ClickZ: The promise beyond the technology: IoT, smart home and you

Written by Sigvart Voss Eriksen, published by ClickZ on February 28, 2020

As more and more smart devices enter consumers home, how will that impact their experience with brands and what opportunities does that bring? Tapad's CEO, Sigvart Voss Eriksen discusses...

30-second summary:

  • With the more intuitive, endless way consumers utilize devices 24/7,  the real advertiser opportunity isn’t on a smart toaster. It’s understanding the type of consumer who may be investing in those smart devices.
  • As IoT and smart home technology in the home evolves, new data sources and the insights that come with them will increase exponentially. Marketers will be eager to access this data, and activate that data on ad campaigns.
  • While there are a ton of unknowns at the moment,  two foundational challenges  will need to be assessed. First will be gaining access to IoT and smart home device data, and second, in establishing trusted and uniform privacy-safe controls across the ecosystem.
  • As the volume of devices grows to include not only cell phones, tablets, laptops, CTVs, but also digital assistants like Google Home, Amazon Echos, Apple HomePod – user experiences will be radically optimized.

 

Every year, the Internet of Things (IoT) continues to impact a variety of industries. Whether it’s healthcare, telecommunications, cars or home electronics – bottom line, it fundamentally evolves the way we manage our daily lives, how we communicate, and yes… advertise.

In fact, a continued cadence of smart(er) devices creates a longer runway of opportunities for brands, many of whom see new technology as a conduit for building more meaningful and engaging relationships with their customers.

This is no surprise, as the average number of connected devices in an American home continues to increase at a rather quick rate year over year, with 10 devices per home as the new baseline.

Not a new problem, just a bigger opportunity

If there’s anything we have learned over the last few years, and dare I say decades, is this: we are endlessly trying to solve for the same marketer challenge time and time again… connecting brands to consumers.

While it may sound like the start to another ‘back to basics’ spiel, it is not. We have evolved as an industry, it’s just that consumers have become more discerning over time as their sophistication and more importantly, expectations, have increased.

With the more intuitive, endless way consumers utilize devices 24/7,  the real advertiser opportunity isn’t on a smart toaster. It’s understanding the type of consumer who may be investing in those smart devices.

What is their propensity to spend and which devices are being utilized that enable marketers to be more efficient in reaching them.

We already know people are on board – they are integrating smart home electronics and connected TVs (CTV) into their homes at a rapid rate. By the end of 2020, a combined investment  of $3 trillion on IoT and smart home devices will be made between homes and businesses.

And, as a result, it’s no surprise that brands already see the massive potential of smart home devices. Amazon, the current IoT dominator in the market, sees smart home devices as important drivers of it’s long term growth strategy.

In 2017, Echo smart speaker owners spent $700 more per year than Amazon shoppers, and $400 more than Prime members on Amazon.com. It’s not lost on anyone that Amazon is working hard to enable a more direct path into consumer decision making mindset through a variety of services and devices.

And the good news is that as IoT and smart home technology in the home evolves, new data sources and the insights that come with them will increase exponentially.

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