4. Personal Information Leakage Problem in Target Advertise
The $5 billion fine imposed on Facebook in 2019 is said to be the largest ever imposed on companies that violated consumers' privacy. In Korea, a "toss" company sold 800,000 personal information to insurance agents for 30 billion won. All the power and financial benefits of these huge big tech companies come from data about users. The phrase "The one who owns the information owns the world" applies absolutely to the advertising world. We can see that big tech companies are making billions of dollars by owning our data.
Most advertising platforms obtain traffic by offering revenue-sharing agreements with content providers and publishers. The platform should focus on providing services to advertisers and publishers. This represents a conflict of interest in the advertising network. The platform's profit is a structure that shares profits with publishers. Therefore, there is pressure to sell the publisher's content to many advertisers at the highest possible price, which often results in compromising traffic quality.
Not all traffic has the same value, and the majority of Internet traffic is not suitable for inducing advertising transitions. However, because the platform relies on these content providers that share revenue, traffic is often sold and packaged together at multiple sites. This dilutes traffic quality and advertiser's ROAS, and increases advertising costs.
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