THE VALUE OF DATA CONSEQUENCES FOR INSIGHT, INNOVATION & EFFICIENCY IN THE US ECONOMY DECEMBER 2015 COMMISSIONED BY. John Deighton

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1 THE VALUE OF DATA // 2015 CONSEQUENCES FOR INSIGHT, INNOVATION & EFFICIENCY IN THE US ECONOMY DECEMBER 2015 John Deighton Baker Foundation Professor of Business Administration Harvard Business School and Peter A. Johnson, PhD Principal, mlightenment Economic Impact Research and recent Adjunct Professor Columbia University Preface by Lindsay Hutter and Neil O Keefe Data-Driven Marketing Institute Co-Executives COMMISSIONED BY

2 PREFACE BY DMA The following views are solely those of the Direct Marketing Association, its Data Driven Marketing Institute, and Lindsay Hutter and Neil O Keefe, Co-Executives of the Institute. These views are not necessarily the views of the authors of the Value of Data Report, Professor John Deighton and Peter Johnson, PhD, nor are the authors responsible for the Preface s characterization of their report. In 2013, the Direct Marketing Association and its Data-Driven Marketing Institute commissioned Professor John Deighton and Peter Johnson, PhD, to conduct research on a never-before studied topic: the Data-Driven Marketing Economy (). The result was, The Value of Data: Consequences for Insight, Innovation and Efficiency in the US Economy. The 2013 report and this updated 2015 report describe the as the economy of firms that exist to help US companies use individual-level consumer data (ILCD) to support marketers as they go to market, designing and implementing strategies by which they acquire and retain customers in other words, grow demand for their goods and services. For the first time, this industry and the jobs it generated were quantified initially in the 2013 report and now updated in this 2015 report. These reports have given stakeholders in the future success of the US economy insight into the size, scope and significance of this new and bourgeoning sector of the economy, and what might be at stake in regulating it. Considering that most industries in America rely on data-driven marketing, this systematic and objective effort to map and measure the delivered value and perspective on the US economy s current and future success. Both reports fill a significant gap in understanding the massive changes transforming the US economy changes propelled by the growing quantity and variety of data available to businesses and consumers alike. The 2015 Value of Data report now represents the most thorough, up-to-the-moment and theoretically-informed study yet undertaken of the and its expanding role as a vital driver of marketplace efficiency, consumer value and economic and job growth at a national level and within all 50 US states. For those most responsible for policies that support continued US economic growth and foster innovation that benefits consumers and the marketplace, DMA believes this report attests to the importance of five critical questions: How much incremental value does data-driven marketing contribute to the US economy and jobs? How much efficiency and critical insight does data-driven marketing contribute to the success of businesses of all sizes, and particularly small businesses, in the US economy? How much value does data-driven marketing contribute to ensuring consumers receive marketing information they need and desire? How much of this value to the US economy is accounted for by the transfer of data among firms? What new policy approaches should be considered today in education and jobs training to build upon the s success in driving economic growth and adding high-value science, technology, engineering and math (STEM) positions into the US economy? DMA 1333 Broadway, Suite 301 New York, NY 10018

3 The following key findings from the 2015 Report substantiate the importance of the questions on the preceding page. 1 2 The US is a Growth and Jobs Catalyst for the US Economy. The use of data-driven marketing added $202 billion in revenue to the US economy in 2014, up from $150 billion in 2012 and representing impressive growth of 35% in just two years. Equally impressive was employment growth within firms. By 2014, firms employed 966,000 professionals, from 49% - or 650,000 jobs over The US is a Jobs Catalyst for Every State in the US. All 50 US states experienced jobs growth in the from 2012 to From East Coast to West Coast and in between, jobs growth was significant. For example, California s related jobs grew from 89,000 to 128,478. Michigan s grew from 17,000 to 25,116, and New York grew from 51,000 to 78, The US Produces High-value Jobs Here in America that are Integral to the Emerging Internet of Things (IoT) Economy. The US leads the world in data science applied to the marketplace, and data-driven marketing is a major export industry. firms derive a considerable portion of their revenue abroad (sometimes upwards of 15%) while employing nearly all their workers in the US. Most of the growth in the from 2012 to 2014 was fueled by two sectors electronic commerce and digital audience assembly that DMA believes represent the pillars of the emerging IoT economy. Electronic commerce, which represents 22% of entire data-driven marketing ecosystem, grew an impressive 45%. Digital audience assembly, which represents 13% of ecosystem, grew a remarkable 86%. 4 The US Leads the World in this Innovative Field. Ideas developed in the US by American statisticians and econometricians, running on hardware designed in the US and coded in algorithms developed and tested in the research offices of US firms, are used throughout the world. No other nation produces the range and depth of datadriven marketing innovation and societal and economic benefits. Data-driven marketing is a significant export of the US economy. The 2015 Value of Data report found that firms earned a significant part of their revenues abroad about 15% in some cases while employing STEM-trained workers in the US. THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy DMA PREFACE

