For many years, the term Internet of Things (IoT) has been thrown around in the world of advertising. But in the present day, what does this term mean, and how does it apply to modern advertising? Read on to find out exactly what IoT is and why it is set to become the next major trend for advertising in 2020.
According to a Forbes article from several years ago, IoT is defined as being “the concept of basically connecting any device with an on and off switch to the internet (and/or to each other).”
The devices mentioned include anything from the Amazon virtual assistants, such as Alexa or Echo, security devices like Ring, your own smartphone, or a temperature control unit like Nest. Smart appliances are also included in this range of devices, with refrigerators that can send a notification to your phone when you’re low on milk.
Having these different smart systems be able to communicate with each other via the internet is an incredible convenience. But the most significant effect this capability has on marketers and the world of advertising is related to data, a commodity that provides endless opportunities.

“Why Should Marketers Care? Morgan Stanley predicted that by 2020, the IoT will have 75 billion connected devices. The opportunity for marketers lies within the rich and robust set of data these devices will produce” – ANA CMO Report – September 4th, 2019
These exciting new technologies are being embraced and adopted by the general public at a rapid rate. What’s more, despite the lack of government regulation, people are just giving all their personal data away. This is the case even after the Facebook data debacle with Cambridge Analytica, wherein it was exploited that many people’s data was used for political gain. This lack of regulation means that the potential for data collection remains an open opportunity for marketers.
For marketers, there lies a potential touchpoint or datapoint through every IoT device, connection, and interaction. Through each of these new virtual points, marketers can advertise their products to consumers by targeting them with incredible accuracy and timing.
With a host of IoT devices, like aisle-analytics software, infrared sensors that can track customer movement to identify where time is spent, or facial recognition software that can match users to a unique customer segment, retailers have more ammo than ever before to understand what kinds of behaviors are exhibited in the store, what promotions, layouts, and merchandise drive the most results, and what activities get the most visitors to buy.”
The 3 Types of IoT Data that retailers can really use – Ad Age
Geofencing is Real-time Personalised Advertising

As nearly every consumer has a smartphone with their location enabled, it means they become part of the focus for local search ads. Whenever you google search something on your phone, you become open to marketing. As such, you are then subjected to relevant ads based on your current location.
Searching for things to do during your visit to North Carolina? Then come and visit our local vineyard or check out the local restaurants in Sausalito. Need a hotel for your stay in Chicago? Then check out Navy pier or take some time for shopping on the Magnificent Mile. This real-time contextualisation doesn’t stop based solely on location and search, though, as it can be more sophisticated.
This sophistication of real-time, contextualised personalisation can factor in information such as a person’s physical condition, or the time of day. For example, if you own a fitness monitor or GPS running device, and happen to land in Berlin days before a marathon, you could see adverts for free passes to the gym, running paths where you can stop for food or drink, or for local farmers markets etc.
Harnessing this third party data from IoT leas to endless opportunities as the data gained is that which cannot be obtained through standard marketing tactics. Getting ahead of this trend would be of great benefit to marketing companies going forward.

There’s no way to predict where IoT, or its possibilities, will stop. Who wouldn’t want a text on their phone reminding them to buy a present for a friend’s birthday, or letting them know what groceries they need?
Want to know more? Check out these IoT Marketing Articles:
- 5 ways in which IOT Marketing will impact Martech – Martechcube
- IoT Market Predicted To Double By 2021, Reaching $520B – Forbes
- IoT devices show resilience against consumer market slowdown, but global uncertainties threaten growth and innovation – IoT Tech News
- How the Internet of Things Is Disrupting Digital Marketing – Digital Marketing Institute
- CMOs And IoT: Can This Technology Improve Marketing? – Forbes