The IoT (Internet of Things) is a system of interrelated devices with unique identifiers that can transfer data over a network without human interaction. According to Verified Market Research, the market size of the IoT was $212.1 Billion in 2018 and is forecasted to reach $1,319.08 Billion by 2026. It can seem like Skynet in the “Terminator” movies since we are talking about billions of devices all over the world that are connected and sharing data. In this blog, we’ll look at some of the effects the Internet of Things has on digital marketing.
Since there will be a tremendous amount of data, one big challenge for digital advertising is how to collect and analyze the data to create precisely targeted digital campaigns. Some brands have begun to implement connectivity with their advertising efforts. For example, Malibu Rum has recently launched the Connected Bottle. This is one way to transform common objects in everyday life into digital touchpoints that can provide more data and insight for optimized targeting.
The IoT provides a huge goldmine of data and insights that can be leveraged for digital touchpoints and for optimizing campaigns according to purchase intent. We can apply IoT technology to PPC (Pay-Per-Click) campaigns. Users can be targeted in certain locations and with keywords that optimize conversions. Every time you use your mobile device for local search, you are contributing valuable data to the IoT data pool. Another real-life scenario for leveraging IoT data in digital marketing is when you are shown ads for grocery shopping suggestions based on your connected fridge data. The possibilities are endless but it all goes back to the initial challenge, how to harness the data, analyze, and use it. The right technology needs to be used.
Also, massive amount of 3rd party IoT data presents a challenge in itself. The right preventive measures need to be applied to protect data from unsecured IoT devices and applications. Breaches and cyberattacks need to be thwarted. Of course, every innovation brings new challenges. Check out our blog “Digital Advertising Trends 2020 And Beyond” to read about some innovations on the horizon.
Traditional advertising will still have place to reach marketing goals but brands will continue to increasingly embrace the IoT to connect more with consumer. If your brand needs to connect with consumers via Paid Media, contact us today to get started. For now, stay safe out there and practice good common sense.
