Impact of Internet of Things (IoT) on Advertising
Have you heard about Johnnie Walker’s Blue Label bottle? The bottle has built-in electronic sensors that let the company know whether the bottle has been opened or not, and wherein the supply chain it is. This is one of the most famous examples of the usage of the Internet of things in advertising. To understand this concept, keep reading.
What is IoT?
As was described by Forbes in an old article, “IoT is the concept of connecting any device with an on and off switch to the internet (and/or to each other).”
Simply put, the endless things that are connected to the internet – with the help of sensors, softwares, and other things – form the network of physical objects collectively called the Internet of Things (IoT). Some well-known examples include 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 as well as marketing. We had mentioned the Blue Label Bottle above, and along with those features, the company was also able to glean information about the customers who scanned the bottles using their smartphones.
They could even change the information according to their marketing strategy since the sensors were active and connected all the time. It could display promotional content when it’s on the shelves, or some cocktail recipes when it’s opened.
And this is only one example. As people are understanding the multi-layered benefits of IoT, they’re rapidly coming up with ways in which it can be applied to advertising to make it more effective.
Applications of IoT in Advertising
Some applications of the internet of things in advertising have been given below:
Advertising based on location
Using GPS, IoT devices are easily able to track devices that can give you an idea about the person’s location. With the help of this data, advertisers can then send relevant ads. Similar to the nearby business search by Google, people will automatically be directed to restaurants or whatever they search for.
This system can be employed by other apps as well. Further, retailers can display their ads to people near their location using IoT. They can set up beacons outside their shops and if any device which is bluetooth-enabled crosses that area, a connection will be made.
The beacon can then automatically send that device ads. Using cameras that are connected to beacons can help in sending personalized ads, based on the person’s appearance.
Intent-based Advertising
If you can figure out the purpose or intent behind a customer’s decision process, it can be extremely helpful. Intent marketing has, therefore, helped several businesses to better their advertising tactics and get better results.
However, before any strategy can be developed, the customer’s intent needs to be determined. IoT plays an integral role in this since it provides the data based on which advertisers figure out their customers’ intent.
For instance, if a person buys only a particular product from a brand, then only those ads can be sent to the customers so that not only are they useful to them but also lead to effective sales.
Interactive Advertising
Advertising doesn’t necessarily have to be one way only. What Johnnie Walker had done with their Blue Label bottle can be applied to almost all the various packaged goods. People can scan RFID tags present on the products and then get to know about their nutritional value and other such important information.
They can get to know about other products as well with similar components, and also be sent personalized information about products they might enjoy. And while many people are more than happy to share personal details for a more personalized experience, their privacy should always be the advertisers’ primary concern.
In-store Advertising
Not just on the internet but even when you are in a store, IoT can be used to send real-time ads to the buyers and help in selling more products and ultimately increase sales. With the help of beacons, as explained above, retailers can do this.
Imagine this, a person is buying milk and sugar packets and is on their way to checkout but suddenly an LED flash alerts them to some coffee brand’s counter. Then they realize that they have to buy coffee as well. This is how in-store advertising helps in increasing sales.
Ads can also be sent to all the Bluetooth-enabled smartphones in the store so that they can see personalized ads and buy things that are useful for them. It’s a win-win for both – advertisers as well as customers.
Conclusion
The internet of things can be used to simplify a lot of advertising processes which will not only make them more effective but also improve the experience of the customers. However, amidst all the information exchange, the privacy and security of the information provided by the people should never be compromised.
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