Internet of Things
The Internet of Things (IoT) has been a hot topic of conversation in the last few years, even more so in the last year as we are starting to see how this phenomenon can make a difference to our lives on a daily basis.
Essentially we are starting to create Internet connections through multiple devices. “According to Cisco, 50 billion devices will be connected by 2020” (Digital Marketing Magazine, 2015). Read more of the Cisco report here.
At first you may just think of your smartphone or tablet – the typical items that have an active Internet connection… but no. The Internet of things is so much more than that…
Source: Sriram, R.D. & Sheth, A. (2015) Internet of Things Perspectives, IT Professional, vol. 17, no. 3, pp. 60-63.
You’ve probably seen the adverts for Hive heating from British Gas. You know the ones with the catchy songs that you find get stuck in your head for a few hours after viewing. “While Hive is busy controlling your heating at home”. Yes it’s stuck in my head too now. Sorry. But it is a great example of how we are developing connections between items; other examples include Nike+ Fuel band and Google Nest.
Sources: Hive. (2016) Hive Home. [Online], <https://www.hivehome.com> [Accessed 7th May]
Nest. (2016) Meet the 3rd Gen Nest Learning Thermostat. [Online], <https://nest.com/uk/> [Accessed 8th May]
Nike. (2016) Nike+ Fuelband. [Online], <https://secure-nikeplus.nike.com/plus/products/fuelband/> [Accessed 7th May]
“IoT refers to the networked interconnection of everyday objects, which are often equipped with ubiquitous intelligence” (Xia et al, 2012). “Simply put, this is the concept of basically connecting any device with an on and off switch to the Internet (and/or to each other)” (Forbes, 2014). The Internet of Things – or IoT as it’s commonly rephrased to – can start revolutionising our lives, as consumers, but also brands and marketers can take huge advantage of this. Big data equals big knowledge, providing you can keep up and analyse it all of course.
Source: E-Consultancy. (2015) What are the opportunities for digital marketing and the Internet of Things? [Online], < https://econsultancy.com/blog/66544-what-are-the-opportunities-for-digital-marketing-and-the-internet-of-things/> [Accessed 8th May]
3 reasons why marketers should start to focus on the IoT
The Internet of Things can bring several benefits for brands as well as customers, as it “will act as a human agent, human extension, and human complement”, (Sriram & Sheth, 2015). There will be so many channels of communication that marketing can utilise to contact customers and gather data, that they will be having a field day. Business2Community (2016) highlights the three key reasons why the Internet of Things will transform marketing.
- Interactive media
Once the Internet of Things takes the world by storm, products that are available to us as consumers on the Internet will become a “platform of direct relationship/interaction with the respective customer base” (Business2Community, 2016). Essentially this means that the idea of digital marketing will be encouraged as everyone has the opportunity to interact and create connections with the products they are using. The digital presence within these everyday products can allow marketers to recognise trends and provide a 121 service with each and every customer. Soon enough we will be able to scan products and whatever else we can get our hands on to receive on the spot information. Interactivity between human and product – the stuff of futuristic sci-fi, right?
- Ecosystems
Typically, products stand in their own category with limited availability to switch ecosystems or categories. However, with the Internet of Things this can all change. Ecosystems essentially mean the number of other items something’s connected to. As E-Consultancy (2015) recognise, it could mean seamlessly linking Spotify playlists to play in your next Uber ride, or bridging the gap between fitness trackers and contactless payment. Products can start moving towards app-based services, allowing them to become more exciting, and user engaging. This means it’s more fun for us as consumers to play with, and also helps brands to build their name and recognition. However, as more and more products will be controlled by apps, and as pointed out by Want et al (2015), this increase might cause more issues than benefits. Some may get uninstalled to make room for new ones and so on. So in order to optimise your service, brands will have to ensure they have one app that can control many products should that be the case.
- Products as services
Personalisation is key in all senses of digital marketing; it’s the essence that brings everything together for one particular individual. The Internet of Things can have a role to play in this as each physical product can have an interactive element with its consumer. It allows consumers to tailor behaviour to suit them, and also gives data back to the company to make the overall service just that much better.
