The world produces 2.5 quintillions of data every day. By 2020, 20 billion devices will be connected globally.
With more connected devices starting to emerge, the amount of data generated from these devices is overwhelming. Across a wide range of verticals, location data remains a competitive edge. Location data is now used to deliver consumer insights that have previously been inaccessible.
Location intelligence is the practice of using location data to achieve business outcomes. However, there are some challenges in the data verticals, such as privacy concerns which have remained the centre of discussion for the past couple of years, along with other challenges like data standardisation, data hygiene and instant data consumption.
Consent and Privacy Concerns
A lot of consumers are still wary about sharing location-based information as a survey done by the Bank of America, cited by eMarketer shows that only 37% of consumers aged 13+ and 44% of Millenials feel comfortable with their mobile device location being tracked.
We are moving quickly towards a future where each individual will have control over their data. This make data privacy act to be at the front and centre in the most data communities. Transparency is now being placed at the centre of the big data revolution as more people want to be informed on how their data is used.
Hence, the way location data is collected and utilised should be explained clearly to the consumer. A solution that allows the consumer to manage consent preferences all the way through to the point of data use should be provided by the data providers for the collection process.
Data Quality and Standardisation
Accuracy in location data will undoubtedly help in fueling location intelligence, but maintaining the accuracy of location data is a bigger challenge for the industry. For a proper application of location data, marketers need to be able to verify their data collection methodology.
Getting location data from third-party sources is not inherently bad, but the possibility of the data inaccuracy might be higher than collecting it themselves. Hence, we need to ensure that the data is well-sourced. Plus, some data providers have little transparency in how their data is collected and how accurate it is.
According to the Carto and Hanover Research, 47% of C-levels execs surveyed highlighted that ensuring data quality and accuracy was their biggest challenge when collecting and using location data.
Hence, to avoid a poor data set, location intelligence solutions should actively verify and remove inaccuracies in the data. Accuracies in location data can be meaningless if the process does not let data users see the entirety of the process; from collection to usage.
Instant Consumption of Data
As more marketers are starting to embrace location intelligence, it is critical for them to be ready to consume the dataset. Providing a dataset that is ready for instant consumption will be a big challenge for location intelligence providers. Plus, a solution that allows marketers to combine a manipulate location data alongside current datasets will maximise the usage of location intelligence on business functions.
However, to come up with this solution is another challenge for the data providers. Thus, a standardised measurement and collection approach of location data should be develop, so that marketers can ingest large amounts of location data more effectively. It will not only make the data quality to be improved but it will also allow instant consumption of data to be ready.
Keeping location data clean and normalised is another concern of both the data providers and users. The challenge usually involves transforming the data into a workable format. While processing the data, we need to verify the data is up to date, and accurate.
Besides that, marketers should create accurate geofenced areas where their campaigns are based on a drawn radius around their target location. This allows marketers to filter and segment their data more effectively and keep the data hygienic.
At Moving Walls, we are working hard in creating a data source that is thoroughly verified and cleaned. With our sensor-driven approach, our data are amplified with a more precise base to clean the data for customer usage.
The potential of location data remains enormous as much as how the challenges in data collection and measurement will come along the way. We must address these challenges for us to be able to provide standardised documentation and solutions that help the consumer to use the data to its fullest
Moving Walls is a media technology company that enables campaigns to be delivered programmatically through Moving Audiences - a data-driven location intelligence platform that brings transparency and automation to out-of-home media via Planning, Buying and Measurement tools.
2. Bank of America, “Trends in Consumer Mobility Report 2017”