The Value of Data
In class, we learned about Google's monetization model. Specifically, we examined how it profits off of selling data about its users including their search history and links they clicked on to advertisers. The advertisers then targeted these users with user-specific ads to significantly increase the chance of users clicking these ads and purchasing these products. Many people consider this practice of selling user data to be quite unethical, as it means that personal information of users is used to profit from private companies, a practice that is not always clear to less technologically-educated users. However, user data is valued very highly as important consumer trends can be deduced from the data, so big corporations are unlikely to stop selling user data anytime soon.
One such example is with Facebook. The company has found itself in hot water with the public time and time again as it keeps getting caught up in data scandals. Facebook sells user data to third-party organizations who, like in the case of Google, target users with content related to their interests. However, in Facebook's case, the problem goes even deeper. Rather than simply selling data to other groups, Facebook traded consumer data with other notable companies, such as Microsoft and Amazon, which meant that not only was Facebook profiting off of user data, they were also gaining data about their users that the users had not even given to Facebook.
The problems exposed through Facebook's financial model brought public attention to the question of online privacy, and whether or not users should be able to expect their data to be protected by companies. Should companies be allowed to do whatever they want with user data, or should there be increased regulation of data management?
Source:
https://gizmodo.com/facebook-cambridge-analytica-oh-you-mean-that-cambri-1833502332
https://www.theatlantic.com/technology/archive/2018/12/facebooks-failures-and-also-its-problems-leaking-data/578599/
One such example is with Facebook. The company has found itself in hot water with the public time and time again as it keeps getting caught up in data scandals. Facebook sells user data to third-party organizations who, like in the case of Google, target users with content related to their interests. However, in Facebook's case, the problem goes even deeper. Rather than simply selling data to other groups, Facebook traded consumer data with other notable companies, such as Microsoft and Amazon, which meant that not only was Facebook profiting off of user data, they were also gaining data about their users that the users had not even given to Facebook.
The problems exposed through Facebook's financial model brought public attention to the question of online privacy, and whether or not users should be able to expect their data to be protected by companies. Should companies be allowed to do whatever they want with user data, or should there be increased regulation of data management?
Source:
https://gizmodo.com/facebook-cambridge-analytica-oh-you-mean-that-cambri-1833502332
https://www.theatlantic.com/technology/archive/2018/12/facebooks-failures-and-also-its-problems-leaking-data/578599/
This comment is really interesting, but it's also important to consider the demographic that companies are getting data from, and how this changes the utility of the data. Snapchat recently lost a lot of stock price because people realized that it's not as profitable as expected, as the data they get from its customers is usually data about the preferences of younger people, who don't have nearly as much buying power as middle aged people, who often prefer platforms such as Facebook. Therefore, it's important to consider your consumer base when collecting data so that you can have an accurate prediction of revenue.
ReplyDeleteThis is an interesting post, but in my opinion this argument is invalid. People should not be expecting their data to be kept private, because this is Facebook's business model. Facebook would not exist if they did not use their consumers' data, and we take this into account when we use Facebook and other social media products like this every day.
ReplyDeleteIf people are not okay with using Facebook or other social media platforms, they should delete their account and stop. Those who use the platform should be, as most people are, aware that their data is being used for profit. If people don't want to use social media, they don't have to — just don't force others who like it to stop as well.