Online privacy is becoming increasingly important in the digital age; more people worry about how companies use their data. As things stand, service providers in the Web 2.0 ecosystem reap most of the benefits attributed to user data, either by selling it to third parties or by using the information to improve their products and reach new markets. wider.
This trend has particularly gained traction in the digital advertising industry, with over $350 billion in revenue. Since the early days of the Internet, digital advertising has enabled businesses to enhance the nature of their products and services over the past two decades. But at what cost ? Internet consumers face the wrath of this development, having to give up their online privacy to browse the most exciting web platforms.
Moreover, trusted companies have let consumers down time and time again. According to a recent report according to KPMG, 86% of Internet users are very concerned about the way companies handle their data. Looking at past events in recent years, there may be some justification for this statistic. For example, Facebook lost much of its credibility following the Cambridge Analytica scandal, where the data of 87 million alleged users was compromised.
With the growth of digital advertising marketing, more and more consumers are at risk of losing their privacy online. On the bright side, however, regulators around the world have started to introduce data privacy laws. Some require large companies to adopt favorable online privacy measures to protect their consumers.
The Changing Dynamics of Online Privacy
While the Internet has paved the way for businesses to profit from user data, it has also made stakeholders aware of this imbalance. Today, more and more internet users are aware of the social engineering tactics used by social media platforms and e-commerce service providers to the detriment of their online privacy.
As a result, there is a noticeable shift in sentiment among regulators and consumers. The first group has stepped in to introduce data privacy laws, with notable regulations such as the European Union’s General Data Protection Regulation coming into force in 2016. On the other hand, consumers are now opting for applications that do not track user data or provide an opportunity to share personal browsing information.
This growing pressure has also caused companies to adapt, focusing on privacy-driven ecosystems in their upcoming products and services. For example, Apple recently introduced a pop-up feature that asks users if apps can track their data. Google is following similar, though less aggressive, steps; this leading search engine platform is disabling its tracking technology to provide an advertising ecosystem that does not mine user data.
That said, current approaches to ensuring that consumers’ online privacy is not breached may not fully address growing concerns. This brings us to the value proposition of decentralized ecosystems; ideally, these are blockchain-built platforms where users (brands and consumers) can interact directly through incentivized models that allow both parties to benefit from the underlying data equally.
Reclaiming Online Privacy Through Incentive Ecosystems
Thanks to the creation of blockchain technology, many industries are being revolutionized, starting with finance to the art sector. This emerging technology is also changing the face of digital ad marketing by introducing decentralized marketing platforms. Essentially, this type of marketing platform eliminates the long-standing corporate monopoly over data control while guaranteeing internet users their online privacy.
At their core, decentralized ecosystems feature incentive models, and users can share their data in exchange for network rewards or a percentage of advertising commission fees paid by brands. So far, there are several decentralized ad marketplaces, but a few stand out above the rest. One of these platforms is Profilea Cardano-based digital marketing platform designed to give users online privacy and access to their favorite services or products.
Unlike the approach taken by centralized marketing platforms, Profila’s decentralized ecosystem is consumer-driven. Users can create a profile on this decentralized application (DApp) based on their data and preferred product lines. In addition, one can choose whether or not to share this information with brands that have paid advertising fees on Profila. This way, brands can target the right audience and receive valuable feedback.
More importantly, decentralized marketing venues such as Profila help users maintain their privacy online, not to mention that one is exposed to network rewards for sharing one’s personal information. For example, consumers on Profila can receive up to 50% commission fees when a particular brand uses their data. This Cardano DApp is among the pioneers in solving the online privacy debacle by fostering ecosystems.
Given the rise of digital marketing, it stands to reason that internet users should be more aware of their privacy online. This is the first step towards recovering its data while taking advantage of modern platforms.
With decentralized ecosystems now in sight, consumers can further monetize their data or choose how and where to expose valuable information. This trend will likely set the tone for a more privacy-focused digital marketing ecosystem, giving consumers more trust and saving brands the huge marketing costs of buying user data.