Ever wondered how apps like Facebook and Amazon know to
advertise something right after you've been searching for that thing on the
internet? They collect your data, and advertisers are able to send
ads your way. To some, it seems invasive, and that makes sense. Ultimately,
advertisers are trying not to waste money putting ads in front of people who
don't want to see them. So, an app selling your data helps an advertiser know
exactly which ad to place in front of you. You can always restrict permissions,
so these apps don't have access to certain information.
Customer Information Is Useful for Tailored Advertising
Businesses Offer Demographic Information to AdvertisersBefore the internet and smartphones, advertisers only had general demographic information, like generational age groups and gender, for research. Now, the information apps collect can give advertisers info about specific demographic information, like what part of the world you live in and a more exact age group. The information allows advertisers to do market research in ways that haven't been previously available, making them able to create products and services specific to your demographics.
Manufacturers Need Customer Data for DevelopmentFuture app and product development is increasingly relying on customer data that apps sell. When companies get enough data on someone's spending patterns, for example, they have an easier time predicting what people in that demographic are going to need to buy. That could help coupon apps, for example, target an audience with a helpful coupon at the perfect time. Look for how the apps protect your data. If they cannot report any sort of encryption, you should avoid that app and look for alternatives.