How do you put an ad on the internet of things (IoT)?
First you needed a desktop strategy. Then you needed a mobile strategy. Then it was a digital strategy. Then it was a data and content strategy. Then it was digital transformation. In the meantime, as an industry we are looking at over $1bn of media reviews, and brands are looking for a new breed of advertising partners. Consumers are flocking to mobile devices, and the IoT has gone from something confined within the walls of tech conferences to a fast-growing phenomenon.
What is the IoT?
The internet of things is an ecosystem of devices that represents web 3.0. These devices are sensors, motion detectors, lights and processors that take many shapes and forms. The IoT is already all around us, from startups like Cocoon building the next generation of home security to more mainstream IoT businesses like FitBit and Nest.
The IDC recently forecasted that the global IoT market will grow to £1.1tn in 2020. Forget your phones, watches, cars, TV – IoT-related devices and sensors will account for over 57 per cent of all devices by 2019, according to Business Insider. By Cisco’s calculations, 80 ‘things’ join the IoT every second—and the current ‘thing’ count sits somewhere in the region of 25bn.
Why should marketers care about the IoT?
In late 2013, Google sent a letter to the Securities and Exchange Commission noting: “We and other companies could [soon] be serving ads and other content on refrigerators, car dashboards, thermostats, glasses and watches, to name just a few possibilities.” So this should not be news.
With the integration of devices and analytics, a business can know the best time to run a sale or promotion, add staff hours, improve deliveries or react quickly to external trends.
For instance, a system of sensors like Apple’s iBeacons, which notices who has entered a store, might correlate timely trends, current wait times for cashiers, pricing, merchandising and promotional activities.
The internet of things isn’t just an excuse to sell more to our customers, though – it’s a powerful tool that helps us learn about our customer and target them with relevant offers.
Aren’t we really just talking about data planning and transformation?
If we removed all of the hardware and peripherals – desktop PC, tablets, Apple Watches, connected cars, in-home sensors – the conversation hasn’t really changed. We’re still talking about data and audience, and we’re still figuring out the best way to collect, analyse and interpret data to drive our marketing plans.
The IoT gives us the missing pieces we simply can’t glean from exchanges, ad networks or publishers. For example, how much petrol do I have left n my car? How far did I run on my last jog? What aisle am I currently standing in, and where am I likely to go next?
What are the opportunities for advertisers?
The IoT presents endless new opportunities to deliver contextually relevant ads. We no longer have to rely on the ‘spray and pray’ coupon approach, hoping something will stick. We can run marketing campaigns that deliver useful services, content and experiences to consumers in the moment, on demand and on the go.
Your data planning checklist
For the next generation of data planning fuelled by IoT data, brands should be creating experiences that meet the following criteria:
- Intuitive – is it easy to use?
- Personal – is it relevant?
- Contextual – is it adapted to where I am and what I am doing?
Jon Hook, VP, Advertising Strategy, Phunware
Tel: +44 7818 850 651
Email: jhook@phunware.com
Web: www.phunware.com
Twitter: @PW_Advertising @JonHook
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