Internet of Things (IoT) innovation is driving business growth across all sectors of the digital economy. These tools enable data collection and application on an unprecedented scale. But what does that mean for digital marketers?

IoT is a game-changer for marketing practices. Right now, data powers personalized marketing that can boost revenues by up to 15% while cutting acquisition costs by as much as 50%. This means profit for any marketing business willing to innovate.

So how can marketers integrate IoT now to prepare for the future?

We explore what IoT offers digital marketing, trends in IoT, and more to inform your own IoT marketing approach. 

What IoT Offers Digital Marketing

IoT is a product of the big data revolution. This tech is defined by its ability to bridge your data and processes with the infrastructure of your business, making real-time insights possible. IoT is a leading digital transformation technology because it combines smart devices with business analytics to provide solutions and efficiency never before possible.

All this and more comes from the simple idea of using sensors and wearables to monitor processes. The implications for digital marketing are thorough asset maintenance and tracking atop broad customer insights. As a result, this technology is transforming business through personalized customer experiences and greater efficiency.

IoT comes in many different forms. Among the most popular uses of IoT are the smart home voice control systems like Amazon’s Alexa, but the range of these products is limitless. Put smart in front of a noun and it likely exists out there on the market.

In digital marketing, these smart devices are incredibly valuable for two reasons. One, they generate immense amounts of data that show how a product is actually used. And two, they allow for greater levels of personalization and customer outreach.

For example, a smart refrigerator can accumulate data regarding the rates at which a consumer base consumes soda. This data can then be employed by marketers in a variety of ways. They could run an ad for a specific product that is running low, making it simple for the user to order more through the touch of a button on the IoT device.

Marketers can also create a targeted ad for an alternative product based on simple data analytics. By running the numbers for soda consumed, for example, marketers could produce a cost analysis for money that might be saved by switching to a healthier option. 

The potential of such analysis and targeted advertising is limitless with IoT. This tech gives us a clear window into consumer behavior, enabling possibilities for personalized and relevant messaging around any given product and even empowering customers with shared data transparency. 

Understanding the momentum of IoT will be vital for digital marketers looking to get ahead of future competition.

Trends in IoT

IoT is constantly advancing in design and functionality. These connected devices are getting better sensors, processors, and monitors all with the power to bring invaluable insights into the marketplace.

Digital marketers need to understand these trends to stay ahead. The future of IoT is defined by its applications in business, where e-commerce is booming. The pandemic quickened the shift towards an increase in online shopping, meaning more people than ever before are shopping online and will likely continue to do so. Walmart proved this with their second-quarter report showing an e-commerce sales boost of 97%.

The right application of IoT in digital marketing can create benefits to revenues and customer experiences. These are some of the trending IoT developments powering these possibilities:

• Blockchain and cryptocurrency.

Blockchain is a technology invented for and popularized by cryptocurrencies like Bitcoin. However, its uses go much further than that. On a blockchain system, data is better protected through interlocking cryptographic hashes. Companies are already using this system to create internet browsers that store and manage consumer data to greater effect.

For example, the Brave browser uses basic attention tokens (BAT) on a blockchain as a currency for both ad purchasing and viewing. This is solving the issues caused by ad blockers and poorly directed advertisements. Additionally, blockchain can make it easy to verify digital signatures through cryptocurrency tokens to help secure e-commerce privacy. 

In the future, all kinds of IoT devices capable of interacting with digital content could make use of such a system.

• Cloud commerce platforms.

Cloud commerce is the trend for many products. Developing commerce platforms that can seamlessly handle all kinds of devices and respond to new ways of searching is a resulting priority for e-commerce businesses. 

With smart IoT devices operating with new and improved natural language processing (NLP), users are searching and shopping more with their voices. Your cloud commerce data should be able to cope with these devices and shopping methods, making the customer experience seamless on any platform.

The remote safety provided by many cloud platforms will create a flexible workplace for the work-from-home economy.

• Wearable devices.

IoT has had its heyday in wearable tech. These tools are empowering consumers with health and fitness data, and this has broad implications for digital markets, especially in healthcare. 

Wearable devices draw data in massive amounts. This data represents consumer behavior that can be analyzed and assessed to produce better product offerings. This could even have life-saving potential in terms of measuring vital signs and risk factors for preventable diseases. 

Digital marketers can make use of the data pool assembled through wearable tech on the IoT to better examine customer needs and create targeted ads. This awareness enables the revenue-boosting personalization that consumers have come to expect.

The application of IoT in digital marketing can be enhanced through these technologies and so much more. Wherever customer data abounds, digital marketers can find new ways to innovate and draw connections, thereby creating more effective campaigns.

Developments like blockchain data systems and wearable technology for better healthcare will determine the future of marketable products and platforms. Digital marketing professionals should explore now how to make the most of these technologies, with a focus on customer personalization. 

Conclusion

The future of IoT has unlimited potential. These connected devices are accumulating vast stores of data every day—data that digital marketers can employ to create more relevant ads and experiences.

By understanding consumers, businesses make better decisions across the board. This is what IoT is all about. IoT devices will not be going away anytime soon. Savvy marketers will examine the trends in this technology and learn to make the most of the insights they provide.