4 Informing current and future policy discussions. As with the prior Value of Data report, DMA and DDMI intend for the 2015 report to be a resource to policymakers and those that report on the and its vital role in the US economy. We believe that this 2015 report affirms the following essentials for policy discussions: Regulatory Debates about the Use of Data Should be Based on Facts about the Value of Data. Legislators and regulators continue to show a deep interest in understanding how data is used within the. The 2015 report updates policymakers with current data and facts about the vital and growing role of data use in fueling innovation, economic and job growth nationally and in all 50 states. Regulation Impacts Innovation, Small Businesses, Jobs and Economic Growth. New regulations stopping the exchange of data across the would impact $102 billion in revenue to the US economy and over 490,000 American jobs. The biggest winners in the innovation and small businesses would also be the biggest losers if startups could no longer use data to overcome barriers to entry, raise ad-supported revenue, and identify new and niche markets to serve. The Bottom Line: Well-Meaning, yet Potentially Misinformed Legislation or Regulation Restricting the Responsible Use of Data Would Harm the US Economy. It would impact billions of dollars in revenue and hundreds of thousands of jobs, make small business less competitive, and stifle innovation. It would hurt consumers by limiting choices, preventing consumers from being exposed to the best prices available, stalling the efficiencies that drive a more competitive marketplace, and impeding the innovation that delivers enhanced and more valuable marketing experiences for consumers. We hope that it provides policymakers with facts that show the vital role that data plays in fueling innovation, jobs and economic growth. We also hope that it brings clarity, quantification and demonstration of the benefits that the provides to consumers, individual businesses and the US economy and what would be lost if regulations and regulatory actions impeded responsible exchange of data across the. Lindsay Hutter Co-Executive, DDMI & Senior Vice President Communications & PR, DMA Neil O Keefe Co-Executive, DDMI & Senior Vice President CRM & Member Engagement, DMA DMA PREFACE THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

5 EXECUTIVE SUMMARY THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 15

6 EXECUTIVE SUMMARY This report updates our 2013 study of the size and composition of the US data-driven marketing economy (), the ecosystem of supplier firms that help marketers use individual-level customer data (ILCD) to efficiently select, contact, and transact with end customers (whether individual consumers or business buyers) via individually interactive media (IIM) and non-media touchpoints. Our 2015 study finds that firms in the economy received a net $202 billion from providing ILCD marketing services to the nation s producers and distributors of goods and services. Assuming firms make outlays in expectation of at least equal return, the use of the added output to the US economy worth at least $202 billion and likely significantly more, so that $202 billion should be regarded as a lower bound on the contribution of ILCD to the US economy. In providing these services, the s firms together employed about 966,000 individuals. As in 2013, our 2015 study found that ILCD reduced inefficiency in matching producers and customers, or increased effectiveness, and in most cases did both. ILCD was used both offline and online. It was used for targeting prospective customers and for interaction with existing customers. We found the total value of marketers expenditures on ILCD services in the grew 35% over 2013 s base of $150 billion. Most of this growth was driven by sustained growth in two segments of the : in electronic commerce, which represents about 22% of the entire ecosystem and grew 45% in the two years, and digital (particularly mobile and social) audience assembly, which, while smaller at 13% of the total, grew 86%. Postal production, another large segment, did not grow at all. Consistent with our 2013 findings, we attribute 2015 s overall size and growth of the to the following perceived benefits offered to marketers: Measurable efficiency in marketing strategy and media budgeting and buying. The offers more targetable media and direct marketing channels than do traditional mass or broadcast media. Individual targeting enables producers to identify and select only those customers most likely to buy the producer s offering - people who do not need costly persuasion - thus avoiding wasted spending on messaging to people unlikely to buy. Greater marketing insight. Using ILCD to measure response to marketing actions, marketers can test how hundreds, even thousands of components of their marketing produce different levels of results, thus discovering how to tailor their offerings to consumer preferences and needs. Lower barriers to marketing entry. Our study found that the cost structure of services is much more favorable for smaller, less heavily capitalized firms challenging entrenched incumbents, than is that of broadcast marketing services. For example, search engine marketing is accessible to small budgets while television advertising is not. Several factors explain this difference. First, ILCD s more precise targeting can achieve same effects with lower budgets whenever advertising is priced on a cost per audience or cost per action basis. Second fixed costs in ILCD media tend to be lower in broadcast so that more of an ad budget can be spent on reaching a bigger audience (a variable cost). Third, startups and small- and medium-sized businesses can license third-party data for prospecting new customers. This helps them to compete with established brands proprietary databases of customers. Altogether, ILCD services, particularly those enabling thirdparty data for new market entrants and entrepreneurial firms help keep the US economy diversified and innovative, and its price levels competitive. 16 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

