The Future of Your Personal Data - Privacy vs Monetization | Stuart Lacey | TEDxBermuda

Summary

This talk explores the value of personal data exhaust, comparing it to a trail of dollar signs left as we move through life. It highlights how tech giants track and exploit our data without consent, turning us into products. The speaker argues for data ownership and the potential of disintermediation, where individuals can directly monetize their own data, cutting out the middleman and reclaiming control over their digital identities.

Takeaways

• 🗺️ Personal data leaves a digital trail, much like vapor trails left by airplanes.
• 📍 Google and other tech giants track user locations and activities, raising privacy concerns.
• 🏠 Personal data exhaust, including location and habits, can be exploited for targeted advertising and other purposes.
• 💵 Personal data is valuable and can be monetized, with companies like Google and Facebook making billions from user data.
• 🔒 Facebook's acquisition of Instagram and its use of personal data for targeted real estate offers exemplify data exploitation.
• 🏥 Devices like Fitbit collect health data that can be used in legal cases, highlighting the sensitivity of personal data.
• 📱 Companies are exploiting personal data without user consent, leading to a call for greater control and awareness.
• 🌐 Regulatory actions like GDPR and consumer privacy laws are responses to the misuse of personal data.
• 🔄 The concept of disintermediation in the sharing economy could apply to personal data, allowing users to directly benefit from their data.
• 💼 The future of personal data involves users taking control and monetizing their own data, rather than companies profiting from it without consent.

Q & A

What is the significance of the three questions mentioned in the transcript?

The three questions are designed to provoke thought about personal data and its value. They challenge the audience to consider whether they are being robbed of their data, missing out on potential benefits, or being adequately compensated for the data they generate.

How does the speaker illustrate the concept of personal data exhaust?

The speaker uses the analogy of an automobile leaving an exhaust trail to describe how individuals leave behind a trail of personal data as they move through the digital world, which is collected and monetized by companies.

What is the role of Google in tracking personal data as described in the script?

Google tracks personal data through location tracking or timeline features, allowing users to see all the places they've been with date and time stamps, indicating the extent of data collection by the company.

How does the speaker use the example of Facebook's location history to demonstrate data tracking?

The speaker mentions how Facebook's location history feature, which is automatically turned on, tracks everywhere a user has been. This is exemplified by a story of a friend who was shown real estate ads based on photos posted on Instagram and their location, highlighting how personal data is used for targeted advertising.

What is the importance of personally identifiable information (PII) in the context of the script?

PII is crucial as it allows companies to connect personal data to individuals, making it more valuable for personalized advertising and services. The script discusses how the control and monetization of PII could shift from companies to individuals.

How does the speaker relate the concept of disintermediation to personal data?

Disintermediation, as explained by the speaker, involves cutting out the middleman and connecting those who have something directly to those who want it. Applied to personal data, it suggests a future where individuals could directly exchange their data for goods and services, bypassing the need for companies to collect and sell anonymized data.

What is the 'virtuous cycle' mentioned in the script, and how does it relate to personal data?

The 'virtuous cycle' refers to a proposed shift where individuals have the choice to share their personal data directly with companies in real-time, receiving personalized offers and discounts immediately. This cycle is virtuous because it saves companies the cost of advertising and allows individuals to benefit directly from their data.

How does the speaker suggest that individuals can take control of their personal data?

The speaker suggests that individuals can take control by understanding the value of their personal data, choosing when to share it, and engaging in direct exchanges with companies for goods and services, thus monetizing their own data rather than allowing others to profit from it.

What is the potential impact of individuals monetizing their own data as proposed in the script?

Monetizing personal data directly could lead to more personalized and relevant offers, potentially lower costs for consumers as companies save on advertising, and a shift in the balance of power regarding data ownership from corporations to individuals.

How does the speaker use the term 'shadow profiles' in relation to Facebook?

The term 'shadow profiles' refers to the existence of Facebook profiles for every individual, whether or not they actively use the platform. This includes people who have never created a profile and even unborn children, as demonstrated by the example of a pregnant woman sharing an ultrasound, indicating the extent of data collection even before birth.

