As organizations collect vast amounts of data from various sources, data monetization is becoming a critical strategy to generate revenue and drive business improvements. Dr. Saad Alajlan, Practice Lead in Data Management & Governance at ELM, outlines how businesses can unlock economic value from their data assets.
Data monetization refers to converting data into economic value, either through direct sales or by enhancing business processes and customer experiences. The global data monetization market, valued at $3.47 billion in 2024, is projected to reach $12.62 billion by 2032, growing at a compound annual growth rate (CAGR) of 17.5%.
In Saudi Arabia, demand for data monetization is rapidly increasing, driven by national regulations and the maturation of data management practices in government, semi-government, and private sectors. Investments in data technologies, analytics, and AI are further enabling organizations to monetize data.
Data can be monetized directly by selling consumer insights, industry reports, or predictive analytics tools. Alternatively, organizations can use data insights to optimize operations, reduce costs, or enhance customer experiences—indirect monetization strategies. Three primary approaches to data monetization include improving, wrapping, and selling, each creating new revenue streams or optimizing existing business processes.
However, many organizations face challenges, such as data quality issues and aligning monetization strategies with business objectives. Overcoming these challenges requires establishing key capabilities such as a well-structured strategy, accurate data, proper infrastructure, and a skilled data science team.
Ultimately, data monetization represents a significant opportunity for businesses to transform data into a strategic asset, creating new revenue streams and improving operational efficiency. Organizations that innovate with data monetization will lead in the data-driven economy, capitalizing on the growing importance of data.