7 EXECUTIVE SUMMARY The is a significant growth sector of the US export economy. The US leads the world in reengineering markets through data science. Ideas developed in the US by American statisticians and econometricians, running on hardware designed in the US and coded in algorithms developed and tested in the research offices of US firms, are used throughout the world. Our study found that firms in the earned a significant part of their revenues (sometimes upwards of 15%) from revenues earned outside the US while they employed most of their STEM-trained development staffs within the US. The benefits from innovation in digital content creation and distribution, which create rich ILCD opportunities for marketing and advertising. Individual-level data not only makes efficiencies possible relative to non- marketing, but it enables efficiencies to be identified within the s targetable media. The has fostered startup entrepreneurship particularly in building digital content to be funded through marketing targeted to individuals, particularly in social media and ecommerce. These platforms have embraced or innovated new ways for technology to collect, store and analyze the often enormous quantities of unstructured data that online publishers, especially in social media, are able to glean from their first-party relationship with their audiences. On the later point, our current analysis continues 2013 s investigation of how the size and growth of the overall reflects the structure and interplay of its component segments along two separate dimensions: first, the dollar dimension in which marketer expenditures fund distinct segments supplying strategy, intermediation in ILCD media purchasing, and media production and delivery, including transacting and fulfillment; and second, a data flow dimension, in which ILCD data flows in the opposite direction to dollars, namely from end customers via ILCD media and transaction touchpoints and on towards media buying intermediaries, strategy providers, and of course, marketers. Our study analyzes the by segment because we found a great variety in how different business models collect, analyze and use individual data. Almost every marketer has its own house file of customer records (first-party data) which it uses as is to buy some ILCD media in the. But, a much larger portion of the in the US comprises a large transparent secondary market in which marketers or publishers first party data (data from their customers or audiences) can be curated or deployed on their behalf by service firms, or licensed via intermediaries to other marketers for their own use to grow their business at which point first-party data becomes third party data. This ability to acquire and deploy the right mix of data and third-party data is what empowers US firms to read ever more precisely the needs and wants of vast numbers of consumers, whose anonymity, without the, would otherwise go unfathomed. In 2015, we find significant growth in marketers reliance on marketing services involving thirdparty data. We estimate that services reliant on third-party data have increased in net value added by $12 billion, or 39% relative to 2013; in addition, the value added by services indirectly reliant on servicing marketers first-party data grew at 24%. More than half of the, or almost $102 billion of revenue in the ecosystem, and almost 500,000 jobs, depend directly or indirectly on individual-level third-party data. Thus the value to the US economy is greater than $102 billion. As important as first- or third-party data may be to marketers efforts to grow their business, marketers spend money on ILCD for the same reason they once spent on broadcast: advertising in media that most efficiently reaches customers. Just as ad dollars subsidized the birth of America s offline, broadcast media economy, revenue is underwriting media s transformation from analog to digital. Indeed, for legacy branded, multichannel media, ILCD ad revenues represent the monetary lifeboat that they hope will rescue their leaking offline business models. To serve online marketers and ad THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 17

