Does online profiling mirrors or creates identities

Introduction
WHAT IS ONLINE PROFILING.
Online consumer profiling is a complex phenomena that can be researched from a variety of perspectives. First of all, it is obviously an advertising technique that revolutionized the effectiveness of targeted advertising. However, online consumer profiling is not just a smart way to reach consumers.

Consumer profiling has been present in advertising for a long time now, with theorists arguing about its possible effects on society and consumers. Greg Elmer(2004), in his work ‘Profiling machines: Mapping the Personal Information Economy’ provides an overview of some of the standpoints with regards to profiling.
From the perspective of Foucault’s famous concept of panopticon, profiling is presented as means of exercising surveillance in the societies of control(Elmer, 2004). Foucault suggests that in such societies the differences between reward and punishment are blurred(Emler, 2004), this can be illustrated by some of the online consumer profiling techniques. For example, checking the weather forecast online, usually requires from us typing in our zip code. This initial reward( i.e the perspective of getting free and accurate information on weather in our area) ends up being a punishment. Ultimately, we provide advertisers with important geographic data that can then be used for consumer profiling.
Similarly to Foucault, Dandekre (cited in Elmer, 2004) sees profiling as a part of society of control. In fact, according to Dandekre, profiling is a sign of modern surveillance which signifies the shift from the supervision to bureaucratic surveillance, which is a lot more invasive and depends highly on technology.
Elmer(2004) states that profiling is an ongoing distribution and collection of information about desires, habits and location of groups or individuals. Moreover, Elmer(2004) suggests that consumers actively assist in creating profiling databases, as all collected data are being cross referenced.
Lyon(The Electronic Eye: The Rise of Surveillance Society, 1994) seems to share this view, as he sees consumers as self communicating entities, triggering their own inclusion into system of surveillance, that works through a series of seductions and solicitations.
In terms of profiling effects on society, there are two main standpoints.
Gandy(1993) in The Panopticon: a Political Economy of Personal Information views profiling as a system of sorting both individuals and whole communities into abstract categories that is unavoidably discriminatory. He continues to say that this system forces individuals wants and desires into ‘larger, rationalized and easily diagnosable profiles’(Elmer,2004,23). On the other hand, R.A Clarke(‘Information Technology and Dataveillance, 1988) sees profiling as a system of predicting ‘deviant behavior’ and fails to recognize possible risk of prejudice or discrimination.
Early works on profiling seem to focus more on the effects it has on communities, as profiling was seen more as a part of the shift towards technology.
However, with the fast development of internet and more advanced profiling techniques there seem to be more interest in the position of the individual in the process of online consumer profiling.
WHAT IS IDENTITY