Monetization tips and opportunities for startups and SMEs under the Digital Markets Act (DMA)

The Digital Markets Act is a comprehensive regulation that aims to foster fair competition and address the dominance of large tech companies’ digital platforms. The law applies to designated gatekeeper companies’ platforms, such as online marketplaces and search engines, that have a significant impact on the European market. By helping to ensure a more level playing field, the DMA law provides startups and SMEs with better opportunities to compete and monetize their offerings.

How can you leverage the new rules brought by the DMA privacy law to your advantage as a startup or SME? Keep on reading to find out.

Transparency is a core requirement of the Digital Markets Act, and is also the cornerstone of successful monetization strategies in business online. As a startup or SME you can leverage the DMA to enhance transparency and build trust with your customers.

By clearly communicating your data handling practices, privacy policies, and consent mechanisms —and ensuring you use simple, clear language for the average user— you demonstrate a commitment to respecting consumers and protecting user privacy. This fosters trust, which in turn leads to stronger customer loyalty, higher engagement over time, and increased monetization opportunities.

• Clearly communicate pricing and any fees associated with your services (including when there are changes)
• Provide transparent information about your business practices and policies
• Publish customer reviews and testimonials to showcase social proof
• Potentially provide multiple product or service tiers that customers can grow into, as they may not need a “premium” offering right away
• Offer a money-back guarantee or a free trial to reduce risk for potential customers

Let’s use the case of a startup offering a mobile app. By implementing clear and concise privacy notices, providing granular control over data sharing, and obtaining explicit consent for targeted advertising, the startup can establish itself as a trustworthy brand in the eyes of its users.

In the era of the Digital Markets Act, you can harness the power of collaborative business models to unlock new monetization avenues. Partnering with other companies, both within and outside your industry, enables you to tap into larger customer bases, enrich product or service offerings, and diversify your revenue streams.

By leveraging APIs and data-sharing agreements in compliance with the Digital Markets Act, you can also create innovative solutions and capture new market segments.

• Partner with other complementary startups or established businesses to create joint offerings or cross-promotions
• Consider forming strategic alliances or collaborations with industry influencers or thought leaders
• Explore co-marketing opportunities to reach a wider audience and share resources

Imagine a food delivery startup collaborating with a local restaurant review platform. By sharing data and integrating their services, the startup can offer personalized recommendations to users, while the review platform gains increased visibility and user engagement. This mutually beneficial partnership opens up new monetization opportunities for both parties.

Data is the lifeblood of the digital economy, and as startups or small businesses you’re sitting on a goldmine of valuable user data. The Digital Markets Act emphasizes the importance of data access and portability, helping to level the playing field for smaller players.

By leveraging data analytics and insights, you can make more informed decisions to optimize your monetization strategies. Understanding user behavior, preferences, and trends enables you to tailor your offerings, improve customer experiences, and drive higher conversions.

• Collect and analyze customer data to understand their preferences, behavior, and needs
• Use data to personalize and optimize your offerings, pricing, and marketing strategies
• Leverage data to identify new revenue streams or areas for business growth
• Consider offering data analytics or insights as a separate service to generate additional revenue

A fashion ecommerce startup can analyze customer browsing patterns and frequency, and purchase history to offer personalized recommendations and targeted promotions. By leveraging data-driven insights, the startup can increase cross-selling opportunities, boost customer satisfaction, and ultimately drive revenue growth.

Startups and SMEs must remain agile and embrace innovation to stay ahead of the competition, even more so than well-known or established brands. Fortunately, smaller companies are often more agile than bigger ones, which, having gained success and market dominance, may focus less on innovation and getting ahead of changing trends.

The Digital Markets Act encourages innovation by promoting interoperability and helping to ensure fair access to essential digital platforms and services. By continuously exploring emerging technologies, experimenting with new business models, and adapting to or getting out ahead of market trends, startups can seize monetization opportunities that others might overlook. Never ignore the opportunities of first-mover advantage.

• Continuously monitor market trends and customer needs to identify new monetization opportunities, including outside the usual channels, which may not pick up on more niche or “left field” developments
• Experiment with different pricing models, such as freemium, tiered pricing, or subscription-based models
• Regularly update and improve your products or services based on customer feedback, but be sure to continue to be the driver of your own strategy
• Stay ahead of competitors by investing in research and development to introduce new features or offerings, also test early and often to find true potential

Consider a software-as-a-service (SaaS) startup that offers project management tools. By integrating with popular collaboration platforms and leveraging emerging technologies like artificial intelligence, the startup can enhance its offerings, attract new customers, and position itself as a leader in its market segment.

By embracing transparency, exploring collaborative business models, harnessing data-driven insights, and staying agile, you can unlock the full potential of your venture.

The countdown to get ready for the Digital Markets Act is on. Even though DMA privacy compliance may seem challenging, this regulation is meant to be an ally to small businesses.

To start, it’s essential to understand the data your organization collects, where and how it’s obtained, and who it’s shared with. Review your internal policies regarding data handling, consent acquisition, and data usage, including third-party sharing.

Ensure your website or app is equipped with the right privacy tools for Digital Markets Act compliance. Implement user consent mechanisms that align with DMA requirements and have a comprehensive, clear privacy policy in place. To streamline your compliance efforts, consider adopting a DMA-ready privacy solution, such as the Usercentrics Consent Management Platform (CMP) or the Mobile App SDK. With these steps in place, you’ll be well-prepared for the DMA.