Advertising and IoT
Created on October 5, 2015
Thought – Print Advertising vs. Digital Advertising – which one dominates? One would think that Digital advertising dominates the advertising market. Interestingly enough – not true.
The traditional advertising channels include Billboards, Radio,Print, and TV.
Digital advertising includes broad categories such as, Display advertising, Sponsored search, Social media marketing, Mobile advertising, Email advertising, Chat advertising Online classified advertising and/or Content Marketing.
A 2015 study published by Strategic Analytics indicates that the advertising spend in the US is $187 B, of which $52.8B is Digital advertising. This is $30B behind TV ad spending – another segment whose demise has been predicted prematurely. Digital advertising is growing at 13% year-over-year – the fastest among all categories in the study.
Where does IoT fit in?
Three areas that we have identified.
- Proximity Advertising (PA): Proximity advertising has been around for more than a decade. It gained traction but petered out. PA is again gaining momentum through the introduction of beacons which use Bluetooth Low Energy technology. It’s cheaper and much easier to create marketing/advertising campaigns using this technology. Proximity Advertising can be used in a mall with tailored messaging in the form of notifications, coupons or videos. It can also target consumers while they are walking through the aisles of a supermarket.
- Cross-Channel Advertising Retargeting: This is a cutting edge and nascent solution that companies like NetObjex are spearheading. Ad-retargeting is becoming increasingly effective and popular. This technology resides at the intersection of linking the physical to the virtual world. For example, a user may see a Coke billboard while waiting for a bus in the middle of Chicago. Later, on the bus that same consumer surfs some website that serves up a Coke web Advertisement. The technology tracks what the user could have seen in the real world and targets the same Advertisement in the virtual world.
- Cable Box Behavioral Targeting: Cable and Satellite boxes are no longer dumb. They are fully functional computers with advanced sensors. These sensors can detect when a person is in front of the TV or when they have left. Based on such data gathering, a cable box collects data and is able to determine how many people actually watched an Advertisement. This is critical for shows like live sports where consumers cannot use the DVR to avoid an Advertisement. They must watch it. Sports fans use this time to stretch and/or have bathroom break, thus missing the Advertisement. This data is valuable to cable companies and advertisers in order to determine pricing for Advertisements.
IoT technologies play a major role in both online and offline advertising.