Senate platform allows data sharing, access controls, user permissions, governance workflows, shared analytics workspaces, as well as full audit trails for licensing. ANZ can alter the visibility of data sets to internal as well as external partners, deal with data requests made via the internal market, as well as manage license terms that are specific to the manner in which data is accessed.
ANZ reduced the time required to create the shared data asset by 93% and also enabled more precise customer matching between data sources.
What are the benefits?
Access to external data
Data marketplaces permit businesses to access data from different sources. The data is designed for external use, which is why it tends to be clear and has rich metadata to facilitate.
Insights and product development:
Companies are able to spend more time processing data rather than collecting data.
Secure data sharing:
Organizations share their data in confidence because of blockchain technology.