In an information age, where content is on demand, and advertising is now being dictated from the consumer to the advertiser, data is becoming an increasingly important resource as this article states. In fact, data unlike tangible goods has an increasing margin of utility. In other words, as data increases and becomes more readily available, it becomes increasingly more useful to the end user. In advertising, the more data is available about the user, the easier it is to target them.
This article uses Google as a key example. Their business model revolves around the motto: “organize the world’s information and make it universally accessible and useful,” that is, enabling the user’s online experience easier which is facilitated by acquiring more data. The main revenue generator for Google is their contextually-relevant ads that are suited to the user’s needs, which is based from their data warehouse.
The question that is posed is whether innovation on the internet can continue with Google’s dominant position for data accumulation. In an earlier post, in business, especially online, there is a strong trend towards open-sourcing, this stimulates innovation. The author, who is a Venture Capitalist, argues that, as products and services are increasingly adapting the open-source and peer review platform, data should also be open-sourced, too. He mentions that most of the data generated are from users and their interactions with web services. Once the users understand their contributions (in terms of data), they can control this input and drive innovation.