New app called Caden could PAY users thousands of dollars per year to share their smartphone data with advertisers – the more detailed the information, the higher the payout
- Caden wants to pay users for their smartphone data, with the potential for some users to earn hundreds or even thousands per year
- The app helps users download their data to a ‘vault’, that information is anonymized and then shared with brands that partner with Caden
- Caden, which is backed by Yahoo co-founder Jerry Yang, among others, is rolling out a public beta test to 10,000 users early next year
- ‘We believe every digital citizen should be a part of the data economy and be the one who can decide how their data is used,’ the company says
A new company wants to pay users for their smartphone data – with the potential for some people to earn thousands of dollars a year if they give up lots of specific information.
The app is called Caden and it’s backed by internet pioneer and Yahoo co-founder Jerry Yang. The app helps users download their data from other services and apps, whether it’s Amazon or Yelp, into a ‘vault. Users choosing to share that data can then earn a cut of the revenue that the app generates from it.
Caden has been testing with a small number of users and plans to roll out a public beta test of 10,000 users early next year, according to The Wall Street Journal. The company plans to give users a wide range of choices about sharing their data.
A new company wants to pay users for their smartphone data – with the potential for some people to earn thousands of dollars a year if they give up lots of specific information
‘We believe every digital citizen should be a part of the data economy and be the one who can decide how their data is used, and what they want in exchange,’ the company states on its website.
‘We’re completely obsessed with privacy, so you can rest assured that every function and product we offer protects privacy, period.’
One option will pool and anonymize the data and share it with outside parties for $5 to $20 per month, Caden founder and chief executive John Roa told the Journal. The compensation will be determined by a ‘data score’ based on users answers to demographic survey questions and which services they’re using.
For example, a person could consent to sharing their ride-sharing history so advertisers could create segments of people who ride a certain amount – which may eventually pay consumers up to $50 per month, according to the Journal’s report.
Another option would allow advertisers to take direct actions based on the data that Caden aggregates from users. That would be more valuable to a range of different marketers, so it could generate thousands of dollars per year for participating users, the company explained.
Any app that finds success in this space will have to convince a broad swath of consumers that it is trustworthy and the overall experience would need to be perfect.
‘The consumer app is going to have to be incredible. Not only the user experience, but also the value that the consumer gets is going to have to be amazing,’ Ullas Naik, founder and general partner at Streamlined Ventures, the lead on Caden’s new funding round, told the Journal.
Another option would allow advertisers to take direct actions based on the data that Caden aggregates from users. That would be more valuable to a range of different marketers, so it could generate thousands of dollars per year for participating users, the company explained
The company said that it will allow users to see which brands it’s partnering with and allow them to control which brands can access their information – as it starts to let brands do more personalized marketing work.
Caden would also allow users to limit or restrict advertisers by category or name, they told the Journal.
However, one expert cautioned that apps like Caden won’t truly take off until another major privacy shift happens in the coming years: Google’s plan to stop supporting third-party tracking in its popular Chrome browser, which doesn’t take effect until 2024. Until then, brands can still hoover up a lot of data about consumers without asking them for permission.
‘I think these will be a series of niche solutions, something advertisers can experiment with and something consumers can experiment with, but I don’t see them taking off,’ Forrester Research analyst Stephanie Liu told the business publication.