Black Friday in the age of data: how companies make money beyond the sale

When we think of Black Friday we picture long lines, crowded stores and people running to grab the best deals. But today Black Friday has morphed into a multi-day online event where deals pop up for weeks. Shopping sites can collect information about browsing and purchases. While we, the consumers, enjoy the thrill of the hunt for deals, there’s another game being played in the background – one that can create value beyond the product sale. It’s the game of data collection.

The secret side of Black Friday: data collection

The appeal of Black Friday has always been about getting that one deal. But while you’re busy shopping tech companies are collecting a treasure trove of data. This isn’t just about what you buy; it’s about your habits, preferences and behaviors to a degree that’s almost creepy. The practices vary by retailer and by the choices available to shoppers.

The data collected can go beyond your purchase history, including browsing patterns, clicks and abandoned carts. Companies can combine cloud storage with separate analytics systems to look for patterns and plan marketing. The FTC’s January 2025 discussion of surveillance pricing describes how consumer information can feed targeting tools; it does not measure a Black Friday-specific average.

Companies collect and store consumer data to refine their marketing. They may use it to choose an offer, test email wording or recommend a product. These decisions can use business rules, statistical models or machine learning; a personalized message alone does not tell you which method was used.

For related examples, see how shopping data supports personalized offers and urgency tactics.

How cloud storage fuels the data goldmine

Cloud storage is part of this data infrastructure. It holds information that applications and analytics services can use. Some shopping functions need rapid updates; others can use reports processed later. Storage and real-time analysis are different functions.

Cloud-based systems can add capacity during busy periods, but scaling alone does not guarantee that no data will be lost. Reliable operation also needs monitoring, recovery procedures and testing, as the AWS reliability guidance explains. Retailers can use stored information for customized emails, recommendations or ads, depending on their systems and data practices.

A purchase can generate an order record, while website analytics may separately record product views and navigation. Retailers can process some signals quickly for stock updates or recommendations and analyze others later. Cloud technology is one way to support this work; on-premises and hybrid systems can also do it.

AI in personalization and targeted marketing

Machine learning can help identify patterns and rank recommendations. But a retargeted ad or an abandoned-cart discount is not, by itself, proof of AI: marketing systems can also use preset rules. Google’s dynamic remarketing documentation explains how previous visits and product views can inform ads.

Some recommendation systems are trained on interaction data. Their usefulness depends on data quality and model design; collecting more information does not guarantee better predictions. During Black Friday, the stakes are even higher. With so many retailers vying for your attention, some companies use AI to analyze which deals will appeal to you based on your past behavior, current browsing habits, and even trends among people with similar interests.

For example, a retailer might treat repeated views of fitness equipment as a sign of interest and test a treadmill offer. That is an inference, not knowledge of what you need or a guarantee that you will buy. Recommendations can be useful, but their commercial purpose deserves attention.

But while this personalization makes shopping more convenient, it raises a big question: Is the convenience worth the trade-off in privacy?

Is the discount worth the trade-off?

For many consumers, personalized ads and targeted offers seem like a fair trade for discounts and convenience. After all, if you’re going to be seeing ads anyway, why not see ones that are relevant? But there’s a darker side to this equation. The more data companies collect, the more they know about you – not just as a consumer but as a person. Data privacy concerns during Black Friday shopping events are real and often overlooked.

Data collection can also involve mobile apps and location information. What is collected and shared depends on the service, permissions and applicable rules. Read the privacy notice and review location and advertising settings instead of assuming that using an app or store Wi-Fi means you have agreed to every possible use.

Imagine walking into a store and being greeted by a sales associate who knows your name, what you’ve bought in the past, and what you’ll be interested in today. That’s essentially what companies are doing online – they can create profiles that infer your interests, sometimes incorrectly. The more they know, the easier it is to manipulate your buying decisions. It’s this very knowledge that turns seemingly harmless data points into powerful persuasion tools.

