The Internet of Things (IoT) is here! From wearable technology to Smart TVs, the IoT market is expected to grow rapidly in 2016. Last year, we saw wearables like Fitbit and the Apple Watch gain a lot of market share and this year we will see a lot more household devices become smart.
Smart connected devices make our lives much easier and it is this convenience that is essentially driving the growth of this market segment. It's a very serious business as, according to McKinsey Global Institute, the economic impact of IoT will be approximately $11 trillion in a decade.
CISCO also predicts that IoT will generate $4.6 trillion (public sector) and $14.4 trillion (private sector) by 2025. In North America alone, eMarketer estimates that there are approximately 36 million households with a Smart TV. As a result, Samsung aims to make 2016 the year of SUHD TVs that have their own built-in IoT hub that uses a SmartThings open platform. The SmartThings platform will eliminate the need to use several separate apps as the SUHD TVs and smartphones can be used to connect with various devices.
This is a marketer’s hi-tech dream come true as all this interconnectivity will take advertising to the next level (or maybe even over 2 or 3 levels). This is because IoT enables marketers to have unmatched access to consumers and their activities and interests. Starting this year, expect adverts to start becoming more and more relevant to the each individual member of the target market.
So How Do You Capitalize On Smart TV?
With the birth of IoT, we are now seeing the emergence of Big Data Analytics. This information gives unprecedented insight into spending patterns, influential touch-points, and consumer behavior. Equipped with this information, marketers can target receptive consumers at the right time and influence conversions.
The possibilities are endless, as when a product is purchased, the Smart TV can provide access to videos about using the product, supply relevant content on a smartphone, and possibly offer discounts to related products when the time is just right. In other words, advertising is going to start becoming very specific and relevant to each consumer significantly increasing the probability of conversions.
The Way Advertisers Conduct Business Will Change Dramatically
When the internet became popular in the 90s, marketers had to regroup and figure out the best way forward. In a sense, it’s kind of the same thing that is happening right now with IoT. To remain successful, businesses need to change the way they operate.
To stay relevant, from brands to manufacturers to agencies, everyone engaged in business will have to develop concrete partnerships to make the best use of the tech ad space. By sharing information with partners, advertisers will be able to ascertain the best time of day to serve an ad, identify vital touch-points, and have the best chance of conversion.
However, with technology you will always have some hacker trying to take advantage of any loophole in the system. As a result, it is imperative to stay one step ahead and build a strict controlled environment where marketers and consumers can connect. So always pick IoT app development providers that have the best security records (to avoid fraudulent traffic).
The Smart Revolution Will Be Televised (on a Smart TV)
I am just going ahead and say it, this stuff is revolutionary! The evolution of IoT and all the smart devices connected to the Cloud will open up new opportunities no matter what industry you’re in. However, it’s marketing that’s going to have the highest impact with precise targeting and instant sales, within the next few years.
The way advertisers strategize will rapidly change as businesses will be more informed than ever about their target audience. Further, with access to Big Data, ROI will be significantly improved as what works and what doesn’t can be identified quickly and modified to encourage conversion.
Further, Customer Relationship Management (CRM) tools will also be enhanced as gathering and organization of consumer data can take place in real-time. This in turn will enable marketers to make intelligent decisions quickly. You could say that the future of CRM will be current system on steroids performing actions that you always wanted, at high speed.
This is just the beginning of the smart revolution in advertising. All the possibilities that were identified above are just the tip of the iceberg. With kitchens, cars, and even clothing becoming smart, expect massive changes in the industry in the near future.
And how has IoT impacted your marketing strategies?