How to value website visitor data

Max001

Hi Guys

I'm working out the viability of a business idea,
involving supplying membership type websites
to organisations. Obviously there are revenue
opportunities, one of which is selling website
visitor traffic data to brands as collated reports.

Given a certain projection of websites implemented
annually, I want to work out the revenue potential
of various streams. I've done advertising and
brand partnerships, but I can't get any reliable figures
on how much brands will pay for website user data.

Can anyone help, or refer me to someone that can?
Ballpark figures are all I'm looking for at the moment.

Any help is hugely appreciated.

Cheers
Max

PDD

Hi Max,

Can you clarify what you are calling 'website user data' as there are very clear and strict guidelines on what type of data can be reasonably requested by a company and can be retained by a company. Anything that is considered personal information has a heavy burden of responsibility on the data controller to ensure that this information is held in accordance with the Data Protection Commissioners guidelines. All data collected may only be used for the stated purpose so in your case you would have to explicitly notify all website visitors that their information will be passed on to third parties, specify exactly what information is being passed on and to get the explicit consent of each individual to do so. So I would say you first port of call should be the DPC to clarify what data you can collect and pass on to third parties.

So for example transfer/sale of a vistors name, email address, age, address etc is to the best of my knowledge blatantly illegal as it is personal data. However transfer/transmission of data such as demographic information for example a male between the ages of 25-35 may be permissible.

With regard to the general question of value of the data it is negligible and it is extremely unlikely that any company will pay for such generic anonymous data. The only exception I can think of would be a website highly focused on a particular vertical market and has significant traffic volumes (e.g. 100,000's).

I hope the above helps clarify the situation and highlights the complexity of data retention and a companies responsibility in this regard. Again I would strongly advise you to contact the DPC to clarify the situation.

Dave

Graham

If you're talking aggregate data there's a small outfit with offices in Dublin that provides a similar product, they're called Googly or something along those lines :pac:

On a serious note, are you sure you can provide anything over and above the worlds largest data pimping outfit?

The value of a sites membership (for non fee-paying sites) is generally underwritten by the value of the special interest group/groups that it hosts. Providing tightly targeted advertising opportunities to high-value special interest groups could be lucrative but unless you're already involved in those special interest groups (or can get someone on board who is) you're going to have the same problem as everyone else trying to target those groups. How do you reach them in the first place to convince them to join?

Max001

Hi Dave

Thanks for that.

I've been working with data protection regs since they were
enacted and am well acquainted with everything contained
therein. I mean website user data in the format that brands
currently purchase.

Assume the information supplied to brands complies with data
regs and relates to website visitors in quantities that are statistically
valid. The exception you mention is exactly the scenario envisaged.

How or where can I find out how to approximately value the reports
generated from this data, or who can I talk to?

Cheers
Max

Max001

Graham wrote: »

If you're talking aggregate data there's a small outfit with offices in Dublin that provides a similar product, they're called Googly or something along those lines :pac:

On a serious note, are you sure you can provide anything over and above the worlds largest data pimping outfit?

The value of a sites membership (for non fee-paying sites) is generally underwritten by the value of the special interest group/groups that it hosts. Providing tightly targeted advertising opportunities to high-value special interest groups could be lucrative but unless you're already involved in those special interest groups (or can get someone on board who is) you're going to have the same problem as everyone else trying to target those groups. How do you reach them in the first place to convince them to join?

Thanks Graham. I have solutions to the issues you've raised. The idea has been thoroughly researched, bar this one aspect. That being how to approximately value website user info reports.

Thanks for your comments guys, however would anyone else reading this thread, please assume full research has been done and foreseeable issues addressed. At this point I'm only seeking answers to the one question I've raised here.

Cheers

Graham

I would suggest the value of the data is likely to be a very nice round number:

0

unless your data offers an insight that other visitor traffic data providers cannot provide.

Google, Facebook, LinkedIn all have vast quantities of data and their data acquisition extends way beyond the reach of their own web properties (through Like buttons etc) but none of them appear to generate much revenue through the sale of that data alone.

What is it about your visitor traffic data that you think it is going to have any value?

Peterdalkey

OP unless you can explain how the data you intend to amass and one assumes deliver is some useful format has a value/market, it is difficult, nay, impossible to value. Just because you can mine it does not mean it has a real commercial value. If you look at the price of online banner advertising where at least it is visible to an actual site vistor, raw data could only be worth a tiny percentage of that number, if anything at all. It also seems very odd that you would develop a product and have no idea of how it might be priced or that it has intrinsic value to the market.

Or you may just have found the new bitcoin!!

Max001

I asked a simple question.

How does one value website user data.

I'm not re-inventing the wheel.

Instead of useful help, all I got were
off topic questions and comments.

I'll get the info I'm looking for elsewhere!

Suggestion: answer the question that's asked
or don't say anything :rolleyes:

Graham

If you're smart, from the above exchange you will deduce a few of the questions any potential purchaser of your data is going to ask.

i.e. what sort of data is it, why should I buy it from you instead of talking to Google/Nielsen.

Atomico

Max001 wrote: »

but I can't get any reliable figures
on how much brands will pay for website user data.

Hi OP,

That's no surprise to me and there's a very good reason for that - there are no reliable figures for what brands will pay for website user data because it would depend on a multitude of factors?!

-What kind of websites?

-What kind of brands? What sectors? What size? What budgets do they have?

-Why would they pay for website user data? Are you talking about websites which you will own and market?

There are companies out there with massive funding who can provide this kind of data in aggregate form to companies, usually via advertising and / or re-targeting platforms. Think AdRoll, Quantcast to name but two. You're talking about gigantic quantities of data here, and companies with thousands or tens of thousands of customers.

So I'm not really sure what you're trying to achieve here at all.

Peterdalkey

Bit like a guy advertising for sale a Metallic Blue car with alloy wheels 2007 for sale. Best offer secures! Can see him getting a lot of calls too!

terryhobdell

Peterdalkey wrote: »

Bit like a guy advertising for sale a Metallic Blue car with alloy wheels 2007 for sale. Best offer secures! Can see him getting a lot of calls too!

€20 are the tyres pumped?

jhegarty

Are you talking about a service like compete.com ?

sawdoubters

http://www.sitemeter.com/

devildriver

Max001 wrote: »

I asked a simple question.

How does one value website user data.

In fairness Max, it may be a simple question but the answer is anything but. There are so many variables and unknowns that it's quite difficult to even get a ballpark.

Max001 wrote: »

I'm not re-inventing the wheel.

No, but your asking how much your wheel is worth without giving any detailed information as to it's possible value, it's uniqueness in the market or even the identity of these shadowy wheel merchants that might like to buy it!

Max001 wrote: »

Instead of useful help, all I got were
off topic questions and comments.

I disagree. Your question while simple needs a complex answer which begs more questions. And that's what you got, valid questions about the data you are trying to value.

Max001 wrote: »

I'll get the info I'm looking for elsewhere!

Please report back as I would love to hear the answer.

Max001 wrote: »

Suggestion: answer the question that's asked
or don't say anything :rolleyes:

Suggestion: Accept that people are trying to help you with a bit more graciousness.