How are tech giants converting our data into massive money?
Market Data actually. Data is processed and sold to other companies.
It usually fall into 3 groups of purchasers: large marketing firms, companies, and resellers).
- Large marketing firms use this data to know how to market products and service and where. Not to mention how.
- Companies buys it to do market analysis to know if a product will succeed (based on a risk/success factor) before spending the billions in R&D to make the product come to life only to see that it will fail. or to know how to tweak the product to make it interesting and sale to a group of people.
- Resellers. These are companies buying the expensive data, and offer as a service to customer who can't afford it. Or brings tools to process the information. Like they provide their own software to do filters, graphs and such to better analyze data. The sale of such solution is usually a subscription model.
No one cares about Jldjul's porn sites, private life. Unless a company is willing to spend millions to only target Jldjul specifically, which is moronic. It is not YOU, it is about market groups.
Say you are a company that makes file cabinets. File cabinets are boring.
But you want to bring interest to them targeted at tech companies, mostly startups. You introduce the file cabinet of the future which scans and stores all content of folders to a PC and organizes everything, and can detect already scanned files allowing you to remove them, and put them back. Plus, there is a built-in search system with a small computer colored screen. It acts as a secretary of sorts. Very fancy, very techy.
So, before you invest 100's of million in making this idea a reality (which you know you can due to R&D and experts you have, and even segments of prototype) that you have in an actual product on the market, not to mention marketing cost. You need to really know the target market.
You make it, and it is in bright colors plastic, because you want to be different, low cost, and says "Creative". It ends up being a flop, because despite your target Tech Startups, which are usually younger people who might prefer a lower cost due to limited budget, might be a generation that don't trust plastic product, and it needs to be in metal, fireproof, and survive a drop of 5 floors, as it is a common occurrence, for some odd reason. So, 100's millions are now gone, and your are possibly in financial trouble. If you had that market data, you would know that people of the age 18-30 which are common for startups, 95% of them look for fireproof, metal, and color black, and survive a 5 floor drop file cabinets, and you see that price is of no concern. This data could have been acquired for $1 million (say).
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