Outlines

00:00

🌟 The Value of Personal Data

The speaker begins by posing three questions that challenge the audience to consider the value of their personal data. Using the metaphor of vapor trails, the speaker illustrates how individuals unknowingly leave behind a trail of personal data as they navigate through digital platforms. The speaker then provides a real-life example by demonstrating how Google's location tracking feature can map out an individual's daily movements, highlighting the extent to which personal data is being collected and utilized without explicit consent. The narrative shifts to discuss the monetization of this data, suggesting that personal information is being exploited for profit by tech giants like Google and Facebook, who are essentially 'robbing' users of the true value of their data.

05:01

💵 The Exploitation of Personal Data

This paragraph delves deeper into the commercialization of personal data, emphasizing that individuals are not merely users but are actually the product being sold to advertisers. The speaker points out that companies like Google and Facebook assign a monetary value to each user, and their data is used to fuel targeted advertising. The narrative then explores the broader implications of this data exploitation, including the impact on privacy and the potential for misuse, as illustrated by anecdotes involving Facebook's location history and the use of Fitbit data in a courtroom. The speaker argues that personal data has become a lucrative commodity, with companies making significant profits at the expense of individual privacy.

10:03

🔒 The Need for Data Ownership

The speaker transitions into discussing the importance of individuals taking ownership of their personal data. Using the concept of 'disintermediation', the speaker suggests a shift towards a model where individuals can directly control and benefit from their data. Examples of companies like Uber, Airbnb, and Alibaba are provided to illustrate how disintermediation can empower individuals and disrupt traditional business models. The speaker emphasizes the need for a change in the current paradigm, where personal data is collected and sold without the individual's knowledge or consent, advocating for a more transparent and equitable system where individuals can choose to share their data for direct benefits.

15:05

🛍️ Monetizing Personal Data

In the final paragraph, the speaker envisions a future where individuals can monetize their own personal data by choosing when and how to share it. The concept of 'PII' (Personally Identifiable Information) is introduced as the key to this new model, where individuals can engage in direct, value-based exchanges with companies. The speaker provides hypothetical scenarios where individuals could receive personalized offers and discounts in real-time, based on their willingness to share specific data points. The narrative concludes with a call to action, encouraging the audience to recognize the value of their personal data and to actively participate in its monetization, rather than passively allowing it to be exploited by others.

Keywords

💡Personal Data Exhaust

The term 'Personal Data Exhaust' refers to the trail of data that individuals leave behind as they interact with digital devices and services. In the video, it is used to illustrate how every digital action, such as using a smartphone or accessing the internet, generates data that can be collected and analyzed. The speaker likens this to an exhaust trail, emphasizing that this data is not just digital information but has real-world value, often being monetized without the user's direct benefit.

💡Location Tracking

Location tracking is the process of monitoring and recording the geographical location of a user or device. The video discusses how platforms like Google and Facebook use location tracking to gather data on users' movements. For instance, the speaker mentions how Google's timeline feature shows the places a user has visited, which is a direct example of location tracking in action and how it contributes to the personal data exhaust.

💡Disintermediation

Disintermediation is the elimination of intermediaries in a process to make transactions more direct and efficient. The video speaker uses this term to propose a solution where individuals can directly monetize their personal data by sharing it with companies that offer goods or services in return, cutting out the middlemen who traditionally collect and sell this data. This concept is central to the video's theme of empowering individuals to take control of their data.

💡PII (Personally Identifiable Information)

PII stands for Personally Identifiable Information, which includes data that can be used to uniquely identify, contact, or locate a single person. In the video, the speaker emphasizes the importance of PII in the context of personal data monetization. Companies often collect PII to personalize user experiences and target advertising. The video suggests a future where individuals have more control over their PII and can choose when and how to share it.

💡Data Monetization

Data monetization refers to the process of turning data into a revenue stream. The video discusses how companies currently monetize user data without directly compensating the users. The speaker argues for a shift where individuals can monetize their own data by sharing it with companies in exchange for personalized goods or services, thus cutting out the traditional data brokers and advertisers.

