Data Monetization (in a Privacy-first World) for Publishers
Data monetization is one of the new opportunities for companies that process vast amounts of data to develop an economically tangible benefit. This will also let companies make data-driven decisions that'll boost overall performance.
Vast amounts of data are streamed and processed every day. This has created opportunities for companies to use this information in innovative ways, such as data monetization.
Data monetization means using data to develop an economically tangible benefit, i.e., generating revenue or saving money.
This data allows companies to make measurable and actionable decisions that improve overall performance. Some ways of using this data can be internally or indirectly. For instance, data sharing can offer practical terms or conditions to other business partners or deliver a product that enhances data usage.
Data are (still) the Digital Oil
Data is an immensely untapped and valuable asset. Companies that see its benefits and know how to use it best will have a clear advantage. Rather than having data infrastructure as a cost center, it can transition into a profit center with the right improvements.
With data, almost anything can be tested, measured, and improved. Good data will beat an opinion, especially if you can access real-time data to make critical decisions aligning with business KPIs. Data becomes more valuable when it’s shared. Therefore, the more people with access to it, the more economic benefits you’ll get. Various companies recognize the importance of building shared data infractions and having a more effective data flow. Ultimately, this will allow everyone to monetize data.
How Can Data be Monetized (in 2022)?
Once Google does away with third-party cookies, their value will drop to zero, especially since Safari and Firefox have already done away with cookies. But, conversely, that’s when the value of first-party data will significantly increase. Because third-party cookie reliance will go out the window, there’s no need to lose valuable insights to walled gardens. Some ways to monetize data as a publisher include:
- Sell more audiences to advertisers
Publishers can create more sellable audiences for advertisers using their first-party data. Better audiences mean more effective ads. This, in turn, will make your site very attractive to advertisers. With a data management platform, you’ll be able to improve data quality and create more sellable audiences. Your data can become a revenue-generating machine since DMPs collect, organize and activate your data. A DMP can take your first-party data (and even integrate your third-party data) to create granular audiences that detail their interests, demographics, online behavior, and more. These insights also create more lookalike audiences, enabling upselling and cross-selling.
All in all, you’ll be able to get audience interests beyond a single, specific site and be able to offer advertisers more.
2. Target audiences in contextual environments
Contextual targeting has made great strides since almost ten years ago. Thanks to verifiers and brand-safety tools, advertisers can avoid having their content shown in places they consider damaging to their brand. As such, the popularity of contextual targeting has only increased. As a result, publishers are supercharging contextual usage. By pairing contextual data with existing first-party identifiers such as CRM records or email addresses and creating lookalike audience segments for unknown audiences, publishers are making room for more revenue opportunities.
3. Customize content
A great user experience goes a long way. This includes more users staying on your site for longer and even returning for more content. When you have the right data management platform that can allow you to serve the right content when it matters most, you’ll be able to showcase more ads. Simple. The more useful content you can offer, the more insights you can gain into what works and what doesn’t, and optimize from there. By sharing information that appeals to your user’s interests, you can share related content and offer the same experience to lookalike audiences. When a user stays on your site for longer, you’ll reduce the bounce rate, showcase more ads, and make your ad space all the more valuable.
4. Increase the average CPM
Better targeted audiences mean more sellable audiences. The right data management platform will allow you to segment audience data and gain valuable insights into your audiences. This will make your inventory more valuable to advertisers. When advertisers know their money will go toward a highly engaged audience, they’ll pay more for ads. This will allow for higher CPMs, which means higher online ad revenues for publishers. You’ll also be able to collect data on which ads perform the best. So then, you can just optimize from there.
Ultimately, publishers can use their first-party data to strengthen campaigns to retarget inactive or engaged consumers with customized messaging. By adding audience data to a campaign, publishers can improve efficiency and better meet advertiser demands. This can also empower advertisers to have better-performing retargeting campaigns.
Data Monetization Strategies for Publishers
Don’t let your data deprecate when third-party cookies are entirely removed and privacy regulations get enhanced. Instead, there are plenty of opportunities to collect and activate data at scale and monetize data, especially between advertisers and publishers.
- Advertisers and publisher relationships. These two entities need to build direct relationships, which is possible with privacy-compliant identity solutions. As a result, advertisers can gain audience insights to create customer segments that offer better-performing advertising. Publishers, in turn, will be able to boost their revenue.
- Invest in data solutions. Publishers need to collect data in a privacy-compliant way. This will allow them to leverage audience insights effectively and ethically while building trust with consumers.
All in all, it’ll come down to valuing relationships and creating trusting and meaningful ones. When everyone feels they’re getting a mutually beneficial experience, they will be more inclined to offer what the other needs to reach their ultimate goal. And when is a win-win situation ever a bad thing?
Data Monetization Will Still Matter
Every publisher will have different demands and needs, so there’s no one size fits all strategy. Still, to prepare for the demise of third-party cookies and leverage your first-party data, there are a few considerations to consider if you’d like to implement data monetization:
- Data privacy. Data privacy and security are here to stay in an ever-evolving digital ecosystem. Data protection guidelines will only strengthen, so knowing where your data is collected is essential. In addition, make sure to have adequate data protection measures in place to ensure your company stays compliant with all regulations.
- Transparency. Avoid any future complications and security law breaches by being transparent about your data. Again, having first-party data allows for transparency and flexibility needed to adapt accordingly. It also builds trust and enhances a brand-to-customer relationship. When a user can have control of their data, they’ll be more enticed to share it.
- Test solutions. New regulations and updates are frequently happening in our world. So staying on top of them to choose the best strategy while complying with market regulations is necessary. A holistic strategy starts with finding the right solution to gather data.
It’s time to get ahead of the death of third-party cookies by thinking of new creative decisions with the help of innovative solutions. With the right data strategy and infrastructure, you’ll be able to thrive and gain a competitive advantage with your first-party data. Lucky for you, we might have just what you need.
Book a demo to see how we can enhance your data strategy.