Still Place for optimism?

Yesterday we attended our fourth Place Conference, held in NYC a little further uptown than our first Place back in 2014. Back then the conference had a strong focus on all the latest mobile location and proximity technologies that were expected to revitalise retail. There was an air of optimism around the Bluetooth beacon and similar innovations which held much promise to deliver delightful, contextual, brick-and-mortar experiences for a broad consumer base increasingly expecting personalisation.

At the 2018 edition, it didn’t take long to realise that this optimism had not simply faded, but completely vanished. The first and only mention of a beacon did not occur until the fourth presentation: a panel entitled What Nobody Will Tell You about Location Data. And what did the panel tell us?

Baseline location data is a commodity now.

Indeed, that fact was affirmed in the previous presentations and those to come. The state of the art in location analytics and proximity marketing has become the acquisition, interpretation and application of baseline location data from mobile phones.

Wait, what’s baseline location data and how is it obtained from mobile phones?

Curiously enough, that subject was never directly addressed. But in short, the primary data source consists of a latitude/longitude paired with a device identifier, gathered from mobile devices under their terms of service. These data points are enriched by companies who probabilistically associate the identifier with a household, demographic (or more!), and the geocoordinates with addresses and/or an individual’s journey. This commodity is then applied to business decisions or to pushing the right ad to the right consumer at the right time and place.

At least that’s how it’s supposed to work. Thomas Walle of Unacast made the precision (pun intended) that data quality is not yet a commodity. This was affirmed by the chief data scientist of Outfront, a leading out-of-home (OOH) media owner with countless digital billboards, questioning the reliability of “polygon visits” as source data based on his experience with multiple vendors.

Only two hours into the conference, as the panel progressed, I was already distraught, painfully reminded of the above slide which we had presented at a similar conference two years previous. Entrenched was the “old way” of bombarding the consumer to drive a response, the innovation being smarter bombs homing in on fainter signals. The term “surveillance” entered the discourse and was not outright dismissed. Were we collectively comfortable with that?

But, it all turned around when the panel was followed by a presentation entitled The Future of Digital Identity: Countdown to 2020 in which Neil Sweeney of Freckle IoT promptly declared that

a data revolution is coming.

Calling into question the status quo, he argued that there is currently an inverted value proposition for the consumer, progressive government regulation (GDPR in Europe and soon CCPA in the US) is becoming law, and scandals such as Cambridge Analytica have unveiled the uncomfortable truth behind advertising business models. In short, don’t expect our suggestion to Facebook following last year’s Place Conference to become a priority anytime soon!

What Neil proposed was a complete reversal of the flow of information and the ownership of personal data. And with the Killi app, he invited the audience to take the first step right then and there, opting in to select specific pieces of personal information that they would like to share with brands in exchange for money.

It was as if our complementary slide from that previous conference had suddenly appeared! Here was the consumer “advertising” their intent to brands and businesses through their presence and the information they chose to share, expecting an appropriately personalised response in return.

Since reelyActive’s founding in 2012, we’ve championed this paradigm for the flow of information. Coincidentally, our most watched video, in which we present this paradigm by reversing the flow of information of a beacon, will tomorrow celebrate its fifth anniversary! It’s not difficult to imagine this implemented in the Killi app to facilitate real-time hyperlocal exchanges of information like we demonstrated with our own reelyApp.

Whether a micro-DMP like Killi or rather a Bank of Personal Data will eventually prove to be successful is of course up for debate, as few attendees seemed threatened by the imminence of a data revolution. Nonetheless — and reassuringly — most attendees seemed to agree that such a paradigm, which fosters transparency and inclusivity and moves the industry Beyond People-as-a-Product, is much closer to being the right model, even if most would argue it is not yet a realistic model. In any case, the technology is ready. The trillion-dollar question is whether the vendors will ready themselves to flip if and when that critical time comes?

Beyond People-as-a-Product?

