The Internet of Things is a term used to describe digitally connected objects such as cars, lights, thermostats, watches, phones, etc. that communicate with each other and that track and transmit their owner’s lifestyle patterns. Currently, there are approximately 3 billion digitally connected devices. Marketers estimate that number to grow to over 13 billion by 2020 and that the worldwide market for Internet of Things solutions will grow from $1.9 trillion currently to $7.1 trillion in the same time frame. What does this phenomenon mean for marketers?
The marketing landscape as we know it is about to change, again.
In the world of the Internet of Things:
1. Marketers will become data scientists: The Internet of Things will go beyond big data. It will provide real-time insights into customer lifestyle patterns, 24 hours a day, 365 days a year. Marketers need to be prepared to interpret this data and create relevant campaigns that reach consumers when and where they are and at the ideal time in their purchase cycle.
2. Everything will be marketable: The growth of the digital landscape means new, targeted portals for marketers to reach consumers at lower costs. Marketers will be able to reach customers at the exact time they need products on the device(s) where they are actively engaged.
3. Brand trust will be paramount: Experts estimate that by 2020, 15 percent of consumer purchases will occur passively. Amazon has already forged the path of interconnected consumerism with its Dash Buttons. Amazon Prime members simply place interconnected Dash Buttons around their home to quickly reorder commonly used products such as laundry detergent, toilet paper, and paper towels. When they notice that supplies are running low, customers simply press the button to reorder their previously specified brand(s), and a replenishment shipment conveniently arrives at their doorstep. With passive purchases where replenishment products and brands are pre-specified, brand trust is paramount.