There is a reason the L.O.V.E. Pods keep you and your data private and safe, personal data carries immense value for companies, platforms, and criminals for a variety of different reasons. At its core, data is a resource.
How your data is used and valued depends on which of the three groups are using it, these are platforms (social media sites), companies (mainly for advertising), and criminals.
How Your Personal Data is Valued By Others
1. How Social Platforms Value Your Data
Companies like Twitter, X, etc… that provide users with a place to create their own content use data to support their ad sales. In 2020, LinkedIn Marketing Solutions earned more than $3 billion in revenue by providing advertisers access to their 700m + users. Likewise, YouTube hit $6.9 billion in advertising revenue in 2020.
2. How Companies Value Your Data
Companies are willing to invest billions in advertising because collected data sets create a clearer picture for where to place those dollars. Accurate data can reveal personal preferences, affiliations, family dynamics, politics, and other information.
3. How Criminals Value Your Data
Criminals steal personal data for a variety of reasons ranging from identity theft, to extortion, the most common reason is to sell that information to anyone willing to pay. These buyers often include other thieves, criminal organizations, data brokers, and even foreign governments.
Why Data Is So Valuable
Typically, companies use personal data in two ways:
- Direct Advertising
- Predictive Analytics
Data Collection for Direct advertising
When we disclose our age, interests, likes, opinions, and family dynamics on social media, we are essentially providing this information to advertisers. This means that advertisers have access to our personal details when we share them on the platform.
Companies use this data to ensure they’re targeting the right individuals with their messages, rather than casting a much wider (and much more expensive) generalized net. For example, a 25-year-old first-time mom is going to respond to an ad targeting pregnant women in a very different way than a 35-year-old mother of three.
Likewise, a 22-year-old Middle Eastern male interested in sneakers and stock advice has far more value to a streetwear brand than a 45-year-old white male who likes mid-century modern furniture and tabletop games. Personal data refines the advertising pool to eliminate waste and maximize both user experience and advertising impact.
Data Collection for Predictive Analytics
The more modern of these approaches, large pools of personal data can help companies identify new trends, assess market readiness, and refine product messaging to help inform new products and services.
Companies can find new market opportunities or interests by collecting lots of personal data from people in the same group.
This gives brands a chance to realign messages to fit cultural environments and even stop certain product releases until the market shows more favorable conditions.
Each of these methodologies help companies create more sophisticated products and platforms refine their services. Together, internet advertising turned $139.8 billion in revenue in 2020 and has increased those profits by at least 12% since 2018—all off the back of your personal data.
How Much Is Data Worth in 2024?
Like any market, the value of personal data fluctuates primarily based on supply and demand. Because there are more females on the planet than males, male data tends to come at a slightly higher premium. Likewise, different markets and demographics are evaluated differently.
A 2020 study by MacKeeper and YouGov showed personal data for 18–24-year-olds is notably higher than any other demographic, while businesses have shown a willingness to pay significant amounts for personal data from Black and Middle Eastern audiences. That same discrepancy exists across regions, economic backgrounds, and even education levels based on how much companies value each demographic.
As of May 2021, you can buy access to a hacked Facebook account on the dark web for $65 (or its crypto equivalent), an entire US voter database for $100, and even a hacked Coinbase verified account for $610. By comparison, a brand might value your personal email address at $89.
What Kind of Data is Valuable?
Companies collect data in a variety of ways, but regardless of their application, the goal of those methods is typically to help them better understand their audience. It’s only fair that we as consumers understand the value that we bring to the table (and what we stand to gain from it).
What Data is Worth The Most?
Your data is valuable, keep it safe with a L.O.V.E. Pod.