How Big Data Yields Big Money
October 9, 2013
Remember the mailing houses that marketers used to contact in order to gather information about prospective consumers? Mailing houses have become obsolete, but their digital equivalents are far more effective than. KapitallWire takes a look at “Axciom: Big Data Equals Big Money” and explains how companies can make money from big data. Axciom is a marketing technology firm that processes more than a trillion transactions from over 700 million consumers worldwide. They have 1500 data points about individuals, including demographics and shopping habits. Unlike old-fashioned mailing houses, Axciom can deliver a more targeted approach to reach consumers.
Axcicom wants to change how consumers interact with their personal data:
“Yet, despite its prominence as a consumer data broker, Acxiom tends to fly relatively, and comfortably, under the radar. At least, that was the case until last Wednesday when the firm unveiled its new consumer portal AboutTheData.com. The beta site lets users log in and view, as well as edit, the personal data the firm has collected and maintains on file. “Make Data Work for You – know what data says about you and how it is used” the home page reads, reiterating the company’s claims of increasing transparency and empowering customers. The timing of the portal’s launch couldn’t have been better considering Acxiom is currently under investigation by the Federal Trade Commission.”
Why is the FTC investigating? It has to do with data collection firms possibly violating consumer privacy. The FTC wants these companies to make their actions more transparent, but thanks to the lack of laws these are more optional than mandatory. Despite the regulations, Axciom and other firms have made a $300 billion, but any regulations to rein in the data mining would hinder the earnings. Good money for now, but the big data boom may fall soon.
Whitney Grace, October 09, 2013
Sponsored by ArnoldIT.com, developer of Augmentext