IoT and The Advertising Industry
The idea behind the Internet of Things (IoT) is to link any device that has an on/off switch to the internet (and/or to each other).
The billions of physical objects that are currently connected to the internet worldwide and that are all collecting and exchanging data are collectively referred to as the Internet of Things (IoT).
These gadgets include our own smartphones, Google Nest temperature-regulating devices, and virtual assistants from Amazon like Alexa. This also applies to devices like lighting controls that regulate our lights and provide a mood.
IoT in Advertising
While it’s fascinating in and of itself to have these different Internet-connected devices that can communicate with one another, what really makes them effective when it comes to aspects like advertising and promotion is the IoT device’s capacity to gather valuable data that can be used for a variety of purposes.
The passion with which the public is embracing these IoT gadgets makes them more convenient for use in advertising. Every IoT connection or contact offers a capable touchpoint for marketers. By engaging consumers at the ideal moment with the ideal offering, marketers may use these touchpoints to advertise their products.
Generic ads that were meant to fit all audiences have long since passed. Customers want change in today’s fast-paced, technologically-driven world, and advertisers must adapt as well. The demand for audiences to receive tailored ads has increased, and the Internet of Things offers enormous potential to assist this strategy. Businesses can use the increasing number of IoT devices for advertising purposes to collect more customer data, which can then be interpreted to give customers engaging, personalised adverts based on their interests.
Role of IoT in Advertising
Contextual Targeting
Contextual advertising allows firms to communicate directly with consumers, increasing the conversion rate. This has been made feasible by the growing number of people who own IoT devices, which have the capacity to collect and analyse consumer data. For example, when someone happens to be shopping for new headphones and an advertisement for them appears on his smartphone. There’s a greater chance that the person may look at those earphones. The sample up above gives you an idea of the potential of contextual advertising.
The fundamental concept of these ads is already being used by Google’s local search ads, which allow specific audience segments to be targeted within a given location. This essentially means that whenever someone uses their smartphone to conduct a local search, they will see ads that are pertinent to their current location.
Advertising Inside Stores
Retailers can also use IoT to display real-time adverts to customers in an effort to increase sales and revenue. Beacon is one such IoT gadget that, in this instance, will help the shops. Beacons are essentially tiny transmitters that use low-energy Bluetooth signals to send signals to surrounding devices.
For example, when a customer enters a store to purchase noodles and goes to the counter, the LED display may begin to broadcast an advertisement for chilli sauce, enticing the customer to buy the product to go with his meal. This is one way that in-store advertising might help increase sales.
Retailers are able to place these beacons in their stores; they have a number of benefits, such as being small in size, connecting to nearby Bluetooth-enabled smartphones, and directly sending customised real-time advertisements to the consumer’s smartphone.
Advertising Based on Location
GPS is enabled on IoT devices, enabling them to track the whereabouts of people or objects. Advertisers may use this location data to provide relevant adverts. This may function similarly to Google’s local business search. Google always displays a list of the bookstores along with their distance whenever someone searches for something like local bookstores. You can advertise other brands in the same way.
Retailers can use IoT to reach out to consumers who are close to their stores and display advertisements. For example, let us consider beacons once more. Retailers can install these outside their stores so that individuals nearby with Bluetooth-enabled smartphones can connect to them and receive advertisements about the things in the store, enticing them inside. In order to help with delivering targeted advertisements to the surrounding area, these beacons can also be linked to the cameras that have been placed close to the stores. Coca-Cola, for example, plans to use its networked vending machines as advertising platforms to provide local customers with interesting information.
Intent Advertising
Intent marketing is the practise of focusing on customers based on their motivations or intentions for a specific brand. This type of marketing helps companies improve their advertising and marketing strategies to achieve more successful outcomes. Brands can benefit from intent marketing in a variety of ways, including by defining the ideal client, fostering greater consumer interaction, and enhancing content marketing. However, IoT becomes an essential element to enable intent marketing. The Internet of Things devices help collect data that advertisers can use to understand what their customers are trying to say.
For instance, if a consumer simply comes into the business to look at and buy accessories rather than other items like clothing The store can use intent marketing to help them understand that the buyer intends to buy solely accessories from them and not any of the other products. With this data, the retailer may target that customer with advertising that are heavy on accessories and, over time, progressively include more products.
Interactive Advertising
With IoT devices, advertisements can even be mutually beneficial. Interactive advertising is a method of product promotion in which consumers actively choose to view advertisements in order to learn more about a product. Products can be linked to devices such as RFID tags, and customers can use their mobile devices to scan QR codes to visit the websites of companies. I brought up Johnnie Walker’s Blue Label smart bottle as a great illustration of this strategy. Another intriguing instance of this is when Chili’s activated a QR code that can be scanned and scanned, and it was shown on its tables during an Indian football match. Using this code, guests’ smartphones may download an app that would allow them to play a multiplayer Augmented Reality (AR) game.
The IoT revolution is still very much in its early stages. There is a vast array of Internet of Things devices that have not yet been created and utilised. The world has changed dramatically with the invention of cellphones, becoming increasingly dependent on technology for all activities and methods.
Marketers who have updated their message-delivery tools to stay ahead of the fast-paced changes in the globe are keeping up with it and making sure their goals are met.
It has been established, for example, that the Internet of Things will undoubtedly open up a plethora of new data points, touchpoints, and opportunities that will aid in the customization, pertinence, and directness of advertising.