The data companies collect also needs protection. A breach can expose information and create risks such as fraud or account misuse. That is a reason to limit unnecessary collection and secure accounts throughout the year, rather than assume that breaches are uniquely or especially common on Black Friday.

The implications go even further. Data breaches can also lead to loss of trust in companies, damaging reputations and consumer confidence. Once your personal information is out there it’s almost impossible to get control back over where that data ends up. This creates an environment where convenience comes at a huge cost – not just to your wallet but to your overall sense of security.

Cloud storage and the environment

Beyond privacy, cloud-backed data processing has an environmental impact. Servers, storage, networking and cooling require electricity. The carbon footprint of data storage depends on the equipment, workload and electricity supply; a cloud service’s footprint cannot be inferred from its name alone.

The IEA’s 2025 Energy and AI report estimated that all data centers used about 415 TWh of electricity in 2024, roughly 1.5% of global electricity consumption. That is a sector-wide estimate, not a measurement of Black Friday shopping or personalization. It should not be presented as the footprint of a single event.

Cooling can also use water, with demand varying by design and operating conditions. The US Department of Energy’s cooling-water guidance explains those differences. Local water availability matters, especially in water-scarce areas. Assess providers using disclosed measurements rather than assuming every facility has the same impact.

The challenge is to balance the demand for data-driven personalization with sustainable practices. While cloud infrastructure can support personalized shopping experiences at scale, the hidden environmental cost is a cost we all pay. It’s an important part of the digital economy we need to address if we’re going to have a sustainable future.

Who benefits: the tech giants or the consumers?

A discount may benefit a shopper while the retailer or advertising platform also gains useful information. The value of that information depends on how it is used, for example to select ads or plan offers. That does not mean every company sells personal data or earns more from data than from products.

Access to useful data and analytics can give businesses a competitive advantage. The implications for competition depend on the market, the data involved and the alternatives available to customers. Access to cloud tools alone does not settle those questions.

For shoppers, a practical question is how a company uses information after a purchase: to fulfill an order, improve a service, target advertising or share it with others. Look for clear explanations and usable choices, rather than treating a discount as evidence that the data practices are acceptable.

What can you do?

It’s not all doom and gloom. Consumers have options. Here are a few ways to take back control of your data this Black Friday:

1. Limit data sharing: Be careful which apps and services you connect with your social media accounts. Always check privacy settings and limit data sharing where possible.
2. Use privacy tools: Browser extensions and tools like ad blockers or privacy-focused search engines can help reduce the amount of data companies collect about you.
3. Understand private browsing and guest checkout: Incognito mode limits what Chrome keeps on your device after the session, but websites may still observe your activity. Guest checkout avoids creating an account where offered; the retailer still receives information needed to process your order. Neither prevents all tracking or erases purchase records.
4. Review tracking choices: Use available cookie, account and advertising settings to limit optional tracking or personalization. Check what each choice covers; an advertising opt-out does not necessarily stop all collection or delete existing data.
5. Support businesses that value privacy: Some companies take a privacy-first approach to data collection. Support businesses that are transparent about their data practices and it can encourage better behavior across the industry.
6. Educate yourself: The more you know about how your data is collected and used the better you can make informed decisions. There are many online resources and organizations that educate consumers about data privacy and security.

The true cost of a good deal

As Black Friday approaches, it’s worth considering the hidden costs behind those shiny discounts. While the temptation to save a few bucks is strong, the trade-off for your data may be more than you bargained for. In the age of data, tech companies aren’t just profiting from what you buy – they’re profiting from who you are. The true cost of a good deal on Black Friday might not be on the price tag but in the consumer data privacy that’s often sacrificed.

The convenience of personalized ads and the thrill of scoring a good deal can be hard to resist, but being aware of the trade-offs allows you to make decisions that align with your values. Is that discount worth your privacy? As consumers, we have the power to demand better data practices from companies, support those who respect our privacy, and shape the future of data collection and use. The real deal on Black Friday might just be the one that doesn’t cost you your personal information.

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