Smartphone and big data marketing – how does it work?


blog post 1

Currently it is unthinkable for people in the Western world to live without electronics. As mentioned by Ting Li in Session 1 78% would choose their smartphone above alcohol while in the Middle Ages it was unthinkable to live without alcohol. In almost 4 years the amount of smartphones in America have increased with 29%, meaning that now two third of American citizens have smartphones (Smith, 2015). 56.3% of the American population is aged between 18-65 and therefore we can conclude that almost everyone this age has a smartphone (United States Census Bureau, 2014). This has advantages for us a population, by connecting us to the broader world of online information. But how can companies profit from this trend? To look into this matter there is one term that is mentioned throughout the business world:  Big Data. In the world there are over 6 billion smartphones who all access the Web and share information. This data is used by companies now to advert directly to the consumers taste, but there is so much more that can happen. There are so many opportunities out there in the world to acquire more information about people and make them worth it. So what are the options companies can use to acquire more information? Each smartphone user will generate about 60 gigabytes of data each year. This data comes from every text, picture, phone call, email and every search. This year there has been a research concluding that people spend more time on their mobile device and laptop than sleeping, 8 hours 41 minutes versus 8 hours 21 minutes (Davies, 2015). Consumers are obsessed with their smartphones and this helps with the amount of data generated. Smartphones are currently also used to pay for services and products for example with Google Wallet, PayPal and Lemon Wallet (Voo, 2012). Through these transactions, companies will generate information to determine where you go for shopping, what your interests are and even what kind of meals you eat at home. This information is very valuable, because advertisement agencies can pinpoint your wants and desires.

This all sounds as an ideal situation for companies, but how would you feel about this? Do you think this way of getting information is ethical?

References

Davies, M., 2015. Average person now spends more time on their phone and laptop than SLEEPING, study claims. [Online] Available at: http://www.dailymail.co.uk/health/article-2989952/How-technology-taking-lives-spend-time-phones-laptops-SLEEPING.html

Smith, A., 2015. U.S. Smartphone Use in 2015. [Online] Available at: http://www.pewinternet.org/2015/04/01/us-smartphone-use-in-2015/

United States Census Bureau, 2014. State & County QuickFacts. [Online] Available at: http://quickfacts.census.gov/qfd/states/00000.html

Voo, B., 2012. Digital Wallets – 10 Mobile Payment Systems To Take You There. [Online] Available at: http://www.hongkiat.com/blog/digital-wallets/

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3 responses to “Smartphone and big data marketing – how does it work?”

  1. consumer prixe index says :

    I enjoy reading through an article that will make
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  3. ozlemkarakus says :

    Big data will change current cities in smart cities. Cities with opportunities for three dimensional maps by combining ‘google maps’ and the street view, or cities where the taxi is just one click away from you and cities where your laundry gets done when less energy is used to make your carbon footprint smaller.

    All these comforts and possibilities are possible by collecting data obtained from our smart phones, social media and others sources of information. But do they preponderate our privacy? Can we allow to let firms collect information about the times we visit the toilet, since this information is to ameliorate our life styles? Or is it a invasion of privacy? What is the limit when it comes to collecting data?

    I personally think that the issues mentioned above are important to think about and should be questioned by the government. That is why I call for clear agreements included in international treaties.

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