In less than 4 years, there will be 50 billion IoT devices worldwide. Smartphones, wearables, new-generation home gadgets – everything that surrounds us will be connected to the Web!
So far, the Internet of Things proved to be highly beneficial for us humans. Insulin Angel, for example, helps diabetics keep their medication at a safe temperature. Digital bracelets track our heartbeat and physical activity. Smart home systems create a comfortable atmosphere in our apartments.
The other side of the coin is that we may forget about privacy.
There are no data security protocols for IoT at the moment. It is unclear how smart gadget manufacturers will use all the data generated by their products. And I’m not even talking about hacked refrigerators and baby monitors right now.
I’m talking about advertising. No marketing survey can provide brands with such high-quality user feedback as IoT devices. What does it mean for industries and ordinary users like you and me?
The Internet of Things: when your whiskey is smarter than you
At the 2015 Mobile World Congress, Diageo, a top company in the beverage alcohol industry, unveiled the Johnnie Walker Blue Label smart bottle. This technology allows producers to monitor the movement of bottles throughout the supply chain, in stores, and until they are consumed. Each bottle comes with OpenSense tags that, unlike regular QR codes, can integrate sensors and are very difficult to replicate. To check if the drink you’ve purchased is genuine, simply tap the bottle with an NFC-enabled smartphone.
Whiskey lovers are not the only ones to enjoy high-tech packages. Christophe Emery, the head of the digital and media department at L’Oreal, believes connected make-up marketing can be as effective as on mobile.
Another example comes from Absolut. The brand partnered with Evrythng to design connected vodka bottles. It seems a logical step for a company which annually ships over 100 million bottles: why not use the IoT channel to keep in touch with their customers?
As of now, the Internet of Things advertising is more about ideas (often the vague ones). Project Gutenberg is perhaps the closest we’ve come to product relationship marketing so far (remember Pernod Ricard’s smart home bar that looks like a small digital library?).
However, it won’t be long till companies start bombarding us with “personalized content” through newly-developed platforms like smart saucepans and water bottles.
Why do major brands explore the Internet of Things?
Let’s face it: TV is still the most powerful advertising channel. While other media saw a considerable decrease in effectiveness (10% down over the course of 5 years), television rocks with a 1.5% decline.
Why invest millions in the Internet of Things technology when you can shoot a glamorous commercial with Natalie Imbruglia and boost your sales?
I have oily skin and eventually make up my mind to buy the L’Oreal Oi Controller Cleanser. Once I leave the shop, L’Oreal will never know what happened to the tube and whether the cleanser did its job.
Companies want to talk to customers after the purchase to make sure their product works, give advice on how to use it properly and offer related goods and services.
Neither TV nor radio is capable of doing something like that!
Feeligreen, a French technology startup, developed an IoT device which treats wrinkles, cellulite and other skin problems with LEDs and microcurrents (in combination with the right cream, of course). The gadget collects user data and – if you don’t mind – sends it back to Feeligreen. The startup then provides you with useful skin care tips and delivers your personal data to cosmetic brands. The companies, in their turn, can improve their products and revise marketing strategies.
Done and dusted! You get an effective face cream (which comes along with a free personal skin treatment plan), while brands receive high-quality user feedback for marketing and product development.
And it’s fine if user data is employed this way.
Kevin Ashton, the father of IoT, once urged brands not to misuse the technology.
We know how irritating advertising can be. If you download a freemium game, you will somehow put up with countless banners (you didn’t pay a cent for the app after all). It’s different when you buy a nice pair of sneakers and start getting promotional messages straight away.
The future of the Internet of Things advertising remains uncertain for many reasons, including app development issues and complex data management; it might take ages to solve the problems.
However, 27% of enterprises that use IoT data in digital marketing campaigns manage to reach their goals and generate quantifiable ROI.
It’s worth the effort, right?