8 EXECUTIVE SUMMARY agencies, ` these digital migrants must rely on the innovative, but highly complex volatile and sometimes controversial sector we call audience targeting providers (but often known as ad tech to insiders). In this digital ad market, branded media must also compete head-to-head for ad dollars with another sector that is not so dependent on third-party adtech: social media publishers. And so while the distinction between first- and third-party ILCD services may appear arcane from a technology or policy perspective, it is not. A responsibly managed market in third-party data is vital to the survival of news and other forms of branded media in the face of media that don t need third-party data because theirs is first-party data. 18 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

9 SUMMARY OF FINDINGS TABLE 1: Total Value-Added Revenues and Dependence on Type of Data Total Value-Added Revenues 2012 (Revised) $ Millions 2014 $ Millions Change Percent Total value added to the economy $150,000 $202,000 35% Of which: Value added by services that depend directly on 3rd party data $31,000 $45,000 45% Value added by services that indirectly depend on 3rd party data $46,000 $57,000 24% Value added by services exclusively dependent on 1st party data $73,000 $99,000 36% TABLE 2: Total Value-Added Total Added to the Economy 2012 (Revised) Employees 2014 Employees Change Percent Total employment added to the economy 650, ,000 49% Of which: added by services that depend directly on 3rd party data added by services that indirectly depend on 3rd party data added by services exclusively dependent on 1st party data 134, ,000 56% 199, ,000 60% 316, ,000 39% THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 19

10 SUMMARY OF FINDINGS TABLE 3: Value-Added Revenues by Sector THE Business Segment Agency Holding Companies General Independent Agencies Total contribution of sector to 2012 (Revised) ($Millions) Value added by services that depend directly on 3rd party data Value added by services that indirectly depend on 3rd party data Value added by services Involving 1st party data Total contribution of sector to 2014 ($Millions) Value added by services that depend directly on 3rd party data Value added by services that indirectly depend on 3rd party data Value added by services Involving 1st party data $7,000 $1,000 $4,000 $2,000 $11,000 $2,000 $5,000 $4,000 $2,000 $0 $1,000 $0 $3,000 $1,000 $1,000 $1,000 Digital Agencies $2,000 $0,000 $1,000 $0 $5,000 $0 $3,000 $3,000 Direct/CRM Agencies Measurement/ Analytics Digital Audience Assembly Search Audience Assembly Audience Targeting Direct/CRM Customer Targeting Postal Production Customer Delivery $2,000 $1,000 $0 $0 $3,000 $2,000 $0 $0 $3,000 $2,000 $0 $2,000 $4,000 $2,000 $0 $2,000 $14,000 $7,000 $3,000 $4,000 $26,000 $13,000 $5,000 $8,000 $19,000 $2,000 $0 $17,000 $25,000 $3,000 $0 $23,000 $4,000 $4,000 $0 $0 $6,000 $6,000 $0 $0 $7,000 $3,000 $2,000 $2,000 $10,000 $4,000 $3,000 $3,000 $32,000 $1,000 $19,000 $11,000 $32,000 $1,000 $19,000 $11,000 $2,000 $1,000 $1,000 $0 $1,000 $1,000 $0 $0 Teleservices $10,000 $2,000 $6,000 $2,000 $10,000 $2,000 $6,000 $2,000 Mobile Customer Targeting Commerce - ecommerce Commerce - Loyalty Commerce - Fulfillment $2,000 $0 $0 $2,000 $3,000 $0 $1,000 $2,000 $31,000 $4,000 $7,000 $20,000 $45,000 $6,000 $9,000 $30,000 $5,000 $2,000 $0 $2,000 $5,000 $2,000 $1,000 $2,000 $9,000 $0 $2,000 $6,000 $11,000 $0 $3,000 $9,000 Total $150,000 $31,000 $46,000 $73,000 $202,000 $45,000 $57,000 $99, THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

