The Internet of Things (IoT) is changing the advertisement landscape. Are you ready for the Transformation?

Technology advances insidiously, it creeps on you and suddenly your current knowledge is antiquated. The world is poised on a precipice, a technological revolution so great it’s shifting our buying habits. The IoT (Internet of Things) is at the forefront, and savvy marketers have not been left behind.  They are riding the wave to achieve their marketing objectives in new and exciting ways.

What is IoT?

The Internet of Things, or IoT, includes billions of devices connected to the internet that gather, share and decipher data. These devices include wearables, automobile sensors, biochip transponders, smart thermostats, smart refrigerators, watches, speakers, locks and many more.

These ‘smart’ gadgets have changed our needs and how we want to interact with our environment, creating a colossal opportunity for advertisers. 

The Power of IoT in Advertisement

There are over 20 Billion devices out there and the number is growing steadily. They have unfurled a marketer’s dream to advertise. Marketers can now contextualize and tailor personalized ads for their customers.  They can harness touchpoints through IoT interactions and connections, and use these touchpoints to advertise the right product to the right customer at the right time. 

The IoT devices collect real time data- all this data is an advertiser’s dream come true – it’s a goldmine of limitless information. 

Predictive analytics can now use artificial intelligence, data mining, machine learning and statistical modeling, to predict future trends which allow marketers to optimize their marketing strategies. 

Businesses analyzing customer’s data can leverage on their products to create deep funnel insights. They can tell which customers have a buying intent and report back when these customers buy.  

Advertisers can now personalize ads to compliment what customers currently use. For example, a sportswear company can target owners of Smart Shoes. Buyers of soft drinks can see ads of complimentary snacks – and much more.

IoT can help advertisers to take advantage of Micro Moments – what Google defines as, “intent-driven moments of decision-making and preference-shaping”. It’s the exact moment when you are thinking of buying the very thing that flashes before your eyes.  Amazon’s dash buttons have harnessed the power of Micro moments to trigger your buying decisions. 

Security conscious customers may find IoT intrusive to their privacy, it brings a sense of being ‘watched’.  To counter this, advertisers are designing ads that are both non obtrusive and subtle.

Here are a few examples of how IoT plays a role in advertisement: 

  1. Interactive Ads.  These are advertisements that allow customers to interact and engage with a product, exposing the customer to more content as the interaction continues.
  2. Location Based Ads.  Retailers may take advantage of beacons to advertise directly to customers based on proximity and behavior. 
  3. Watching Ads. These are snoopy, they have inbuilt cameras, they analyze what you wear, drive, and eat. They then flash personalized ads to augment your tastes. For example, the camera may notice your torn shirt and send an advertisement of clothing shops in your locality. 
  4. Connected Products.  These are smart products. They allow you to check out their condition. You can use your phone’s scanner to get information about the product. For example, to counter counterfeits Johnnie Walker’s bottle lets you know if the bottle has been opened before, and when it was opened. 

Wrapping it up

These and many more IoT connected ads are changing the advertisement landscape. An ad that pops up at the right moment, personalized to customer’s preferences is bound to lead to more conversions for businesses.