IoT - marketers, adapt or perish

Internet of Things - the value of the IoT market in Poland will exceed EUR 2.7 million by 2018. It's no surprise that the marketing and advertising industry is keenly interested in how the Internet of Things can be used to promote products and services and boost sales. What can marketers gain from the IoT technological revolution?

The Internet of Things doesn't have a single definition. In simple terms, it's a concept based on using devices that, via Bluetooth, Wi-Fi, or mobile internet, collect, process, and exchange data while enabling users to receive this information. Though Poland is still in the early stages of IoT development, the technology’s growth momentum leaves no doubt — soon, we’ll all be interacting with IoT in every household, and many businesses will eagerly adopt it.

A world connected to the network

Wearable tech drives marketing

The applications for such solutions are numerous. One example is so-called wearable devices. The global market for these devices will be worth USD 16 billion this year. The rising popularity of wearable technology makes it attractive to both users and firms. Smartwatches or bands, when linked with apps, offer new features such as monitoring sports achievements or health status. Consumers are eager to adopt gadgets that make life easier. On the other hand, because these devices allow for rapid data collection and processing, they are also a valuable resource for marketers. The data they process contain invaluable insights into our lifestyles, habits, and even purchasing behaviors. This can be used in actions such as loyalty programs in retail stores — instead of using different cards, customers could accumulate points by tapping their smartwatch to a beacon, particularly interesting for cross-retailer promotions.

– Marketers can also use wearable tech to better personalize advertising messages, for example, tailoring them to a consumer's current location, determined from geolocation data collected by a sensor in one of their devices or clothing, says Maciej Wyszyński, Managing Director for DACH, CEE, and MEA markets at Sociomantic Labs.

Customer 3.0– This will inevitably change communication and how ads are delivered — whether on a smartwatch, fridge display, in a car, or smart glasses and other wearables — believes the expert from Sociomantic Labs. – Just as with programmatic advertising, the consumer and their interests and immediate needs will be key, not the channel of delivery. The recipient will be directly engaged by the message and won’t consciously want to skip it — adds Maciej Wyszyński.

Beacons in stores and programmatic advertising

It will also become much easier to obtain data about how long a customer spends in front of a particular store shelf — for example, thanks to beacons or other locational readers that track consumers and collect data about their product interests. Knowing a customer’s product preferences, it will be much easier to offer them an ad that appeals to them.

Increased global internet access and the popularity of mobile devices mean that today’s customer purchase journeys are more complex than ever before. Marketers’ task is to acquire customers regardless of the sales channel. Innovative technologies, such as the Internet of Things, are helping them achieve this. As a result, everyone wins — customers get a more comfortable shopping experience, businesses increase sales and profits, and marketers make better use of their budgets.

Summary

The Internet of Things is still in its early stages in Poland, but the growth momentum leaves no doubt — the IoT market will exceed EUR 2.7 million by 2018. The global wearable tech market will reach USD 16 billion this year, opening marketers access to data on consumers' lifestyles and purchasing habits.

According to Maciej Wyszyński from Sociomantic Labs, personalization based on location and immediate needs will be crucial, not the delivery channel. Ads could appear on smartwatches, fridge displays, or smart glasses, while beacons in stores can measure the time spent in front of a shelf.