Data monetization is taking the world by storm, but not everyone seems to agree on what a successful monetization strategy looks like. According to Hakkoda’s forthcoming State of Data 2024 report, 45% of Executives say their organizations currently monetize data. The problem? Only 15% of their VP-level colleagues agree with that statement.
The disparities around data monetization don’t stop there, however. As of 2023, 29% of $1B+ organizations identified data monetization as a revenue source. That number drops precipitously for companies with less than $500 million in revenue, with only 17% actively monetizing their data.
A huge uptick in those rates is already on its way. With over 64% of all organizations reporting that they intend to monetize their data in 2024, data monetization is about to become the norm–and not just for the Fortune 500.
In this blog, we will walk through the basics of a data monetization strategy to explain how the supermassive troves of data organizations are already collecting can be transformed into an enduring source of revenue with the help of the right data stack. We’ll also share how we helped a large South American banking and financial services company increase its total addressable market by $250 billion by building and sharing data products in Snowflake.
So What is Data Monetization, and How Can You Start To Monetize Today?
At its most basic, data monetization is exactly what it sounds like: the process by which company-generated data is leveraged to generate revenue. Technically speaking, monetization comes in two forms: indirect or internal monetization (i.e. analyzing data for insights that directly influence your organization’s business performance), and direct or external monetization (i.e. selling direct access to your data to third parties).
Business leaders are already well aware that data has a far-reaching impact on their operations and strategies. While mileage may vary from organization to organization, indirect monetization is a widespread practice: data is collected, analyzed, and leveraged to drive performance. As the numbers above indicate, however, these same leaders don’t all necessarily know how to directly extract the monetary value of their data. But the demand for this data is tremendous, with upwards of 95% of organizations reporting that they digitally consume some form of outside data KPIs.
With the thirst for data outstripping availability by a comfortable margin, more and more companies are beginning to recognize the new revenue opportunity monetization provides. Putting a monetization strategy into effect, however, is another thing entirely.
Making Data Accessible in the Snowflake Marketplace
For organizations looking to get in on the ground floor of data monetization, APIs may seem like a promising solution. Unfortunately, this approach comes with considerable obstacles to both quality and performance, including:
- Limits to the volume of data accessible
- Expertise and tooling required for development and maintenance
- Limits to the types of analyses data consumers can use
- Potential customers are required to navigate custom APIs to use your data
Fortunately, there are simpler ways to monetize your data using a modern technology stack. One such option is the Snowflake Marketplace, which allows companies to easily publish a variety of data sets for immediate use or purchase within a network of other Snowflake users. The Snowflake Marketplace also integrates with Snowflake’s Native App Framework, which enables customers to build and distribute apps to a wide audience of other Snowflake customers—all natively from the Snowflake cloud.
Powering Profits: How it Took One FSI Client Less than Two Months to Monetize Data in the Snowflake Marketplace
When a large South American banking and financial services company chose Hakkoda as their data transformation partner, they had two primary objectives in mind. The first of these was to accelerate their migration to Snowflake and to improve the performance of their data pipelines. The second was to begin building new data products for monetization in Snowflake within that accelerated window.
Hakkoda was able to deliver on both of these lofty goals, building a Snowflake architecture from scratch and putting the client’s Snowflake environment into production in less than a month. From there, the client’s internal teams were able to begin building data products in Snowflake, putting their first public-facing application on the market in under two months. This accelerated production timeline in Snowflake gave the client 35% faster speed to market and resulted in a TAM increase of $250B.
Monetize Your Data Faster with Hakkōda
With 2024 poised to become the year of data monetization, companies who have yet to settle on a direct monetization strategy are running out of time. As the success story above demonstrates, however, it isn’t too late for businesses to fully capitalize on their data resources and tap into this crucial revenue stream.
Together with a trusted data partner and the robust capabilities of a platform like the Snowflake Marketplace, it has never been easier for businesses to build, market, monetize, and distribute data products with data-hungry audiences.
Ready to unlock the revenue lying dormant in your data? Let’s talk about how you can start monetizing today.