Connect with us

Technology

The Multi-Billion Dollar Industry That Makes Its Living From Your Data

Published

on

The Multi-Billion Dollar Personal Data Ecosystem

The Multi-Billion Dollar Industry That Makes Its Living From Your Data

In the ocean ecosystem, plankton is the raw material that fuels an entire food chain. These tiny organisms on their own aren’t that remarkable, but en masse, they have a huge impact on the world.

Here on dry land, the massive volume of content and meta data we produce fuels a marketing research industry that is worth nearly $50 billion. Every instant message, page click, and step you take now produces a data point that can be used to build a detailed profile of who you are.

Every breath you take, Every move you make

The coarse-grained demographics and contact information of yesteryear seems quaint compared to today’s sophisticated data collection battleground. In the past, marketers would make judgement calls on your likely income and family structure based on where you lived, and you’d receive “targeted” mail and calls from telemarketers. Loyalty programs and the emergence of web analytics pushed things a little further.

Today, the steady march of technological advancement has created a vast data collection empire that measures every aspect of your digital life and, increasingly, your offline life as well. Facebook alone uses nearly one hundred data points to target ads to you – everything from your marital status to whether you’ve been on vacation lately or not. Telecoms have access to extremely detailed information on your location. Apple has biometric data.

Also watching your every move are web trackers. “Cookie-syncing” is one of the sneaky ways advertisers can follow you around the internet. Basically, cookie-syncing allows third parties to share browsing information at such a large scale that even the NSA “piggybacks” off them for surveillance purposes.

The recent sales growth of smart speakers will only increase the breadth of data companies collect and analyze. Amazon and Google have both filed patents for technology that would essentially allow them to mine audio recordings for keywords. Advertisers could potentially target you with diapers before your family and friends even know you’re expecting a baby.

Following the ones and zeros

While web trackers and companies like Apple and Google are collecting a lot of personal and behavioral data, it’s the whales of the data ecosystem – data brokers – who are creating increasingly detailed profiles on almost everyone.

Data brokers trade on the privacy of consumers and operate in the shadows.

– Senator Al Franken (D-Minn)

The goal of data brokers, such as Experian or Acxiom, is to siphon up as much personal data as possible and apply it to profiles. This data comes from a wide variety of sources. Your purchases, financial history, internet activity, and even psychographic attributes are mixed with information from public records to create a robust dossier. Digital profiles are then sorted into one of thousands of categories to help optimize advertising efforts.

Fear the shadow profile?

According to Pew Research, 91% of Americans “agree” or “strongly agree” that people have lost control over how personal information is collected and used.

Though optimizing clickthroughs is a big business, companies are increasingly moving beyond advertising to extract value from their growing data pipeline. Amalgamated data is increasingly being viewed as a clever way to assess risk in the decision-making process (e.g. hiring, insurance, loan or housing applications), and the stakes for consumers are going up in the process.

For example, a man may feel comfortable sharing their HIV status on Grindr (for practical reasons), but may not want that information going to a third party. (Unfortunately, that really happened.)

In 2015, Facebook filed a patent for a service that would help insurance companies vet people based on the credit ratings of their social network.

The More You Know

Below the surface of our screens, our digital profiles continue to take shape.

Measures like adjusting website privacy controls and clearing cookies are a good start, but that’s only a fraction of the data companies are collecting. Not only do data brokers make it hard to officially opt out, their partnerships with corporations and advanced data collection methods cast such a wide net, that it’s almost impossible to exclude individual people.

Data brokers have operated with very little scrutiny or oversight, but that may be changing. Under intense public and governmental pressure, Facebook recently cut ties with data brokers. For a company that has bullishly pursued monetization of user data at every turn, the move is a sign that the public sentiment is changing.

The more information on the personal data industry, visit Cracked Labs’ report on the issue.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Technology

Here’s What Happens Every Minute on the Internet in 2020

A lot can happen in an internet minute. This graphic looks at the enormous numbers behind the online services billions use every day.

Published

on

What Happens Every Minute on the Internet in 2020

In 2020, an unfathomable amount of digital activity is occurring at any given moment. This ongoing explosion in activity is the aggregate output of 4.5 billion internet users today, a number that’s projected to increase even further in coming years.

This powerful visual from Domo helps capture what happens each minute in today’s hyper-connected internet era, and it’s actually the eighth edition produced since the year 2012.

What can we learn from the evolution of what happens in an internet minute?

How Times Have Changed

Over its relatively short history, the internet has been a catalyst for both the rise and demise of new companies and platforms.

By looking at which brands have appeared in the graphic in earlier years, we can roughly chart the prominence of certain tech segments, as well as observe brands with the most staying power.

data never sleeps wheel over time

As you can see above, platforms like Tumblr, Flickr, and Foursquare showed some promise, but eventually got omitted from the graphic as they dropped off in relevance.

Meanwhile, tech companies like Facebook, Amazon, and Google have had impressive staying power, evolving to become some of the biggest companies in the world. In the process, they’ve caught up to longer-standing titans like Apple and Microsoft at the top of the food chain.

The New “New Thing”

Not surprisingly, much of the internet landscape looks different in 2020. Here are a few of the digital hot spots today.

Cash Transfers
Nearly $240,000 worth of transactions occur on Venmo per minute. This has served as a catalyst for parent company PayPal, which evolved along successfully with fintech trends. PayPal’s stock now trades at near all-time highs.

E-Commerce
Even before COVID-19 resulted in shuttered storefronts and surging online orders, e-commerce was a booming industry. It’s now estimated that $1 million is now spent per minute online. Amazon ships an astounding 6,659 packages every minute to keep up with this demand.

