Digital Marketing

Internet of Things (IoT) impact on advertising

internet-of-things-iot-impact-on-advertising

Have you heard of Johnnie Walker’s Blue Label bottle? The bottle has built-in electronic sensors that tell the company whether the bottle has been opened or not and what supply chain it is in. This is one of the most famous examples of the Internet of Things being used in advertising. Read on to understand this concept.

What is iot

As Forbes described in an old article, “IoT is the concept of connecting any device to the Internet (and / or each other) with an on / off switch.”

Simply put, the endless things connected to the Internet with the help of sensors, software, and other things make up the network of physical objects collectively known as the Internet of Things (IoT). Some well-known examples are smartwatches, fitness trackers, etc.

Internet of Things and Advertising

The fact that this network of things can interact with each other and share information in real time is what makes IoT so useful for advertising and marketing. We mentioned the Blue Label bottle above, and in addition to these features, the company was also able to get information about the customers who scanned the bottles with their smartphones.

They could even change the information according to their marketing strategy as the sensors were constantly active and connected. It can display promotional content when it’s on the shelves or some cocktail recipes when it’s open.

And that’s just an example. As people understand the multi-faceted benefits of IoT, they quickly find ways it can be applied to advertising to make it more effective.

Applications of IoT in advertising

Some Internet of Things uses in advertising are given below:

Advertising by location

With the help of GPS, IoT devices can easily track devices that give you an idea of ​​the person’s location. This data can then be used by advertisers to send relevant ads. Similar to the business search near Google, people are automatically directed to restaurants or whatever they’re looking for.

This system can also be used by other apps. Additionally, retailers can use IoT to serve their ads to people near their location. You can set up beacons outside of your stores. When a Bluetooth-enabled device passes through this area, a connection is established.

The beacon can then automatically send these device messages. Using cameras connected to beacons can help send out personalized ads based on the person’s appearance.

Intentional Advertising

If you can figure out the purpose or intent behind a customer’s decision-making process, it can be extremely helpful. As a result, deliberate marketing has helped several companies improve their advertising tactics and get better results.

However, before a strategy can be developed, the customer’s intent must be determined. IoT plays an essential role in this, as it provides the data that advertisers use to determine the intent of their customers.

For example, if a person only buys one specific product from one brand, then only those ads can be sent to the customers so that they are not only useful to them but also lead to effective sales.

Interactive advertising

Advertising doesn’t have to be just a possibility. What Johnnie Walker did with his Blue Label bottle can be applied to almost all different packaged goods. People can scan existing RFID tags on the products and then learn about their nutritional value and other important information.

You can also learn about other products with similar components and receive personalized information about products that you may like. And while many people are more than happy to share personal information for a more personalized experience, their privacy should always be the top concern of advertisers.

In-store advertising

Not only on the web, but also in a store, IoT can be used to send real-time advertisements to buyers and help sell more products and ultimately increase sales. With the help of beacons, as explained above, retailers can do this.

Imagine a person buying bags of milk and sugar and on their way to the checkout, but suddenly an LED flash alerts them at the counter of a coffee brand. Then they realize that they have to buy coffee too. This is how in-store advertising helps to increase sales.

Ads can also be sent to any bluetooth enabled smartphones in the store so they can see personalized ads and buy things that are useful for them. It’s a win-win for both advertisers and customers.

Conclusion

The Internet of Things can be used to simplify many advertising processes that not only make them more effective, but also improve the customer experience. In all of this information exchange, however, the privacy and security of the information people provide should never be compromised.

For more information on such content, please visit the Digital Ready blog section. Also, check out the different digital marketing courses we offer and take your first step to becoming a digital marketer.

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Jeffrey Rabinowitz