The Internet of Things
“The Internet of Things” is a buzzword that came into use in late 2012 and has surged in popularity. The term refers to the process by which everyday appliances become “smart” with the addition of computer components, sensors, and wireless modems that connect them to the Internet.
Savvy companies large and small are predicting that this internet of things change will result in a bold new age of marketing. These firms envision a world in which ads are ubiquitous and highly targeted. Some credit futurist R. Buckminster Fuller with predicting this trend, with his concept of ephemeralization.
Ephemeralization refers to the tendency of society to innovate to the point at which they’re able to achieve more than previous generations did with a fraction of the work required. The advent of wireless Internet and any number of sensors will enable engineers to create everything from smart clothes to smart toasters.
Smart Marketing is The Internet of Things
Everyone uses a refrigerator—but in the future, some of us will see ads for weight loss products when we open the refrigerator door. These individuals will have invariably opted into a list or searched for such products on one of the major search engines. While they will be the object of scorn for some, these ads will nevertheless prove highly effective.
The source of their effectiveness lies in the fact that they evoke an emotional reaction. Search engine giant Google has made it clear to the Securities and Exchange Commission that they intend to implement this type of advertising as soon as possible.
In an open letter to the organization, Google said, “We expect the definition of “mobile” to continue to evolve as more and more ‘smart’ devices gain traction in the market.” Google intends to display these ads in car dashboards, thermostats, glasses, and watches, among other devices.
The key to profiting from these ads will lie in the marketer’s ability to write copy that is appropriate for the scenario. Understanding why the ad is appearing where it is — and under what circumstances — will be crucial. As always, poorly targeted ads will aggravate consumers and will result in higher CPC rates.
Adding Value to Products with an App
Savvy marketers in the next 10 years will focus on creating apps that allow consumers to directly control their smart devices with the internet of things. These apps will expose consumers to the app creator’s brand while making the consumers’ lives easier.
This is a win-win scenario that can easily be monetized with the “freemium” model. In this model, an app is created that provides basic features for free, yet its most desirable features are hidden behind a pay gate. Freemium is a proven effective pricing model in the app space, and going forward, consumers will be willing to pay a premium if they can do more with their smart devices.
Lindsay Corporation, a major player in the agriculture industry, has a head start on their competitors. Their app, which allows users to control their sprinkler systems in real time from any smartphone, frees their users from the chore of having to adjust their systems manually from the farm itself. This translates into saved time or money, or both.
The Internet of things continues
Other potential apps that operate under the same principle include an app that monitors parking spaces in urban settings, apps that give early warning of earthquakes and building instabilities, and apps that monitor noise levels in public establishments.
With the internet of things, the opportunities however, are likely limitless. Note that all of these apps will require access to specialized sensors and that these sensors will have to be maintained. This will likely include an additional layer of cost, so it’s essential that your monetization scheme take this into account.
Keeping abreast of these internet of things innovations will prove pivotal to your success in the coming decade. If you’d like to have access to even more powerful marketing tips, as well as a means to generate conversion-ready Internet marketing prospects each month, click here to learn about our done-for-you system.
Bea & Terry Reeves