How the 'internet of things' will impact marketers

Whether you're already ordering 'smart products,' as fast as they are available, or are like my mother and think they are unnatural and confusing, the internet of things (IOT) movement is coming, and already here for some. Although most of the products available now are in their first generations, as the technology improves, more people will be purchasing devices capable of making life easier and more efficient. Marketo defines the IOT as:

The inter-connectivity of our digital devices that provides endless opportunities for brands to listen and respond to the needs of their customers – with the right message, at the right time, on the right device.

With devices that are connected to each other and able to seamlessly communicate with you via the internet and cloud computing, this provides holes that marketers will attempt to fill. The idea of advertising via smart devices could be enough to steer consumers away from purchasing this technology in the first place. I don't know of many people who are comfortable with their refrigerator displaying ads for Walmart's food section in the middle of trying to cook dinner. If marketers wish to effectively build relationships via the IOT, there must be mutual value created for both companies and consumers. We will get into how this will be possible but first, let's go over a few IOT basics that will help explain how the world of IOT and marketing will interact.

Cross-device targeting is the method in which marketers collect information from devices and roll out integrated campaigns that are customized for the specific device and user to optimize the customer experience. In order for data from smart devices to be utilized in a meaningful way, there are systems in place called probabilistic and deterministic data collection. Probabilistic data is used to match devices that are connected to the same user. For example, if one user named Stefan has an iPhone, Apple Watch, iPad and Amazon Echo (because I think we can all agree Siri is the worst). Probabilistic data allows a marketer to track that all of these devices belong to Stefan, and ensure that messaging across campaigns is adjusted according to which device is in use. Deterministic data is similar, but instead of tracking IP addresses, matches devices based on email or log-in information across devices. The more popular of the two options for cross-device targeting is deterministic data, because probabilistic data is often based on a number of unknown factors, and is therefore often less accurate.

But what happened to cookies? With so many mobile and less desktop devices, tracking by cookies is often less effective and with some IOT products, won't work at all. This is where the walled garden sites such as Amazon, Facebook, Twitter, Pinterest, Google, etc. come in. These highly secure sites allow for limited access of tracking via deterministic data for use on their sites. However, for companies outside of these walled garden sites, this can be troublesome if you have campaigns you want to track through a different site. These 'walled garden' sites are named as such because of their strict privacy and dedication to protecting users. Where deterministic data fails, probabilistic data can help to fill in the gaps.

Through cross-device targeting, marketers will in the future, be able to track user activity across smart products in the home. There are concerns early on about security of these devices, however, since the technology is so new. The IOT has received criticism about how 'hackable' these devices may be. Once security concerns are addressed and consumers realize the potential of these products, there will be many opportunities for marketing to address consumer needs. For example, one of the earliest and most trustworthy IOT products on the market right now provides consumers with a time-saving solution and also creates value for the company by tracking user buying habits. Amazon's Dash buttons are simple solutions to the customer problem of running out of everyday household products too often, with little time to spend going to the store.

When you're on your last roll of paper towels, have a full day of work ahead and then kids to pick up from school, what's better than having your everyday essentials delivered to your door- waiting there for when you get home? This is an excellent example of how marketing can be used in a non-intrusive, yet effective way with the IOT. By being subtle yet effective, marketers are able to use smart products to gain usable insights into buyer behavior, without shoving advertising messages down peoples' throats. Another incredible use of these Dash buttons is through cross-device targeting. Through the Dash orders, Amazon is able to track how much ordering is happening through the buttons, and send targeted product recommendations and reminders to re-order through any device connected with your Amazon prime account.

As the innovation of IOT improves with time and products such as smart thermostats and smart alarm clocks are able to integrate with one another and be controlled through mobile devices, this will allow marketers to:

• Analyze detailed customer buying behavior and habits
• Maintain real-time interactions and solutions to problems through improved customer service
• Gain previously unobtainable insights into lifestyle, hobbies and behavior
• Provide automated messaging to respond to customer needs, such as a smart refrigerator providing recipe suggestions, or lists of the best deals on ingredients

As technology improves, the possibilities are nearly endless. As long as marketers maintain non-intrusive data collection and aim to improve customer lifestyles, the IOT will be creating value on both the customer and company sides. Although there will be many challenges in how to sort almost unlimited streams of data, marketers will be able to gain insights into value creation for customers like never before.