Tech Companies Building Business on User Behavior

Greg Wheeler
Posted by

It's almost impossible to imagine a company succeeding in today's world without offering its products online. Online goods are the wave of the future, and companies, from Nike and Apple to smaller companies that specialize in books or movies, now spend a great deal of effort on establishing and maintaining a positive online presence. The growth of online technology helped thousands of companies sell products and services online.


Technology companies jumped on the social media bandwagon, buying shares in sites such as Myspace and Facebook. Myspace lost in the social media battle, as Facebook quickly gained millions of users. When the website went public and began offering shares, many companies and individuals immediately purchased shares, only to lose millions within a few short years. While some assumed this would turn people off when it came to purchasing online goods, things changed when a group of technology IPOs gained the attention of investors when it announced plans to keep information private and confidential.


According to John Shinal, mobile ad revenue hit more than $3 billion in 2012, and Facebook announced that 30 percent of its revenue came from ads it sold on its website. Google, Facebook, and Apple are just a few companies that use mobile ads to sell online goods. These ads target customers based specifically on their interests. When you click "Like" on a Facebook page, Facebook records that information for use in the future; Google will track your online purchases, the websites you visit, and your searches to determine what online goods it offers you on its ads.


In 2013, Nike announced plans to launch a digital bracelet known as its FuelBand. The bracelet keeps track of the activities that the wearer performs, and it rewards wearers with points, letting them compete with other users. Both Apple and Google released statements that the companies planned on releasing similar products, but Nike wants to target customers by letting them download different apps. Nike previously had problems selling online as customers complained about bulky items and electronics that didn't work as designed. Apple also wants to compete with others selling using the Internet by releasing its own music streaming service. Every time that you listen to a song, you'll see ads running along the top and sides of the music player. By selling those ads, Apple can make money for research and development, and the companies advertising can target shoppers and sell more products.


Buying and selling products online is an increasingly important part of modern business. Technology companies found that focusing more on selling online goods can increase ad revenue, and others found that they could target more customers by working with these technology companies. By specifically targeting customers who expressed interest in your products or similar products in the past, you can sell more online goods without spending money on retail space or other advertising campaigns.


(Photo courtesy of cooldesign /


Become a member to take advantage of more features, like commenting and voting.

  • You Might Also Be Interested In

Jobs to Watch