In August, it was reported that 51 percent of marketing executives expect the Internet of Things (IoT) “to revolutionize marketing by 2020,” according to a study by the Economist Intelligence Unit.
The question is why?
IoT has been couched as a tool for ‘personalization,’ ‘engagement’ and new ‘customer experiences,’ but these characterizations are too vague. IoT may be worthy of all the buzzwords, but what will it actually look like in day-to-day life?
I argue that IoT will evolve through two phases. In Phase 1, marketers will seek to improve peoples’ lives by collecting data about product use and then introducing services that fulfill unmet needs. By meshing devices with services, they will make products that are more useful and therefore more marketable.
In Phase 2, marketers will attempt to open this system to advertisers. We will see the development of ad networks designed for the Internet of Things.