Facebook, Cambridge Analytica, Yahoo, Edward Snowden, WikiLeaks, Marriott - the list of significant data breaches seems to go on and on. Are we just more aware of these type of events, or are they actually increasing? Well, according to digitalguardian.com author, Juliana De Groot, data breaches are on the rise (see chart), but the number of annual records compromised has largely remained the same. While it is hard to pinpoint an exact reason for why the number of incidents have increased over time, the blame, and sometimes rightly so, is often contributed to the rise in big data, targeted ads, and the marketing industry.
Obviously, with increased levels of data collection, the likelihood of that data being compromised also increases. But why has personal information and behavioral data collection been on the rise? Easy - Targeted Advertising.
We’ve all experienced targeted advertising in one form or another by simply using one of the many services we use on a daily basis. For example, Netflix suggesting the next movie you should watch, Google showing you ads for websites or products you’ve already been shopping for, Facebook displaying a sponsored post about hiking after the weekend trip you took with your friends, and even mysteriously being shown an ad for a specific brand of potato chips following a heated debate of “Doritos vs Pringles” you recently had with your significant other (and they say that our devices aren’t listening to us).
Companies big and small also use very similar techniques to reach their target audiences. Using information like location, industry, or even company size, they tailor their message to provide value to their customer base.
Take for example, a customer signing up for newsletter on a company website. Why would they provide details like their name, email, location, industry and so on and risk their data being mishandled? The answer is typically because they feel they will receive something of value in return, say, helpful tips on processing plastic for superior edge quality. They have also determined that the company will handle their data responsibly. It’s the same when a potential customer fills out a contact form. It’s the same when customers use software or services. The minute that the balance, or trust, is disrupted, the customer and company relationship can be in jeopardy.
It is this dichotomy, valued received for privacy diminished, that has, mostly in large tech companies, become unbalanced. Due in part to being less and less transparent about how their user’s data will be used or handled, companies like Facebook are shifting their focus to privacy in a last ditch effort to repair these damaged relationships. It’s why Apple just recently released national tv spots establishing itself the leader in user privacy to edge out its competition.
While data breaches will most likely continue, it is important to continue to practice our high standards of transparency, responsibility, and value we offer our customer base. It is also important to note that Pringles are indeed the superior potato chip - you reading this google? Bring on the Pringles Ads!
