Why Data Brokerage is Your Next Big Source of Revenue

Ad Optimization
Last updated: November 24, 2020 | by Kean Graham

This post was most recently updated on November 24th, 2020

The business of selling website data – big data – is booming and it’s just the beginning. There are countless paths to monetize the big data revolution. One of the most important things is knowing which one you want to follow.

Data brokerage is not a piece of cake. Information is ubiquitous all over the internet. The number of companies making money out of “everything they know” is also increasing exponentially. This business is exploding because data-driven marketing is meeting consumer’s needs.

Let me cite some of the top reasons why data brokerage is your next big source of revenue:

  1. Marketers are interested in consumer information, particularly those who do online targeting. It is of utmost interest for businesses to understand the purchasing behavior of which segment of shoppers.
  2. Big research companies subscribe to data brokers that can provide details of target respondents, and is ongoing.
  3. People have the tendency to go to the source of anything as a solution. Companies normally believe that going directly to the source will save them money and time.
  4. Banks, automakers, retailers, and other businesses will always be avid buyers of your data. You should know how much revenue that means.
  5. Consumers have grown comfy being tracked in databases, because, frankly, it’s often useful.
  6. It is interesting to know what is going on where, who is interested in what.

Federal regulators are now demanding data brokers to operate more transparently. One of the recommendations is for data brokers to set up a public web portal where names and contact information of data brokers are displayed and also describes consumer rights.

Buying, categorizing, aggregating, sorting, and marketing big bundles of data will continue to invade money making world online. Few organizations will have the capital for end-to-end exchange and delivery of data (e.g. Google, Amazon, Apple possess such potential), while content creators – information providers and brokers will seek placement and distribution in as many networks as possible. Retailers like Amazon could sell raw information on the most popular purchase categories. Selling website data like payment volumes, weather patterns could help suppliers pinpoint demand signals more closely. These insight streams could be created and maintained by information brokers that are capable of sorting by age, interests, location, and other categories.

In order to generate increased revenue, this information has to be delivered into the hands of those who can use it, when they can use it. You could always turn that big data into cold, hard cash. You take the raw data and magically turn it into actions they should take. You must ensure that you are able to provide useful, not just mere information.

The data itself is of low value, no matter how unique – unless you develop guaranteed strategies to sell that big data. You have a bunch of information gathered, way too much for your average Joe to read, but you can talk until your face turns blue and the people with the checkbooks will keep them closed.

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