Making Data a Profit Center Instead of a Cost Center
by Amol Waishampayan, CPO
Most agencies want to get better at managing, collecting, and using data. In order to run successful advertising and marketing campaigns, it is generally agreed that you need data to do so.
The response to achieve data efficiency is typically to buy data services to help agencies improve their marketing measures. Usually, when you buy a “data service,” you’re buying third-party data lists from third-party data assets.
Due to this, when agencies think of data, it’s in the context of how much they’re spending on it and how it makes what they’re already doing better. Agencies, like all businesses, want the best output for the lowest cost, since that makes them the most profit.
Data as a Cost Center
The traditional perspective is that data is a cost center. This is for a variety of reasons, but mainly since third-party data isn’t the most effective nor is it the cheapest route to take.
When you buy third-party data, you never actually own the data. You’re essentially renting the data. Therefore, it will cost you to constantly use third-party data. However, if you use first-party data, that’s data that belongs to you, for you to activate whenever and however.
It is also important for agencies to keep in mind that third-party data will only become less accessible and even less accurate as third-party cookies deprecate.
Every business is focused on lowering their costs. So, when businesses think about getting smarter with data, they’re working against themselves. This means they’re always assuming they’ll have to spend more to have data. The other side of the business––the financial side––says to spend less.
From a data mindset, this makes innovation generally harder as a framework.
How To Profit From Data
Agencies can monetize data by directly working with advertisers and giving them a platform. By doing this, agencies can make money off a service that provides better incremental data to their clients as well as to themselves.
This way, they can spend more money on net new audiences that are continuously being created.
The best way to profit from data is with technology that can transform previously programmatic audiences into first-party data. Then, agencies can collect audiences that would otherwise be lost AND own this data instead of using third-party data.
Owning first-party data is a key strategy, since third-party data is often expensive.
When agencies lean into transformative technology, they help their advertisers become more data independent. There is immense value in that––which agencies can benefit from.
Another perk is that agencies gain data independence themselves, which is vital to moving forward in an ever-changing advertising landscape.
If agencies bring in a tool—like fullthrottle.ai—that creates valuable data for everyone in the ecosystem, that data becomes a profit center, as they can monetize that very service.
Make the Switch From Cost to Profit With First-Party Data
As a fullthrottle.ai partner, you can make your very own first-party data a revenue driver instead of a cost center.
Traditional data services cost money and businesses want to keep them down. fullthrottle.ai––a data service that you actually make money on––gives the advertiser more value and provides your agency more opportunities to place media.
We give agencies data independence by providing quality and incremental data. With this data, they can make money by reselling and building net new audiences to advertise and sell to.
With fullthrottle.ai, everyone wins! Sign up to be a fullthrottle.ai partner today.