Home > Public Domain Data > How much is our personal location information worth?

How much is our personal location information worth?

Just as the open government data and free public access movement continues to go from strength to strength, it seems that personal data could soon be a new currency in the digital information markets, where companies and other interested parties bid for the right to use that data for their own purposes.

Jacopo Staiano at the University of Trento in Italy recently conducted an experiment to the perceived value of personal location information. The study, reported in the MIT Technology review, involved 60 participants using smartphones that collected a variety of information including the number of calls made, applications used, the participant’s location throughout the day and the number of photographs taken. Using an auction system, the participants were given the opportunity to sell either the raw data or the data after it had been processed in some way to add value. Of all the information collected during the experiment, personal location data emerged as the most highly valued, and perhaps not surprisingly those who travelled more each day generally placed a higher value on their location data than those who didn’t.

Daily median bid values (Euro) per category. Vertical lines indicate interventions.

Daily median bid values (Euro)
per category. Vertical lines indicate interventions. Staiano et al. 2014

The valuable insights into personal behaviour and preferences provided by such information are what compel the marketers to find ever pervasive ways to tap into that resource. Mobile location-aware applications and services are now commonplace and for many recording location data is the default setting; users have to proactively opt out to avoid being tracked. During the course of the experiment the participants were also asked who they trusted most when it came to managing their personal location data; the responses indicated concerns about the trustworthiness of financial institutions, telecom and insurance companies when it came to collecting and using this information.

The research suggests the emergence of ‘.…a decentralised and user-centric architecture for personal data management‘, one that gives users more control over what data is collected, how it is stored and who has access to it. The study also reports that several research groups are already starting to design and build such personal data repositories and it is increasingly likely that some type of market for personal location information will soon emerge.

 

 

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  1. August 11, 2014 at 1:38 pm

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