Hidden costs of “free” tech: Understanding data monetisation

We live in a world where free apps, streaming platforms, and social networks are built into everyday life. No sign-up fees. No monthly charges. Just convenience, on demand. But if you’ve ever wondered how these companies survive, let alone thrive? The answer lies in something far more valuable than your money: your data.

The idea of “free” tech is an illusion. Behind every app or service that costs nothing upfront is a business model built on monetising user behaviour. Here’s what that actually means, and how to protect yourself.

How tech companies make money from your data

You’ve probably heard the phrase: If you’re not paying for the product, you are the product. That’s not just a clever line, it’s the foundation of modern digital economics. The majority of “free” apps and platforms profit through targeted advertising. Every click, scroll, and search tells these systems something about you. That data gets bundled into a profile: age, interests, browsing habits, and is used to deliver eerily relevant ads.

Then there’s data brokering, where companies sell your activity or preferences to third parties. This might fuel anything from ad targeting to political campaigns. Some platforms also use freemium models, offering basic services for free while nudging you toward subscriptions. And beyond ads, your data is often used to train AI systems, test features, or generate business insights. It's a quiet engine that powers an entire digital economy.

Hidden costs: Privacy, security, and control

It’s easy to shrug this off, until you realise what’s really at stake.

Your privacy isn’t just about what you’re doing today. It’s about what companies know about you tomorrow. Sensitive data can be stored indefinitely, repurposed, or exposed during data breaches, putting identities and accounts at risk.

Even when it’s “secure,” that data fuels targeted advertising that follows you across devices, making it feel like the internet is reading your mind. And if you’ve ever struggled to opt out of tracking or delete your account completely, you’ve already felt the loss of control that comes with signing away your data.

What you can do to protect yourself

You don’t need to ditch every free app you use, but it helps to be intentional. 

• Review privacy settings in your apps and devices. Limit what’s shared and with whom.
• Check permissions: does a flashlight app really need access to your contacts?
• Use privacy-first alternatives like Signal for messaging or DuckDuckGo for browsing.
• Delete what you don’t use. Less clutter means less exposure.
• Read the fine print. Even skimming a privacy policy can reveal what data is collected, and why.

A few changes here and there can significantly reduce how much of your life you’re handing over.

4. Enjoy free tech—But stay informed

“Free” isn’t the problem. The problem is when we stop asking what we’re giving in return.

Used wisely, free tech can still offer enormous value. But it’s on us to use it consciously, understanding what’s being tracked, and taking small steps to protect what’s personal. Your data is powerful. Don’t give it away without a second thought.