This paper explores the role and responsibilities that user data plays in the market influence of larger social media companies.
The reason for these inquiries are the current market conditions in which large companies collect user data on a huge scale to create a profile of their users.
Of particular interest and complexity under the umbrella of the marketing strategy of a corporation is the topic of its digital presence. This focuses specially on all market participants, competitors and consumers as well as all persons, companies, and institutions that actively participate in the economic market through supply and demand by buying, selling, or exchanging goods or services. This digital presence plays nowadays a crucial role in our digitalised world.
Table of Contents
1. INTRODUCTION
2. MAIN PART
2.1 Transition from Offline to Online
2.2 Important Marketing Channels of Current Businesses
2.2.1 Search Engine Marketing
2.2.2 Organic Search
2.2.3 Sponsored Search
2.2.4 Google Shopping
2.2.5 Display Advertising
2.2.6 E-Mail Marketing
2.2.7 Affiliate Marketing
2.2.8 Mobile and Social Media Advertising
2.3 The Rise of the Tech Giants
2.4 Data Collection and Ownership of Data
2.4.1 Data Octopuses and Monopoly Positions
2.4.2 Monetization of Data
2.4.3 Algorithms and Process Optimization
2.4.4 Digital Heritage
3. CONCLUSION
Research Objectives and Themes
This paper examines the influence of large social media companies on the market, specifically focusing on the mechanisms of personal data collection and the utilization of algorithms. It explores the responsibility these corporations hold and evaluates whether the current trend of large-scale profiling warrants a more critical approach.
- The historical shift from traditional offline to modern online marketing.
- Mechanisms of digital advertising channels, including SEM, social media, and affiliate marketing.
- Market dominance of tech giants like Google and Facebook and their revenue strategies.
- Legal and ethical complexities surrounding data ownership and privacy.
- The role of AI and algorithms in marketing optimization and business process automation.
Excerpt from the Book
2.4.1 Data Octopuses and Monopoly Positions
When it comes to the concept of data giants, social networks and the large tech companies already mentioned are usually the main topic of discussion and are primarily associated with the collection and analysis of user data.
In fact, these companies are involved to a large extent in collecting data, creating personality profiles, and thus making platform-integrated advertising more effective, but there are numerous companies that act more behind the scenes and exchange and use collected data with other data traders. Examples of this are the free "Who am I" quiz from the company Visual DNA, which has been used voluntarily by over 40 million people. According to the study "Networks of Control" by Wolfie Christl and Vienna University of Economics and Business professor Sarah Spiekmann, the number of people categorized by Visual DNA is around 500 million. In addition to advertising purposes, the data collected is also used for credit and risk assessments. Another company that plays a major role in this context is the US company Oracle, which is the largest software company from this perspective. With the help of 15 million websites, small files running behind the background, e.g., cookies, movement and action profiles of users are created. The number of profiles created by 2016 amounts to three billion. Social media and commerce also play a major role, as mentioned earlier, as Oracle co-operates with around 1.000 major commerce companies as well as Facebook. At the time of the research and publication of the study, the number of datasets generated by Facebook and passed on to Oracle amounted to around 700 million. Oracle's network also extends through many other U.S. corporations, other data vendors, and credit reporting agencies. The goal is to create unique identification numbers for people, with the aim of assigning and identifying them always and everywhere, across platforms and devices (Christl, 2021).
Summary of Chapters
1. INTRODUCTION: Provides an overview of the digital presence of companies and establishes the fundamental definitions and research basis regarding online marketing.
2. MAIN PART: Analyzes the evolution of digital marketing, the specific channels used, the market power of tech giants, and the critical issues surrounding data management, legal ownership, and AI-driven processes.
3. CONCLUSION: Synthesizes the findings, highlighting the indispensability of digital platforms alongside the growing need for legal frameworks to prevent monopolistic behavior and protect user data.
Keywords
Online Marketing, Social Media, Data Collection, Algorithms, Artificial Intelligence, Digital Monopoly, User Profiling, Advertising Revenue, Data Privacy, Data Monetization, Digital Heritage, Tech Giants, Conversion Rate, Target Audience, Antitrust Law.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper explores the role of large social media and tech companies, focusing on how they collect and monetize personal user data and the implications of this for market influence.
What are the central thematic fields addressed?
The core themes include digital marketing strategies, the growth of internet giants, data ownership issues, and the impact of artificial intelligence and algorithms on business operations.
What is the core research question?
It investigates what role the collection of personal data and the use of algorithms play in connecting with customers and whether these developments should be viewed with scepticism.
Which scientific methodology is primarily applied?
The work utilizes a descriptive and analytical approach, reviewing existing studies, market data, and legal precedents to evaluate current industry trends and practices.
What does the main body of the text cover?
It covers the shift from offline to online marketing, detailed analyses of various marketing channels, the financial structures of tech giants like Google and Facebook, and the legal challenges regarding data privacy.
What characterize this paper's findings regarding digital giants?
The paper highlights that these companies achieve dominance through strategic acquisitions and data exploitation, necessitating a balance between profit-oriented models and consumer protection.
How is data categorized in this research?
The research distinguishes between first-party data (obtained directly from users), second-party data (obtained via third-party providers), and third-party data (bought from external sources).
What is the significance of the "Digital Heritage" chapter?
It addresses the complex legal debate regarding what happens to personal digital data after a user dies, using German legal precedents to highlight the struggle for control between heirs and platform providers.
- Arbeit zitieren
- Kilian Jaehne (Autor:in), 2021, E-Marketing Trends. A Visualisation of the Advertising Landscape based on Social Media Networks and their Influence, München, GRIN Verlag, https://www.grin.com/document/1150290
