The
Wall Street Journal asked the question today: What is all that data worth? While
big data has been a hot topic for the past couple of years, few companies
actually understand how to put a price tag on consumer data information.
WSJ
illustrates its point the following way: Adding the “book” equity values of Facebook,
eBay and Google results in $125B, while the public markets value them at a
combined $660B. While competitive advantage and search algorithms make up some
of that intangible value, all these companies sit on an unparalleled amount of
consumer data that is used on a daily basis to sell advertising space.
Some
might argue that the efficient markets theory holds through, meaning that the
true value of consumer data is captured by a company’s share price. Other might
argue that we are at the verge of a dot com bubble similar than the one
experienced in the 2000s.
At
the end of the day, consumer data can only be considered as an asset if it can
help the company achieve its strategic objectives. For example, Kroger records
purchasing behavior from 55 million loyalty-card members across more than 2,600
stores. This data is then sold to vendors to help them reshelf goods ranging
from cereals to sodas.
This widespread uncertainty on how to use and
price big data should be seen as an opportunity by digital marketers. Being at
the forefront of such data usage, I believe that there is an opportunity to
establish the right standards and develop conceptual framework that would help
the broad public understanding big data.Wall Street Journal, 10/13/14, "What is all that data worth?" by Vipal Monga
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