This archive report was first published on 26 August 2019.
Published on August 26, 2019, a report by Federico De Nadis highlighted the growing trend of companies viewing their customers as valuable data sources, with data being harvested in lieu of or in addition to payment for products and services.
According to De Nadis, the reason consumer data is so valuable is that it can be used to capitalise on consumer preferences and more efficiently sell products and services. This is not a new concept in advertising, but rather a digital extension of traditional analogue advertising methods.
However, the use of consumer data has also raised concerns about privacy and exploitation. As Shoshana Zuboff describes, many consumers live in 'The Age of Surveillance Capitalism', where their personal data is being used to influence their choices and potentially fuel unforeseen outcomes.
Apple Chief Executive Tim Cook has also spoken out against business models that rely on user data, calling out data brokers and highlighting the issue of consumer information being 'weaponised against them with military efficiency'. This sentiment resonates in the wake of scandals such as Cambridge Analytica and Russian involvement in the 2016 U.S. presidential election.
The issue of privacy and exploitation of data is complex and multifaceted, extending beyond the world of online advertising. In recent years, numerous databases of huge enterprises have been compromised, including email providers, loyalty schemes, retailer databases, and credit rating agencies.
Looking ahead to the next decade, the advertising landscape is expected to be dominated by advances in Artificial Intelligence and commercial and social disruption. As innovation cycles speed up and scrutiny of social harm increases, companies will need to balance economic implications with ethical and social ramifications.
For advertisers, the rewards will be significant for actions that make advertising more valuable, while penalties for enabling bad actors will also increase. In the media world, existing trends will accelerate, with data playing a changing role and first-party data becoming the most valuable for understanding customers.
