“The Value of Data: Consequences for Insight, Innovation and Efficiency in the U.S. Economy” is a first-of-its-kind study that quantifies the value of the Data-Driven Marketing Economy (DDME), both in terms of revenues generated for the U.S. economy and jobs fueled across the nation.
Given that every industry in America relies on data-driven marketing, the results of this first-ever effort to systematically and objectively map, measure, and analyze the DDME will benefit anyone with an interest in a vital, efficient, and growth-producing marketplace for goods and services in the U.S.
The study, undertaken by Professors John Deighton of Harvard Business School and Peter Johnson of Columbia University, describes the DDME as the economy of firms that exist to help U.S. companies use individual-level consumer data (ILCD) as an important ingredient in the “go to market” strategies by which they acquire and retain customers – in other words, increase demand for their goods and services. The study was commissioned by DMA’s Data-Driven Marketing Institute (DDMI).
In a nutshell:
The DDME added $156 billion in revenue to the U.S. economy and fueled more than 675,000 jobs in 2012 alone. The Real Value of Data is in its Application – and Exchange across the DDME
- 70% of the value of the DDME – $110 billion in revenue and 478,000 jobs – depends on the ability of firms to exchange data across the DDME.
- If markets had to operate without the ability to exchange data across the DDME, the U.S. economy would be significantly less efficient. U.S. companies would have to spend considerably more than $110 billion to maintain current output levels.
- These findings prove that the real value of data is in its application – and in its exchange across the DDME.
Regulation Would Impact Innovation, Small Businesses, Jobs and Economic Growth:
- New regulations stopping the exchange of data across the DDME would impact $110 billion in revenue to the U.S. economy and 478,000 American jobs.
- The biggest winners in the DDME – innovation and small businesses – would also be the biggest losers if startups could no longer use data to overcome barriers to entry, raise ad-supported revenue, and identify new and niche markets to serve.
The Bottom Line: Well-Meaning but Poorly-Conceived Legislation or Regulation Restricting the Responsible Use of Data Would Harm the U.S. Economy. It would impact billions of dollars in revenue and hundreds of thousands of jobs, make small business less competitive, and stifle innovation. In the end, it would hurt consumers by limiting choices and raising prices.
Source: Direct Marketing Association (DMA)