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How Much Profit Google and Facebook Make From User Data

If you have had the experience of installing apps like Gtalk and Facebook desktop chat, you will be aware of an option which will ask your permission for collecting anonymous user information. This is not the first instance of these companies collecting user information anonymously. A couple of years ago, people were not so conscious about their online data and other such privacy issues. So, no one was bothered and even these companies did not bother to take your permission. But the recent rules and laws are very strict about these kinds of issues and the fines are very high if any violations are proven. But have you ever wondered why these companies are so insistent on collecting data? This data is very profitable for these companies.

Privacyfix behind Revelation of This Information

Although there have been a number of companies which have tried to develop apps for estimating the value of your online privacy, not many have been successful or the products are not efficient. Looking at the latest releases, the only app, or in this case an add-on, has come close to doing this efficiently. Privacyfix is one of the latest add-ons for the Firefox browser and it will give you exactly how much your online data is worth. While this is not a very accurate estimate, you can say that this is equivalent to the ‘old college try’.

Jim Brock, the founder of the company being Privacyfix, said during the release that the main aim of this app was to make understand people how valuable their online data is. He also added that this is a value exchange and how much profit they manage to generate when they visit sites like Facebook and Google.

Measure of Your Last 60 Days of Activity and Estimate the Annual Value

The app gives you a rough estimate of how much cash you manage to generate to these online companies. The app will measure only 60 days of your online activity and by using this usage statistics, the app will extrapolate the data to a year. Using this extrapolation, the total value of your online data for a year will be estimated. According to the analysts who were behind Privacyfix, Google managed to make $14.70/ 1000 searches conducted in 2010. Although the value decreased in 2011, searches still managed to earn some profit in the subsequent years. Also, the profit will depend on the type of data you search for and the type of links that you click on. If you are a type of user who regularly clicks on advertised links, then you are more valuable than the average user.

Facebook Linked With Other Websites Also

Another interesting aspect that this add-on takes into consideration is the link between Facebook and other websites. Mr. Brock said that his Facebook value was only $1.68 per annum but his daughter’s was $12. This is because his daughter is a more regular Facebook user than himself. Another reason for the higher value of his daughter was the fact that she visits more sites through Facebook than he does.

Facebook Apps Tracking Your Data Continuously

Most users assume that they are safe when they stop cookies/tracking online but they are not. One of the most ignored facts is that Facebook apps have a code piece that will track the users over the internet. This data is then given back to Facebook which will in turn sell it to advertising and marketing companies. This is a million dollar industry and will continue to flourish. Although the companies assure us that the data is not specific, we cannot be absolutely sure as there is no way to verify that claim. Authorities will not take action unless there is significant damage caused by this method but will it be too late by then? Only time can tell.

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