Wednesday, February 8, 2012

The New You

[ed. Two excellent articles with similar themes: how your personal information and history are being collected, analyzed, sold, and manipulated in ways you can't imagine. The implications are both profound and scary.]

From the NY Times (Facebook is Using You):

Facebook makes money by selling ad space to companies that want to reach us. Advertisers choose key words or details — like relationship status, location, activities, favorite books and employment — and then Facebook runs the ads for the targeted subset of its 845 million users. If you indicate that you like cupcakes, live in a certain neighborhood and have invited friends over, expect an ad from a nearby bakery to appear on your page. The magnitude of online information Facebook has available about each of us for targeted marketing is stunning. In Europe, laws give people the right to know what data companies have about them, but that is not the case in the United States.

Facebook made $3.2 billion in advertising revenue last year, 85 percent of its total revenue. Yet Facebook’s inventory of data and its revenue from advertising are small potatoes compared to some others. Google took in more than 10 times as much, with an estimated $36.5 billion in advertising revenue in 2011, by analyzing what people sent over Gmail and what they searched on the Web, and then using that data to sell ads. Hundreds of other companies have also staked claims on people’s online data by depositing software called cookies or other tracking mechanisms on people’s computers and in their browsers. If you’ve mentioned anxiety in an e-mail, done a Google search for “stress” or started using an online medical diary that lets you monitor your mood, expect ads for medications and services to treat your anxiety.

by Lori Andrews |  Read more:

From The Atlantic (A Guide to the Digital Advertising Industry That's Watching Your Every Click):

At the start of the 21st century, the advertising industry is guiding one of history's most massive stealth efforts in social profiling. At this point you may hardly notice the results of this trend. You may find you're getting better or worse discounts on products than your friends. You may notice that some ads seem to follow you around the internet. Every once in a while a website may ask you if you like a particular ad you just received. Or perhaps your cell phone has told you that you will be rewarded if you eat in a nearby restaurant where, by the way, two of your friends are hanging out this very minute.

You may actually like some of these intrusions. You may feel that they pale before the digital power you now have. After all, your ability to create blogs, collaborate with others to distribute videos online, and say what you want on Facebook (carefully using its privacy settings) seems only to confirm what marketers and even many academics are telling us: that consumers are captains of their own new-media ships.

But look beneath the surface, and a different picture emerges. We're at the start of a revolution in the ways marketers and media intrude in -- and shape -- our lives. Every day, most if not all Americans who use the internet, along with hundreds of millions of other users from all over the planet, are being quietly peeked at, poked, analyzed and tagged as they move through the online world. Governments undoubtedly conduct a good deal of snooping, more in some parts of the world than in others. But in North America, Europe, and many other places, companies that work for marketers have taken the lead in secretly slicing and dicing the actions and backgrounds of huge populations on a virtually minute-by-minute basis. Their goal is to find out how to activate individuals' buying impulses so they can sell us stuff more efficiently than ever before. But their work has broader social and cultural consequences as well. It is destroying traditional publishing ethics by forcing media outlets to adapt their editorial content to advertisers' public-relations needs and slice-and-dice demands. And it is performing a highly controversial form of social profiling and discrimination by customizing our media content on the basis of marketing reputations we don't even know we have.

by Joseph Turow |  Read more:

Illustration Joon Mo Kang, NY Times