What is a data marketplace?
A data marketplace is a platform where users buy or sell different types of data sets and data streams from several sources. Data marketplaces are mostly cloud services where individuals or businesses upload data to the cloud. Those platforms enable self-service data access while ensuring security, consistency and high quality of data for both parties.
Why is it important now?
Data marketplaces’ emergence is related to the growth of Big Data. Organizations start to acknowledge data as an asset. Businesses are generating more data but they cannot make use of most of the data they generate. Data marketplaces enable organizations to monetize the data. They monetize the data by offering it to other companies or individuals. With data marketplaces, monetization can be in the form of:
- Subscription as in ZoomInfo, Bombora etc.
- Selling the datasets as in Streamr
- Adding another dataset to your own business data to create better insights
How does it work?
Data marketplaces offer incentives such as cash or gifts to promote data sharing. For example, Freckle IoT offers individuals cash-out once you have at least $5 accumulated, using an Amazon gift card or $10 using PayPal. Another example is ZoomInfo which provides users of its community edition access to 10 data points per month in exchange for getting contact information data from their emails.
With the advancement in Blockchain, data marketplaces are evolving to be more secure. Data marketplaces like Datapace and Ocean Protocol integrated the technology into their solution. They use blockchain to encrypt and anonymize access to the submitted data streams from data providers. Then buyers purchase data stream through an automated smart contract. Once the transaction is completed the tokens are distributed among the parties according to agreed prices.
What are the types of data marketplaces?
Personal data marketplace
Individuals monetize their own data by selling it to these platforms. Data they shared can be related to anything such as location, food preferences, website designs they enjoy, and so on. Individuals either set the price for their data and wait for a buyer or accept incentives such as sign-up cash or gift cards provided by marketplaces. Personal data marketplaces are fully GDPR-compliant since individuals are sharing their data purposely.
B2B data marketplace
B2B Data Marketplaces collect and store company data from a multitude of data providers onto one platform. They enable data consumers (other organizations) to access an aggregate of pre-curated information from multiple sources that can be used for marketing, sales, and BI purposes. Larger amounts of datasets are shared compared to personal data marketplaces.
Sensor/IoT data marketplace
According to Gartner, 80% of companies fail to monetize their data. One effective way to cash in IoT data is by selling information to third parties. With a sensor or IoT data marketplace, organizations can buy or sell real-time data that is collected from an IoT device. Data collected from sensors help organizations understand consumer behavior, improve sales, and build better marketing strategies.
What are the leading data marketplaces?
These platforms are go-to places to purchase data when an organization is searching for external data to enhance business functions by combining them with their enterprise data. Data that is provided from these platforms are useful to enrich B2B account-based marketing.
Company level intent data
These data providers offer behavioral information collected from an individual’s online activities so that organizations can better target accounts.
- Duns and Bradstreet
Company employee contact information
These vendors provide contact information for individuals in companies including their role, email and phone information as well as social media accounts.
- Duns and Bradstreet
Company financial information
Financial information datasets create a competitive advantage for investors, hedge funds, market analysts, retailers and corporates while they make data-driven decisions.
- Crunchbase (focused on startups)
Company Technographic Data
If you are a SaaS provider, you need to know the technology stack of your potential customers because your solution should be integrable into the existing technology of the client. You also need to target the audience that doesn’t have the technology you are offering, otherwise, you waste your time for marketing to organizations that are less likely to convert.
- G2 Stack
Customer/business location information
Location data provides a toolset that marketers can use to fill in the gaps of a consumer’s profile. Marketers can leverage location data to grab the attention of new prospects with a geotargeting strategy. These datasets also include locations of businesses.
In these platforms, marketplace vendors as an intermediary between buyers and sellers.
Personal Data Marketplace (Individual to business)
These use blockchain to enable individuals to benefit from sharing their data. Their current usage levels are lower compared to the data providers listed above.
Business Data Marketplace (Business to Business)
- Ocean Protocol
Sensor Data Marketplace (Machine-to-machine)
How do Data Marketplaces differ from Data warehouse and Data Lakes?
Data warehouses and data lakes are on-premise solutions to manage and analyze data. they are useful for processing data that is within the enterprise. Range of data in data marketplaces is broader, you can buy any type of data such as customer behavior, financial, geolocation & technology stack data depending on the marketplace you choose.
Data marketplaces provide data that is ready to be used by diverse businesses thanks to its level of data quality and metadata. Internal data sources like data warehouses include data that can be harder to understand (e.g. due to lack of metadata) since they are stored for internal use. Marketplaces catalogs data and describe its attributes and how it can be used to help users so that data scientists don’t need to spend time on ETL processes and focus on gaining insights from it.
What are example case studies?
Australia and New Zealand Banking Group (ANZ)
Challenge: ANZ is a financial services provider that wanted to innovate and drive internal exploration of its corporate data. They realized that data sharing can help them drive better business decisions. However, creating a data-sharing partnership with another organization may take from 12 to 18 months to agree on technology, contracts, and methodologies.
Solution: ANZ uses Data Republic Senate platform to secure data sharing and accelerate new data partnerships. The Senate platform provides data sharing, data access controls and user permissions, governance workflows, shared analytics workspaces, and full licensing audit trails. ANZ can customize the visibility of data sets for internal and external parties, handle data requests from an internal marketplace, and control licensing terms specific to how and why data is provisioned.
Results: ANZ reduced the time to create a shared data asset 93% and enabled more accurate customer matching between datasets.
What are its benefits?
- Access to outside data: Data marketplaces enable organizations to reach data from other sources. This data is optimized for use of external organizations so it tends to be clean and come with extensive metadata to enable.
- Faster insights or product development: Companies can spend more time on data processing than data collection.
- Safer data sharing: Organizations share their data with trust thanks to blockchain technology.
Data marketplace is a data-as-a-service application, feel free to read our article about DaaS.
If you still have questions about data marketplaces, we can help:
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