Post by LWPD on Apr 15, 2012 8:00:28 GMT -5
Below is a quick article on the most common ways Google monetizes user activity. Free advice for those with a Gmail account, avoid the prompt which asks you to tie your phone number to your email account for 'emergency password recovery' purposes.
Courtesy of Smart Money
5 Ways Google Makes Money Off You
By Quentin Fottrell
Every search has a surcharge.
The $10.6 billion first quarter revenue Google posted Thursday reflect the value of the data collected from consumers, experts say. “Whatever you post online, expect it to be used by companies to sell advertising,” says Rick Dakin, CEO of IT security business Coalfire. All the tidbits Google gleans from users of YouTube, Gmail, Google+ and other services boost the accuracy of the company’s targeted ads, and therefore, its revenue, says Michael Fertik, CEO and founder of Reputation.com, one of many new services designed to help consumers keep their web use anonymous. Advertising prices for “adword” or sponsored links are determined by an auction with 1 cent as the minimum bid, according to a Google spokesman.
Spying on consumers is big business. In 2011, the company’s revenue topped $37 billion. Here’s how it works: Google tracks the movements of consumers through the use of “cookies” — little invisible pieces of code stored on computers or mobile devices that tell a company what searches consumers make on the web, what sites they visit — or places they go via Google Maps — and what they do there. And as SmartMoney.com reported, that personal information can be worth between $50 and $5,000 per person per year to advertisers. It’s not always used wisely. Last year, Google paid a $500 million charge to cover a settlement of a U.S. Department of Justice case alleging it had illegally profited from selling ads to unlicensed pharmacies.
While consumers get a lot of entertainment from free social networking sites like Google+ and email services Gmail, experts say they are often unaware of how much information they are sharing with market research companies. Google says it doesn’t sell data to third parties, but John M. Simpson, director of Consumer Watchdog’s Privacy Project, says, “Google is selling access to all the digital dosiers it puts together about us. It’s selling all our desires and wishes to advertisers.” The Internet search giant updated its privacy policies last month to say it may combine the information users submit with Gmail, YouTube and other Google services to help it create a more three-dimensional picture of consumer habits.
Here are 5 ways Google cashes in on your clicks:
1. Mapping users’ every move
The millions who use Google Maps on iPhone or Android, can track their GPS location with an accuracy of just a few feet. The telltale blue dot helps people navigate their way around some of the world’s biggest cities, but it also allows the search giant to know users’ whereabouts and the places they’re trying to find. “This is a bonanza for retailers,” says Fertik. Local businesses pop up with sponsored red “pins” when consumers search for other restaurants or bars — should they wish to change their minds and go there instead. Many of Google’s ads are targeted simply to a search keyword, a Google spokesman says. “ Things like location and recent search history might also be used to deliver more relevant search ads.”
2. Google Images sees dollar signs
Sometimes what people don’t say is more valuable than what they do say. Google’s image-recognition technology will often reveal the origins of a picture, where it may have appeared on the web and, in some cases, who took it. “We’re all being auto-tagged by powerful facial recognition technologies,” Fertik says. Simply upload the photo on Google Images by clicking the camera icon — and hey presto. Aside from the obvious subject matter of the picture, images contain all sorts of embedded information like when – and where — the photograph was taken. This kind of data sounds innocuous, but the content of the images can be parsed to learn more about users, and to better target them for advertising. The images can also be valuable to insurance companies investigating personal injury cases or even employers who want to know if their staff member is really on sick leave. As SmartMoney.com reported pictures are becoming a hot commodity in insurance cases.
3. Sharing shores up the bottom Line
Google+, the search engine’s social networking site may be David to Facebook’s Goliath (90 million users versus Facebook’s 850 million members). But experts say the principles on which it’s based remain the same: information shared is data to monetize. The more people share about their lives and loves, the more information marketing companies can glean about them. Google says it doesn’t sell or allow third parties to access individual member data. However, Simpson says, “They don’t sell the information themselves, but they build these massive profiles on users and sell these products to the advertisers.” As part of its new privacy policy, which went into effect on March 1, Google said it may combine the information users submit under their email accounts with information from other Google services or third parties.
4. Google Search leaves a trail of cookie crumbs
Privacy experts say whatever is shared on the Internet should be treated as if Google Search will be able to find it. Why? It probably will, and usually within a matter of mere seconds. The millions of searches performed each day provide the backbone of Google’s understanding of its users and the basis for targeted ads.
That may seem like a small price for such a powerful — and free – service, but consumers are concerned: A 2010 poll conducted by research firm Grove Insight for Consumer Watchdog said 86% of Americans favored the creation of an easy-to-use “anonymous button” that allows individuals to stop anyone from tracking them online. Google says it doesn’t own the Internet, but merely provides a gateway to it. But Dakin says, “there is a danger in sharing too much information.” Paris Hilton will never be able to erase her notorious sex tape from the web or prevent it from being shared online ad infinitum, he says. It’s a cautionary tale for all kinds of information. “Those images will live on the Internet forever,” he says.
5. YouTube is an entertainment focus group
The video-sharing site shows clips from favorite television shows, made an overnight sensation of singer Susan Boyle, and allows advertisers to try their hand at viral videos. But Dakin says it also gives Google invaluable insight into what consumers might want to see on their favorite television channels next season or even what political issues they view as important. It also allows Google to target consumers with advertisements and special interest videos. While the days of 24/7 Viagra pop-ads appear to be in the past, Dakin says the targeted can be overwhelming. “If I had 90% less ads popping up on my computer screen my life would be a whole lot better,” he says. Of course, consumers get hours of entertainment from YouTube and it gives them a platform to have a voice, but Simpson says many people don’t fully think through the consequences. “The bottom line is we are Google’s most profitable products,” he says.
