How data collaboration is forging scalable new revenue streams for hybrid business models

Instacart, for example, built a highly profitable ads business to boost revenue. Ticketmaster and Live Nation merged to combine ticketing, concerts, sponsorships and advertising into a data-rich powerhouse. Fandango leveraged its exclusive moviegoer data to provide insights that major studios can’t access alone. Each company has developed a hybrid business model that leverages the collaboration of first-party data to create unique value for partners and drive market stickiness for itself.

It’s time for all ecosystem players to rethink their approach to data collaboration, especially as third-party signals fade, user preferences change and privacy regulations tighten. First-party data is now the currency of growth and influence for those who want to create new revenue streams and fuel business innovation. However, with these shifts, new data pathways and partnerships are emerging with challenges and opportunities. To stay ahead, brands must reimagine how they collaborate, measure impact and navigate the complexities of data-driven growth.

Hybrid business models require a new approach to data

Though hybrid business models increase the speed and scale of partnerships, they complicate how insights are exchanged throughout the marketplace. 

A brand’s media spend is rarely confined to a single platform, but fragmentation makes cross-channel measurement, especially in CTV and audio, a persistent challenge. Each partner has different data policies, with some limiting use cases to segmentation and targeting, leaving brands to source separate partners for measurement and analytics. Contract negotiations can be lengthy, and ensuring privacy compliance requires tracking opt-outs throughout the data supply chain. Effective measurement can only happen when data is linked across every touchpoint and distinguished between households and individuals. With multiple generations, different last names and shared devices now defining the modern household, uncovering accurate, person-level insights is increasingly complex.

While these challenges are considerable, the technology now exists to solve them when interoperability is embraced. For example, a robust identity framework can link data across touchpoints and give brands an accurate and unified view of individuals and households. There are also new measurement solutions capable of delivering a truly comprehensive, deduplicated view of performance across channels and media partners. 

Instacart, Live Nation, Fandango and others have proven that, in this era of hybrid business models, collaborating and acquiring data is the ultimate competitive advantage. Scaling those opportunities is only possible when a connectivity layer and an insights loop exist.

How to unlock and scale data-driven business lines

As brands strategize about capitalizing on this evolving dynamic, they must define their goals and assess resources. Few companies can be everything to everyone. Whether the priority is building in-house capabilities or gaining assets by forging more strategic partnerships, a phased approach to data collaboration is the most effective path forward. 

Brands should identify what makes their data unique and how it can drive value for partners. Define an audience monetization strategy, establish data controls that align with privacy policies and set clear measurement criteria. If managing measurement internally, consider clean rooms to extract granular insights. Start by testing with one or two partners — ideally within a controlled environment like a private data marketplace. Direct deals alone won’t scale.

Once initial use cases are validated, scale to 10 collaborators. Instead of tackling everything at once, partner with a provider offering value beyond its own platform, such as a robust network for seamless ecosystem connectivity and insight into best practices. Imagine plugging into a single access point and gaining visibility into data pricing models, platform specialties and marketplace dynamics — without the technical burden or contractual complexity of managing siloed partnerships.

Investing in automation and interoperability helps achieve meaningful scale while avoiding confining partnerships to a single media platform. With demand from multiple sources, a diversified approach ensures long-term relevance wherever consumers engage. Prioritize flexibility, transparency and self-service tools to support sustainable revenue growth.

Scalable data collaboration is the new growth engine

Following this approach is crucial given the industry’s trajectory toward consolidation. As with DSPs, oversaturated platforms like media networks will consolidate over time. The companies that succeed will be the ones that make audience creation, targeting and measurement seamless, fast and effective.

While data is powerful, it doesn’t sell itself. Success in the era of hybrid business models requires a thoughtful go-to-market strategy, the right technology and a focus on scalability and ease of use. In an increasingly interconnected ecosystem, those who invest in data collaboration will be best positioned to drive long-term business value. 

Sponsored by LiveRamp