There’s growing interest in applications and data-mining technologies that anticipate our next move. Predictive apps collect our personal information, and turn it into suggestions, opportunities, offers, and more. Ignoring the obvious privacy policy and terms of conditions concerns, these apps are attempting to carve out their place on mobile phones everywhere.
The New York Times recently wrote about the power of “Apps That Know What You Want, Before You Do.” These predictive apps are likened to virtual, personal assistants. They’re waiting on and for you. All they ask in return is some data about you.
The article takes a keen eye towards Google Now. This Google product can “answer questions, make recommendations, and perform actions” (Wiki). With the goal of being your intelligent, predictive assistant, Google Now is installed and ready for use on all Android phones running version 4.1 and newer.
I’m not a technological caveman, but I question this development. There are sacrifices we make to give our smartphones all this data. Despite Google’s desire to innovate, it’s important to remember the purpose behind it: ad revenue.
Google’s entire business model is based on finding and publishing advertising. The multi-billion dollar industry feeds off the personalized data we voluntarily share with the company. They’ve made products and offerings that cater to user, make it easy to interact, and fun to continue. Before you know it, you’ve shared more than you know.
As the collection of details metastasizes, you can become the product. Now, Google and any other predictive tech company can better target advertising to you. This is a serious budgetary vulnerability if people are exposed to more relevant advertising.
While Google Now and its brethren may not profit directly from the app, the data behind the scenes is very real. Predictive apps are growing in popularity (e.g., IFTTT, Siri, Osito). But an alarm should be sounding: You need to consider the budgetary consequences of targeted advertising that’s only getting better.
Read more about my thoughts on Privacy vs Frugality on PTMoney.com.
Nice post Sam. There are similar issues with the Chromecast. The price is great and could be a game changer, but there is a reason why they can charge so little. They’ll get insight into your viewing habits and thus allow them to charge more to advertisers as it can be more refined & targeted specifically. I actually have a post going up Friday about it. While it very well could cause budgetary issues, it also forces us as consumers to be more discerning and not falling prey to advertising tactics. Mind you, I run an advertising business so it’s great for our clients. š
John,
You’re absolutely right, Chromecast is being sold cheaply for access to people’s living rooms. From Internet to TV to smartphones, that would make Google’s reach pretty ubiquitous. Eventually, that data will be the richest pool of information known to man.
And yes, we need to become critical consumers. The worry for me is that most people aren’t able to do that. It’s too easy not to be a critical consumer, in the face of targeted ads and marketing pressures.
Thanks for the comment,
-S.
seems like an opportunity there with “predictive apps” and “budgets”
why not have an app that predicts when you spend the most and warn you in that situation? when you are in certain settings maybe, or times of month, etc.
maybe it can predict what you will spend today and offer you coupons ahead of time to save you money?
could be a next generation budget app š
Mark,
This is a great idea and comment! I thought about that preventative app when writing this article. Wouldn’t that be a terrific alternative to the apps that suggest buying opportunities?
Love it! Now we need a designer. š
-S.
Everyone needs to drag out their old copy of Orwell’s “1984”.
Exactly! š
-S.
Its the job of marketing to market and find your weakness. The problem is as the get stronger people in general get weaker. We need to make better decisions about what we need and cant truly afford. I do agree that some of these apps are just a little over the top but I choose not to use them. Nice post Sam.