Harnessing the Power of IoT for Marketing

Within a digital landscape of interconnected devices and ongoing data flows, the Internet of Things (IoT) has radically reshaped how we engage with the world. To date, the global IoT market has grown to USD 761 billion in 2020 and is expected to reach USD 1.4 trillion by 2026, according to market research firm Modor Intelligence. From smartphones, home appliances, cars, to even product labels, the range of connected devices and items has grown exponentially over time. As the appeal of IoT continues to grow, what will this mean for the future of brand-consumer interactions?

Supercharging Digital Marketing 

With an estimated five quintillion bytes of data produced by connected smart devices, IoT is a goldmine for marketers.

Why? Successful marketing campaigns depend on consumer data. Marketers need to have a holistic view of every customer to understand their needs and preferences, as well as the context in which they might engage with brands. Therefore, access to continuous data collection capabilities is a gamechanger in the quest for personalisation, providing marketers with valuable insights on how to best engage with consumers. For example, think of your trusty fridge. Beyond allowing users to adjust temperatures remotely or alerting when the door is not closed, smart fridges are able to detect food items that are running low and automatically create grocery lists for users. These can then be linked to their online shopping application of choice, giving brands an entry point for interactions. If consent is given, users can also be served with advertisements specifically about the products that need to be purchased for that week, making marketing extremely relevant, timely, and useful.

Sounds very convenient, doesn’t it? In this scenario, the end result is a seamless consumer journey — where brands are able to interact with consumers in meaningful ways and advertisements are actually helpful rather than bothersome. 

Making the Most out of IoT

So how can marketers fully harness the potential of IoT? They need the right skills and infrastructures.

One core capability is data analytics — after all, what’s the use of data if you can’t analyse it and apply it properly? Beyond tools and software, investing in the right talent is key to ensure that data points can fully shape the customer experience. According to a report by Accenture, many companies often deploy data analytics initiatives to generate hindsight, rather than forward-looking insights that can be used to make strategic decisions. Therefore, building up your team of data talent that can generate predictive insights can make all the difference for far more effective marketing campaigns. 

Another important requirement is the data management infrastructure. Acquiring and storing burgeoning quantities of data comes with considerable risks if your tech stack isn’t up to par. From cybersecurity risks to the threats of repositories quickly becoming data swamps, investing in the right infrastructures that are agile, compliant, and organised will be essential. Take traditional centralised systems, for example — these store and process all data in one single place, making organisations susceptible to hacks and breaches. A centralised system also requires exponential growth in storage capacity which ultimately isn’t sustainable in the long-term. 

To avoid putting all their eggs in one basket, brands and publishers can consider a decentralised approach to data management practices. By not relying on a central administrator, companies can minimise the risk of exposing all consumer information in the event of an attack. 

Preparing for Legal Impacts

The interconnectedness of smart devices and appliances has also prompted many questions on data privacy and unintentional surveillance among consumers and lawmakers alike.

Currently, not all jurisdictions have implemented specific regulatory frameworks that address privacy concerns specific to IoT devices. However, the US Federal Trade Commission has already voiced concerns on the lack of privacy standards for IoT, while the UK government launched a consultation in May 2019 to explore ways to further refine privacy frameworks around consumer IoT devices. This consultation served to prepare policymakers in shaping a more dedicated framework to preserve consumer privacy as even more tech innovations emerge in the near future.

In anticipation of these regulatory headwinds, we need to re-evaluate current infrastructures to ensure our data management practices are both privacy-centric and comply with potential auditing requirements. As we wait for new and updated legal frameworks to take place, it’s ultimately up to us to adopt a proactive mindset and the right technologies to safely maximise the potential of IoT.

What are other interesting applications of IoT that you’ve seen and what do you think lies in store for regulations that can shape the future of tech innovation? Let me know in the comments!