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There’s a common saying in the digital world: “If you’re not paying for the product, you are the product.” This rings especially true for services like Facebook, Google, X (formerly Twitter), and Twitch, which generate revenue by providing advertisers access to our personal information.
The free consumer data is transformed into a precious commodity. From the puppy photos we upload to the questions we ask Google and our location histories – all reveal mountains of information, treasure to be scooped up later by businesses of all kinds.
However, it’s not just free services that monetize personal data; credit card companies, researchers, hackers, law enforcement, foreign nations and subscription services also recognize its immense value.
Your personal data is incredibly valuable to companies, platforms, and even cybercriminals for a variety of reasons. Fundamentally, data is a resource, and throughout history, valuable information has always been a prized asset.
How your data is used and valued depends on the intentions of the entity collecting it. Our discussion will explore the worth of your digital profile, with a focus on how it is collected, used, and sold.
What Exactly is Consumer Data?
Consumer data, also called personal data, is any information that can be used to identify an individual, either directly or indirectly. While sensitive information like Social Security numbers and health records are obvious examples, the definition of personal data extends far beyond that.
Everything from your browsing history to your
location data can be considered personal data.
In a nutshell, cookies and trackers on websites
record consumer behavior, demographic and
preferences. Amazon offered people $10 just to
install its Assistant extension, which ultimately
tracks users’ browsing activities.
Besides this, social platforms like Instagram, YouTube, Facebook and others gather data through shares, likes, friend connections and comments. Mobile apps track location, app usage and other device related information. In the end, numerous e-commerce sites collect data on your buying habits and product preferences.
“Your digital footprint begins the moment you go online. Social media platforms, search engines, and even e-commerce websites track every click, like, comment, and purchase. Cookies and tracking pixels are the primary tools used to collect this data. They follow you across different websites, building a robust profile that includes not just your interests but also your demographic information and browsing habits,” explained Kris Mullins, Chief Marketing Officer at Capital Max, with extensive experience in AI, branding, and marketing.
The genomics giant 23&Me’s pharma deals are one of the biggest examples. The key is that this data can be used to identify you and is often monetized without explicit consent or understanding from the user.
The shocking part is that a pizza night at home can cost more in data than dollars, as revealed by The Wall Street Journal. It stated that during placing a call for pizza, the following information is collected and analyzed:
| Data Provided | Additional Data Collected |
| End-to-end encrypted text | Anonymized time stamps |
| Message address information | Anonymized message routing information |
Moving forward, when the consumer uses Alexa to order pizza, the data collected as follows:
| Data Provided | Additional Data Collected |
| ALEXA | ALEXA |
| Voice characteristics | Interaction history |
| Content of request | Type of Echo device |
| Location | |
| Last four digits of credit card | |
| PIZZA SHOP | PIZZA SHOP |
| Payment and billing information | Transcript of what consumer requested |
| Type of pizza ordered | Hardware settings |
| Quantity of order | Operating system |
| Performance statistics | |
| Address of her destination | Speed |
| Location | Device type |
| IP address assigned to device |
As a matter of fact, a consumer potentially gave up at least 22 pieces of information together. The data detailed in the scenario reflect information the companies could collect according to their privacy statements, terms of service and related documents.
The Data Economy: A Goldmine
The internet has transformed into a bustling marketplace where consumer data is the primary currency. Companies like Facebook, Google, and Amazon collect vast amounts of information about us through our online activities, from our browsing history to our social media posts. This data is then aggregated, analyzed, and sold to advertisers who use it to create highly targeted campaigns.
Moreover, advertisers generate billions in revenue by leveraging user data to target ads more effectively. According to a report by eMarketer, digital ad spending in the US alone reached $263.89 billion in 2023, highlighting the immense value of personal data.
Moreover, Google and Facebook appear to be the most prominent players. However, Google monetizes personal data by disclosing it to third parties and generated over $224 billion in advertising revenues in 2022. On the contrary, Facebook earns $217.26 per user annually in the US and Canada.
On the dark web, personal data is traded for significantly lower prices. For instance, a hacked Facebook account can be bought for less than $75, while a US voter database costs around $100.
Who Buys, Sells, and Barters Consumer Data – Data Brokers
Data brokers play a crucial role in the data economy. They collect information from various sources, combine it, and create detailed profiles of individuals. These profiles are then sold to advertisers, market research firms, and other interested parties.
According to the Interactive Advertising Bureau, American companies alone have spent more than $19 billion in 2018 to acquire and analyze consumer data. Whereas, in 2022, the global market for data broker services was around $247.4 billion and by 2026 it is expected to reach a value of $345 billion. The largest player in the data broker industry is Acxiom, contributing almost 12% of all direct marketing revenue with just its data.