11 SUMMARY OF FINDINGS TABLE 4: by Sector The 2012 Revised 2014 Business Segment Agency Holding Companies General Independent Agencies Total Employees that depend directly on 3rd party data Employees that indirectly depend on 3rd party data Employees dependent on 1st party data Total Employees that depend directly on 3rd party data Employees that indirectly depend on 3rd party data Employees dependent on 1st party data 30,000 5,000 16,000 9,000 53,000 11,000 24,000 18,000 9,000 2,000 6,000 1,000 14,000 3,000 6,000 5,000 Digital Agencies 7,000 2,000 4,000 1,000 26,000 2,000 13,000 12,000 Direct/CRM Agencies Measurement/ Analytics Digital Audience Assembly Search Audience Assembly Audience Targeting Direct/CRM Customer Targeting Postal Production Customer Delivery 7,000 6, ,000 13,000 10,000 1,000 2,000 14,000 7, ,000 19,000 10, ,000 62,000 31,000 12,000 19, ,000 63,000 25,000 38,000 82,000 8, , ,000 12, ,000 17,000 16,000 1, ,000 27,000 1, ,000 12,000 9,000 9,000 50,000 19,000 14,000 14, ,000 5,000 84,000 49, ,000 5,000 94,000 55,000 7,000 3,000 3,000 1,000 6,000 3,000 2,000 1,000 Teleservices 43,000 10,000 25,000 8,000 48,000 11,000 28,000 9,000 Mobile Customer Targeting Commerce - ecommerce Commerce - Loyalty Commerce - Fulfillment 11, ,000 10,000 13,000 1,000 3,000 9, ,000 16,000 29,000 88, ,000 28,000 44, ,000 20,000 10, ,000 26,000 11,000 5,000 10,000 37, ,000 28,000 55, ,000 41,000 Total 650, , , , , , , ,000 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 21

12 SUMMARY OF FINDINGS TABLE 5: Induced 2012 Revised 2014 Incremental Induced Incremental Induced (depends directly or indirectly on 3rd party data) Incremental Induced Incremental Induced (depends directly or indirectly on 3rd party data) Agency Holding Companies 44,391 31,287 78,424 55,273 General Independent Agencies 37,663 35,373 58,587 55,025 Digital Agencies 10,154 8,250 37,715 30,644 Direct/CRM Agencies 11,710 9,954 21,748 18,486 Measurement/ Analytics 20,195 10,098 27,408 13,704 Digital Audience Assembly 92,058 64, , ,960 Search Audience Assembly 121,733 12, ,630 17,963 Audience Targeting 22,075 22,075 37,657 37,657 Direct/CRM Customer Targeting 45,190 31,633 75,316 52,721 Postal Production 204, , , ,293 Customer Delivery 6,891 6,202 5,907 5,316 Teleservices 63,674 51,907 71,078 57,943 Mobile Customer Targeting 15, , Commerce - ECommerce 214,949 73, , ,923 Commerce - Loyalty 30,713 15,357 39,927 19,964 Commerce - Fulfillment 55,218 13,805 82,081 20,520 Total 996, ,000 1,488, , THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

