Why Web 2.0 will end your privacy

Why are the companies worth so much money? Why is MySpace worth over half a billion dollars without a proper revenue model? Why is Digg allegedly pitched at over $20m (at the last count) without any idea of where money is going to be pulled from? The answer is - data. Information. Marketing. Every detail about you and me. That is where the money is.

This is not necessarily a new argument. I've heard it thrown at me by various followers of the Web 2.0 bubble, who allegedly regurgitated it from some of the 'A-List' bloggers out there, including John Battelle.

But the argument holds weight, nonetheless. The one thing the Web 2.0 sites have in common is that they are furiously mining information about you and your buddies. What you like. What you like that your buddies like. Digg knows what stories you've submitted, what demographic you're in, how other people in your demographic react to what you post. MySpace can break its users down by almost any statistic imaginable, then mine that data for more information about what it is you're doing and sharing online, and how that relates to your friends in the same (or different) demographics.

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So Murdoch knows everything about MySpace. The financial gurus at Yahoo know all about your personal thoughts, pictures and bookmarks. The guys at Google know everything about your search habits, and you can bet they want to link 'em up to your email and calendar and whatever else you end up using online. How much is that data worth? With marketing spends online going ever upwards, as more and more of the world 'logs on', you can bet that it's only going to get more and more valuable.