What Matters Now: The Internet of Things
According to some reports, 51% of the world’s leading marketing experts predict that the Internet of Things will revolutionize marketing by 2020.
The Internet of Things, or IoT, is the system of devices, machines, and other equipment that can independently transfer information to the Internet without requiring any human interaction. Thermostats, security systems, health monitoring devices, light fixtures, pet feeders, and even tooth brushes can now all be imbedded with technology that can make them part of the IoT. All of these “things” have individual identifiers, and they are all capable of producing data.
Here is why the Internet of Things matters for marketers:
- New and highly useful data.
The number devices connected to the Internet of Things is expected to grow from 2.9 billion in 2015 to 13 billion in 2020. This means that the amount of data that marketers will have access to from these devices will more than quadruple in this five-year period.
Critically, this data provides information about customer habits and preferences that was previously unavailable. Much of the data provided by IoT devices is also provided in real-time. A number of IoT devices such as smart watches and Fitbits, are even worn by customers!
This means that as IoT grows, marketers will have increasing access the most current and up-to-date data possible for their customers.
- Agile, adaptable marketing campaigns.
Essentially, the IoT allows marketers to get a much deeper understanding of how consumers interact with and use products. This means that marketers will better be able to see the strengths and weaknesses of products, and where they need to make changes. It helps them to get a much clearer idea of where they should concentrate marketing efforts.
With this new technology, marketers will be able to respond to the needs of customers faster and more effectively than ever. The real-time data can give marketers the information they need to create ad campaigns based on product changes designed to specifically meet the immediate needs of customers.
In other words, with IoT data, marketers will be able to tell what needs to be fixed much quicker, and they will be able to optimize their marketing techniques to respond to these needs.
- Extremely targeted marketing.
IoT devices will be able to tell when they are about to fail, or when they need maintenance, or a replacement. As a result, the devices will be able to send a notification to the smartphone of the product owner, letting him or her know about the situation.
This presents an entirely new avenue of advertising. Marketing departments can create advertisements that are specifically designed for these situations. These ads could be incredibly successful because the consumer would have a direct interest in the product.
For example, if a smart coffee maker broke, it could send a notification to the product owner, as well as an ad for a brand new coffee maker. The consumer’s immediate need for a replacement could potentially dramatically increase the success rate for the ad
The global market for IoT solutions is projected to expand from 1.9 trillion in 2013 to 7.1 trillion in 2020. This growth will create wide-scale changes in the marketing industry. Those companies that can take advantage of the coming changes, could stand to profit tremendously from their adaptations.