I attended a cleantech event in early December organised by the Silicon Valley chapter of TiE. I’m not really interested in cleantech, but was there to collect data for a research project I’ll be spending time on during the Spring semester. The event was about smart grids and the ecosystem around them. One of the panelists brought up Google PowerMeter and wondered if it was possible for them to make money from it. It’s a free service and part of Google.org, so they may not have any plans to make money from it for now, but it’s certainly not inconceivable that there is an opportunity to do so.
PowerMeter, Microsoft’s Hohm, WattVision, a YCombinator backed startup and others pull in data from smart meters and visualize it for end users. Studies have shown that providing data can help change behaviour, so the main aim is to reduce electricity consumption. The big guys like Microsoft and Google don’t charge for the service, but the startups have a revenue model based around the value add of providing access to the data and sales of hardware that prevents having to go through the utility. But, I think there is a third possibility that is around the corner, waiting for large scale deployments of smart meters.
When we were discussing information leakage in the privacy and security course I took in the Fall, I remember Doug mentioning that it is possible to study the electricity consumption pattern and determine which applicances / sources drew power based on the wattage consumed, duration it was on etc. Given a large enough corpus of data (with signals based on actual consumption, geography, number of residents) it should be possible to do it quite accurately. That should make temporal targeting of ads very feasible. If you open the fridge to get a bite to eat at an odd hour and load a web page when you get back to the seat, it should be possible to display a dieting ad. A shampoo ad after getting out of the shower? Of course, there are privacy implications, but this is a world where people are willing to share their credit card transaction details, so there should be takers for it if you promise a reduction in the power bill. Behavioural data is already being used for targeting ads online. This just uses meat space behavioural data. Creepy? Sure, but so was Gmail for about 1 month when it launched. The argument that only machines look at the data was good enough then and should be good enough in this case too.
Tags: Advertising