‘We’ve created a privacy industry’

‘We’ve created a privacy industry’ was a statement you could often hear when Europe introduced General Data Protection Regulations (GDPR) and the German implementation DatenSchutz GrundVerOrdnung (DSGVO). Already back in 2016 first predictions arrived, that GDPR will boost European software industry and give them a unique selling point. After the regulation became effective in Europe May 25th 2018(!), after a 2 years transition period, perceived only complaints happened. Affected data controllers and processors cited the difficulties implementing these regulations. A BitKom funded survey even indicates the regulation is hurting the European market.

'We've created a privacy industry'
Panel on Internet Security and Privacy

Now, around 1.5years later, the industry seems to have settled on the regulation and business continues as usual. Subjectively perceived, privacy is indeed still an obstacle to decision makers in the market. Even politicians keep on imploring data to be the new oil, demanding a data driven economy and to weakend the underlying ideas of european data protection acts. Meanwhile, the opportunity has moved along. Californian Start-Ups discovered this niche and turn privacy it into value:

Privacy-focused technology companies are offering a variety of services, from personal data scrubbing to business-focused software meant to help companies comply with the law.

Source: ‘We’ve created a privacy industry’: California law fuels wave of startups

Behavioral advertising efficiency

Researchers from U Minnesota, UC Irvine and CMU took a look into “behavioural based advertisement”, a segment that requires heavy tracking of users across websites through cookies. A report of their findings is here: Online Tracking and Publishers’ Revenues: An Empirical Analysis. Money quote:

Empirical analysis of behavioral advertising finds that surveillance makes ads only 4% more profitable for media companies

They found that despite the 40% “ad-tech” premium charged by behavioral ad companies, the ads only added about 4% the media companies that published them, meaning that behavioral advertising is a losing proposition.

Source: Boing Boing

Valuing Internet Companies.

How is an internet companies value calculated?

Like this, in a nutshell.