💡Anonymization

Anonymization is the process of removing personally identifiable information from data sets to protect individual privacy. The video explains how companies anonymize data to legally buy and sell it. However, the speaker points out that once data is anonymized, it can still be re-identified through various means, which raises questions about the effectiveness of anonymization in truly protecting user privacy.

💡Digital Legacy

A digital legacy refers to the digital assets, including social media profiles, digital documents, and online accounts, that an individual leaves behind. The video touches on the concept of digital legacy, particularly in the context of children and未成年人, who are building their digital footprints from a young age. The speaker suggests that as these digital footprints grow, they become part of a person's data exhaust, which can be monetized.

💡Data Analytics

Data analytics involves the systematic analysis of data or statistics to extract meaningful information, draw conclusions, or support decision-making. In the video, the speaker mentions how companies use data analytics to understand user behavior and preferences, which is part of the process of turning personal data into a profitable asset. The video implies that as individuals become more aware of their data's value, they may seek to control how their data is analyzed and used.

💡Sharing Economy

The sharing economy is an economic model in which individuals can share access to goods and services, often facilitated by digital platforms. The video speaker uses the sharing economy as an analogy for a potential future where individuals can share their data directly with companies, bypassing traditional data collectors. This concept is tied to the video's theme of empowering users to take control of their data and benefit directly from its value.

💡Data Privacy

Data privacy refers to the practices and policies around collecting, storing, and sharing personal information. The video discusses the importance of data privacy in the context of personal data exhaust, highlighting how companies often collect and use personal data without the full knowledge or consent of users. The speaker advocates for greater awareness and control over personal data as a means to enhance privacy.

💡Regulation

Regulation in the context of the video refers to the laws and rules that govern the collection, use, and sharing of personal data. The speaker mentions various regulations such as the European General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which are designed to protect user data. The video suggests that while regulations can provide some protection, they may not fully address the issue of personal data monetization, which the speaker argues should be controlled by individuals.

Highlights

Three questions are proposed to provoke thought on personal data's impact.

Google's location tracking reveals detailed personal movement history.

Personal data exhaust, like a car's exhaust, is tracked and monetized.

Facebook's location history feature and its integration with Instagram for targeted advertising.

Fitbit data used in legal cases, illustrating personal data's role beyond health.

Personal data is an asset with rights of title and interest.

Google and Facebook's market valuation per user highlights data's worth.

Big tech companies exploit personal data for profit without user consent.

Regulatory actions like GDPR and consumer privacy laws attempt to control data exploitation.

iTunes agreement's complexity exemplifies the difficulty in understanding privacy terms.

Devices like iPhones collect extensive personal data without users' full awareness.

Children are building digital legacies from an early age through social media.

Facebook's shadow profiles capture data on individuals even without an account.

Disintermediation in the sharing economy can apply to personal data.

PII (Personally Identifiable Information) is key in personal data monetization.

A future where individuals can choose to monetize their own data directly.

Real-time data sharing can lead to personalized offers and discounts, reducing advertising costs.

The speaker challenges the audience to consider if they are being paid for their data.

