Five ways to bring advertising to life in IoT
This Guardian article shows five ways that advertisers are using IoT to advertise to consumers. The five methods the article lists are: community engagement, in-car radio messages directed at drivers' mobiles, interactive billboards, smart products to track and interact with at home and Smart TVs. &nbsp;
The digital advertising industry is already undergoing something of a transformation. While facing an existential threat from the ascendant ad blocker, advertisers are leading the charge to create ever more tailored advertising experiences.

The proliferation of connected devices under the internet of things (IoT) promises to disrupt the industry further by increasing the number of opportunities for advertisers to learn about and sell to consumers.

Interactive billboards promote personalisation

This is a developing tactic that will no doubt grow in its complexity and ability to interact and harvest consumer data. British Airway’s smart billboard ad in Piccadilly Circus, London wowed passersby in 2012 as a small boy reacted to overhead planes in real time, promoting the flights and their current destinations. The billboard has been a rich source of ideas since. Jung von Matt/Limmat AG’s live billboard to capture the attention of busy Zurich commuters for Graubünden tourism is fun and clever but using interactivity and connectivity to engage consumers has to develop further, to capture data and enable advertisers to hone messages and methodologies.

For example, Lexus Australia caused a stir down under with its campaign to attract car drivers with personalised messages on an overhead billboard and US retailer Forever 21 used an ingenious thread screen to turn customer selfies into threaded pictures in store. Good examples of interaction but still lacking in connectivity.

Nike+ drives loyalty through community engagement

Perhaps one of the best examples of consumer connectivity and community creation is Nike+, a collection (or ecosystem as Nike refers to it) of fitness training and tracking devices and apps. The community now boasts over 38 million members (although it’s not certain if these are all active). The key here though is continued interaction. Consumers are happy to share huge amounts of live data because the relationship is two-way; there is a benefit for doing so. This is what drives the success of Nike+ and why marketing to the community and potential new users is easier than say advertising just a pair of running shoes through a poster ad.

In car radio messages directed at driver mobiles

Connected cars are of course developing quickly. KPMG believes it’s a huge economic opportunity for the UK but researchers put the dampers on the hype last week when they hacked a moving car, bringing it to a halt. Nevertheless the connected car, err, bandwagon continues to roll. For advertisers that makes it a legitimate target.

But it’s not always about pushing brand messages. Toyota’s radio interaction with Apple’s Siri, a campaign run in Sweden was designed to stop drivers using their phones while driving. The driver’s phone interacts with the radio to ensure it is turned to airplane mode. Not really an internet of things thing but an example of how interaction and can develop within a car and how advertisers can get messages across intelligently.

Smart products to track and interact with at home

Smart product platform firm EVRYTHNG is leading the charge in IoT-related marketing by connecting the physical world with the online world.

“You can now have printed electronics on goods with sensory capabilities,” says Andy Hobsbawm, co-founder and CMO at the company. “It adds value and provides services to people. It creates a digital relationship with the customer.”

The company has worked with Diageo on its Johnnie Walker Blue Label smart bottle, which communicates with a consumer’s NFC-enabled smartphone but also doubles up as a product tracker. The connectivity enables consumers to record personalised messages for gifts but also enables Diageo to collect data and personalise marketing.

Smart TV comes of age

While smart packaging is one way of improving interaction within the home, TV is perhaps the most obvious medium after the smartphone. The rise of smart TVs is opening new doors to advertisers. Addressable TV advertising is not new as a concept but advertisers are beginning to reach levels of engagement and data tracking on previously seen on digital platforms.

According to US advertising bible Ad Age, Kraft’s Kool-Aid brand ran an addressable campaign last year targeting households with children between 7 and 12 and an income of more than $70,000. Kraft saw a 38% lift in household penetration.

Increased connectivity and smart devices in the home will enable advertisers to develop ideas further, making ads more relevant than ever and appearing in places not previously thought possible. Hobsbawm says it should move beyond advertising.

“The aim is to use connectivity to make products through which consumers willingly enter a direct relationship with you.”

That he says is the value of the internet of things to advertisers, but we are not there yet.

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