5 Ways IoT is Revolutionizing Advertising
- Adwords PPC, Privacy

5 Ways IoT is Revolutionizing Advertising

Thanks to the advent of the Internet of Things (IoT), businesses have never been better positioned to deliver customized ad content to consumers. In the past, companies had to rely on general advertising messages with broad reach. However, IoT innovations have made it possible to utilize extensive data sets and personal insights to deliver tailored advertising messages to specific demographics with relative ease.

1. The Impact on Location-Based Marketing

The Internet of Things makes it possible for devices to pinpoint the exact location of an individual. Marketers and advertisers can use this data to deliver ad content tailored to this location. For example, businesses can utilize this functionality to display location-specific ads to individuals within the vicinity of bricks-and-mortar stores in the retail sector.

Many retailers currently deploy this technology. For example, provided individuals carry a Bluetooth-enabled device, the retailer can connect to these devices and target would-be customers with personalized advertisements. In some cases, retailers go even further by incorporating cameras and captured visuals to inform location-specific advertisements. For example, cameras can identify products an individual may be wearing, with ads tailored to correspond with the trends and fashion choices of the targeted individual.

2. How Retailers Use the IoT for in-Store Advertising

Retailers also use beacon transmitters for in-store advertising purposes. These IoT devices can connect with any nearby Bluetooth-enabled smartphone. As a result, retailers can leverage IoT technology to promote more items and generate larger revenues.

A good example is to imagine a customer walking into a store. They pick up an item and begin heading to the counter to pay. However, before they hand their purchase over to be scanned, a nearby screen advertises a complimentary purchase that a customer will likely add to their basket.

In the context of a grocery store visit, these may be additional ingredients to complete a recipe. In the case of a fashion retailer, it may be an accessory to go along with big-ticket garment purchases. IoT-enabled beacons can be installed in just about any retail premises. Furthermore, they’re low profile and are likely to go unnoticed by customers.

3. Contextual Targeting

More brands are turning to contextual advertising to connect with customers and drive conversions. With a significant proportion of the population owning an IoT-enabled smartphone, it’s never been easier to gather customer data and glean detailed insights. Once this data has been obtained, businesses can use the information to produce context-based advertisements that are incredibly personalized to the individual.

Many advertising agencies are already using IoT technology for contextual targeting purposes. Context-based advertising has been around in some form for many years now, and there’s a considerable crossover with other innovations in IoT-enabled marketing. It’s commonly used to facilitate local search ads, for example.

However, in recent years, context-based advertising has penetrated domestic settings. Many organizations utilize smart devices in the home to deliver product recommendations to their customers, with companies like Amazon being one of the earliest adopters of such technology.

4. Interactive Advertising Innovations

More companies are waking up to realize that the best advertising isn’t one-sided. As a result, interactive advertising is quickly becoming the norm and an effective way for companies to promote their products to customers.

This interactive approach to advertising allows potential customers to seek out in-depth information about new products. Many brands are actively using IoT to provide interactive advertising experiences. Should a customer encounter a product with an RFID tag, they can scan these tags to access additional product and brand details.

In the case of food products, many brands are using RFID tags to provide customers with detailed insights into ingredient lists and nutritional information. In addition to providing the requested information, brands often use this engagement to promote additional products or alternative options.

5. How the IoT Impacts Intent Marketing

Intent marketing essentially refers to advertising based on the consumer’s intentions rather than those of the brand behind a product. Used effectively, intent marketing can yield significant results for a business.

Intent marketing makes it easier for brands to define a clearer picture of the ideal customer. It can also be used to refine content marketing efforts, strengthen engagement, and boost conversions. However, for all of this to be possible, companies need to build a clear snapshot of customer intent. Thankfully, the Internet of Things makes defining customer intent relatively straightforward.

IoT–enabled devices allow companies to access the data they need to determine intent. Rather than waste time promoting product lines that a customer isn’t interested in, intent advertising ensures businesses only promote the ranges a customer is likely to buy. Once intent has been established, companies can focus on delivering relevant ads that are more certain to result in a sale. Once trust has been established, more diverse ads can be delivered to customers over time.

The Future of IoT in Advertising

IoT innovations have already transformed advertising in a major way. However, these innovations only scratch the surface of what’s possible. Personalized ads are here to stay, but companies face significant hurdles regarding privacy and data security. Any business looking to leverage IoT in their advertising efforts will need to implement artificial intelligence to ensure they’re keeping in check with regulatory compliance.

Author Bio:

Ian Carroll is the owner of Digital Funnel, a Digital Marketing agency that specializes in SEO in Dublin alongside Web Design. Ian and his team have helped numerous local businesses increase their online presence.

5 Ways IoT is Revolutionizing Advertising

Digital Marketing Strategies by Understanding eCommerce

Join the Club!

Every week, we'll be sending you curated materials handpicked to help you with Digital Marketing. 

Plus, you'll be the first to know about our discounts!

We don’t spam! Read our privacy policy for more info.