- The email address of a single internet user is worth $89 to any brand
- If the collective revenue of digital advertising companies in the US is put together, the data generated from an adult would be worth about $35 per month.
- Pawtocol is on a journey towards setting a new precedent on how companies should interact with user data
It is natural to think that using the services of Google as a search engine or signing up with Facebook to interact with your network is entirely free. But what seems like free may actually be just an alternative payment method that users aren’t even aware of.
Your Personal Data Is Being Exchanged For These Free Services
Data is the new currency on which today’s wealth depends on. This is how tech companies like Google and Facebook have evolved to be considered some of the world’s largest and most profitable companies. Data has become the engine that powers companies across numerous sectors. They rely on consumer data to drive profitability by influencing the rational decisions taken by the end consumer.
The data gathered by tech companies does not consist solely of conventional identity details like name, gender, and age. As investigated by Harvard scholar Rebecca Lemov, these data capturing algorithms could also record information such as “Tweets, Facebook likes, Twitches, Google searches, online comments, one-click sales, and viewing-but-skipping-over a video in your feed.”
This, however, tells us that big data not only captures our public life but also our intimate moments. If Google is able to record your late-night searches, Facebook captures your moments with family and friends, and Alexa keeps track of your living room commands, then it should be a concern to all of us how much this data is collectively worth and what is being done with it.
How Much Your Data Is Worth To Tech Companies
It is already a known fact that when consumers extensively use the services of networks such as YouTube and Instagram for free, they are providing them with personal information and data which could be considered sensitive. Tech companies leverage their proprietary data surveillance systems to stay profitable.
Although calculating the exact worth of consumers’ data is near impossible, a rough estimate tells us how much data is worth to these companies.
It was reported that the email of a single internet user is worth $89 to any brand, so it makes sense to say consumers’ data is worth a lot of money.
In September 2015, global media and technology company Comcast allegedly published 75,000 consumers’ personal data publicly. This directly violated the agreement these consumers had signed (and fees they had paid)to keep their information private.
Comcast was charged with over $33 million in settlement money. They paid a $100 compensation to each of the affected consumers. This settlement was very necessary, not just because their privacy was breached but these consumers had earlier paid for their information to be kept private
The Valuation of A Tech Company Is Directly Linked To The Underlying Value Of User Data
Another great way to estimate the worth of a user data is to calculate the amount in cash equivalent after an acquisition. Microsoft, for instance, acquired LinkedIn for a $26.2 billion cash deal. At the time of the acquisition, the professional business-oriented site had a membership count of over 400 million users.
Going with this information, it is safe to say that a single user data point was valued at an estimated $65 per user in the purchase.
Following this logic, a popular social media giant, Facebook acquired WhatsApp for $19.6 billion. That means Facebook paid $39.6 for each of WhatsApp’s 500 million users. The value of user data could vary but depends heavily on the earning potential expected from each user.
The worth of user information also depends on the industry the company falls within and hence the type of data it gathers. The wider and richer the information these tech firms possess in the world of big data, the more the revenue it can realize by acting on users’ data. Therefore, the worth of a consumers’ data and the valuation of a company are intertwined.
User Data is Worth A Lot To Data Brokers
Today, consumers are not only at the mercy of internet giants but also data brokers. Privacy Rights Clearinghouse reported that there are currently 270 data brokers in the world.
These brokers collect and sell all kinds of personal data. When a large group of consumers’ data is put together it could be worth a lot. In 2012, it was estimated that the data brokering industry generated a whopping $150 billion in revenue.
A recent report estimated the collective revenue of digital advertising companies in the US, it found out that the data generated from an adult is worth about $35 per month.
This snapshot of the data brokering industry shows how vulnerable Internet users are to an online surveillance system that keeps track of their personal life. As privacy and security concerns become an everyday discussion, a solution to this industry challenge has emerged.
Blockchain Technology Has The Potential To Provide Consumers With The Needed Privacy They Deserve
In order to fight data breach issues and protect users’ information, most companies are building their businesses on top of blockchain technology. Pawtocol, a pet company is one of the companies leading the charge in this adoption phase in order to benefit from the technology’s immutability and transparency.
Pawtocol is an online platform bringing blockchain and AI to the entire $100B+ pet industry, with privacy-first design principles that all users retain full custody of all platform data and the rights to anonymously sell their data for direct compensation.
Pawtocol places a lot of importance on consumers’ (and their pets’) information and believes in bringing this data back under the power of consumers. Pawtocol’s target market is the 800 million pets globally and intends to keep ownership of all personal data in the hands of pet owners. With this design, owners could choose whether or not to monetize their personal data.
Pawtocol values consumers’ (and their pets’) data and believes it should be controlled by its creators and not our company. Pawtocol’s target market is the 800 million pets globally and every pet parent will retain custody of all of their personal data. With this design, owners could choose whether or not to monetize their personal data by sharing it with interested buyers.
