Data Lords: The Real Story of Big Data, Facebook and the Future of News
This afternoon I saw a friend on Twitter say that he doesn’t buy the idea that if people just paid Facebook some sort of fee the data and privacy issue would go away. Because he subscribes to the Times, the Post and the WSJ and they each track his readership habits and sell that data to advertisers or make it available to them for targeting. This is at least partly true – I’ll discuss the ins and outs of that point in a moment. But this is a good opportunity to discuss the real relationship between publishers and big data. It’s actually very different than it looks.
First, what my friend says is true. These publications are all in the data collection and sale business. Indeed, TPM is too – not directly at all but because of the ad networks (like Google and others) we have no choice but to work with. The key on the main claim is that the issue is one of diversity of revenue streams. Each of those big publications mentioned has at least three big revenue sources that are relevant to this conversation. They have premium advertisers for which the kind of data we’re talking about has limited importance. They also have subscriptions. The final bucket is made up of advertising that is heavily reliant on data and targeting. Read More →