While data brokers promise insights into consumer behavior, they also pose significant risks. The information they collect can be a goldmine for stalkers and abusers, enabling them to piece together detailed profiles of their targets.
This practice, known as doxing, involves publicly releasing private information without consent. Recently, healthcare workers were victims of doxing and harassment due to their data. Removing your data from these brokerages is often a complex and frustrating ordeal.
“Whether we realize it or not, platforms are constantly listening. They catalog not just what we say openly, but also words around us, patterns over time. Phrases that seem innocuous can tip algorithms that place us into lucratively insightful demographics.” Puneet Gogia, data and business analyst, AI and tech expert, and founder of Excel Champs told PureVPN. “While advertising subsidizes many ‘free’ services, lack of context leaves room for unintended consequences or discrimination.”
Beyond personal harm, data brokers also fuel the artificial intelligence industry. The images, videos, memes, and text shared online are used to train AI algorithms, improving their ability to recognize patterns and make decisions. Essentially, your digital footprint is contributing to the development of advanced technology without your explicit consent.
That’s not all, according to the NewYork Post, U.S. spies and cops are purchasing huge amounts of data about Americans from data brokers. Also, the intelligence agencies can access U.S. internet browsing data without having to actually hack into anything, which raises privacy concerns.
The Price of Your Data
Finding a comprehensive answer to this question is anything but easy. Moreover, the exact value of your personal data is complex, as it depends on various factors such as demographics, online behavior, and the specific information collected.
Key determinants of consumer data price include the quality and dimensionality of the data. The more companies know about you, the more meaningful are the targeted ads. These insights can even help them discover how to build a Customer Success process to optimize customer satisfaction and retention. The informative value of a data set that only contains your name is significantly lower than that of a data set that also contains your place of residence, your age, your occupation, your interests and your purchasing behavior.
“Businesses start by tracking user browsing history data. They keep tabs on the websites you visit, the links you click, and how long you linger on each page. Think of it like a digital footprint: everything you do online leaves a trace,” Derek Pankaew, Founder and CEO of Listening.com, told PureVPN.
Here’s a brief chart on how much a consumer data is worth:
| Record Type | Average Price |
| Health Care Record | $250.15 |
| Payment Card Details | $5.40 |
| Banking Records | $4.12 |
| Credentials | $0.95 |
| Social Security Number | $0.53 |
| Credit Record | $0.31 |
| Basic PII (Personally identifiable information) | $0.03 |
Read more: From bytes to bucks: Understanding how data brokers cash in on your information
Low-Value Data
General information like age, gender, and location is relatively inexpensive. According to Financial Times, the basic data such as age, gender and location, has a price of around $0.0005 per person.
The data of people who are looking for a car, a financial product or a holiday, is more expensive, and companies pay around $0.0021 for this information. Also, the information that a woman is expecting a child is worth $0.11.
That’s not all, the personalized advertising on social media platforms is usually based on the data that Facebook or Google have collected about you on their own site.
A commonly used benchmark for the relevance of your personal data to social networks is the Average Revenue Per User (ARPU) metric.
Meta’s average annual revenue per user in the U.S. and Canada was approx. $217, whereas it earned $235 in revenue per American user annually.
High-Value Data
Detailed profiles with information about interests, purchasing behavior, and financial status command higher prices.
In the data broker market, your shopping data sells for a measly $0.001. On the other hand, Amazon’s Amazon Shopper Panel program offers selected users $10 per month simply for uploading invoices from other shops. So, it’s apparent that the value of your data seems to vary greatly depending on the context in which it is traded.
Moreover, when it comes to stolen data sold on the dark web, healthcare records sell for an average of $250, compared to approximately $5 for payment card details.
“The true value of a digital profile can be staggering. A single user’s data can be worth anywhere from a few dollars to hundreds, depending on the detail and quality of information” asserts Uku Tomikas, CEO of Messente Communications.
According to Invisibly, the cost of consumer data is as follows:
| Demographic | Cost for Data Per Person | Percentage of Population | |
| Sex | Male | $0.15 | 48.59% |
| Female | $0.14 | 51.41% | |
| Age | 18-24 | $0.36 | 11.92% |
| 55+ | $0.05 | 32.33% | |
| Ethnicity | Middle Eastern | $0.62 | 1.21% |
| Hispanic | $0.01 | 8.09% | |
| Family Annual Income | $40,000 – $49,999 | $0.02 | 4.94% |
| $120,000 – $149,999 | $0.33 | 1.89% | |
The Price of Data Sharing
While targeted ads might seem like a small price to pay for free services, the drawbacks of sharing personal data are substantial. Users often forgo control over their information, unaware of its full scope or usage.
