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What is the Internet of Behavior and Why is it Important for Business?

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Did you know that the number of Internet of Things (IoT) devices has doubled over the past five years? These things are everywhere with us today, from wearable technologies that track your fitness 24/7 to remote access to electrical devices in your home. The shift to mobile devices has changed the way we interact with the world around us. The collection of usage data and data by these IoT devices provides valuable information about users’ behavior, interests, and preferences. Thus the concept of Internet Behavior (IoB) was born.

Let’s look at what Internet of Behavior (IoB) is, what business value it is, and who can benefit from it. In other words, how to turn all the data collected from users’ online activities into something useful usually means profit for companies. This question is now answered by a new concept: the Internet of Behavior (IoB).

What is the Internet of Behavior (IoB)?

Many cited 2012 as the opening date of IoB when psychology professor Gothe Nyman described the possibility of obtaining detailed data on customers’ use and behavior as they interact with the Internet of Things (IoT). But the idea of ​​analyzing data received from consumers for business purposes is not new. As we have done research on consumer behavior and habits in the past, we now have an automated ecosystem of analytic processes that track, collect, and attempt to interpret the vast amounts of data we generate through our online and Internet activities.

Internet of Behavior

The IoB concept seeks to address how to understand data properly and apply that understanding to create and promote new products – from a human psychology perspective.

The Internet of Behavior collects the digital dust of people’s lives from a variety of sources, and public or private organizations can use this information to influence behavior

says Gartner.

Let’s look at the web platform example when a user interacts with it from a laptop, and another time from his smartphone. The data will differ in how the user interacts with the resource, namely which buttons he clicks, how he moves around the page. Thanks to this approach, it becomes clear the path that leads to the sale. Everything we have listed is all the data that can be collected using analytics, and this is what makes up the Big Data concept.

Well, let’s say we collected this data, but what next? And then IoB comes into play.

IoB is a process where user data is analyzed in terms of behavioral psychology. Based on this analysis, new approaches to the development of user experience (UX), search experience optimization (SXO), and end products and companies’ services and how to promote them are formed.

In its recent strategic forecasts for 2021, Gartner announced that the Internet of Behavior is something we will increasingly learn about in our daily lives and work. The research company combines existing technologies that focus directly on humans – such as facial recognition, location tracking, and big data – and links the resulting data to relevant behavioral events, such as cash purchases or device use.

The value of the Internet of Behavior

Marketing and psychology from the beginnings of advertising go side by side. In this way, behavioral analysis and psychology have allowed new insights into the data collected by the Internet of Things.

The IoB can become a powerful new marketing and sales tool for businesses and organizations around the world. Using this tool, you will gain a deep understanding of your customers, which is necessary for every business.

To be sure, analytics, A/B testing, SWOT analysis, and many other techniques have helped the company for years build their product and marketing strategies to create and promote products that users will want to buy. Internet of Behavior is intended to generate a considerable boost in the development of the sales industry.

Benefits of IoB

Using this concept, companies will be able to analyze past performance and predict the future. The data gathered through the Internet of Things will provide the foundation for companies to plan their development, marketing, and sales efforts.

The brand new tool of digital marketing

The introduction of IoT devices into many areas of our life does not just help us optimize and automate many processes. It is fundamentally changing industries and working methods, including digital marketing. The impact of IoT technology and the Internet of Behavior cannot be overlooked today, as they will influence consumer behavior and the marketing platforms used to gain their attention.

Therefore, it is essential to start integrating the Internet of Behavior into your digital marketing strategy to benefit and get the maximum number of satisfied customers shortly. So, let’s take a closer look at how the IoB will boost marketing behavior and more.

#1 Big data

With the Internet of Things, you can access information from multiple points of contact. It allows you to explore the customer journey from start to finish. In other words, you will be able to see where the customer’s interest in the product begins, his path to purchase, right up to the point of purchase, which means you will be able to create more touchpoints for a positive interaction with customers. You will also be able to find new ways to communicate with consumers so that you can connect with the brand at an earlier stage than at the time of purchase.

Please note that if your company operates in the European Union, you should consider the privacy requirements when using any customer data. You can read them in more detail in the General Data Protection Regulation (EU GDPR).

#2 Vast opportunities for marketing research

So far, the collection and processing of data obtained through the Internet of Things is a rather complicated process and inaccessible to many companies. Marketing research by some companies (such as Google and Facebook) is becoming more comprehensive. We are sure that it has happened more than once when you just talked with your friends about some things, and then you open your browser and see an advertisement for what you just talked about. The algorithms of these companies are configured so that they can anticipate your desires and behavior. Here’s the IoB concept in action.

The B2B sector in this direction is developing a little faster than B2C. Still, it is only a matter of time before the Internet of Things becomes a standard technology for the household. With the rise of IoT at home, companies will divide their target audience into even smaller niches to develop tailor-made offerings for their target audience. Moreover, it is predicted that the number of Internet of Things devices will triple by 2025.

#3 Access to consumer lifestyle information

The concept of Internet Behavior includes an analysis of consumer behavior on social networks and other platforms and information about their daily lifestyle.