13 SUMMARY OF FINDINGS TABLE 6 Revenues by State State % GDP 2012 Revised 2014 Value- Added Revenue ($Millions) Revenue Dependent on Data Exchange Among Firms State % GDP Value Added Revenue ($Millions) Revenue Dependent on Data Exchange Among Firms California 13.2 $19,800 $10,164 California 13.3 $26,866 $13,566 Texas 9 $13,500 $6,930 Texas 9.5 $19,190 $9,690 New York 8.1 $12,150 $6,237 New York 8.1 $16,362 $8,262 Florida 4.8 $7,200 $3,696 Florida 4.9 $9,898 $4,998 Illinois 4.4 $6,600 $3,388 Illinois 4.3 $8,686 $4,386 Pennsylvania 3.9 $5,850 $3,003 Pennsylvania 3.8 $7,676 $3,876 Ohio 3.4 $5,100 $2,618 Ohio 3.4 $6,868 $3,468 New Jersey 3.3 $4,950 $2,541 New Jersey 3.2 $6,464 $3,264 Georgia 2.7 $4,050 $2,079 Georgia 2.8 $5,656 $2,856 North Carolina 2.8 $4,200 $2,156 North Carolina 2.8 $5,656 $2,856 Massachusetts 2.7 $4,050 $2,079 Massachusetts 2.7 $5,454 $2,754 Virginia 2.8 $4,200 $2,156 Virginia 2.7 $5,454 $2,754 Michigan 2.6 $3,900 $2,002 Michigan 2.6 $5,252 $2,652 Washington 2.4 $3,600 $1,848 Washington 2.5 $5,050 $2,550 Maryland 2.1 $3,150 $1,617 Maryland 2.0 $4,040 $2,040 Indiana 1.9 $2,850 $1,463 Indiana 1.8 $3,636 $1,836 Minnesota 1.8 $2,700 $1,386 Minnesota 1.8 $3,636 $1,836 Colorado 1.7 $2,550 $1,309 Colorado 1.8 $3,636 $1,836 Wisconsin 1.7 $2,550 $1,309 Wisconsin 1.7 $3,434 $1,734 Tennessee 1.7 $2,550 $1,309 Tennessee 1.7 $3,434 $1,734 Missouri 1.7 $2,550 $1,309 Missouri 1.6 $3,232 $1,632 Arizona 1.7 $2,550 $1,309 Arizona 1.6 $3,232 $1,632 Connecticut 1.5 $2,250 $1,155 Connecticut 1.5 $3,030 $1,530 Louisiana 1.6 $2,400 $1,232 Louisiana 1.5 $3,030 $1,530 Alabama 1.2 $1,800 $924 Alabama 1.2 $2,424 $1,224 Oregon 1.3 $1,950 $1,001 Oregon 1.2 $2,424 $1,224 Kentucky 1.1 $1,650 $847 Kentucky 1.1 $2,222 $1,122 South Carolina 1.1 $1,650 $847 South Carolina 1.1 $2,222 $1,122 Oklahoma 1.1 $1,650 $847 Oklahoma 1.1 $2,222 $1,122 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 23

14 SUMMARY OF FINDINGS TABLE 6 (Continued) Revenues by State State 2012 Revised 2014 % GDP Value- Added Revenue ($Millions) Revenue Dependent on Data Exchange Among Firms State % GDP Value Added Revenue ($Millions) Revenue Dependent on Data Exchange Among Firms Iowa 1.0 $1,500 $770 Iowa 1.0 $2,020 $1,020 Kansas 0.9 $1,350 $693 Kansas 0.8 $1,616 $816 Utah 0.8 $1,200 $616 Utah 0.8 $1,616 $816 Nevada 0.8 $1,200 $616 Nevada 0.8 $1,616 $816 District of Columbia 0.7 $1,050 $539 District of Columbia 0.7 $1,414 $714 Arkansas 0.7 $1,050 $539 Arkansas 0.7 $1,414 $714 Nebraska 0.6 $900 $462 Nebraska 0.6 $1,212 $612 Mississippi 0.6 $900 $462 Mississippi 0.6 $1,212 $612 New Mexico 0.5 $750 $385 New Mexico 0.5 $1,010 $510 New Hampshire 0.4 $600 $308 New Hampshire 0.4 $808 $408 Delaware 0.4 $600 $308 Delaware 0.4 $808 $408 West Virginia 0.4 $600 $308 West Virginia 0.4 $808 $408 Idaho 0.4 $600 $308 Idaho 0.4 $808 $408 Hawaii 0.5 $750 $385 Hawaii 0.4 $808 $408 Maine 0.3 $450 $231 Maine 0.3 $606 $306 Rhode Island 0.3 $450 $231 Rhode Island 0.3 $606 $306 North Dakota 0.3 $450 $231 North Dakota 0.3 $606 $306 South Dakota 0.3 $450 $231 South Dakota 0.3 $606 $306 Montana 0.3 $450 $231 Montana 0.3 $606 $306 Wyoming 0.3 $450 $231 Wyoming 0.3 $606 $306 Alaska 0.4 $600 $308 Alaska 0.3 $606 $306 Vermont 0.2 $300 $154 Vermont 0.2 $404 $204 TOTAL 100 $150,000 $77,000 TOTAL 100 $202,000 $102,000 GDP Data Source: US Bureau of Economic Analysis 24 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy

