Answer To: https://elearning.kbs.edu.au/pluginfile.php/796250/mod_resource/content/17/DATA4300%20Assessment%200...
Prince answered on Aug 22 2022
Case Study: Monetisation of Data
Kishan Joshi
Kaplan Business School
DATA4300
Data Security and Ethics
22nd Aug 2022
Part A: Introduction & use on Monetization
Making money using data is known as data monetization. Data can be made money in two main ways: directly and indirectly. With 2 billion members, Facebook is an online social media platform that thrives on user data. It is a social media corporation, but at the heart of its economic strategy is advertising. This essay will examine Facebook's data monetization strategy while also addressing moral, private, and legal concerns.
You may rest certain that just because Facebook buys the advertisement does not indicate that it is also selling data to the businesses that wish to run advertising on Facebook. Facebook directly profits from user data, albeit not in the sense that most people believe. A business can approach Facebook and state, "I run a sports website; thus, I want to put advertising on to entice males aged 20 to 45 who appreciate sports on Facebook." After that, Facebook would use user information to identify this desired group of males and place the advertising on the timelines or story ad. As a result, no data is transferred throughout this operation. Because doing so would reduce Facebook's value, it does not voluntarily sell the data to these marketers (O'Connell, 2018).
In addition to this primary information monetization model, Facebook also gathers additional data that might indirectly aid the company in generating revenue. There are possibilities for consumers to login using Facebook on numerous websites. The user must have access to the user's specific Facebook information, such as their profile, name, and photo, when they log in. In order to show users where their friends have been travelling and which hotels or activities they have left, Trip Advisor leveraged Facebook friends (Schupak, 2015). Facebook services can be accessed via websites that incorporate its login, share, and like buttons. Facebook receives information when a user visits a website that uses its Facebook Analytics service while logged out of Facebook. Facebook will assist that website in finding a method for improving the content's interactivity (Facebook, 2018). Facebook has benefited greatly from this model. In 2018, Facebook's ad income accounted for 98.5% of all business revenue (Trefis, 2019). Only $2 billion of 2020's $84 billion in revenue comes from sources other than advertising, including Oculus (Cardina and Sciple, 2021).
Part B: Ethical, privacy & legal issues
Although Facebook has benefited much from this approach and technically does not "sell user's data," Facebook has suffered a great deal as a result. The...