With so much analytics data
being stored, companies are quickly realizing that they are sitting upon a
potential money goldmine. Sure, they use the data within the business itself to
make large decisions, plan ahead, improve in certain areas, and essentially
grow the company, but others can use it too, and will pay for their analytics. Businesses recognize the importance of
valuation of intangible properties such as the data, but not too many of them
realize how significant their data is, and how imperative it can be to the success
of its digital transformation process.
According to
sloanreview.mit.edu, “companies can take three approaches to monetizing their data:
(1) improving internal business processes and decisions, (2) wrapping
information around core products and services, and (3) selling information
offerings to new and existing markets.” Each of these approaches are diverse in
their what they are capable of and the commitments they require, however all of
them represent an important chance for a company to set itself apart in their
market field.
In order for company leaders to monetize their data assets, it is important
that they develop tactical monetization strategies. Additionally, they need to
keep the strategies as important assets and consistently focus on not only how to
stay on top of, but also improve. A monetization strategy can be defined as: “a plan to achieve one or more business
goals through tactics or actions that have a quantified benefit” (retailcustomerexperience.com).
YouTuber’s Monetization
As someone who spends a large amount of time
on the website YouTube watching videos or listening to music, I have always
been fascinated about how the YouTube channels are making money, and how the
advertisements, brand deals, or partnerships come into play. Recently an issue
of advertisement monetization has sparked tremendous outrage within the YouTube
community. Large channels with over millions of subscribers have noticed a dip
in their wallets. YouTube had begun demonetizing several videos, thus leading
to many angry, frustrated, and upset YouTubers.
Now you may be wondering how does YouTube
demonetizing videos have anything to do with data analytics? The analytics from
the YouTube channels specific to individuals were one of the first ones to take
hard hits. Their data displayed that because they were losing on monetized
videos, they were losing people, and losing people means losing money.
YouTubers rely on their analytics to show brands, business partners, and
companies that why they should invest their product, time, or services on them.
There have been times where YouTubers have even admitted to selling their
channel analytics data. The digital revolution has made it so that hundreds of
thousands of individuals can take the entrepreneurial side of the career path. Through
one channel developing thousands then subsequently millions of subscribers, it
is only a matter of time before their “business” takes off. There are kids the
age of 13 making millions of dollars a year through posting videos online. Their
online following has led several companies to change their courses of spending
their marketing budget. The analytics taken from a channel such as Logan Paul,
goes further than just how many views his channels makes on a single video, but
also how many people are purchasing his merchandise, following him on social
media, interacting, etc. Because there are many potential revenue streams, Paul
is able to form a business out of his channel. If he chooses to monetize his
analytics data, companies will perhaps have more of an insight as to what they should
do for their businesses.
Traditional companies are rapidly realizing
the importance of watching, maintaining, and being receptive to their data
analytics. Whether it is the data from their YouTube channel, or analytics from
their website, if they choose to, they can take all the information they’ve gathered
and make a profit.
Resources:
I need to get my online presence together. #AreYourRicherThanA13YearOld
ReplyDeleteNice read.