The true war on the Internet has never been the war for your dollars.
It’s been the war for your data.
The word for collecting data is literally “mining” – because it’s a gold mine.
- Facebook was built as an excuse to mine your demographic data.
- Google was built as an excuse to mine data on what you think about.
- Amazon was built as a tool to mine data on what you spend on.
These data wars haven’t stopped.
Apple and Google continue to compete in the mapping and mobile phone spaces so that they can gather data on where you go.
And IBM – who was late to the party – recently bought The Weather Channel.
The reason is so sneaky it’s shocking…
…It’s because The Weather Channel constantly has access to your location, via the Weather app on your phone!
What Good Is This Data?
In the short term, all this data makes these companies FAR more profitable.
Google (through its Adwords platform) and Facebook (through Facebook Ads) are constantly tweaking their algorithms to maximise the profitability of their ads.
In one year – between 2015 and 2016 – Google’s average ad revenues per active user went up from $5.10 to $6.10
An extra dollar per user per month might not sound like much money. But it equates to $12 billion in extra revenues per year!
Meanwhile, 35% of Amazon’s annual revenue is driven by their recommendations engine – a data-driven sales tool.
As a company that boasts $136 billion dollars in revenue, that’s $47.6 billion in extra sales they make simply because they use their data.
And it’s not just tech companies doing it.
One tiny change United Airlines made this year was simply printing in-flight magazines on lighter paper. This stands to save the company 170,000 gallons of jet fuel – with no discernible change to their services.
How are you using your data?
Never before has your business had more data available to it…
…inside website visitor tracking software like Google Analytics, inside accounting tools like Xero and MYOB, and in marketing platforms like Infusionsoft and Shopify – just to name a few!
If you’re not using this data to make your business more profitable – how long will it be until your competitors do?