Data Is King
Posted by Jeff Lu on March 5, 2009
Nokia is teaming up with Sense Networks to collect people's offline behavior data
In the world of digital advertising, data is king. As each year passes and as technology and digital content improves, people spend more and more of their time engaged with their computers. In turn, Internet companies like Google have become more adept at collecting data from us, tracking our demographics and predicting our behaviors.
Despite the undeniable fact that we are spending more and more time online, we still spend a significant portion away from our computers. We travel, go shopping, go to bars, we exercise, etc. There are lots of things that we still do offline, thus there’s lots of data that companies cannot capture. This is where Sense Networks comes in.
Sense Networks is based in New York City and they are in the business of collecting people’s offline behavioral data and translating that data into intelligence. Sense tracks the movements of cell-phone users through their global positioning systems (GPS), cell towers and local Wi-Fi networks and then analyzes each individual user to find behavioral patterns. After a behavioral pattern is determined, each user is then placed into “tribes” of similar users.
Each tribe has unique similarities and differences, enabling companies to predict people’s preferences by their movements and that data is extremely valuable. In the same way that Google indexed the Internet, Sense Networks is indexing the real world using location data for predictive analytic. It is a true convergence of online technology and offline behavior data collection and influence.
Sense could determine you average income by where you live and your social habits by where and how often you grab a drink. It could also tell how often you go shopping or go out to eat. This might sound extremely intrusive but this service can be valuable for consumers as well. One could see what the latest and hippest bars and restaurants are by seeing where people in your “tribe” are headed that evening. Consumers could get coupons real time as they pass by stores or restaurants and choose which venue has the best deal.
Data collection and improved services vs privacy is a common battle between consumers and technology companies in this digital age. A delicate balance needs to be struck in order to keep both stakeholders happy but I think in the long run, the improved intelligence and services that comes from the data collection has been winning and will continue to do so.
Read Business Week’s coverage of the Sense Networks here.
