What is Internet of Things (IoT)?
It is a conversation that 87% of people have never heard of, yet this technology trend offers the most disruption and opportunity for the tech industry over the next five years. The birth of Internet of Things technology dates back to the ATM’s creation in 1974, followed by the revolutionary debut of the World Wide Web in 1991.
The Internet of Things is defined as a hyper active network of “smart” devices that communicate to each other (and us) through wireless technology. The IoT technologies are characterized as having means of connectivity (generally an on/off switch) to devices through the Internet. This developing technology is estimated to add between $10-$15 trillion to global gross domestic product over the course of the next 20 years.
The animation of inanimate objects has already been realized by tech giants like Google and Tesla. Google has been developing a fleet of fully autonomous vehicles for years, racking nearly 1.5 million driven miles already. Meanwhile Tesla has introduced semi-autonomous driving features to their vehicles, such as the auto-park capability. Beginning in 2014, Tesla began installing always-on cellular Internet connection in their vehicles, which then pulled data from the vehicle’s sensors to gauge the driver’s road experience.
Is IoT Technology the Future of Advertising?
This IoT technology will soon be standardized at the consumer and civic level, automating the intelligence that can identify how long the milk has been out of the refrigerator, for example. Accessible IoT technologies already exist, including the ability to remotely lock your front door or energy efficient “smart” buildings that automatically adjust energy use.
Cisco predicts that the number of IoT capable objects will exceed 50 billion by 2020, equating to 6.58 connected devices per person. If and when all inanimate objects are virtually connected, the advertising space will become an even more cluttered, perverse obstacle to overcome.
Calm design is an emerging concept that has become top of mind for marketers interested in cutting through the noise. This umbrella of the Internet of Things can be expressed as a creative technology that seamlessly integrates with day to day life, mitigating the need for consumers to interact with the device while using it. This technology has finagled its way into consumer’s lives, without them even realizing it.
“Smart” products such as the Amazon Echo have initiated meaningful interactions with consumers, becoming the formidable leader of the “conversation platform” industry. The Amazon Echo utilizes a voice-enabled wireless speaker known as Alexa to communicate with users, offering immersive omni-directional audio and impeccably accurate voice-control. The Amazon Echo has forged a path for connected devices and smart bot technology, illuminating just how influential motion sensor and wireless technologies can be in the everyday lives of consumers.
The IoT technologies have been warmly received by consumers’ eager to digest meaningful content, and new innovation only fosters more opportunities to interact with consumers off-screen. The advertising industry relies on antiquated interruptive strategies to attract consumers, but the IoT technologies could change the digital advertising landscape as we know it.
As a consumer, you spend the majority of your time in your bedroom, at your office or in your kitchen. Your daily routine and happenstances are reducible to a recipe of if-then relationships. For example, IF you go to bed, THEN you close your blinds. IF you are thirsty, THEN you take a sip of water. While not all behaviors require automation, automating some technologies would be conducive for a more efficient lifestyle.
Consider the potential array of new channels advertisers can leverage by tapping into the interconnected touch-points of wearable products, cars or other smart technologies. The detailed insights gained from analyzing a consumer’s beverage consumption can provide advertisers with improved behaviors and patterns. Adverts can then reach the consumer with valuable curated content, including promotional offers or product suggestions.
Of course IoT technology, like any other tangible entity is subject to the principles of Darwinism. Only the most secure and pertinent technologies will endure this modern landscape, but if realized, the IoT intelligence can ameliorate the interaction between consumers, brands and advertisers.