Courtesy of Smart Money
5 Ways Google Makes Money Off You
By Quentin Fottrell
Every search has a surcharge.
The $10.6 billion first quarter revenue Google posted Thursday reflect the value of the data collected from consumers, experts say. “Whatever you post online, expect it to be used by companies to sell advertising,” says Rick Dakin, CEO of IT security business Coalfire. All the tidbits Google gleans from users of YouTube, Gmail, Google+ and other services boost the accuracy of the company’s targeted ads, and therefore, its revenue, says Michael Fertik, CEO and founder of Reputation.com, one of many new services designed to help consumers keep their web use anonymous. Advertising prices for “adword” or sponsored links are determined by an auction with 1 cent as the minimum bid, according to a Google spokesman.
Spying on consumers is big business. In 2011, the company’s revenue topped $37 billion. Here’s how it works: Google tracks the movements of consumers through the use of “cookies” — little invisible pieces of code stored on computers or mobile devices that tell a company what searches consumers make on the web, what sites they visit — or places they go via Google Maps — and what they do there. And as SmartMoney.com reported, that personal information can be worth between $50 and $5,000 per person per year to advertisers. It’s not always used wisely. Last year, Google paid a $500 million charge to cover a settlement of a U.S. Department of Justice case alleging it had illegally profited from selling ads to unlicensed pharmacies.
While consumers get a lot of entertainment from free social networking sites like Google+ and email services Gmail, experts say they are often unaware of how much information they are sharing with market research companies. Google says it doesn’t sell data to third parties, but John M. Simpson, director of Consumer Watchdog’s Privacy Project, says, “Google is selling access to all the digital dosiers it puts together about us. It’s selling all our desires and wishes to advertisers.” The Internet search giant updated its privacy policies last month to say it may combine the information users submit with Gmail, YouTube and other Google services to help it create a more three-dimensional picture of consumer habits.
Here are 5 ways Google cashes in on your clicks:
1. Mapping users’ every move
The millions who use Google Maps on iPhone or Android, can track their GPS location with an accuracy of just a few feet. The telltale blue dot helps people navigate their way around some of the world’s biggest cities, but it also allows the search giant to know users’ whereabouts and the places they’re trying to find. “This is a bonanza for retailers,” says Fertik. Local businesses pop up with sponsored red “pins” when consumers search for other restaurants or bars — should they wish to change their minds and go there instead. Many of Google’s ads are targeted simply to a search keyword, a Google spokesman says. “ Things like location and recent search history might also be used to deliver more relevant search ads.”
2. Google Images sees dollar signs
Sometimes what people don’t say is more valuable than what they do say. Google’s image-recognition technology will often reveal the origins of a picture, where it may have appeared on the web and, in some cases, who took it. “We’re all being auto-tagged by powerful facial recognition technologies,” Fertik says. Simply upload the photo on Google Images by clicking the camera icon — and hey presto. Aside from the obvious subject matter of the picture, images contain all sorts of embedded information like when – and where — the photograph was taken. This kind of data sounds innocuous, but the content of the images can be parsed to learn more about users, and to better target them for advertising. The images can also be valuable to insurance companies investigating personal injury cases or even employers who want to know if their staff member is really on sick leave. As SmartMoney.com reported pictures are becoming a hot commodity in insurance cases.
3. Sharing shores up the bottom Line
Google+, the search engine’s social networking site may be David to Facebook’s Goliath (90 million users versus Facebook’s 850 million members). But experts say the principles on which it’s based remain the same: information shared is data to monetize. The more people share about their lives and loves, the more information marketing companies can glean about them. Google says it doesn’t sell or allow third parties to access individual member data. However, Simpson says, “They don’t sell the information themselves, but they build these massive profiles on users and sell these products to the advertisers.” As part of its new privacy policy, which went into effect on March 1, Google said it may combine the information users submit under their email accounts with information from other Google services or third parties.
4. Google Search leaves a trail of cookie crumbs
Privacy experts say whatever is shared on the Internet should be treated as if Google Search will be able to find it. Why? It probably will, and usually within a matter of mere seconds. The millions of searches performed each day provide the backbone of Google’s understanding of its users and the basis for targeted ads.
That may seem like a small price for such a powerful — and free – service, but consumers are concerned: A 2010 poll conducted by research firm Grove Insight for Consumer Watchdog said 86% of Americans favored the creation of an easy-to-use “anonymous button” that allows individuals to stop anyone from tracking them online. Google says it doesn’t own the Internet, but merely provides a gateway to it. But Dakin says, “there is a danger in sharing too much information.” Paris Hilton will never be able to erase her notorious sex tape from the web or prevent it from being shared online ad infinitum, he says. It’s a cautionary tale for all kinds of information. “Those images will live on the Internet forever,” he says.
5. YouTube is an entertainment focus group
The video-sharing site shows clips from favorite television shows, made an overnight sensation of singer Susan Boyle, and allows advertisers to try their hand at viral videos. But Dakin says it also gives Google invaluable insight into what consumers might want to see on their favorite television channels next season or even what political issues they view as important. It also allows Google to target consumers with advertisements and special interest videos. While the days of 24/7 Viagra pop-ads appear to be in the past, Dakin says the targeted can be overwhelming. “If I had 90% less ads popping up on my computer screen my life would be a whole lot better,” he says. Of course, consumers get hours of entertainment from YouTube and it gives them a platform to have a voice, but Simpson says many people don’t fully think through the consequences. “The bottom line is we are Google’s most profitable products,” he says.
