Big Data: Powerful or Destructive?
Targeted ads; we all have strong feelings about them. Some are annoyed to death by them. Others pay no attention. I personally appreciate them. With little time to browse the web for products I need, I find it pretty amazing that products can find me instead. But how is this possible? Marketing in a digital era means advertisers now have access to big data. They may know everything from your location and age to specific details such as your interests or favorite brands. Sure, it is pretty convenient that I found the prefect summer dress when scrolling through Instagram, but this poses a bigger question; is it fair that companies make money on an individual’s data?
Companies have been turning our data into money for years. Some individuals may not realize that our data is being gathered everywhere; in our searches, apps that we use, websites we visit, and so on. With this mass data, advertisements are more relevant to consumers. Despite appreciating the convenience of targeted ads, I find the level of data being collected quite frightening. In 2018, the EU enacted the GDPR (General Data Protection Regulation) to control individuals personal data usage. In the US however, there is there is no comparable legal regime to protect users data nationwide. When it comes to data protection, Americans have no choice but to educate and fend for themselves.
Powerful or Destructive?
In my opinion, there are two ways to look at it, big data can be both powerful and destructive in advertising. Here are two examples:
Highly targeted advertising on platforms such as Facebook have given small businesses the power to compete with big players. Niche brands that could possibly never have reached such a small audience now have the tools to not only exist, but thrive. In her recent feature on The Passion Economy podcast, founder Kelley Moffat explained that her gender non-binary clothing brand Kirrin- Finch would likely not have survived without the power of targeted ads. Kirrin-Finch is a menswear inspired clothing brand for androgynous women. Moffat admits that her brand is so niche, launching her brand would not have even been possible without targeted advertising. Platforms such as Facebook gave her brand the power to reach this specific audience on a global scale. Not only is the business thriving with the use of data, but they have filled a specific need for their customers. Moffat explains that her customers are delighted to discover a brand like Kirrin-Finch; they have finally discovered apparel designed for them rather than settling for shopping in the mens section.
On the other hand, many believe targeted and retargeted ads can be manipulative. With the knowledge of all of our interests, it is much easier to make us believe we may need products that may be unnecessary in reality. This undoubtedly contributes to overconsumption, another ethical issue that arises with targeted ads using big data. Overconsumption can lead to damaged personal finances and certainly has a terrible environmental impact. Another aspect of overconsumption is addiction. When ads are targeted based on interests, how would an advertiser know that this “interest” isn’t an addiction? For example, what if vodka ads are enabling an alcoholic? Or clothing ads to a shopaholic?
There are many more pros and cons to advertisers using big data for targeted ads. Whether you like highly targeted ads or not, my hunch is that they are here to stay. Big data and targeted ads have undoubtedly improved businesses marketing efforts, thus contributing to the economy. With the countries main priority seemingly being economic growth, I doubt a comparable regulation to the GDPR will be enacted in the US to limit data usage, but only time will tell.
