Much as been said about the Internet of Things and what it will do to change our lives. The idea of connected devices appliances and the move to 'online' from the traditional offline is very promising. Items such as the refrigerator, washing machine, coffee maker, scale, your car - you name it, will be connected, for a truly tech-integrated life. This will enable efficiency and a connected lifestyle that delivers on the futuristic promises for home automation that we've long hoped for. But the real impact will not be in the direct value of interconnected devices and appliances. It will be in the byproducts of their use - the data and machine learning generated by IoT, that change the game.
Traditional marketing tries to capture demand for products and services by segmentation or behavior. So in essence, you either buy a product because of who you are or what you are doing. The internet really enabled marketers to leverage behavior for marketing through the use of AdWords and other direct response vehicles wherein buyers are asking for help. This built behemoths such as Google.
Connected marketing is going to bring a third dimension to marketing, which is a world where machines communicate and predict their own needs for replacement - for example communicating directly with the manufacture that a part is about to break. This can create an opt-in marketing relationship between the vendor, the appliance and the owner, enabling seamless communication based on true demand. By existing in a market of truly perfect information, marketing content in this setting would be at it's best - informative and much needed. A simple example/workaround of this was when Amazon marketed a 'Tide Dash Button' that would connect to the internet allowing consumers to automatically purchase more detergent when needed. In the future, it will be much like this, but the machine will order it without the human.
As machines generate their own data to define their needs, we will enter new period of growth in the digital marketing industry. There will be an increased demand for Data Management Platforms that can aggregate and standardize the data output by these machines. Initial challenges will indeed be the standardization of the platforms and data, but we will see the same commoditization of the platforms in IoT that we saw with mobile OS with Android for example. In fact Google is already launching 'Brillo' which will standardize the operating of devices and lead to compatibility. This will ultimately create an efficient market for the data these devices output.
Marketers should seek to be first movers in leveraging IoT data. Talk to your DMP about their Internet of Things data roadmap. And it isn't simply the connected home. Every machine and vehicle in every factory and on every road in the world will ultimately connect and generate data. In fact B2B could very well have the most relevance with Internet of Things marketing data.
Data-driven marketing has changed the game, and at it's best it allows marketers to deliver more creative, more informed and more timely content. It has achieved that in 2D with behavioral and segment data. Look forward to 3D marketing, as the Machine's dimension is added in the coming years resulting in a paradigm shift for digital marketing.