As with anything, it can’t all be beneficial, read on some of the drawbacks of living in a connected world.
Privacy and security issues
The main issue on everyone’s minds is that of privacy and security when it comes to personal data. IoT sounds beneficial in itself for both customers and brands, but how can we ensure that what we are transferring is kept safe?
FTC (2015) cover some issues regarding security, stating that as part of the product design, brands should consider: conducting a security assessment, minimising data collected and retained, and testing security measures before launching. “Without strong security foundations, attacks and malfunctions in the IoT will outweigh any of its benefits”, (Roman et al, 2011).
In regards to privacy, these could include sensitive personal data. If information such as finances, health, location and purchase data is being continually shared across ‘the cloud’, on such a vast scale, it runs the risk of data leaks and hacks.
As the Internet of Things is yet to take off fully, it is giving companies the chance to enhance their privacy and security, as this needs to be tight before customers will trust them.
Data issues
Aside from the obvious problems of security and privacy, there is another issue for companies to consider before launching onto such a huge journey. That being the amount of data that is going to come flooding into the business. By having so much data continually connected, it relies heavily on data analysts to convert this data into something productive. Due to the sudden influx, brands may need to invest more time and money into these departments in order to stay on top and provide beneficial services. Marketers will be thriving off this new customer information, but without the resources to understand it, it’ll become wasted and cause a potential data security risk.
Overall, we can see that the Internet of Things is starting to make an impact on our lives, but it will be a few years time before truly infiltrating our day-to-day activities. So although it might seem ultimately scary that one-day companies may take all of this information about us, just imagine the day where our alarm clock could speak to our kettle to make a cup of tea for us when we first wake up…
References
- Business2Community. (2016) How Internet of Things Will Change Digital Marketing. [Online], <http://www.business2community.com/digital-marketing/internet-things-will-change-digital-marketing-01441101#ClezFY97T0tkVY67.97> [Accessed 8th May]
- Cisco. (2011) The Internet of Things: How the Next Evolution of the Internet Is Changing Everything. [Online], < http://www.cisco.com/c/dam/en_us/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf> [Accessed 9th May]
- Digital Marketing Magazine. (2015) How the Internet of Things Will Change Marketing. [Online], <http://digitalmarketingmagazine.co.uk/articles/how-the-internet-of-things-will-change-marketing/1556> [Accessed 8th May]
- E-Consultancy. (2015) What are the opportunities for digital marketing and the Internet of Things? [Online], <https://econsultancy.com/blog/66544-what-are-the-opportunities-for-digital-marketing-and-the-internet-of-things/> [Accessed 8th May]
- Forbes. (2014) A Simple Explanation of the ‘Internet of Things’. [Online], <http://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can-understand/#714595546828> [Accessed 7th May]
- FTC. (2015) Internet of Things: Privacy and Security in a Connected World. [Online], <https://www.ftc.gov/news-events/press-releases/2015/01/ftc-report-internet-things-urges-companies-adopt-best-practices> [Accessed 7th May]
- Hive. (2016) Hive Home. [Online], <https://www.hivehome.com> [Accessed 7th May]
- Nest. (2016) Meet the 3rd Gen Nest Learning Thermostat. [Online], <https://nest.com/uk/> [Accessed 8th May]
- Nike. (2016) Nike+ Fuelband. [Online], <https://secure-nikeplus.nike.com/plus/products/fuelband/> [Accessed 7th May]
- Roman, R., Najera, P. & Lopez, J. (2011) Securing the Internet of Things, Computer, vol. 44, no. 9, pp. 51-58.
- Sriram, R.D. & Sheth, A. (2015) Internet of Things Perspectives, IT Professional, 17, no. 3, pp. 60-63.
- Want, R., Schilit, B.N. & Jenson, S. (2015) “Enabling the Internet of Things”, Computer, 48, no. 1, pp. 28-35.
- Xia, F., Yang, L.T., Wang, L. & Vinel, A. (2012) Internet of Things, International Journal of Communication Systems, 25, no. 9, pp. 1101-1102.