Social media Business model and how they gains their profits



Most people think social media enterprises earn their living from advertising however they also make money another way. By selling your data!

Internet giants such as Google and Facebook have business models underlined by the use of personal data, but most people would have trouble knowing who exactly has access to the data trail they are generating across the internet. One viewpoint is that such sharing of information helps economies and improves our own experiences online. The internet is a largely free service, and sharing personal data is the price we pay.

the data that these companies crave is split into 3 different brands:
  • Volunteered data - content created and shared by individuals, such as their social media profiles.
  • Observed data - captured by recording the actions of individuals, such as location data from using cellphones.
  • Inferred data - what brands can work out about you from the first two.(Volunteered data + Observed data)
did you know that your data was being sold for someone else's benefit? your private and personal information been sold for a couple of pennies?
Image result for location icon

Image result for facebook
Image result for google






This link to Laurens post about privacy in social media also explores what businesses do with the data that has been collected.
http://5twoone.blogspot.co.uk/2017/05/how-can-individuals-protect-their.html

Comments

  1. Very good Dylan! its very scary that your data gets sold to different companies. I will be thinking about what I post on my social media profiles from now on. I like the infographic, and I also liked that you linked Laurens blog. Well done :)

    ReplyDelete
  2. I never realised that there is a variety of brands! This definitely is on the same categories as my privacy blogs - very well noticed! its crazy to think that companies can make money from what we do online, its a shame we don't get to make money from our own data yet they can. Good blog Dylan!

    ReplyDelete
    Replies
    1. Thanks for the feedback, yeah i was surprised at the different types of data also!

      Delete

Post a Comment