Posts tagged data
Our data scientists at PlaceIQ analyzed hundreds of thousands of mobile devices to understand the habits of baseball fans, throughout last season. It’s fascinating, though I’m still recovering from the fact that Giants fans are among the most dedicated stadium-goers (but yesterday’s blowout eases the pain). (Via PlaceIQ)
“ Big data is still supported by old methods of inquiry and discovery. Hypothesis formulation requires creativity and domain familiarity. No shortcut here.”
“ Handshake says it’s aiming to cut out the market research middle man — and also circumvent the whole ‘free service’ data-grabbing antics of Facebook, Google et al — by building a platform where users can sign up to be approached by companies, negotiate a price for their data, and decide who to sell it to (and who not to). The basic idea is to create a marketplace for personal data. “Handshake.uk.com will turn what has previously been stolen into a currency which can be traded,” says co-founder Duncan White in a statement. It estimates that users of the platform could earn between £1,000 and £5,000 per year for selling their data via the platform — and says it’s basing this estimate on “the traditional cost of market research agencies”.”
No one is paying $1k per year for your data.
It is clever of Handshake to lump the ‘sell your own data’ dream in with market research (aka surveys and focus groups). Marketers won’t touch Handshake’s user-opted-in data until it reaches an amazing size. While we wait for that, surveys will theoretically shore up the ecosystem by paying users and attracting clients.
But still: most won’t find survey time worth the time and will abandon quickly, likely before the dream of a user opted-in data marketplace reaches sufficient scale.
The problem with selling your own data is that alone it’s worth almost nothing. A handful of bucks a month, perhaps, if you share your entire internet history. Why it’s so cheap is a topic for another post, but trust me here: one person’s data is not worth much.
To really crack this market, companies are going to have to figure out how to turn the few dollars your data will earn into something more compelling than a few dollars.
Funnily enough, that’s exactly online publishing’s business model. They package you data advertising and trade you to marketers in exchange for free content. A data marketplace needs to make small amounts of money at least as compelling as content for people to opt-in and customers to shell out.
My hunch is this market will be cracked by people who offer long term relationships. The ‘payment’ will take advantage of compound interest rates or insurance pools. Perhaps it will subsidize health care when you retire (“share your history with us and we’ll let you stay with your doctor when you turn 65!”). Or perhaps it will negotiate deals with other interest based businesses on similar time lines (“lower your student loan rates by installing this plug-in!”).
In the latter half of 2011, I offered to help Nicholas Felton spec out an iOS app for collecting survey and ambient data throughout 2012 for his next iteration of his Annual Report. Halfway through our requirements discussion – about the time I realized the app a) wouldn’t be public and would be b) would be a really fun challenge with a wholly unique use case – I offered to build the app myself. I’m sure we’ll share more details later, but for now Felton’s final designs speak for themselves.
4,739 reports later, the results are stunning.