Unlock Smarter Strategies with Syndicated Data—But Know the Rules
By Trevor Thiel, Boiron USA Senior Sales Analyst
In the over-the-counter (OTC) space of the consumer-packaged goods (CPG) industry, data has become an essential resource for making informed decisions and ensuring products reach store shelves. Retailers and manufacturers rely heavily on syndicated data to understand market trends, consumer behavior, and competitive dynamics to enable smarter merchandising, pricing, and promotional strategies. Accurate and timely data insights can make the difference between a product’s success or failure on the shelf. However, as the importance of data grows, it is equally vital for organizations to fully understand the limitations and licensing terms associated with the syndicated data they purchase. Misuse or unauthorized sharing can lead to legal risks and can damage valuable business relationships. Therefore, a clear comprehension of data usage rights is essential for leveraging these insights responsibly and effectively.
Three major syndicated data providers dominate the OTC space: Circana, NielsenIQ, and SPINS. For context, Circana specializes in point-of-sale data, panel data, and shopper behavior analytics across food, drug, and mass channels. NielsenIQ provides similar comprehensive retail measurement data, primarily through scanner sales tracking, and offers insights into pricing, promotion, and distribution across traditional retail, including drugstores and grocery channels. SPINS provides comparable point-of-sales and retailer measurement data but with a specialization on the natural market. While each of the companies may collect their data in different ways or have unique specializations, one thing that is fairly consistent is their policies on how this data can be shared.
- Circana prohibits redistribution or external uploading of proprietary data. The company’s Terms and Privacy Policy state that all data use must align with the original contract and is typically restricted to internal use only: “You may not distribute, modify, transmit, reuse, download, repost, copy, or use the content [...] for commercial purposes or personal gain without express prior written permission.”
- NielsenIQ also restricts the sharing of data to third parties without prior written consent from the company. The company also explicitly states within its Terms and Conditions: “Users are prohibited from use of any artificial intelligence (AI) alongside NIQ Services or Content.”
- As for SPINS, they have a similar policy where there are limitations on how the data can be shared. Any sharing of data with a third party would have to coincide with a written agreement from the company according to its Permissible Uses Policy.
While Circana and SPINS may not specifically call out AI within the policies, it could ultimately fall under the areas referring to sharing data with a third party. Given these strict data use and sharing restrictions, it is essential to carefully navigate how proprietary information is handled when developing AI-driven tools.
There are multiple ways to leverage AI internally to enhance the value of the data to which you subscribe. AI can help create the basic code needed in Visual Basic for Applications (VBA) use in Microsoft Office Excel macros or formulas to assist in generating sophisticated formulas, building dynamic dashboards, and identifying patterns or anomalies that might be difficult to spot manually. Different AI platforms can go as far as creating the template for you, for example in Excel, where all that would be needed is to input the raw data on the user end. This approach avoids the need to upload to an AI platform directly. Depending on one’s familiarity with AI and local computing tools, different types of code can be written with AI to develop an array of custom-built in-house tools.
Data remains a critical asset within the OTC industry, driving informed decisions and strategic growth. At the same time, the rise of AI presents exciting opportunities to unlock new insights and efficiencies. However, it is essential to understand and adhere to the terms governing data use to ensure compliance and protect proprietary information. By carefully navigating data agreements and leveraging AI thoughtfully, companies can confidently harness the full potential of their data while mitigating risks associated with emerging technologies.
References
1. Circana. “Terms and Conditions.” Chicago, IL (2024).
2. NielsenIQ. “Terms of Use.” Chicago, IL (2024).
3. SPINS. “Permissible Uses Policy.” Chicago, IL (2022)