Data is collected using the Internet of Things, which will be used by the average consumer: coffee makers, thermostats, home automation systems, and wearable devices, etc. All these devices are part of our life, which means they can be used to obtain data on trends in each user’s lifestyle, which in turn gives an understanding of how and when certain products or services are used.

#4 Improving SEO

SEO professionals see great potential in the IoB because it feels more relaxed and natural when people ask devices than questions are entered into Google.

The use of artificial intelligence technologies (Apple Siri, Amazon Alexa, and Google Home) shows that search engines seek to understand the user’s intent, not just recognize keywords. It means that site pages will no longer be judged simply by the content of keywords but by the natural language used in them. Thus, we understand that it is necessary to change the SEO content approach, which will be based on intent.

Other cases of using IoB in 2022

The IoB is of value to businesses and other non-profit organizations such as healthcare or government organizations that enforce law and order. Let’s take a look at how this concept is applied these days:

  • During the pandemic, using computer vision organizations began to use IoB to recognize whether a person was wearing a mask or not. Also, in some cases, thermal imagers were used to identify people with increased body temperature.
  • Using a smartphone allows you to track a person’s geographical position, so the system understands whether you have visited a supermarket or a beauty salon, as well as the length of your stay. This is how Uber uses IoT data to analyze its audience’s preferences and find new approaches to customers. Today, Big brands know almost everything about consumers, from interests to the logic that customers use when making purchases.
  • In China, with the help of artificial intelligence and, in particular, face recognition, it became possible to introduce a social credit score system in the country. Do not forget that the introduction of AI into the life of the Chinese is intended to ensure the security and systematization of data and the tracking of loyalty to the current regime.
  • In 2018, the facial recognition system was successfully integrated into the development of Directorix Barista for coffee houses. As a result, the product determines the sex, age, and mood. It analyzes the results and offers the client an appropriate drink. The same system can be used in stores for personalized advertising.

It is not a complete list of how organizations and companies can use the Internet of Behaviors to increase revenue and increase brand loyalty. We have our case using IoB, which we’ll talk about below.

Our expertise opinion 

At Altamira, we worked on a unique IoT project, where the IoB concept is also implemented. The project’s essence was to help golfers improve their playing skills with the help of a mobile app and tracking wearable device, namely, correcting the existing ball hitting technique and learning new techniques. The process is structured this way. Before starting the training, the player puts on a wearable device connected to his mobile device and begins training. Each hit on the golf ball is recorded in the application, analyzed (measured by the force of the blow, trajectory, angle, etc.). As a result, the player can see his mistakes and get visual recommendations on how to improve his swing and hit.

The uniqueness of this solution lies in the fact that:

  • the market has never seen anything like it;
  • most of the solutions that were on the market focused on honing existing skills. This solution focuses on teaching the golf player according to body parameters, pre-existing skills, etc.;
  • individual approach to each user;
  • there is no need to involve a coach to work on the quality of the game.

Before starting the development of a project, we always recommend conducting a discovery phase, which helps to study in more detail potential customers, the needs of your business and customers, and analyze existing solutions to make the future digital solution unique and valuable.

We recommend starting a complex solution development with MVP, which allows you to release the project quickly. Based on the feedback received from real users, expand the solution functions to the required number. This approach helps you get started with a small budget and create a solution in demand in the market. Below we have provided an estimate of the MVP of the project we talked about earlier.

Android Development9303443
Manual Testing2010134
Scrum Master3186177
Total$ 18749955

Please note that the estimate is made for a specific project and cannot serve as a basis for your project’s calculations. Since each such software is an individual solution with a particular set of functions created for the company’s specific needs, you can request a free consultation with our Business Analyst to get a more accurate estimate.

Ethical use of the Internet of Behavior

As a company planning to develop an IoT solution, for you, consumer privacy should be paramount, especially as we are entering an era in which consumer data will skyrocket. Most people respond positively to product suggestions and sales funnels tailored to their unique preferences and needs. And yet, consumers have their privacy.

In such an approach, it is essential to strike a balance between personalized offers and intrusiveness to avoid an adverse reaction from the consumer. It is also necessary to demonstrate a high level of security and protect the consumer information you analyze.

IoB is predicted to prevail, with more than half of the world’s population participating in at least one IoB program by the end of 2025. This trend should spur companies to implement cybersecurity education and awareness programs.


IoB is a process where user data is analyzed in terms of behavioral psychology. Based on this analysis, new approaches to the development of user experience (UX), search experience optimization (SXO), and end products and companies’ services and how to promote them are formed.
No one can guarantee 100% data security. Of course, there are risks associated with user data theft and their use for illegal purposes. According to experts, integrating behavioral data could allow cybercriminals to access sensitive data that reveal consumer behavior patterns. Cybercriminals can collect and sell hacked property access codes, shipping routes, and even bank access codes to other criminals – the potential is endless.
Gartner predicts that by the end of 2025, more than half of the world’s population will participate in at least one commercial or government IoB program. What’s more, by 2023, 40% of the world’s population is projected to be digitally tracked to influence our behavior. That’s over 3 billion people!

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