3 Ways The Internet Of Things Will Pave The Way For Smarter Marketing

3 Ways The Internet Of Things Will Pave The Way For Smarter Marketing
SHARE
THIS


What best describes you?

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.

Lisa Froelings

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:

  1. 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.

  1. 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.

  1. 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.

Please login with linkedin to comment

Latest News

The Advertising ID Consortium Welcomes New Platform Partners
  • Advertising

The Advertising ID Consortium Welcomes New Platform Partners

The Advertising ID Consortium – the open identity solution for the digital advertising ecosystem – has announced new platform partners. Since the Consortium’s announcement in May 2017, the founding members have established a governance framework and product specification that includes an open and standardised cookie and accessible people-based identifiers, delivered in a secure, privacy conscious […]

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand
  • Marketing

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand

Australian in-store music provider Marketing Melodies has announced an exclusive reseller agreement with Spotify-backed Soundtrack Your Brand for the Australia and New Zealand markets. Founded in Sweden in 2013, Soundtrack Your Brand was developed to kill bad background music. Its flagship solution, Soundtrack Business, is a music streaming platform licensed for commercial and public spaces. The […]

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia
  • Advertising
  • Marketing

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia

Customer acquisition firm Social Garden has become the first business in Australia to achieve Bronze status on Snapchat. Among the new benefits Social Garden will receive as a result of its Bronze status is access to beta versions of Snapchat data tools, such as the Snapchat Conversion Pixel, as well as being among the first […]

Hypetap Appoints Nuffnang’s Chris Morfis As GM
  • Marketing

Hypetap Appoints Nuffnang’s Chris Morfis As GM

Influencer marketing player Hypetap has made its second senior hire in less than a month, appointing Chris Morfis as the company’s general manager. Joining from influencer marketing provider Nuffnang Australia, Morfis will guide Hypetap’s growing team, providing strategic direction to accelerate the company’s growth, as well as leading operations and managing relationships with key partners. Morfis’ appointment will […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]