A data broker is a business that collects, processes, and sells data, including consumer information, to third-party entities for various purposes, such as marketing, research, and analytics.
The data brokerage model enables businesses to gather and sell large amounts of data. It also allows buy-side companies to put big data to use to identify new opportunities and better strategies. However, the data brokerage model comes with cons. It’s somewhat outdated - there are more efficient platforms for data exchange. Also, there are concerns surrounding data brokers over the privacy and security of personal data, potential misuse of data, and the lack of transparency and control over how data is being used.
Recent advancements in technology and the data industry have led to the development of new data commerce software to replace the data broker. These software solutions allow for more secure and transparent ways for businesses to share and monetize their data while maintaining consumer control over how it is used.
So while the data brokerage model has played a significant role in the data economy, it is becoming increasingly outdated as consumers demand greater control over their data and new software solutions emerge to meet these needs.