New York Media is one such publisher. This is done out of respect for its audience, says Daniel Hallac, New York Media’s chief product officer. “We are trying to develop a long-term relationship with them, and like any relationship, it needs to be built on trust,” he said.
There are multiple reasons most publishers avoid selling their data, even though this practice is profitable for some.
For instance, selling data requires technical sophistication and an upfront investment to get projects off the ground. But nearly 80% of the publishers and marketers Lotame surveyed said they outsource their data strategy and execution.
Another concern is that by selling audience data, a publisher could weaken one of its competitive advantages.
“Publishers worry that if they sell their audience off of their owned and operated [websites] that there is no reason to buy their inventory. This is even more pronounced for publishers who aren't selling out all of their endemic inventory,” said Nick Jordan, founder of Narrative. “They worry their competitors are going to buy the data and get some insight into how to steal share of mind.”
And of course, privacy concerns turn some media companies off from selling data.
Several media and advertising companies faced criticism after a December 2018 New York Times report showed that the anonymized data they sold could still be used to identify people. Following the Times report, the city attorney of Los Angeles filed a lawsuit against the Weather Company over its data collection practices.
Many consumers already believe that brands ask them for too much data and that they have no control over how their personal data gets used. In an April 2018 poll of US internet users by Janrain, 68% said they would support rules like GDPR in the US. Regulations like GDPR are forcing data sellers to be more cautious about their business practices, according to Mike Shields, CEO at Shields Strategic Consulting.
“Everyone is hyper-freaked-out about GDRP right now,” Shields said. “They are going to be incredibly cautious with this sort of thing.”