Transcripts

I'd like to uh go in an exploration with

you today on three

questions three questions which will

undoubtedly change you the moment you

leave this

Auditorium three questions which will

nurture an idea possibly so large it

would disrupt industries that we

currently hold as unassailable

three

questions are you being

robbed are you missing

out he

is are you being

paid so I saw this photo and I thought

about you know how we all transit

through our lives we seem to go in all

these different directions leaving

Behind These Vapor Trails as we go

through our lives and you know we do um

it's quite identifiable where we're

going and to give you a little bit of

context let have a look at uh Google any

of you who have a Google account or an

Android phone or even those of you with

apple or an Apple account you can find

this information so let's look at Google

just type in location tracking or

timeline and you can actually see all

the places you've been so here's me but

more importantly let's go pick a date

here's uh September 12th of this year I

was in New York uh I left the hotel at

the New York Palace went over to the

Eugene o Neo theater all date and time

stamped I came back to the Palace I went

to J crew bought some socks very

important went back to the Palace hung

out there for an hour checked emails

went over to Rockefeller Center you can

probably guess what I saw at the

Rockefeller Center those are my photos

by the way Google courtly appended them

to the timeline for me um every single

step of mine tracked and every one of

you that have any device either apple or

um Android have exactly that amount of

tracking in your lives if you choose to

go look at it and so I want to think as

we look at this for yourselves that

you're like this automobile driving

around the streets and behind you you're

leaving an exhaust behind you and that

exhaust is your personal data exhaust

and if you look really closely at that

exhaust it's not carbon monoxide and

particulates it's actually ones and

zeros and in fact hidden in those ones

and zeros are dollar signs because that

is worth a tremendous amount of

money and so here's uh Facebook our

friend um location history obviously

conveniently turned on automatically for

you um bottom left tracking of

everywhere someone's been and I'm going

to tell you a story about a friend of

mine in Palo elto in California who went

shopping well shopping is actually a bit

of an extension went with his wife

browsing homes just privately having a

look took some photos and posted them on

Instagram and now you can guess why

Facebook bought Instagram for a billion

dollars um posted them on Instagram and

what happened the very next

day this cross referenced against Zillow

which is a real estate homes compendium

that actually matched the photographs

and his location against the houses he

and she were looking at and gave them

not only a realtor named Kathy thle with

33 Stars by the way she's really good um

and pricing but actually cross reference

credit history income statements and

location to give him offers on that

house all without his consent or

knowledge there's a lot of money in that

data

Fitbit many of you might have one or

know what they are Health trackers

they're now being used in the courtroom

let me tell you another

story this gentleman unfortunately

traveled a lot and uh he believed

unfortunately that his wife was being

unfaithful to him so when he came back

after a trip he actually accessed their

joint cell phone records which he has

legal right to and found out that indeed

she had been going to the wrong side of

the tracks at 2: a.m. in the morning on

times he was

overseas but not just that he could

access her Fitbit record which was

actually attached to her application on

her cell

phone to find out that her heart rate

had been spiking to

157 beats per

second for 27 minutes at the same

time now half of you are in all going

wow that's really creepy and half of you

going wow 27 minutes

so calm yourselves calm your heart

rate now for the big reveal this is

important your personal data is an asset

like a bond like a stock like your home

it's an asset and it belongs to you you

have rights title and interest in your

data it is yours and the world seems to

forgotten

this so part of it hasn't Google market

value per user they've Quantified you

not as a person but as a unit metric of

how much you're worth $200 at Google 116

at Facebook the price of free PC World

Apple Facebook Microsoft they're selling

you to advertisers so the old saying if

you're not paying for it you're not a

customer you are what the

product in this fact actually I don't

think you're the product but your

personal data is actually that product

and at the bottom we're living in an era

where big companies not only exploit

what we've given them for free but it

could be used for good or to create

entire business

Empires so there's a tremendous amount

of value in that data and it's being

used without your consent often without

your knowledge and someone else is

making money over your stuff and if you

have any other just reference points to

want proof to yourself have a look at

any website you go to where there's an

ad that ad is often generated after it's

been tracking your history what you've

been doing where you've been going what

you've been consuming or looking at to

consume and then people are paying in

this case Ford Nikon Hilton to offer you

ads for something they think you might

want there's a huge amount of of uh of

lucrative business in that personal data

so are you being robbed I would

certainly contend for many of us yes we

are so I found this picture and I just

loved it it's a classic standoff you got

these three people all with their guns

loaded pointing at each other no one

knowing what the next step

is and I like this guy I thought he was

software he's got a big soft coat on um

