In recent years, the location analytics industry has grown rapidly due to the rise of new technologies and increasing use of spatial data and analytical tools. However, the COVID-19 pandemic pushed the growth of this industry into the stratosphere. Location-based applications and the use of location data have emerged as crucial in the fight against COVID-19. In fact, the location analytics industry is projected to grow from USD 15.7 billion in 2021 to 29.9 USD billion in 2026.1 Our resident expert, Abbey Hidalgo, shares her thoughts on what’s in store for this exciting industry as we head into 2022.
Abbey Hidalgo is an experienced sales and account management professional. Abbey’s expertise guides Data Axle clients to achieve new heights of success through strategic data application. She has a Bachelor of Arts (B.A.) focused in Communication, Business from Texas A&M University.
Real-time data capability is key to the success of our location analytics clients. Now more than ever it is important to have data that is consistent, accurate and complete. Typically this can be a challenge amongst location analytics companies due to the update cadence and quality of the data that they are receiving from their sources, then pushing out through their products.
Many companies are starting to incorporate APIs into their offering to get this real-time update plug in within their products and services. The API is typically used in conjunction with a flat file. Both options allow companies to be able to utilize the data for indexing, site selection, analysis, modeling purposes and more. The real-time APIs though are going to provide you with that instantaneous update of the changing business landscape to accurately reflect when businesses have adjusted their hours, when a business closed their doors, updated employee information, etc. More information around how this real-time data capability can build value for you can be found here.
During the vetting process for a new source of data, make sure to do your due diligence around how the company sources their information and how the information is updated. Do not be shy in asking about the privacy policies they have in place. If the company is truly collecting data in an ethical way, then they should have no problem providing you with detailed information around the collection of their data.
Another thing to take into consideration is how clients are utilizing the location data is key in order to avoid added risk, specifically around utilizing the location data combined with other personal identifiable information.2 Some data and tech companies are facing the repercussions for violating privacy regulations. Therefore, it is key to properly check that the company you are sourcing your information from is properly following all privacy compliant regulations/laws.
The main criteria that a company should look for when evaluating their options for data sourcing would be the following:
1. Quality of the data that they are purchasing 2. How the data is sourced 3. Accuracy and breadth of the information 4. Frequency of update
I always recommend testing the data prior to purchasing so that you can understand exactly what you would be buying and how it performs. This prevents issues from arising down the road.
In the location analytics space specifically companies are going to want to focus on how the address and geocodes perform within the data, along with additional insights into the business location itself and their customers. The more breadth of the information that a company is able to provide the better you will be able to understand key market trends, customer insights, and changing business conditions. To dig deeper into this question, you can check out our whitepaper around the five elements to consider when licensing data.
We have recently started seeing an increase in the use of location data as it involves telecommunication companies. In general, these companies are on the rise in the data industry due to their use of data-driven insights and analytics around network planning in response to the rollout of 5G. These companies are looking to expand their fiber networks and need to better understand the businesses and consumers that are within their market areas in more detail. This helps them plan out where they will need to lay their fiber networks and who they will need to communicate to.
Don’t miss the rest of our 2022 predictions! Read more here.
1 https://www.marketsandmarkets.com/Market-Reports/location-analytics-market-177193456.html 2 https://www.yahoo.com/now/google-location-tracking-company-safegraph-ban-173439130.html?guccounter=1