In a very interesting post on the O’Reilly Radar blog, Robert Kaye explains in detail the work of Sense Networks, which specializes in taking GPS and mobile phone location data and deriving as much useful information as possible from it. In a nutshell, here is the kind of information they come up with:
For instance, Sense Networks can can deduce the activity of bankers in the financial district of San Francisco. Given that a cell phone moved to the financial district in the morning and stayed there for 8 hours, they assumed the signal came from a banker. Associating signals to movement patterns allow Sense Networks to start correlating the DOW and when bankers arrive at work. Apparently when the DOW is up, bankers are more likely to head into work sooner, but when the DOW is down, bankers are likely to take their time getting to work. Tony’s team can also correlate between night life and the health of the DOW — when the DOW is healthy more people move from work to popular night time spots, and less so when the DOW is down.
In other words, our whereabouts in a day reflects who we are. To make this data interesting, the Sense Networks team couples it with commerce information. Therefore, not only do they track the daily trends of different categories of people, but they can also determine their global consuming habits. The whole point of Sense Networks is to provide the next-gen of mobile advertising, one based on geo-sociological trends.
The process to identify groups of people according to the places they visit is not an easy task: Sense Networks attributes 487,500 dimensions to every place in a city, thus identifying a unique and complex “DNA” which describes it completely. The donuts shop down the street has now more to its business than just a few donuts and some grease on the entrance door!
This technology sounds way ahead of the curve. Its accuracy is limited to the populations within which the majority has a GPS-enabled device. But its mere existence shows the inevitable direction new technologies are heading towards: location-awareness and business geo-location.
As explained on the Sense Networks Website, one of the two forces that have caused an explosion in the number of Internet connected location-enabled devices is the massive demand for navigation services and real-time traffic information. Having a location-aware device helps make people’s lives better. Yesterday, it was mostly used for driving around and avoiding traffic. Today, it helps friends connect based on their whereabouts. Tomorrow, it will provide smarter consuming tips, much smarter than Google’s behavioral ad targeting technology. And it will provide it in the now and then, while you’re on the go.
The question of data privacy is a big issue. Sense Networks has a principles page for people who always read the fine prints :
Meaningful benefits include compelling applications to help manage life better, or personalized services based on anonymous learning from “users like me.” People should be able to enjoy the benefits of these services simply in exchange for their data.
I couldn’t agree more. Facebook is the perfect example of a company that successfully brought real people’s identity online in exchange of a smooth networking experience. I am glad to give away my real information to Facebook because I generate a significant benefit out of it. If a company were to track me down everywhere I go, define what kind of consumer I am, for the sole purpose of making me even smarter in my everyday life, I would obviously go for it. Therein lies technology’s disturbing logic: it makes you dumber to refuse being smarter.