What is Data Mining and How is it Affecting You(tube)?
Stephan Kudyba, an Associate Professor in the school of Management at New Jersey Institute of Technology, defines data mining as, “Data mining is the incorporation of quantitative mathematical methods that may include mathematical equations algorithms. Some of your prominent methodologies are traditional logistic regression, neural networks, segmentations classifications, clustering, those are all methods that utilize mathematics data mining… These methods will extract trends and patterns.” Companies realize the marketing potential in this and are using data mining to make a profit. With data mining companies are able to track popular post, videos, fads and predict market trends.
Enter YouTube, owned by Google. YouTube is having a little trouble when it comes to data mining and ad space. Data mining allows YouTube to track what videos are popular and put ad space based on the popularity. Only problem the videos that some ads land upon are not videos marketing companies want to associate their brand with. YouTube has increased their measures on what video and advertisement are paired together after swift backlash.
This is good news for advertisers. With advertisers getting a little more freedom to choose (I use this word loosely) where their ads go, they also get a little more access to YouTube’s data. It gives companies a little bit more information on where their ad is being shown and how many times. Companies would enjoy a little more piece of the pie, but as of now since a lot of money lies within the coding and data. Facebook and Google alone took in 68% of spending on U.S. online advertising in 2016. Its no wonder companies want a little more transparency in data mining.