The term IoT (Internet of Things) has been bounced around for a number of years but what does it mean now, in the present today, and how does it apply to the advertising world? Here’s a look at why IoT is set to become the next trend in advertising in 2020.
According to a Forbes article, the IoT is “ Simply put, this is the concept of basically connecting any device with an on and off switch to the Internet (and/or to each other).”
These devices can range from things like Amazon’s virtual assistants Alexa or Echo, your personal smartphone, to security devices like Ring, or temperature control units like Nest, or Hive for watering lawns. Even smart appliances, including refrigerators that can tell you when you are low on milk, and send a reminder to your phone. What’s not to love?
Having all of these different smart systems, that can talk to each other via the internet, is an amazing thing. But how does this affect marketers and the advertising world? One word: Data. And with data, the opportunities become endless.
“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
The general public is starting to adopt all these new technologies at a rapid rate. (Despite the lack of government regulation of their personal data, they are just giving it all away. This is even after the Facebook data debacle with Cambridge Analytica, where their uses of data for political gain was exploited). Still, for marketers, the lack of regulation of the potential for data collection remains an open opportunity.
Because with every IoT device, connection, and interaction, there is a potential touchpoint or datapoint for a marketer. And with each of these new virtual points, marketers than can target their products to them with insane precision and timing. But how?
Geofencing is Real-time Personalised Advertising
When almost every consumer is carrying a smartphone with an enabled location, they become part of the focus for local search ads. Anytime you open your phone and google search something, you have become open to marketing. And with that, you are subjected to relevant ads based on your current location.
Visiting Northern California and looking for things to do? Great, come visit our local Vineyard or check out the local restaurants in Sausalito. Just landed in Chicago and looking for a hotel? Well check out Navy pier or do some shopping on the Magnificent Mile. But this real-time contextualization doesn’t need to stop there based solely on location and search, it can become more sophisticated too.
How? The sophistication of real-time, contextualized personalization could factor in information like time of day, or the person’s physical condition. Own a fitness monitor or GPS running device and land in Berlin days before the marathon? Here’s a free 3-day pass to a gym, favorite running paths where you can stop for food/beverages or try out the local farmers market for some kale (your refrigerator was running low on it when you left).
The possibilities are endless when you harness this third party data from IoT. Because this isn’t something you can do with standard marketing tactics, it’s only made available by the vast data provided. It’s also why we think companies and marketers would be remiss to miss out on getting ahead of this trend.
There’s no telling where the IoT will stop; and therefore, the possibilities. Because who wouldn’t want a text on your phone reminding you that you need to get a present for your friends’ birthday party next week, salad dressing and rolls for dinner and that prescription your doctor just sent to the CVS pharmacy inside of Target after you get out of your self-driving car?
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