What is ‘IOT’, I hear you cry.
To put it simply, it’s the connection of physical things to the internet, to each other and their surroundings, creating hyper-connectivity. The classic example is of the fridge updating you, over the internet, to let you know that you've run out of milk. Now that’s worth mentioning. However it’s not all that simple, we know this vast subject may need clarifying in a few areas and we’re here to shed light on the dark streets of this digitally-driven era.
There’s been much hype about the Internet of Things and the potential it has to change the consumer world. The length of build up with the lack of permeation, so far, makes me wonder if the IOT is headed in the same direction as QR codes. So they walk the walk, but can they talk the talk? We haven’t seen much application going on both digitally and in marketing.
McKinsey has a very different outlook — their estimation is that the hype is in fact underestimating its worth. With a prediction like 2025 IOT could be worth anywhere between $4 trillion to $11 trillion, factories (e.g. operations management) and cities (e.g. traffic control) make the greatest commercial impact.
How has the Internet of Things impressed us so far?
• Hilton Hotels have been using IOT in front of house services, such as smartphones used for check ins and room keys. The amplification for 2016 is steering towards saving customer preferences and upselling special offers.
• Ralph Lauren Polo Shirt have released a ‘Polo Tech Shirt’. The Polo automatically streams your biometrics, heart rate and energy output straight to the cloud. Potentially erring into a marketing novelty but 2016 could see retail brands integrating with fitness wearables. Wearables technology has been a big talking and selling ($84million) point over 2015.
• Nest thermostat, probably the most well-known IOT, currently allows users to manage and optimise their homes. This kind of device has plenty of amplification for 2016 for further chore management and pure genius-ness.
According to McKinsey, there is a lot more money to be made and data to be mined. They suggest that the money to be made is in utility and not necessarily marketing. It’s still in its novelty stages and businesses and marketers are working out how to best capture the public’s imagination, but there are two ways that this will most likely win us over, come 2016:
• Personalisation of data being remembered by devices to make consumers’ lives easier
- Accuracy in the data provided — fair insurance, fair quotes, fair energy — based on how much consumers are actually using products.
Set to fully win us over come 2016, the future of IOT is looking bright and we’re pretty excited to anticipate what’s just around the corner…