How the Internet of Things is Changing the Digital Marketing Space


The Internet of Things (IoT) is the new buzzword that’s been attracting the attention of savvy marketers everywhere. The IoT is a computing concept where everyday physical objects can connect to the internet and identify themselves to other devices.This means that when an object is connected to the internet, it is no longer just connected in relation to you, but also to surrounding objects. Databases are then able to communicate this information in an intelligent fashion, turning the physical world into one big information system.

With the number of internet-connected devices expected to more than double to over 50 billion in the next six years, the Internet of Things (IoT) is going to change the way companies create their marketing campaigns. Similar to how we have smart refrigerators that send out alerts to order fresh milk and bread, similar data can be used by retail stores to increase the context and effectiveness of an ad suggesting alternate brands to their customers. This new way of using data can provide a unique and an individual experience by integrating it into the life of customer.

With IoT, big data and analytics will play a much more pivotal role. As marketers will have real time data, the quality of analytics and resultant decision making will also improve. IoT will help marketers to address the customer at a more individual level accurately than ever before, and CMO’s can also analyze how much of their campaign spend is addressable.

As the IoT would mean all objects are connected, marketers can help brands personalize customer experiences and deliver more relevant advertising, thus positioning themselves as valued business resources. For example, let’s say a smart television needs a new remote control. The mechanic would push a message on discounts offered with a free voucher for new batteries, analyzing the history of the user’s purchase, therefore lowering promotional waste. As users will be provided with personalized experiences across different channels, they will start personalizing products and will continue their relationship both virtually and real world interactions. With IoT consumer, brand and the marketer wins.

With the rise of “residential SEO”, local search and content marketing are also going to play an important role. If a user is using his refrigerator to search for groceries to prepare his favourite meal and comes across a video ad prepared by a local restaurant, it is highly likely he will stop by the next time he craves his favourite dish!

But as more of both personal devices and private lives go online, there could be lot of friction. Marketers who can embrace this new technology to make emotional connection with their users will be the ultimate winner in this new system. The fundamental challenge of becoming more relevant in minds of customer will not change for brands and products.

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