he's kind of a software looking guy and

he or is actually software in big data

and what they're doing is trying to get

you as much of your data as quickly as

they can to do stuff with it and they've

had all kinds of issues Uber had god

mode I mean really

um Facebook privacy tweaks Facebook has

been a constant unfortunate abuser of

privacy and they've run experiments on

people and Spotify at the bottom a huge

privacy backlash what is actually your

data worth so then you've got this guy

he's kind of Hardware oriented Hardware

internet of things so we're talking

those fitbits those Nest Thermostat

self-drive cars we're talking devices

and everything and to just give you two

examples here's William Meredith who

pulled out a shotgun and shot down a

drone over his backyard um it certainly

wasn't his and his daughter was outside

suntanning um and then Samsung TV any of

you who have one just check when you get

home please um many of them were shipped

with their webcams enabled and the um uh

microphones enabled and so it could

actually monitor your room which might

be your bedroom if you have a TV in

there and uh it actually anyone could

hack into it effectively and turn on the

camera and the microphone without your

notice and actually record you while

you're in your room now Samsung's idea

was it would sit there waiting for you

to go TV

on so think about that and think about

how they then had to ship firmware to

like update those TVs and so then youve

got the regulator that goes whoa we need

to somehow stop these two parties we're

in the stand of what are we going to do

and The Regulators enact a whole bunch

of laws uh consumer bill rights in the

US is opin legislation you have to

choose now if you want to opt in lots of

stuff in Europe the European General

data protection regulation covering all

personal data even here locally the new

people law on privacy so lots of

regulatory action and software and Big

Data go okay you got me now I'm going to

do this and what are they do iTunes

agreement great example now many of you

probably have an iTunes account and

might use an iTunes agreement but if you

actually dig into it a little bit

further have all of you realized it's

20,745 words over 36 pages

so honestly raise your hand in the

audience if any of you can actually say

you've read that before you consented to

it in fact seven attorneys spend seven

days as published in a Forbes article

those seven attorneys still could not

understand what privacy rights were

given up and so that is responded to by

that industry by giving you all kinds of

settings on your devices iPhone's here

but your iPhone has a microphone a

camera an accelerometer it has all these

different applications and you are given

opportunities to try and customize them

but many of us just want to play Angry

Birds so we just download

them and so if you run an an an analysis

on your device you can very quickly find

out and this is actually on mine uh 50

applications accessing my contacts 57

accessing my information 247 whether or

not the app was actually being actively

used and 61 accessing my median files

and you ask me why Uber needs a copy of

a photo I took of my children on the

beach they don't so we give this stuff

away and so I think about it and I

actually think we're none of those three

we're actually the camera person we're

taking that photograph we are watching

this happen to

us and when I think about us watching

this I actually think about this and

this is just heartbreaking as a father

of two two young boys six and 10 one of

whom is in the audience I think about

the amount of time we're spending with

our youth in front of devices and you

know good parenting and other decisions

are part of that but a very big part of

it is the fact that they are actually

building their own digital legacies

their own Vapor Trails exhausts as

they're going through life at a very

young age and in fact if you aren't sure

about that you should know what

Facebook's um Shadow profiles are about

every single person in this room has a

Facebook profile whether you use the

application or not some of you and a

friend I know here actually stopped

using Facebook but he still has a

profile and I saw a lady walking around

earlier that was very pregnant and I can

tell you when she took the ultrasound

probably and shared that on a social

media site that baby born yet has a

profile so that is the world we're

living in and we need to take uh take

ownership of our role in that we can't

just watch it and so when I ask are we

missing out I absolutely believe yes

indeed we

are so the good news is there's a

solution so every good story has to have

some kind of a villain and some kind of

win at the end so let's look about the

win here the solution involves the

reality that there are companies like

uber

and let me tell you why that's important

and I'll give you a couple examples it's

something called

disintermediation it's a big word so

let's make it easy it's get rid of the

middleman what disintermediation does is

brings people who have something

immediately next to people who want it

and take out all the people who would

have otherwise been in the middle it's

the beginning of the sharing economy

that we are so enthralled with Uber owns

no

vehicles they're the largest Transport

company in the world almost and they

connect people with vehicles to people

who want vehicles Airbnb owns no real

estate not one collectively booking more

Hotel nights than the top 10 Hotel years

in the world

combined and connecting people with a

place directly to people who want a

place Facebook creates no content

connecting people with content directly

to people who want content and Alibaba

the um Chinese internet giant connects

people with goods and services directly

to people who want them while carrying

no

inventory it's pretty compelling story

so let's see how it might work with us

