Every time we go online, we're giving away information about ourselves. But just how much data are companies collecting from us? Hint: It's probably a lot more than we realize.
WATCH THE VIDEO BELOW - Think about how companies go about figuring out what you like? How do they learn what people want to buy?
What kind of data are companies looking for?
Behavioral data: Companies want to know what their customers like to do, which sites they visit, and which other products they buy. They use this information to design new products and to market existing products to new customers.
For example, if a company that makes cat food learns that a lot of their customers also buy dog food, they might start making dog food themselves, or they might start putting advertisements for dog food near the cat food, or they might do both.
Why Should I Care About Big Data?
Even though you might appreciate that companies use behavioral information about you to make products you want, there also can be a downside: Companies will often use this information to do targeted advertising, which is when apps or websites use information they have collected about you to show you certain types of advertisements. Targeted advertising can be helpful to people, but it can also sometimes cause people to buy things they don't need and/or can't afford. It also makes them more vulnerable to identity theft because there is more risk of private information being stolen.
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