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The Value of Data

Why Data is valuable?

The entire Internet ecosystem and business model depend on the availability of data. Most companies we use today like Facebook, Twitter, Instagram, Google, and thousands of others are in the business of selling data. The famous quote is "If the product is free, then you are the product". Companies like Facebook are selling your data to advertisers so they have a better chance of selling their product to you.
The most valuable data is "actionable real-time" (ART) data. This is data that is licensed by advertisers when a consumer takes an action on a website that shows direct interest in a product or service. For example, if you click on a pair of shoes on Amazon.com - this data is immediately sold to advertisers who want to target you with ads based on the fact you clicked on those specific pair of shoes.
The Real Estate Data market is no different. On websites like Zillow.com, when you click on a property and show interest, your data is sold to home service provides like real estate agents.

How much is my Data worth?

The value depends on three primary factors:
1) The data itself (what it is telling the advertiser) 2) The number of advertisers interested in buying the data 3) The value of the products/services that can be sold based on the data.
Let's take two examples to demonstrate. The first example is a person clicking on a pair of shoes on Amazon. The shoes cost $100. The data is sold to 50+ vendors who sell that pair of shoes. The value of the data is based on the potential income from the lead, and how many times it's sold. So in this example, the lead would cost usually around 6% of the value of the product multiplied by how many advertisers. So it would be ($100*.06)*50 = $300.
The second example is real estate. A property owner is looking to sell their property and needs a real estate agent. The value of this data is higher because real estate agents make a 3% commission on a home sale. So for a $500,000 house, the income to an agent is $15,000. The value of this data is worth around $100 to $500. If 10 agents want to purchase this data - it could generate $1000 - $5000 in income.
The examples above demonstrate how diverse data can be and thus the value can range from pennies to hundreds of dollars. The most valuable data is for products and services that generate the highest income and the data is generated in real-time to enable advertisers to access the opportunity.
Last modified 3mo ago