Internet of Behavior (IoB) And Its Effects on Your Life and Business

Updated on Dec 29th, 2021


Ever since its conceptualization, there was never any doubt that targeted marketing far exceeds the effectiveness of traditional marketing. Even back in 2009, targeted marketing was found to be 2.7 times more effective than conventional run-of-network advertising! 

Now in 2021, when we are creating around 79 Zettabytes of data annually, compared to less than 2 ZT back in 2009, it becomes apparent that the effectiveness of marketing will go through roof in the coming years. This realization becomes even more profound when we enter IoB into the equation. 

IoB is the Gartner named leading technology trend for the year 2021. In general terms, IoB or Internet of Behavior is the analysis of data collected by IoT (Internet of Things) devices to influence user behavior.  How IoB does that can be better understood by looking at the relationship between IoB and IoT. 

IoT and IoB: How Does It Work?

IoT is a burgeoning network of billions of devices that are connected over the internet. 

The smartwatch that you’re wearing right now, the smart TV in your living room, the sensors on your night vision CCTV camera, that smart speaker on the side table, and even your smartphone on which you’re perhaps reading this are all examples of IoT devices that are constantly collecting data around you to help you through your day. 

Connected to the internet, these devices are used to make suggestions to the user. For example, any unusual activity is picked up by your security camera or when your resting heart rate gets on a perpetual rise. These events trigger an alarm on your connected smartphone, suggesting you make certain changes in your life. Like, becoming more vigilant of your surroundings and checking up on the security camera footage right away, and getting some exercise, and changing your diet for a healthier heart. 

And just like that, you’re already being influenced by IoB. With these crucial suggestions, based on the data collected by your IoT devices, you are being influenced to change your behavior. However, the tale doesn’t end there. With IoB, the effectiveness of both targeting and marketing can be enhanced. 

Unlike traditional data that’s usually provided by users themselves are very surface level, IoT collects data in real-time and on more personal aspects.  

While doing so allows your IoT devices to create a more convenient and personalized life for you, it also opens opportunities for businesses that wish to target you based on your behavioral analytics.  

Such an extensive application of behavioral data takes IoB under ethical implications. 

That is why, when you’re employing IoB data analysis to on your users, it becomes important to comply with the privacy policies of the region and make your services more effective and at the same time more agreeable to your users. How can you do that? Let’s find that out with individual industry use cases.

IoB: The Industrial Use Case 

Regardless of its industry, every business is trying to target and convert its audience with efficacious predictability. IoB allows them to do so effortlessly by utilizing more personable data from the users and performing big-data analytics over them. This will become clearer with your business’s industry use case,

Digital Marketing

When marketing a product to a targeted audience, digital marketing companies create a consumer persona, a virtual representation of their ideal customer base. They use this to run their campaigns by choosing specific demographics for targeting and then creating content around their deemed preferences.

Now companies usually create consumer personas by getting information from the sales team and using their own experience. This data is clearly not sufficient in creating an exact image of the potential customer. For one thing, it only accounts for the information that the user has shared and doesn’t have anything to contribute towards behavioral analysis.  

This is where IoB enters the picture. With data collected from different IoT devices, it becomes easier to create a finer consumer persona for a business. Not only that, IoB can even allow you to target individuals with automated ads with personalized results. Much like what many targeting campaigns are doing right now, but with far more extensive options.


If you’re into an insurance business, you know how difficult it can get to maintain a balance between customer satisfaction and a profitable cost for your services. All the conventional data an insurance company can collect can only tell the generic information about the insured. At most times, this data isn’t enough. It doesn’t tell you the behavioral tendencies of the insured, and more importantly, it cannot tell you the state of mind of the insured in case an accident does happen. 

This huge gap can easily be filled with the help of IoB data. Insurance companies like State Farm and Smart Ride are already using this technology to offer UBI or Usage-Based Insurance programs. The program assists drivers to help lowering their premium rates based on their good driving practices.  

It uses the data from IoT tracking devices to analyze the automobile’s speed, braking, acceleration, etc. to see how careful of a driver the insured is. After collecting the data for a set period of time, the company reduces the premium to be paid by the user if their behavioral data shows less risk-prone tendencies. Same data can also be used to enforce good driving practices and to analyze a claim should an accident happen.


Businesses in manufacturing can bring unprecedented efficiency to their processes with the help of IoB. In fact, it was the manufacturing companies that brought IoB to mainstream attention during the Covid-19 pandemic.  

