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The Data Mining Business and How You're Free When You Die

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The editors at Masters in Information Technology Degrees decided to research the topic of:

The Data Mining Business and How You're Free When You Die (in Some Locations)

The ins and outs of the data mine shaft.


- Estimated growth from $31 billion to $106 billion business by 2016
- Data brokers

Acxiom Corp. is a "database marketing" corporation


- 23,000 servers in Conway, Arkansas
- Holds 1,500 data points on 500 million online consumers worldwide
- Reviews 50 trillion data "transactions" yearly
- Consumer rankings

PersonicX


- Categorizes consumers into
- 70 clusters, and
- 21 life stages
- You aren't a number, you're a pithy phrase
- [sample clusters]
- Early Parents
- First Digs
- Collegiate Crowd
- Young Workboots
- Rolling Stones
- Married Sophisticates
- Children First
- Career Building
- Spouses & Houses
- Outward Bound
- Truckin' & Stylin'
- Home Cooking
- First Mortgage
- Resolute Renters
- Mobile Mixers
- Cartoons & Carpools
- Cluster 62 Kids & Rent
- Urban Scramble
- Pennywise Mortgagees
- Resilient Renters
- Shooting Stars
- Hard Chargers
- Dynamic Duos
- Savvy Singles
- Kids & Clout
- Tots & Toys
- Country Comfort
- Soccer & SUVs
- City Mixers
- Solo and Stable
- Modest Wages
- Rural Parents
- Metro Parents
- Rural Rovers
- Summit Estates
- Skyboxes & Suburbans
- Lavish Lifestyles
- Solid Single Parents
- Apple Pie Families
- Midtown Minivanners
- Farmland Families
- Country Single
- Fun & Games
- Mid Americana
- Metro Mix
- Urban Tenants
- Established Elite
- Corporate Clout
- Career-Centered Singles
- Country Ways
- Acred Couples
- Work & Causes
- Community Singles
- Humble Homes
- Downtown Dwellers
- Pennywise Proprietors
- The Great Outdoors
- Rural Retirement
- Still Truckin'
- Sitting Pretty
- Full Steaming
- Platinum Oldies
- Clubs & Causes
- Suburban Seniors
- Raisin' Grandkids
- Devoted Duos
- Family Matters
- Rural Everlasting
- Thrifty Elders
- Timeless Elders

An average consumer ranking might include:


- Cluster, group, age, marital status, home ownership, kids, income bracket, urbanicity, net worth, recent purchases, and a rank for each category
- Companies like this have been around for decades, originally judging consumer potential by whether they filled out forms with pens of pencils, or whether they had middle names
- (pen-using, middle-name-having individuals were safer bets)

Finder's fee


- $8 for insurance prospect
- $35 for finance lead
- $75 for mortgage prospect

Compounding results


- Once a company buys consumer potential rankings they return success rates and purchase history to the consumer ranking company, increasing variables per consumer.
- Ad-tracking platforms
- Consumer ranking
- Advertisements for subprime loans, vocational schools, and payday loans
- Or, regular banks, regular colleges, and luxury goods.

Rubicon, an ad-tracking and marketplace company, sells more ads than Google.


- 97% of U.S. internet users interact with personally chosen Rubicon ads every month.
- Cookies are digital packets of information recording what you do online.
- What you click, where you visit.
- Rubicon = 2470 cookies set on top 100 sites
- Bluekai = 2562 cookies set on top 100 sites
- Leader in field
- Collections surged 400% this year
- From 10 to 50 collections of data per page
- Sample prices:
- More targeted results:
- Facebook exchange: $37.50 per advertising "lot"
- More consumer data for more targeted reach
- AppNexus exchange: $1.35 per advertising "lot"
- When you fit the proper demographic you see the ad
- Most tracked sites:
- [site-trackers]
- Dictionary.com -234
- Merriam-Webster.com -131
- Comcast.net-151
- Careerbuilder.com-118
- Photobucket.com-127
- Msn.com-207
- Answers.com-120
- Wiki-answers-72
- Msnbc-117
- Verizonwireless.com-90

National Security


- Patriot Act and FISA Amendments ACT (FAA) of 2008
- Allow suspicion-less "dragnet" seizure of personal data on cloud and elsewhere
- Section 215[of patriot act] requires any person or entity to turn over "any tangible things" to the FBI if they are related to an investigation into "clandestine intelligence operations" or "international terrorism."
- Orders acquired through secret court.
- Personal data is included in "any tangible things"
- Facebook messages
- Documents saved on Gmail
- Emails

Ad-Hoc Solutions

How we're trapped in a data mine tunnel collapse


- "Do-Not-Track" requests
- By the tech savvy
- Disable cookies
- Are routinely ignored by Facebook and Google
- "They confuse consumers"
- Many website features are unavailable if you disable cookies
- Some escape through the "Right to be forgotten"
- In a day in which we spend much of our lives online, what happens when we die?
- 380 of the EU's 500 million consumers use the internet.
- In the last three months
- 200 million used the internet for social media.
- 52% banked online
- 197.6 million
- 80% looked up goods and services
- 304 million
- And 997,500 died [#based on EU crude death rate over 3 months#]
- That means, on average
- 498,750 social media users
- 518,700 online bankers
- 798,000 of those looking up goods and services are deceased
- (In the last three months)
- That's a lot of information left online.

The "right to be forgotten"


- "Personal data is the currency of the digital economy" Viviane Redding, Justice Commissioner of the EU
- Protects "personal data [people] have given out themselves"
- And affords a "right to erasure" of online accounts.
- If you post a picture, and someone re-posts it, you have the right to call for its deletion.
- The EU may opt out of its safe harbor agreement
- Forcing U.S. companies doing business in the EU to comply.
- But, the right to be forgotten covers only a small percent of internet users, many of whom have already died.

Citations


- http://www.mcclatchydc.com/2012/04/03/144021/companies-take-on-the-business.html
- http://gigaom.com/2012/11/20/why-big-data-could-sink-europes-right-to-be-forgotten/
- http://www.democraticmedia.org/
- http://www.forbes.com/sites/michaelvenables/2013/03/08/the-ecs-right-to-be-forgotten-proposal-in-the-u-s/
- http://www.guardian.co.uk/technology/2013/apr/12/google-inactive-account-manager-digital-death
- http://www.indexmundi.com/european_union/death_rate.html
- http://www.stanfordlawreview.org/online/privacy-paradox/right-to-be-forgotten
- http://www.economist.com/node/21543489
- http://www.nytimes.com/2012/12/09/business/company-envisions-vaults-for-personal-data.html?pagewanted=all&_r=0
- http://reference.mapinfo.com/software/anysite_segmentation/english/2_0_1/PersonicX_Binder.pdf
- http://www.nytimes.com/2012/08/19/business/electronic-scores-rank-consumers-by-potential-value.html?pagewanted=2
- http://www.centerfordigitaldemocracy.org/sites/default/files/US%20Surveillance%20Law%20One%20Pager.pdf
- http://www.law.berkeley.edu/privacycensus.htm
- https://www.facebook-studio.com/fbassets/resource/66/FacebookExchange20120913
- http://blogs.wsj.com/wtk/


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