15 SUMMARY OF FINDINGS TABLE 7 by State State % GDP 2012 Revised 2014 Dependent on 3rd Party Data State % GDP Dependent on 3rd Party Data California ,000 63,000 California ,478 65,170 Texas 9 60,000 42,000 Texas ,770 46,550 New York ,000 36,000 New York ,246 39,690 Florida ,000 25,000 Florida ,334 24,010 Illinois ,000 21,000 Illinois ,538 21,070 Pennsylvania ,000 19,000 Pennsylvania ,708 18,620 Ohio ,000 16,000 Ohio ,844 16,660 New Jersey ,000 16,000 New Jersey ,912 15,680 Georgia ,000 14,000 Georgia ,048 13,720 North Carolina ,000 13,000 North Carolina ,048 13,720 Massachusetts ,000 13,000 Massachusetts ,082 13,230 Virginia ,000 12,000 Virginia ,082 13,230 Michigan ,000 12,000 Michigan ,116 12,740 Washington ,000 11,000 Washington ,150 12,250 Maryland ,000 10,000 Maryland 2 19,320 9,800 Indiana ,000 9,000 Indiana ,388 8,820 Minnesota ,000 9,000 Minnesota ,388 8,820 Colorado ,000 9,000 Colorado ,388 8,820 Wisconsin ,000 8,000 Wisconsin ,422 8,330 Tennessee ,000 8,000 Tennessee ,422 8,330 Missouri ,000 8,000 Missouri ,456 7,840 Arizona ,000 8,000 Arizona ,456 7,840 Connecticut ,000 8,000 Connecticut ,490 7,350 Louisiana ,000 7,000 Louisiana ,490 7,350 Alabama 1.2 8,000 6,000 Alabama ,592 5,880 Oregon 1.3 8,000 5,000 Oregon ,592 5,880 Kentucky 1.1 8,000 5,000 Kentucky ,626 5,390 South Carolina 1.1 7,000 5,000 South Carolina ,626 5,390 Oklahoma 1.1 7,000 5,000 Oklahoma ,626 5,390 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy 25

16 SUMMARY OF FINDINGS TABLE 7 (Continued) by State State 2012 Revised 2014 % GDP Dependent on 3 rd Party Data State % GDP Dependent on 3 rd Party Data Iowa 1.0 7,000 5,000 Iowa 1.0 9,660 4,900 Kansas 0.9 6,000 4,000 Kansas 0.8 7,728 3,920 Utah 0.8 6,000 4,000 Utah 0.8 7,728 3,920 Nevada 0.8 5,000 4,000 Nevada 0.8 7,728 3,920 District of Columbia 0.7 5,000 3,000 District of Columbia 0.7 6,762 3,430 Arkansas 0.7 5,000 3,000 Arkansas 0.7 6,762 3,430 Nebraska 0.6 5,000 3,000 Nebraska 0.6 5,796 2,940 Mississippi 0.6 4,000 3,000 Mississippi 0.6 5,796 2,940 New Mexico 0.5 3,000 2,000 New Mexico 0.5 4,830 2,450 New Hampshire 0.4 3,000 2,000 New Hampshire 0.4 3,864 1,960 Delaware 0.4 3,000 2,000 Delaware 0.4 3,864 1,960 West Virginia 0.4 3,000 2,000 West Virginia 0.4 3,864 1,960 Idaho 0.4 3,000 2,000 Idaho 0.4 3,864 1,960 Hawaii 0.5 3,000 2,000 Hawaii 0.4 3,864 1,960 Maine 0.3 2,000 2,000 Maine 0.3 2,898 1,470 Rhode Island 0.3 $450 $231 Rhode Island 0.3 2,000 2,000 North Dakota 0.3 $450 $231 North Dakota 0.3 2,000 1,000 South Dakota 0.3 $450 $231 South Dakota 0.3 2,000 1,000 Montana 0.3 $450 $231 Montana 0.3 2,000 1,000 Wyoming 0.3 $450 $231 Wyoming 0.3 2,000 1,000 Alaska 0.4 $600 $308 Alaska 0.4 2,000 1,000 Vermont 0.2 $300 $154 Vermont 0.2 1,000 1,000 TOTAL , ,000 TOTAL , ,000 GDP Data Source: US Bureau of Economic Analysis 26 THE VALUE OF DATA 2015: Consequences for Insight, Innovation and Efficiency in the US Economy