During the pandemic, while many businesses found ways to continue the work from remote locations, the manufacturing industry was found to be at a major disadvantage. This is why, as soon as governments across the globe lifted restrictions, manufacturing businesses were among the first to come to the floor. However, the safety protocols imposed by the authorities had brought very noticeable changes in the workplace

Now, employees were constantly monitored by computer vision to determine whether they were wearing the mask and in the right way too. Similar sensors were used to ensure the compliance of the rest of the other protocols as well. So whenever there appears to be any lapse in safety, automated messages are triggered to lead them to the right behavior. Businesses in the industry can use similar applications of IoB to ensure better work conditions for all, improved productivity, and heightened employee satisfaction.


Big retail conglomerates are already benefitting by investing in IoT solutions to streamline their inventory management. Now, with the help of Big Data analytics, they can implement IoB solutions to improve the shopping experience for their customers and, at the same time, improve their marketing capabilities. 

IoB solutions can also detect suspicious behavior and raise the alarm before anything comes to pass. This will be especially beneficial when these stores begin to function more autonomously by creating a safer environment for all. 

Other than the physical stores, eCommerce websites can also use IoB solutions to upsell and cross-sell more products, depending upon the preferences shared by a user when shopping via a voice-based IoT device. The device then will match the unstructured voice data with the CRM data of the registered customer on the database to feature more personalized product suggestions to them.

Smart Home Soutions

Any business operating on the IoT technology itself will definitely have the best use cases for IoB. They can assist users in making real lifestyle changes to encourage them whenever they stray from their own ideal practices. The devices can adapt to the user’s habits and assist them in their routine with no fuss.

Later, the data can also be used, if the user permits, to share individual product and service recommendations. This will be the target marketing at its finest. Companies will have unprecedented predictability over their marketing efforts, and the smart solution businesses will have the best rates for their advertising capabilities.

IoB & Future: How to Use It for Your Business  

Fundamentally, IoB is an emerging solution derived from 3 technologies IoT, Data Analytics, and Behavioral Science. With this composite, the technology aims to target individuals directly. And when we add AI to the combination, its effectiveness can increase exponentially. Let’s try a thought experiment: 

There’s a dependent person who’s in constant need of care. Now while the person may get the needed care most of the time in a day, around-the-clock surveillance can become too intrusive. 

With IoB enabled sensors, however, the person can go anywhere without causing any concerns to the providers or to the self. The IoT devices can constantly monitor the person’s vitals, their movement, and location. This way, if anything happens, an alarm can be raised for all the concerned parties. Not only that, when all these devices can communicate with each other, they will be better able to curb false alarms and provide care akin to a human companion. 

It is applications like these in the area of public health and user safety that create an optimistic view for the IoB-powered future and give ample scope for your business to grow and scale.  

That being said, using technology as advanced IoB is like using a double-edged sword. Let’s reconsider the example above in a different light. So IoT devices are collecting all this data to assist the dependent person and the providers to live a relatively happier life. However, a minor breach in data while communicating either with each other or to the internet can cause tremendous trouble to all the parties concerned. 

The location data combined with other personal details can give unlawful identities an open opportunity for exploitation. This is why when investing in a solution, it is essential to ensure basic and advanced security configurations. All the other considerations to bear before you get started with your own IoB solution are-

Encrypted Communication

In the absence of any supporting laws, ensure that all the devices’ communications are encrypted, and all the possibilities of a data breach are covered safely.

Data Theft

Leaking data while communicating isn’t the only threat with IoB. All the data on the server is also susceptible to ill-use, considering its extremely sensitive nature. Ensure you place ample security measures there.

Data Privacy

While it is crucial to see that data doesn’t get into unauthorized hands, it is equally important to see that the authorized companies you share the data with do not exploit it for commercial purposes.

data management
Data Management

With Big Data opportunities comes bigger concerns over data management. So much data in legacy systems can cause significant issues in data management. Hence make provisions for investing in analytics-powered cloud solutions.


IoB, in its present stage, carries incredible potential in redefining businesses and their solutions. With a seamless flow of data and analytics, IoB can empower businesses to create more robust and flawless services for their consumers. Consequently, they can use the same data to grow their processes more efficiently with better customer satisfaction. 

That being said, the security concerns over the technology can easily make the situation gloomy. This is why, when investing in an IoB solution, it becomes extremely important to take all the security measures and give assurance to all the parties concerned. This you can easily do by availing services of a reputed technology partner. 

Matellio, as a leading AI/ML and development service provider, offers you a comprehensive solution for your business problems. You only need to share your concept with our experts, and they will create a complete project map for you, all-equipped with flawless peer-to-peer communication. Our experience in creating similar applications will also assist you in completing your dream project much sooner, covering all the security concerns.  

Want to know more about how we can help you build your IoB investment? Request a free call now!

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