IOT Innovation in the Advertising Industry

The term IoT stands for the internet of things. Internet of things in elementary terms can be defined as a web of devices connected through the internet, capable of interacting with their surroundings while gathering and transferring data by observing user behavior. These devices can be any device having an IP address, that enables the device to be connected to the internet for receiving and sending gathered data. Examples of such devices include watches, pedometer, mobile phones, automated transportation, efficient management of energy, etc equipped with sensors and programmed to collect and transfer user data.


The scope of IOT in the advertising industry is immense. Instead of traditional advertisements, customers today want to experience. Big brands have realized that the best way to market their products is to engage customers in real time rather than bombarding customers with classic ads all the time. Certain significant factors are contributing to the endless scope of advertising through IOT and making it a better option than conventional advertising channel such as television, radio, print, etc.


The first factor is the ability of the devices to trace patterns of user behavior, their personal interests and collect data. For example, a fitness enthusiast’s daily fitness routine gets tracked by his smartwatch which he uses to calculate various elements of his work out such as calories burned, duration of exercise, kind of exercise, etc. Now the smartwatch can collect data from his daily routine over time and present him with interesting options of fitness equipment, specialized diets or suggest a fitness drink just after the work out in an outlet nearby. Traditional advertising methods can never achieve the assessing of user behavior till this precision.


The second major factor is showing advertisements in real time. Advertisements on IOT platforms do not consider customers as a passive observer but interact with them in real time. These devices have become an integral part of our daily lives. They have access to us 24*7, while we eat, drink, sleep or drive. They live with us in our homes and outside. So they can play a vital role in influencing a customer’s choices, presenting them with new tailored offers, showing them relevant products in real time by assessing the need at the right time and right place. For example, a person driving while using a navigation system gets presented by various offers from the food outlets he drives by on a highway.

Another factor is that the advertisements on the IOT platform interact and help a person find a potential solution for a specific need rather than distracting and disengaging a person like in TV advertisements. Users are more likely to engage by an ad on a smartwatch and less likely to ignore it, but same is not the case with TV.

IOT will bring macro changes in advertising. Amazon Echo is a classic example of IoT platform for advertising. It is a smart wireless speaker that is controlled by voice. According to CNBC Amazon is in talks with companies to let them promote their products on the Echo.

According to the report by HP, by 2025 the number of connected devices will reach 1 trillion which is huge. With the onset of making smart homes to smart cities, IOT devices are now practically everywhere. As IOT is booming the brands can leverage this smart technology to enhance their visibility to specifically targeted audience for maximum conversions and exposure.

However, all that glitters is not gold; brands should carefully plan their strategies and take necessary actions against fraudulent ad traffic. Advertisers need to make sure that real humans view their advertisements by taking strict measures in the careful selection of ad tech providers.
There are still immense opportunities to be explored by companies to advertise on IOT platform because IOT boom is going to revolutionaries advertising sector.

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