Tech consumers are well aware of the Internet of Things era we are coming in to, however many would be surprised to find the implications these technologies have on the way marketers interact with consumers.
Ryan Begley at IBM’s IoT Division wrote an insightful blog on this topic earlier this week. He describes the evolution of advertising, from traditional to digital. As Ryan outlines, the problem with marketing has always been determining causality.
Marketers have attempted, to varying degrees of success, to rectify this issue with deep analytics tools. While analytics and algorithms have been used by companies like Google to predict buying behavior, Internet of Things finally gives marketers the ability to truly attribute marketing spend to sales results.
Imagine a WiFi connected refrigerator that through sensor and camera technology detects you are running low on milk. A timely event-based marketing message from your favorite grocery store or Amazon provides you an offer if you place your order now via your smartphone or from the refrigerators touch screen. In this interaction, the marketer is able to directly access the need of the consumer and provide a timely marketing message that will have a measurable financial impact.
One of the biggest challenges to these solutions continues to be the fragmentation and security of IoT platforms. The opportunity is to create widely adopted, secure, unified platforms for IoT that will enable these solutions to scale. Companies like IBM, Microsoft, Google, and Verizon are already fast at work building and scaling various IoT platforms, and the result of that work may lead to what Ryan Begley describes as a digital media transformation.