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How the data industry will grow despite new regulations

November 18, 2020

How the data industry will grow despite new regulations

Less than a quarter of consumers trust big tech companies like Facebook and Google with their data, and 77 percent want stricter rules governing the way their information is collected and used. But even consumers’ uneasy relationship to businesses collecting their personal information hasn’t hampered the growth of the global data analytics industry, which is tipped to grow from its current value of roughly USD $190 billion up to USD $274 billion by 2022.

Less than a quarter of consumers trust big tech companies like Facebook and Google with their data, and 77 percent want stricter rules governing the way their information is collected and used. But even consumers’ uneasy relationship to businesses collecting their personal information hasn’t hampered the growth of the global data analytics industry, which is tipped to grow from its current value of roughly USD $190 billion up to USD $274 billion by 2022.

Advertisers, marketers, and researchers all rely on this data and insights gleaned from it to inform their decisions. But the industry is in flux as consumer fears are slowly turned into regulatory realities, according to Martin Filz, the chief executive of Australian data analytics company Pureprofile (ASX: PPL).

“We are seeing legislation come into place,” he told guests of Reach Markets’ fortnightly webcast ‘The Insider’ on 4th November.

“In Europe we’ve got the GDPR [General Data Protection Regulation], in the US we’ve got the  Privacy Laws, we have the ACCC here now looking at fining and how companies use data.”

As the volume of data, created by consumers through their online activity increases, these new rules are making it more difficult for marketers, advertisers and researchers to access the specific details that underpin it. Pureprofile’s unique offering differs however, by drawing on declared, first party data willingly provided by millions of consumers across the world.

The business’ approximately 600 clients can access this data through a self-serve, software-as-a-service (SaaS) platform which also enables them to commission surveys to address specific business challenges they might be facing.

Pureprofile can also then analyse the data collected to create deep consumer profiles, helping businesses to understand who their audience are and how to best connect with them.

This model is already proving profitable, with Pureprofile’s most recent quarterly update reporting revenue of $6.4 million – 19% higher than the previous quarter. Earnings before interest, depreciation and amortization (EBITDA) grew 61 per cent during the quarter – up to $878,000.

 

Martin Filz recently  joined us for our fortnightly webcast ‘The Insider’ . This article is a summary of the information Martin shared with us during the session. You can watch a full recording below, or you can click here to book into our next session. 

 

 

Reach Markets have been engaged by PPL to help manage their investor communications. As the advisers assisting with the management of their current Rights Issue and Shortfall, Reach Markets may receive fees depending on its uptake.

 

 

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