Collaboration Tools
In a predominantly remote-working environment, tools like Zoom and Microsoft Teams host 208,333 and 52,083 users each minute respectively. Particularly in the pandemic era, it seems that this trend is here to stay.

Accelerated Turnover

The accelerated world we are in today means that many companies do not sustain a competitive advantage for as long. Social media companies have dwindled as observed above, and this is similarly reflected in the average lifespan of an S&P 500 company.

A typical company’s tenure on the S&P 500 is expected to shrink rapidly in the next few years:

  • 1964: 33 years
  • 2016: 24 years
  • 2027E: 12 years

Companies are shaving anywhere between 15-20 years off those highs, with estimates of further declines. This metric symbolizes the rapid evolution of the business landscape.

What Lies Ahead

It’s seemingly easy to forget mankind is still very early in the developments when it comes to the internet. But in this short period, its rise to prominence and the broad digitization of the world has left us with a very eventful timeline.

If the last decade serves as a reference point, one can expect further and intensifying competition among tech companies. After all, the reward—winning in today’s digital economy—reaps much greater value.

All signs point to internet activity advancing to further heights, if not because of 5G and its associated breakthroughs, then perhaps due to the steady rise in people gaining internet access.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Technology

Ranked: The Most Popular Websites Since 1993

This animation provides an interesting overview of the websites with the highest traffic over the last few decades, and how the rankings have changed.

Published

on

The Most Popular Websites Since 1993

The internet has become an increasingly important part of our everyday lives.

While it’s hard to imagine modern life without Google or YouTube, it’s interesting to reflect on how much the web has changed over the last few decades.

This animation by Captain Gizmo provides a historical rundown of the most popular websites since 1993, showing how much the internet has evolved since the early ’90s.

The Top Websites

While the web has changed drastically over the years, the top-ranking websites have remained relatively consistent. Here’s a look at the websites with the most traffic since 1993, and when each site held the number one spot:

Date RangeTop Ranking Website
Highest Number of Monthly Visits
Jan 1993 - Jun 2000AOL405,000,000
Jul 2000 - May 2006
Yahoo
5,500,000,000
Jun 2006 - Jul 2008
Google8,300,000,000
Aug 2008 - Jun 2010
Yahoo11,600,000,000
Jul 2010 - current
Google81,000,000,000

*Note: Numbers rounded for clarity.

AOL

AOL was one of the first major web portals, back in the era of CD-ROMs and dial-up modems. In its heyday, the company dominated the market, largely due to an aggressive free trial campaign that cost millions (possibly even billions) of dollars to execute.

Despite the large investment, the campaign worked—at its peak, AOL had over 30 million users, and a market cap of over $200 billion. It was the most popular website online until the early 2000s, when broadband started to replace dial-up. As the sands shifted, AOL struggled to stay relevant and was eventually sold to Verizon for just $4.4 billion.

Yahoo

Following AOL’s downfall, Yahoo became the next internet giant.

Starting off as a web directory, Yahoo was the first website to offer localized indexes for major cities. At Yahoo’s zenith, it was worth $125 billion, but a series of missed opportunities and failed acquisitions meant that it could not keep up. Like AOL, Yahoo is now also owned by Verizon, but remains a top 10 website globally.

Google

It’s no surprise that Google currently comes in at number one. It started out in the early ’90s as a university research project. Today, it’s become virtually synonymous with the internet, which makes sense, considering 90% of all internet searches are made on Google-owned properties.

Old School Search Engines

Prior to Google’s success, there were several other go-to search engines that paved the way for Google in many ways:

  • WebCrawler: One of the earlier search engines, WebCrawler was the first search engine to enable full-text search. At one point, the website was so popular, it’s server would constantly crash, making it virtually unusable during peak hours.
  • Lycos: This was another pivotal search engine, created in 1994 (a year before Yahoo). Lycos was the first of its kind to incorporate relevance retrieval, prefix matching, and word proximity.
  • Infoseek: As Netscape’s default search engine, Infoseek was popular during the web browser’s heyday. Eventually, Infoseek was purchased by Disney and rebranded to go.com.

Unlike Infoseek, Lycos and WebCrawler have somehow managed to stick around—both companies still exist today. Of course, they’re nowhere near comparable to Google in terms of revenue or daily search volume.

The Evolution of Social Media

Unless you are a Gen Zer, you probably remember MySpace. Like Lycos and WebCrawler, MySpace technically still exists, although it’s certainly not the high traffic site it used to be.

Created in 2004, MySpace became a hub for musicians and music fans on the web. In just a year, the website saw massive growth, and by 2005, it was acquired by News Corp. MySpace continued to dominate the social media landscape until 2008, when Facebook took over as the internet’s most popular social media platform.

Facebook’s story is well-known at this point. The Zuckerberg-led creation was a social networking site that was exclusive to Harvard students, but it soon opened up to dozens of other universities and then finally the general public in 2006. Just two years later, and the site had 100 million active users, rising to the top of the social media spectrum.

Although Facebook often finds itself mired in controversy today, the site remains the world’s most popular social media platform on the internet with close to 3 billion users.

What’s Next?

It’s hard to predict what the future holds for Facebook, or for any of the other websites currently dominating the web.

If anything is clear from the above animation, it’s that the list of the world’s most popular websites is constantly shifting—and only time will tell what the next few decades will bring.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Advert to view the Corvus Gold Company Spotlight

Subscribe

Join the 200,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular