How IoT Revolutionizes Digital Marketing for Millennials
1. CONNECTING THE DOTS:
How IoT Revolutionizes the Next Generation’s Digital Marketing Landscape
By Chloe Spilotro
If you like it, tweet it! Use #ConnectedDots
2. OVERVIEW
•What is IoT?
•The Millennial Generation
•Research Question: How does this apply to marketing?
•Current Examples of IoT Marketing
•Emerging Applications
•Challenges of IoT
•Final Implications
3. THE INTERNET OF THINGS
•“the concept of everyday objects – from industrial machines
to wearable devices – using built-in sensors to gather data
and take action on that data across a network.”1
•Started as machine to machine communication (M2M)
• Caller ID - first consumer application in 1968
•Term “IoT” first coined by Kevin Ashton in 1999
http://www.sas.com/en_za/insights/big-data/internet-of-things.html
4. BRIEF IoT TIMELINE
IoT Milestone
Tech Milestone
1999
Term “IoT” first
coined by
Kevin Ashton
2016
What’s next?
First iPod
released
2001
2003
Camera phones
become popular
Twitter
launches for
public use
2006
2007
iPhone
introduced
Amsterdam
launches first
Smart City
initiative
2009
2010
Smart Thermostat
Nest and IFTTT (If
This, Then That)
Founded
Apple Watch
released
2015
2014
Amazon Echo
released
SmartThings funded
by Kickstarter
(later acquired by
Samsung)
2012
6. THE MILLENNIAL GENERATION
•Born between 1982 and 1996
Older: Currently 28-34 Younger: Currently 20-27
•Divide due to the economic collapse in 2008
• Older millennials directly affected by Great Recession
• Younger millennials simply observed
•Common traits:
• Achievement-oriented
• “Generation Me”
• Sheltered
http://academic.mintel.com/display/730147/
7. MILLENNIALS LOVE TECHNOLOGY
”The future is not about three screens or four screens or fourteen
screens. It’s about one screen: whichever screen is in front of
[consumers].”
87%
use 2-3
connected
devices at least
once daily
30%
plan to
purchase
wearable tech in
the next 5
years
80%
use 2+ internet
devices while
watching
television
1, 2. http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/2/#db9444142b82
3. http://adage.com/article/digitalnext/millennials-party-brand-terms/236444/ 4. Mitch Joel, Ctrl + Alt + Delete
8. MILLENNIALS’ GROWING PURCHASING POWER
“I’ll have more purchasing power
than anyone else by 2025.”
“I like to be one of the first people
to buy new/trendy products.”
9. MARKETING TO MILLENNIALS
“Don’t advertise to me!”
•Marketing should be engaging, meaningful, and targeted
•Aware of marketing efforts… and how to dodge them
•Transparency is key
•Content Marketing: “creating and distributing relevant and
valuable content to attract, acquire, and engage a target
audience with the objective of driving profitable customer
action.”
1. http://academic.mintel.com/display/730154/ 2. http://contentmarketinginstitute.com/2012/06/content-marketing-definition/
10. RESEARCH QUESTION:
How will an increase IoT
connected devices change
the marketing landscape to
target millennials?
12. HOW FIRMS COLLECT DATA
Tracking
Behavior
Sensor
Driven
Analytics
Enhanced
Situational
Awareness
13. Product PromotionPlacement Price
Highly customized
products that
provide truly
unique
experiences
Constantly
connected and
interconnected
Pricing based on
actual behavior, not
arbitrary
demographics
Better targeted
content, better
delivery, better yield
on promotional
efforts
MARKETING APPLICATIONS
14. LUXURY HOTELS
High end hotels who offer guests unparalleled comfort as their service could replicate a guests’
home settings to provide that customized experience. Theoretically, hotels could pull data from a
customer’s phone to examine what the settings for temperature, lighting, alarms are in their own
home to actually duplicate that comfort in a hotel room and provide a unique customer
experience. Millennials are notorious for loving experiences rather than products, so providing an
experience as unique as each client would be an exciting proposition.
15. EVERYDAY COOKING
Health conscious consumers could purchase an IoT connected pan that analyzes the nutritional
value of what they’re cooking. It could be programmed to them and automatically send that data to
a food log app on their smartphone such as MyFitnessPal (powered by Under Armour). This
provides Under Armour much more specific demographic information and insight into key
behaviors of their consumers. Grocers could also use this information to see what customers are
actually cooking with their products. For a health-oriented generation, this too would be an
application we might see sooner rather than later.
16. REAL ESTATE
Real estate agents could use IoT devices to quickly collect information of those attending an open
house so they can follow up with similar listings. Additionally, they could target those consumers for
other homes by coupling previously collected data with geolocation services to send push
notifications to their phone when they are in an area with similar listings that are listed by that agent.
Young millennials are sooner apt to purchase a home in their lifetime than older millennials, so this
would also be a practical application.
17. RETAIL AND BOUTIQUES
An IoT enabled mirror could be in a fitting room at a retail boutique so a consumer doesn’t have to
try on clothes directly- rather, it can scan a consumer’s body and outfit it with clothes based on the
consumer’s taste, determined by previously collected data. It could also suggest different outfits
based on this data, and continue to market to the customer after he/she has left the store.
18. BIGGER THAN BIG DATA
Storage Analyzing Data Actionable vs. Big Data Relevance
19. PRIVACY ISSUES
•Minimal privacy unless data is being collected anonymously...
•...still, there is almost always a way to collect logs to map
anonymized data to participants.
“Perceived risks to privacy and security, even if not realized,
could undermine the consumer confidence necessary for the
technologies to meet their full potential, and may result in less
widespread adoption.”
https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-staff-report-november-2013-workshop-entitled-internet-things-privacy/150127iotrpt.pdf
20. SECURITY RISKS
•Up to 70% of the best selling IoT consumer products
lack adequate security measures
•Security breaches lead to huge issues
• Hackers can use one device as a pivot point to get into
higher value devices with more sensitive information
• Compromising consumers’ privacy and information could
lead to legal repercussions, distrust in brands, and the end
of a company
1. http://go.saas.hpe.com/fod/internet-of-things 2. http://treelineinteractive.com/blog/expert-advice-for-securing-the-internet-of-things/
21. ETHICS FOR MARKETERS
•Data minimization: the concept that companies should limit
the data they collect and retain, and dispose of it once they
no longer need it
•The Backwards Research Method
• Research Question > Data Collection > Analysis
• Data Collection > Analysis > Research Question
•Example: Verizon Wireless
• Use of hidden tracking technology, supercookies, for targeted
advertising without customers’ permission
FTC, http://www.nytimes.com/2016/03/08/technology/verizon-settles-with-fcc-over-hidden-tracking.html?smid=tw-nytimesbusiness&smtyp=cur&_r=0
22. CONCLUSION
• More ways to collect better data
• More creative campaigns
• More ROI
•“With great power comes great responsibility”
•Need to have open communication between marketers and
consumers about data collection
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