“Let’s start with how businesses collect email subscription data. When you sign up for a newsletter or a promotion—giving your email address, name, and maybe a bit more info—that’s data collection. This data forms the base for targeted ads because it includes people who are already interested in what the business offers,” Cache Merrill, CTO and CEO at Zibtek, told PureVPN.
The consumer data can be manipulated to influence purchases and beliefs, creating a digital ecosystem where consumers are targets rather than participants, leading to targeted ads.
Moreover, the accumulation of vast amounts of personal data makes individuals more vulnerable to cyberattacks, exposing sensitive information to potential harm.
Read more: The Chilling Reality of Data Leakage in the Surveillance Economy
Value to Advertisers
Advertisers are willing to pay a premium for targeted ads.
According to the Network Advertising Initiative,
advertisers pay 2.68 times more for personalized ads
compared to non-personalized ones, highlighting the
effectiveness of targeted advertising.
“Advertisers find a digital profile to be quite beneficial as it allows them to deliver relevant and highly targeted ads. Customers’ purchasing experiences are enhanced, and advertising campaigns are more successful as a result,” explained Jake Munday, CEO and co-founder of Custom Neon.
The Impact of Targeted Advertising
The ability to target ads precisely has revolutionized the advertising industry. By understanding consumer behavior, advertisers can deliver highly relevant messages that are more likely to resonate with their audience. This leads to increased sales, better customer engagement, and improved return on investment.
However, targeted advertising also raises concerns about privacy and consumer exploitation. When companies know so much about us, it can feel like they are invading our personal space. Moreover, the constant bombardment of personalized ads can be overwhelming and intrusive.
On top of this, trends are changing quite quickly and it’s important to use mentoring software to keep in touch with industry professionals who can provide valuable insights and guidance on emerging trends.
The Ethics of Data Collection
While data collection is fundamental to the modern digital economy, it raises significant ethical concerns. The lack of transparency about how data is collected, used, and sold is a major issue. Many users are unaware that their information is being harvested, leading to a sense of betrayal when they discover the extent of data collection.
Moreover, data can be manipulated to influence consumer behavior and beliefs. This creates a digital ecosystem where consumers are targets rather than participants. The result is a constant bombardment of highly targeted ads, which can be overwhelming and intrusive.
“Advertisers are willing to pay a lot for your digital profile. It’s worth more than you think. In fact, as they say in the digital space, when you’re not paying for a service or a product, you (and your data) are the product,” stated Brandon Schroth, founder of Reporter Outreach.
The accumulation of vast amounts of personal data also makes individuals more vulnerable to cyberattacks. Data breaches expose sensitive information to potential harm, leading to identity theft, financial fraud, and other malicious activities.
Protecting Your Privacy
To address these concerns, governments worldwide are enacting regulations to protect consumer data. The General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the U.S. are two prominent examples. These laws aim to give consumers more control over their data, requiring companies to be transparent about their data practices and obtain explicit consent from users.
However, enforcement and compliance remain challenging. The sheer volume of data being collected and the complexity of data ecosystems make it difficult to ensure that all companies adhere to these regulations. Moreover, loopholes and ambiguities in the laws can be exploited, undermining the intended protections.
“As a consumer, you can take charge of your own information. Here are a few things you could do: Be proactive about privacy settings on social media accounts and search engines such as Google. Regularly check and update your privacy settings on social media and search platforms to limit the information shared,” suggested Brian Lim, founder and CEO of iHeartRaves & INTO THE AM.
Here are a few other steps that you can take to protect your privacy:
- Limit Data Sharing: Adjust privacy settings on social media and websites.
- Use Ad Blockers: Block intrusive ads and reduce tracking.
- Be Mindful of App Permissions: Grant only necessary permissions to apps.
- Consider Privacy-Focused Browsers: Explore options like Brave or DuckDuckGo.
- Use A VPN Service: A premium VPN service like PureVPN protects your data with military grade AES 256-bit encryption, hiding your online activities from cybercriminals.
Ultimately, the value of your data lies in your ability to control it. By understanding how data is collected, used, and sold, you can make informed decisions about your online privacy and take steps to protect yourself.
Bottom Line
Your digital profile is a valuable commodity in today’s data-driven economy. Advertisers are willing to pay significant sums for information that helps them reach the right audience with the right message.
While targeted advertising offers benefits, it’s essential to be aware of the potential risks and take steps to protect your privacy. As consumers become more conscious of their data rights, we can expect to see changes in the data landscape, with a greater emphasis on transparency, consent, and individual control.
For more updates and insights on data privacy and cybersecurity, don’t forget to follow PureVPN Blog and check out PureVPN’s advanced features.
Read more: Beyond the Medals: The Cyber Threats Shadowing Paris Olympics 2024