Often these days I find myself wondering if, when Sergey and Larry were pitching Google in ’98-’99, their investor deck included a prescient slide about AdWords? While PageRank is well known as their disruptive technical innovation, AdWords, which alone likely accounts for two-thirds of Google’s revenues, is the type of disruptive business innovation that is the stuff of investor dreams — provided one accepts to take a leap of faith.

While it may have been difficult to imagine two decades ago, today we accept that as users of the Internet, we ourselves are often the product being monetised.

“The best minds of my generation are thinking about how to make people click ads” said Jeff Hammerbacher, Facebook’s first research scientist. It should come as no surprise that now with over two billion monthly-active “products” in stock, Facebook has established itself as the marketplace for hyper-targeted advertising. Indeed, the titans of social media and e-commerce each painstakingly maintain their own digital version of us, their users. These lucrative digital twins are the product of our online interactions, all made possible by the Internet.

But as we move beyond the Internet to the Internet of Things, things are changing. Literally. So what prescient slide would the likes of Sergey and Larry include in their ’18-’19 fundraising deck? In other words,

what becomes the novel product of the Internet of Things?

Where the Internet facilitated the understanding of people’s behaviour online, the Internet of Things adds the all-important understanding of people’s behaviour in the real-world. Does this simply mean that the “real you” will supersede your digital twin as a product? If so, who will own the “real you”? This raises plenty more questions.

Will the evolution of the People-as-a-Product paradigm remain the privy of the Big 5? Will progressive legislation such as GDPR influence the emerging product and, critically, its ownership? Will there be a revolutionary change? Imagine a modern spin on the familiar rallying cry:

Products of the world unite and seize the means of monetisation!

For a tech startup today, the trillion dollar question is what to include on that one prescient slide?   For the next generation of tech mercenaries entering the workforce, the question is what’s the equivalent of clicking on ads in the real world?   And for humanity, the question is how do we collectively envisage our own future?

Let’s not forget to focus on that last one too, at least for the sake of future generations (of products?)!

The IoT as your Brand Ambassador

Since the coining of the term Internet of Things in 1999 by Kevin Ashton, the IoT has been described in myriad ways. Just as was the case twenty years ago with the Internet, we have a habit of predicting the future of a technology by standing in the present looking forward. But what if we change that perspective and imagine ourselves in the future looking back at today? We did exactly that, as the following video shows.

For how many years have you been building your digital brand on the Internet? Take a moment to imagine your digital self.

In cyberspace, you’re known as your digital self, your digital brand. In “meatspace”, you’re known as your physical self, a brand that millions of years of evolution as social animals has hard-wired us humans to both advertise and recognise. We’ve adapted to live in both of these worlds. And, in our futuristic hindsight, the Internet of Things is arguably the Internet’s adaptation to join us in the “meatspace” world.

Last month we showed how The Physical Web just got Personal, how you can today advertise your digital self on the same scale as your physical self, whenever and wherever you choose. You already have in your hand (or on your wrist) the technology to advertise your digital brand. So when and how will the IoT emerge as your brand ambassador, calmly delivering the right information at the right place at the right time?

Fortunately, we’re not alone in asking that question. In The Bank of Personal Data we discussed how Dr. Roberto Minerva, like us, argues for a broker model. And when you consider how much of your digital brand is locked up in the siloed “vaults” of social media platforms such as Facebook and LinkedIn, e-commerce platforms from Amazon to niche brands, VC-backed grow-your-user-base-then-monetise apps, digital health platforms such as Fitbit and, of course, the almighty Google, expect an epic battle between these and emerging players to establish the dominant currency and exchange for this information, your information, in the real world in real time.

We conclude our video arguing that the (post-battle) IoT will make you a superhuman in the real world. It’s not the first time we’ve used that word, case in point our 2013 post IxD, the Superhuman and the Superorganism. Only recently, however, has the “how” come into focus, and we now see “what”, from a human perspective, the IoT may very well prove to be: a personal brand ambassador for each and every one of us.