Smartphone and big data marketing – how does it work?
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?
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/