As the Internet of Things continues to grow, its impact increases – particularly the back-end impact for advertisers and company CRM projects. The future is an exciting place for those ready to seize the data, and the possibilities are still growing.
Thus far, the Internet of Things has been used primarily for limited data communication. Sure, there has been a lot of talk about using data collected for other purposes (marketing, consumer analysis, the usual) but when it comes to products on the ground, most smart devices track one or two types of data and report them in relatively closed ecosystems – energy sensors, fitness trackers, and security systems fit inside this category. They are what consumers want, but their data is a little limited.
Expect this to change as the Internet of things continues to grow. As more devices join and apps mature, data will start to trickle and then stream back to creators in larger amounts. This data has many promising uses, but practical adaptation will remain key. Some of the key areas affected by this move toward Big Data are:
- Data Silos: Certain data silos will work with the Internet of Things more readily than others. CRM will likely reign supreme, but the Internet of Things may bring renewed interested to EMS systems as companies learn new reasons to send emails. Loyalty programs may also get a boost.
- Targeted Markets: Targeting ads is often a tricky, expensive proposition – many companies prefer a wider net. But data from the Internet of things is innately tailored to specific devices and goals, making targeted ads much more effective.
- More Mobile and Local: The Internet of Things by its nature is mobile and local. These are two words that already get thrown around a lot. Expect them to gain even more importance as time passes.
- New Metrics: How often is data gathered from a smart device? How long are interactions with the appropriate app? How often do customers adjust settings? How often does purchasing a certain smart device lead to subsequent purchases in the same ecosystem? Get ready for a slew of new metrics influencing advertising in the years to come.
Apps that Keep on Going
Smart devices and the Internet of things do suffer from a certain amount of fall-off, a decline of interest as time passes. This is a vulnerability of such direct purposes. A fitness band is fun for a week, useful for a couple months, but then consumers are more likely to reduce use or stop using it due to time constraints, lack of interest, and similar reasons.
The future of the Internet of Things will see efforts to solve this problem. App updates will add new features and attempt to keep consumers interested in using their products. We will probably see a lot more data crossover, which can help raise interest in devices through the synergy of information and big-picture reports.
Product Potential Continues to Grow
This is a minor point, but worth noting when looking forward. The whole point of the Internet of Things is to bring it to “non-tech” devices. This is also an area when advertising and customer relationship management can see real rewards. Imagine apps that can detect when filters need to be replaced, when accessories wear out, when supplies are running low – and send messages with one-click repurchasing options to consumers.