How is IoT changing online advertising?

Marketers appreciate innovations and are among the first to experiment in cutting-edge technologies when it comes to consumer retention and interaction. Currently one of the greatest and most exciting phenomena is Internet of Things (IoT). It is bringing internet access to all facets of our lives. It can turn any system we communicate with into an intelligent system. A device that can connect over the internet to other devices and share location information, browsing habits, among other things, that Marketers can harvest and transform into rich insights to strengthen their campaigns. For some time, the idea of connected devices has been around, but the so-called smart devices with local computing and AI capabilities, powered by smartphones, have taken off in the last few years.

According to industry data on IoT,

  • companies will spend up to $15 trillion in IoT by 2025,
  • the economic impact of IoT could be between $4 and $11 trillion per year by 2025,
  • home IoT market is projected to rise to $53.45 billion by 2022, and
  • approximately 44 zettabytes of data will be generated by IoT devices by 2022.

There are well over 50 billion linked devices that equate to 7 times as many computers as people on this planet can communicate with one another. This has a far-reaching impact and has the potential to transform the way we live. This data treasure chest is what advertisers want to pursue. To process the IoT data on a scale, development systems such as public cloud and deep learning have developed. With 2,7 billion smartphones in operation, mobile applications have been the popular platform for communicating with the IoT computers.

Why will IoT be of interest to marketers?

Smart devices like smartphones, smart TVs, smart home appliances and wearable devices use sensors and actuators to gather and exchange data over the internet with other devices. Sensors capture information, upload it to the internet and share it among themselves.

Now let us look at the IoT use case for connected cars. These days, all new cars are GPS fitted and come with smart navigation software. It will monitor the distance to the closest petrol station depending on the condition of the petrol and urge you to stop for refuelling. Based on prior data, it can propose preferred points of interest. It knows the time of the day; it can recommend the nearest restaurant of your choice to stop for food, based on weather and real-time traffic.

These usage cases-where IoT apps not only share information but also help make real-time decisions-leave the advertisers behind rich data, which is very important in this modern era. This allows advertisers to be better at creating objective assessments and to build more effective approaches for attracting and communicating with customers. Marketers can understand more about their clients and make smarter and quicker choices with the aid of IoT. They get to learn what consumers want from their brands, how to boost the price of their products, help predict product demand and prepare for new apps. Simply put, it lets us consider the consumer actions from the beginning to the end, which provides a good view of where the consumer is on their buying path.

Weaving the IoT data insights into the marketing strategies, helping marketers identify consumer desires, purchasing habits, location, payment mode and other consumer preferences. It helps the most efficient way of communicating with the clients. Enabling deeper consumer insight, forecasting customer behaviour more correctly and helping advertisers to sell the best goods. IoT data can help monitor commodity use, forecast sales timing, and control product inventories effectively.

Marketing is about jumping in on the right platform with the right client at the right time and helping them make the correct buying decision. To put it simply, it is about personalization and real-time connection with the customers. IoT helps accurately identify markets, fuel effective marketing strategies, and display more specific advertising. There are many proposals already placed in motion by advertisers to push IoT to the next stage of digital marketing. Certain have evolved naturally with social media convergence and mobile-first customer engagement behaviours. This has turned digital marketing into smart marketing that links smart devices to social media data.

Think of a marketer who links their sales machine to their Twitter account. A tweet is posted on Twitter each time someone buys the product letting us know who is purchasing this product. Extending this concept further can allow self-advertising of goods. Through a low-cost embedded chip on a soda bottle, consumers can post feedback directly from the bottle on the social media site of the company. That is now being accomplished by many smart watch and fitness apps to share their activity logs on social media that basically lobby for the app.

A further area that can benefit from IoT is customer engagement and relationship management. Marketers can uncover insights about the customer journey based on the data collected and can modify the campaigns in real-time to effectively nudge customers into converting. Marketers will push towards a single-touch identification for IoT-smart home apps. For example, think of a scenario where a smart home lightbulb stops working or a daily consumable runs low, the IoT network can record and send your smartphone a digital coupon. The customer will order the intake electronically.

Through this way, campaigns are more relevant, actionable, and cost-effective and remove inefficient ad serving.


IoT for marketing is just about looking outside the box and using technologies in the right way to engage in the most real way with the actual consumers. To date, it has lived up to its commitment to allow advertisers to think in the most concrete way about digital campaigns while communicating with their clients.

As IoT technology becomes simpler with seamless interfacing and data assimilation to the public cloud over the internet, tech-savvy marketers can integrate IoT into the digital marketing fabric and transform how they engage with their customers.

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