Marketing agencies
Marketing Agencies: A Practical Guide to Licensing Historical Business Data for AI
AI-assisted educational guide with automated source checks. FirmSignal is independent of Mode and may earn a referral fee if you complete a qualifying transaction through our link. Eligibility, valuation, terms and data handling are determined by the buyer.
Marketing agencies can unlock new revenue streams by licensing their historical business data for AI. This data, which includes campaign operations, briefs, revision histories, and approval workflows, can be valuable for training AI models. However, agencies must carefully consider what data to license, how to protect sensitive information, and how to ensure compliance with relevant laws and regulations. In this guide, we will explore the opportunity, what makes operational context useful, and provide a concrete first assessment for marketing agencies looking to license their historical business data for AI. According to Mode, companies with several years of operating records and a strong fit with the required criteria may be eligible for a company data partnership [1].
What is a Company Data Partnership?
A company data partnership is an agreement between a company and a data buyer, such as Mode, where the company licenses its historical business data for use in AI research and training. The data can include email, documents, chat, CRM, and billing data, among other types. The partnership agreement defines the scope of the data to be licensed, the terms of the license, and the payment to be made to the company.
- Define the scope of the data to be licensed
- Determine the terms of the license
- Negotiate the payment to be made to the company
What Makes Operational Context Useful?
Operational context is useful because it provides a rich source of information about how a company operates, including its workflows, decision-making processes, and communication patterns. This information can be used to train AI models to perform tasks such as workflow automation, decision support, and customer service. For example, a marketing agency's operational context might include data on campaign planning, execution, and measurement, which could be used to train an AI model to optimize campaign performance.
- Identify the operational context data to be licensed
- Determine how the data will be used to train AI models
- Consider the potential benefits of workflow automation and decision support
Concrete First Assessment
To conduct a concrete first assessment, marketing agencies should start by identifying the types of data they have that could be licensed for AI research and training. This might include data on campaign operations, briefs, revision histories, and approval workflows. The agency should then consider the potential value of this data to AI researchers and trainers, and determine whether it has the necessary rights and permissions to license the data. The agency should also consider the potential risks and challenges associated with licensing its data, such as the risk of sensitive information being compromised. As the Federal Trade Commission (FTC) notes, protecting personal information is crucial to preventing fraud, identity theft, and other harms [2].
- Identify the types of data to be licensed
- Determine the potential value of the data to AI researchers and trainers
- Consider the potential risks and challenges associated with licensing the data
Hypothetical Worked Example
Let's consider a hypothetical example of a marketing agency that wants to license its historical business data for AI research and training. The agency has a large dataset of campaign operations, including briefs, revision histories, and approval workflows. The agency determines that this data could be valuable for training AI models to optimize campaign performance, and decides to license it to a data buyer. The agency works with the data buyer to define the scope of the data to be licensed, determine the terms of the license, and negotiate the payment to be made to the agency.
- Define the scope of the data to be licensed
- Determine the terms of the license
- Negotiate the payment to be made to the agency
Inventory of Data to be Licensed
The marketing agency's inventory of data to be licensed might include the following entries:
1. Campaign operations data, including briefs, revision histories, and approval workflows, with a system coverage of 2018-2022, internal owner of the data marketing team, and useful workflow context of campaign planning and execution. Exclusions might include sensitive client information and confidential campaign strategies.
2. Customer interaction data, including email, chat, and phone call records, with a system coverage of 2020-2022, internal owner of the data customer service team, and useful workflow context of customer support and issue resolution. Exclusions might include personal customer data and confidential communication.
3. Workflow automation data, including data on task assignments, deadlines, and completion status, with a system coverage of 2019-2022, internal owner of the data operations team, and useful workflow context of workflow optimization and process improvement. Exclusions might include sensitive employee information and confidential workflow procedures.
4. Sales and revenue data, including data on sales performance, revenue growth, and customer acquisition, with a system coverage of 2018-2022, internal owner of the data sales team, and useful workflow context of sales strategy and revenue forecasting. Exclusions might include sensitive financial information and confidential sales strategies.
- Campaign operations data
- Customer interaction data
- Workflow automation data
- Sales and revenue data
Questions to Ask a Buyer
When licensing historical business data for AI research and training, marketing agencies should ask the buyer a number of questions, including: What is the intended use of the data? How will the data be protected and secured? What are the terms of the license, and how will payment be made? What are the potential risks and challenges associated with licensing the data, and how will they be mitigated?
- What is the intended use of the data?
- How will the data be protected and secured?
- What are the terms of the license, and how will payment be made?
Uncertainty and Risk
There is always some uncertainty and risk associated with licensing historical business data for AI research and training. The agency may not be sure how the data will be used, or whether it will be protected and secured properly. The agency may also be concerned about the potential risks and challenges associated with licensing the data, such as the risk of sensitive information being compromised. To mitigate these risks, the agency should carefully consider the terms of the license, and ensure that the buyer is reputable and trustworthy.
- Carefully consider the terms of the license
- Ensure that the buyer is reputable and trustworthy
- Mitigate potential risks and challenges
Frequently asked questions
What is a company data partnership?
A company data partnership is an agreement between a company and a data buyer, such as Mode, where the company licenses its historical business data for use in AI research and training.
What makes operational context useful?
Operational context is useful because it provides a rich source of information about how a company operates, including its workflows, decision-making processes, and communication patterns.
How can marketing agencies license their historical business data for AI research and training?
Marketing agencies can license their historical business data for AI research and training by defining the scope of the data to be licensed, determining the terms of the license, and negotiating the payment to be made to the agency.
Sources and further reading
Program criteria can change. Confirm current eligibility and written terms with the buyer. Hypothetical examples illustrate preparation and are not actual transactions.