3 Ways The Internet Of Things Will Pave The Way For Smarter Marketing
In this exclusive piece for B&T, US productivity consultant Lisa Froelings (pictured below) identifies how the Internet of Things (IoT) will drastically change the way marketers approach consumers.
The Internet of Things has a been a buzzy term in the past five years, but so far it hasn’t revolutionised consumers’ lives in the way many thought it would. However, in the next few years, that stands to change as IoT technology expands rapidly and enters more homes than ever before. For context, research firm Gartner estimates there are currently 6.4 billion IoT devices in use this year, but by 2020 that number is expected to grow to 21 billion.
The rapid onset of IoT growth means several things for consumers. Not only will IoT users live in smart homes or even commute through smart cities, but their very relationship with businesses will change. The dominant form of this change will be a rise in convenience. After all, the IoT focuses on providing smart technology to users that can anticipate their needs before the consumer has to acknowledge and act on that need.
In part, this change will also be caused by shifts within business itself. IoT won’t just impact consumers’ lives – it will force companies to adapt to new business models – ones defined by big data collected by IoT. With the onset of all this data, companies will increasingly need to hire elite software engineers to process the data or even build the IoT devices themselves, but this isn’t the only change businesses will go through. This focus on engineering and data processing will apply to all levels of a business, and marketing is one of the areas that stands to be most impacted by this change.
There’s no doubt that the current model of marketing is flawed. Banner ads are ineffective. People mute commercials or walk away from the TV while their show isn’t on. Companies throw five to 10 per cent of their gross revenue at marketing efforts that fail, and they continue to do this year after year. However, IoT stands to change how marketers approach reaching consumers in three big ways that could greatly increase the success rate of individual marketing campaigns. Here’s how:
- IoT creates big data
Every device that is connected to the IoT provides information on user behaviour: when do they use a device, how frequently, in what capacity? Marketers will no longer have to guess or infer the answers to these questions – soon they will definitively know. Not only will marketers understand what demographic uses a certain product, they will know how they use it. This means that marketers can craft campaigns that target those use patterns. Is a company’s product handy in an emergency or popular in the morning? Perhaps it is used alongside another product or follows a specific event. Once marketers establish use patterns for their product, they can advertise those uses to potential customers and better convert them by showcasing a product’s utility for the situations that their product is actually used in.
- IoT monitors itself
One of the biggest benefits of IoT is that these smart devices are all connected. This leads to opportunities to augment the user experience by providing things as needed. Think about it this way: if you have a smart home, a lightbulb company could send you an advertisement for new light bulbs when one of your light bulbs burns out. This type of advertising would be annoying if you didn’t need new light bulbs, but in those circumstances, that ad is exactly what the consumer needs. This type of targeted advertisement is perfect for products that aim for longevity and need repairs or replaceable parts to function. Even better, IoT marketing may even be able to let consumers know when a battery runs out or when a product will break down before it even happens, giving customers time to replace a product seamlessly without any downtime.
- IoT devices can talk to each other
Most interestingly, IoT devices present an opportunity to market products across companies. Now, this will require companies to work together, but picture this: the smart lock on your door notes that you return home after dark and leave early in the morning. The smart lock company could then send you an ad about motion-triggered outdoor lights for your driveway that are made by a different company. If you chose to buy them, then perhaps the smart lock company collects a finder’s fee. The same scenario is possible for a smart fridge: picture a fridge that will tell you when you need to replace the milk or buy new eggs. This type of cross-functional advertising could target specific consumer needs in ways that were impossible before.
IoT’s greatest benefit to marketers is the wealth of information on user behaviour these connected devices will provide. In the midst of this big data on how consumers interact with products, marketers will increasingly be able to send ads with the right message at the right time to the right customer. With the advent of IoT’s explosive growth, the days of ads that don’t immediately appeal to consumer need may be over.
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.