Updated · May 31, 2023
Updated · May 26, 2023
Data brokers, or information brokers, are essential to the digital economy. They help businesses aggregate customer data by analyzing consumer trends and behavior.
However, it is crucial to know how data brokers affect customer privacy and the ethical issues involved in how they do business.
Recent figures show that the data brokerage industry is multiplying and is expected to be worth $345 billion by 2026. This growth can be attributed to businesses and companies applying for data brokerage services to improve their utility.
Read on to learn the latest statistics on this controversial business, its current trends, and what risks it might pose to your personal information.
Data brokerage services are highly in demand. Approximately 5,000 data brokers can be found worldwide. At the same time, government agencies and non-governmental organizations have released approximately 10 million freely available datasets.
In this age of "big data," businesses want to make decisions based on consumer data more than ever. This has led to the rise of data brokers, who offer data about how customers act and what trends they follow.
In recent years, the data brokerage business has grown significantly. It was valued at 232.634 billion dollars in 2019 and is expected to grow. Thus, it is now a prime consideration for some businesses.
The following article will talk about how big the data brokerage market is, how its trends change, and what to expect in the future. We will also look at the data brokering industry's demographic details.
The need for businesses to make data-based decisions drives much of the growth in the data brokerage industry. The sector is thought to be worth $200 billion annually.
Here are some statistics that give you an idea of how big the market for data brokering is.
The data brokering industry is big, with an estimated 4000 companies operating. Notable players include Experian, Equifax, Acxiom, and Epsilon.
The existence of these broker companies worldwide highlights the expansive and lucrative nature of the data brokering industry.
Acxiom has 23,000 servers that gather consumer data and analyze it. This company has information on 500 million people worldwide, with up to 3,000 data points per person. This is just one company. Around the world, businesses do a lot of business with data insights.
The size of Acxiom's infrastructure shows how much consumer information data brokers collect and analyze.
More than 1,400 "leading brands" give data brokers information from store loyalty cards. When you sign up for a store credit card or loyalty card at one of your favorite stores, the information you give is probably sold to a broker.
It's important to know that, depending on where you sign up, you could be added to several different databases and share your information with other companies.
Data broker companies have grown because more and more industries are using big data, intelligent data, and business intelligence solutions. Smart devices, social media, and the internet are becoming more popular worldwide.
Considering these trends, it's essential to look at some statistics showing how data brokers' growth is rising.
Since 2000, the growth of the Internet and parallel programming software has made it easy for data brokerage firms to multiply. ChoicePoint and LexisNexis are two of the most successful data brokers.
ChoicePoint's sales went from $585 million in 2000 to over $1 billion in 2006. The Departments of Homeland Security and Justice signed contracts worth millions of dollars with the company.
ChoicePoint was criticized in 2004 for not informing the public about a criminal ring having access to personal information. As a result, the FTC filed charges against the company in 2006. ChoicePoint paid $10 million in civil penalties to rectify the situation and $5 million to compensate customers.
In 2005, LexisNexis acquired Seisint for a sum of $775 million. Unfortunately, unauthorized individuals gained access to the personal information of 32,000 customers by using their actual passwords without their consent.
The growth and success of ChoicePoint and LexisNexis exemplify the profitability and controversies surrounding data brokerage firms.
In an article entitled The Black Box Society, Franck Pasquale, a law professor at the University of Maryland, identified over 4,000 data brokers in a 156-billion-dollar market.
Identifying these data brokers highlights the industry's established presence and economic significance.
In 2022, the global data broker service market was worth $247.4 billion. By 2028, it is expected to be worth $407.5 billion, with a CAGR of 8.67%.
The COVID-19 pandemic is a factor. It has sped up the growth of the digital economy and has become a critical factor in changing the structure of the global economy.
For countries under the epidemic, data brokers will help open up public and social data, promote the free flow of data elements, establish new formats of data elements, and give birth to new scenes and occupations.
Data brokers sell the information you give to other companies for various business reasons. Marketing and promotion are two of these. Businesses buy data to send you marketing messages, customer deals, and online ads specifically for you.
Now let's look at the people who use broker services.
Acxiom was the first company to collect user information and sell it to other companies for marketing. The company says it has information on all U.S. households, and these data make up 12% of marketing sales in the country.
Followed by Nielsen, which has been around since 1923. It is a leader in market research and ratings and collects consumer information in more than 100 other countries.
Acxiom and Nielsen's prominence in collecting and selling consumer information illustrates data brokers' pivotal role in marketing and market research.
Research by BlackCloak shows that the personal information of more than three dozen online data broker websites is available to more than 99% of senior business leaders.
In line with this, 70% of these executive profiles also include information and pictures from social media. 40% of online data brokers have access to an executive's home network's IP address, which makes them open to cyberattacks.
Also, 95% of executive profiles have private and confidential information, a considerable risk for people and businesses. These numbers show how dangerous it is for personal information to be widely available on data broker websites.
The concerning statistics regarding the availability of personal information on data broker websites underscore the significant risks faced by senior business leaders and the need for enhanced privacy measures.
Yahoo experienced India's most significant data breach, affecting 1.1 billion citizens.
Even though this breach happened in 2013, no one knew about it until December 2016, during Verizon's acquisition of Yahoo. At first, it was thought that a billion customer accounts were affected. Still, it turned out that 3 billion user accounts were leaked. Yahoo said this wasn't a new security problem and would email all other users whose accounts were affected.
The Yahoo data breach showcases the severe consequences of security breaches and the importance of timely disclosure.
While customers may not have as much to gain from their personal information as data brokers do, this does not imply that they are completely powerless.
43% of data companies let people opt out for free. This can take some time, but it's worth it if you don't want your information to be sold. Reputation.com offers users the option to keep their data out of these directories.
The ability of customers to opt out for free from a significant percentage of data companies and the option to pay for privacy protection highlight the potential power individuals have in safeguarding their personal information.
Knowing these statistics is essential because they show us how our personal information is gathered and how it affects us.
It is essential to emphasize the risks and challenges associated with privacy and security breaches, highlighting the need for individuals and users to have control over their personal information.
This information can change how we decide to share personal information. It could be by changing our privacy settings or not agreeing to share our information.
The data brokering business is worth $200 billion annually, with an estimated 4,000 companies operating.
Data brokers gather information online and re-sell it to other businesses for marketing purposes.
They gather specific information from public records, online activity, and purchases.
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