but it's about this thing called pii

what's that what's interesting is your

personal data in and of itself is

actually not that valuable unless they

can connect it to

you so all these companies are trying to

personalize your experience offer you

more relevant goods and services and

they collect all this data but unless

they can attach it to you it's of no

value and so pii is personally

identifiable information I'd like you to

try and remember that because it's a

very big current

thread and what it is is all those TR

and characteristics that might link your

personal data to

you name social security number actual

history location Biometrics any of that

voice print so it's actually all about

the

pii and I want to share with you how

it's currently being done and then what

the new world looks like how it's

currently been done is you've got

yourself with your digital device and

your data capture and you want to

obviously access a some goods and

services but the world is actually going

that route right now and if you ask why

let me tell

you what's happening is you start the

circuit with you collecting a lot of

data through your devices and through

the internet of things and smartphones

and then those devices because they're

running on software by other large

companies or applications uh run by them

they obviously collect all that data but

they know they legally cannot use it

because it's got personal attributes

attached so what do they do they

anonymize it they strip all the personal

identification off once they've

anonymized it now they can buy and sell

it and now you can see The Virtuous

chain of all the revenue creation that

buying and selling goes to people who

then are using it with analytics

sometimes running Ai and and uh other um

uh algorithmic measures to try and

figure out stuff about you to actually

recompile it to ultimately figure out

you are who they think you are so they

can then sell it to someone who's going

to advertise to try and sell you a

product they think you

want that is 358 degrees around a

circle and it takes an immense amount of

time and

cost and if you have a question about

that how much value is in there just ask

Google who 90% of their revenues come

from

advertising so why don't you just go the

other way why don't we just intermediate

the whole thing why don't we get rid of

the middlemen and just go

straight that is the bridge that we're

going to cross soon and that is what we

call two degrees one degree there and

one degree back so that's a bit

subjective maybe so let's use a concrete

example the great thing is with my data

it's my data I own it I've got choice so

I can choose to engage in a fair value

exchange and imagine in that two degrees

place that I choose to share my pii my

personal data to someone who's got goods

and services that I might want in return

for the immediate realtime attribution

of those characteristics that they

desperately need in order to offer you

relevant personalized immediate goods

and services they now save a tremendous

amount of money and time by not having

to advertise and they can now discount

the product and immediately give it to

you by discounting it what are you

doing you're actually reducing the cost

yourself and so we talked earlier about

J crew I bought my socks so real life

example imagine if J crew knew all my

stuff but I'm walking down and actually

uh in the street and I can share on

demand my size style preference loyalty

Awards location how much my average

spend is and if I choose to do that J

Kring so we have your size those styles

that you like and the colors you want

for the spend that you usually do and

walking the door now across the street

and it's 20% off or imagine if Fitbit in

your healthy and virtuous lifestyle in

the good example of Fitbit and you have

an amazing regimen of exercise which

shows your discipline shows your heart

rate shows a lot of really good valuable

information and you apply for life

insurance in real time all that

underwriting cost can be removed and you

can get a discounted policy imagine a a

hotel here like Hilton where they might

want to know where you travel what kind

of rooms you like what kind of spend you

do on uh in uh in room Services um your

your kind of loyalty attributions and I

what imagine if you could do that the

first time you shop and Hilton could

offer you discounting immediately rather

than having to buy ads in your social

media feeds and websites ongoing lots

and lots and lots of examples how your

data will actually change the future and

what it's all about is actually you

monetizing your own

data not someone else you so if I wrap

up for a moment let's just think about

this you go through life and you leave a

personal data exhaust behind you and the

big reveal is it's actually your data

and it's an asset

class and right now it feels like we're

being

robbed but it's a standoff and within

that standoff at virtuous cycle if you

know about standoffs one way to break

them is to actually introduce a fourth

event or something else that's going to

change the dynamic so instead of just

watching and just missing out maybe we

act and maybe we take control maybe we

get

involved and so the good news is there

is a solution it's that word dis

intermediation it's the sharing economy

it's the Ubers and airbnbs of the world

and that kind of solution is coming

right now to your personal data world

and it's all about the pii and if you do

it right and if you have Choice which

means you can choose when you act and

when you don't which is extremely

powerful because you can opt out anytime

you want when you do choose you can

monetize your own

pii and so about uh 20 minutes ago there

was a challenge in the video that you

have to be able to sum up your entire

Ted Talk in six

words and not being one to Sher on a

challenge here we go so we asked the

question are you being

paid you

will thank you very much