Everything You Need To Know About Data Mining

(And Why It Is Routine Even When You Do Not Know About It)

Many consumers found themselves in the midst of a Facebook scandal when they had not even heard of data mining before it hit the press. You might be surprised to learn that many companies mine for data, and it is more common than you think. For some investment marketing firms, it is a vital tool that allows people to understand what consumers like or need. That said, you need to know that Facebook did not hold power to permit or block data mining access. You did!

Data mining is responsibly used by major corporations every day. While you may not realize it, those flyers that you receive in the mail do not find you by accident. Those ads on your internet pages are not coincidental. A company targeted you as you fit a pre-determined data mining campaign based on your online consumer behaviors.

Do Not Blame Facebook

Did you know that 81% of consumers visit a website before visiting a brick-and-mortar store? You document your behaviors every single day with likes, shares, and comments. However, we need to be clear. Facebook did not sell your data. They did not mine your data for the company. They did not promote the campaign. It is another example of how online consumer interaction allowed for the data mining to take place.

So, why are consumers mad at Facebook? Facebook did not give Cambridge Analytica permission to mine your data. Facebook should also not be held to a standard that other major corporations have utilized for several years. If you have not heard of data mining before this scandal, it is because you have not been paying attention. Here is everything you need to know.

Benefits of Alternative Data Mining

Alternative data mining collects online knowledge and user information using nontraditional means. Money market and marketing corporations have learned to utilize artificial intelligence to mine and analyze large amounts of data in a short period. It is reasonable and routine in several industries, so you should not blame a company for someone else’s actions because data mining is a tool of the future whether you know it or not.

What You Need To Know

In financial markets, the ROI potential from data mining is worth the risk because it can pay off substantially when you understand the way consumers think. These are benefits of data mining.

  • Data mining gains insight into buying patterns
  • It narrows the scope which allows for accurate data analysis.
  • It identifies a higher probability of ROI potential.
  • It collects reliable evidence of market indicators and consumer behaviors

Data mining can be obtained from any online source including social media, metadata, web pages, and even the type of news feeds you interact with every day. Any activity online will leave an imprint that can be harvested for information.

Data Mining Is Typically Used Responsibly

Let’s be clear! Most companies use the data responsibly. The information identifies ways to improve marketing or product and services that we demand as consumers. What the company did should be illegal because they used the data to circulate false information knowingly. You should be outraged, but, you are mad at the wrong company.

The internet is a powerful tool. We, internet users, are responsible for what we do and allow to happen. When you permitted a third party to access your information, you opened the door for your data to be mined.

Data mining is going to impact our lives for many years to come as we step into a new artificial intelligence world. It is up to us as consumers to understand how our online usage affects data mining. Think twice the next time a company asks for permission to access your information as not everyone will use it for legitimate purposes!

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