The Internet of Things
A wide variety of «smart» devices for the home and outdoors have hit the market in recent months. Six experts from leading digital agencies share their own experiences with connected devices and speculate on their impact on the future of online marketing.
Peter Rehnke, Managing Director Havas Digital Switzerland:
"The Internet of Things is one of the major megatrends in 2015. It starts with very simple things like smartphone-controlled light bulbs (which I also like to use myself), smart TVs, smartwatches, smartphones and actually ends with self-driving cars or delivery drones that are controlled via the internet. Of course, there are also gadgets such as ovens and washing machines that display the cooking time and duration of the spin cycle on your smartphone - but I personally doubt that these will be used regularly by the masses. The IOT is an ideal field of activity for Internet multinationals such as Google, Apple, Microsoft and others. Why? These neat little devices such as "Nest" or Carplay reveal even more about how people behave at home and on the move. Ideal additional behavioral attributes that can be targeted by us advertisers. Data is collected, data is marketed - we simply have to come to terms with this fact. And the fact that this data is not secure. With a few open source programs such as SnoopyNG, a Rasperry Pi, a drone and the Maltego forensic software, these smart devices can be spied on and personality profiles created."
"The Internet of Things is one of the major megatrends in 2015. It starts with very simple things like smartphone-controlled light bulbs (which I also like to use myself), smart TVs, smartwatches, smartphones and actually ends with self-driving cars or delivery drones that are controlled via the internet. Of course, there are also gadgets such as ovens and washing machines that display the cooking time and duration of the spin cycle on your smartphone - but I personally doubt that these will be used regularly by the masses. The IOT is an ideal field of activity for Internet multinationals such as Google, Apple, Microsoft and others. Why? These neat little devices such as "Nest" or Carplay reveal even more about how people behave at home and on the move. Ideal additional behavioral attributes that can be targeted by us advertisers. Data is collected, data is marketed - we simply have to come to terms with this fact. And the fact that this data is not secure. With a few open source programs such as SnoopyNG, a Rasperry Pi, a drone and the Maltego forensic software, these smart devices can be spied on and personality profiles created."
Roman Hirsbrunner, CEO Jung von Matt/Limmat:
"The Internet of Things is something like the target image of digitalization: it combines the two central thrusts of the digital revolution, the identification of all objects in physical space (geolocation) and the standardization of exchange and interfaces (convergence). We are only in the first third of this development. According to an estimate by Cisco System, around 12 billion objects are currently connected to the Internet. This figure will rise to 50 billion by 2020. We control the light and temperature in our homes via an app, check the fuel level in our cars or have plants watered automatically. But At most, the individual systems themselves are really intelligent, but rarely the systems themselves. There is still a lot to be done here. From an online marketing perspective, this means that we are in for good times. There are countless new "touchpoints" where brands can engage in a beneficial dialog with consumers. New interfaces and new forms of interaction. But knowledge of consumer needs will also improve significantly thanks to more highly relevant data. The driver of development is - as always - technology. And users will decide which of the new possibilities they use. Advertising will be geared towards this."
"The Internet of Things is something like the target image of digitalization: it combines the two central thrusts of the digital revolution, the identification of all objects in physical space (geolocation) and the standardization of exchange and interfaces (convergence). We are only in the first third of this development. According to an estimate by Cisco System, around 12 billion objects are currently connected to the Internet. This figure will rise to 50 billion by 2020. We control the light and temperature in our homes via an app, check the fuel level in our cars or have plants watered automatically. But At most, the individual systems themselves are really intelligent, but rarely the systems themselves. There is still a lot to be done here. From an online marketing perspective, this means that we are in for good times. There are countless new "touchpoints" where brands can engage in a beneficial dialog with consumers. New interfaces and new forms of interaction. But knowledge of consumer needs will also improve significantly thanks to more highly relevant data. The driver of development is - as always - technology. And users will decide which of the new possibilities they use. Advertising will be geared towards this."
Alexander Horrolt, Managing Director Goldbach Audience:
"Music streaming in all rooms, individually controllable via cell phone; connected TV with content such as Netflix; snow forecasts for your favorite ski resort on your smartphone; sports watches that display not only your heart rate but also the number of meters you've skied on the slopes, altitude and ski runs - all of these have long been normal for me. We still write shopping lists and the fridge doesn't communicate with the retailer on its own. But my dentist already calls me by text message for a routine check-up. Networking is on the increase, is becoming affordable and will become completely established in everyday life over the next ten years. The path to modern and cost-effective use of resources is finally open. How online marketing will use this remains uncertain for the time being. Because Consumers' reservations about advertising messages on personal devices show that we need to be very sensitive when conquering the smartwatch, fridge or car display. In today's digital world, a lot of homework has not yet been done. At the moment, the advertising industry's main focus should be on the convergence of established media such as TV, and this is where priorities need to be set."
"Music streaming in all rooms, individually controllable via cell phone; connected TV with content such as Netflix; snow forecasts for your favorite ski resort on your smartphone; sports watches that display not only your heart rate but also the number of meters you've skied on the slopes, altitude and ski runs - all of these have long been normal for me. We still write shopping lists and the fridge doesn't communicate with the retailer on its own. But my dentist already calls me by text message for a routine check-up. Networking is on the increase, is becoming affordable and will become completely established in everyday life over the next ten years. The path to modern and cost-effective use of resources is finally open. How online marketing will use this remains uncertain for the time being. Because Consumers' reservations about advertising messages on personal devices show that we need to be very sensitive when conquering the smartwatch, fridge or car display. In today's digital world, a lot of homework has not yet been done. At the moment, the advertising industry's main focus should be on the convergence of established media such as TV, and this is where priorities need to be set."
Peter van der Touw, CEO Notch Interactive:
"The hype surrounding IoT is huge. The question of whether intelligent objects will find their way into our everyday lives has long since been decided. Just think of wearables, smart homes or the automotive industry. As marketers, we are faced with two major opportunities. Firstly, IoT allows us to seamlessly integrate advertising messages into the flow of everyday life - using objects as media platforms. Secondly, IoT can strengthen the relationship between brand and consumer by continuously connecting online interaction and real product experiences. Nevertheless: Connected does not equal intelligent. Only the leverage effect of big data analytics will bring the big bang for context-sensitive and non-invasive communication. In the near future, IoT data will be interpreted by intelligent algorithms and merged into an informed picture of the respective person. For agencies of the future, extensive analytics skills are a matter of course. Take this scenario, for example: as a hobby guitarist, I like to play certain chord progressions, need a lot of distortion and have a typical way of strumming. My Fender amplifier could send this data to many companies with my consent. Fender could then make me offers for new equipment, Amazon offers for e-books to improve my guitar playing. Kitag would recommend a documentary about the band Joy Division and Starticket the reunion tour of The Police. Whether the communication is successful in all these cases is one thing. What is certain, however, is what Eduard O. Wilson (social biologist) noted: "We have created a Star Wars civilization, with Stone Age emotions, medieval institutions, and godlike technology."
"The hype surrounding IoT is huge. The question of whether intelligent objects will find their way into our everyday lives has long since been decided. Just think of wearables, smart homes or the automotive industry. As marketers, we are faced with two major opportunities. Firstly, IoT allows us to seamlessly integrate advertising messages into the flow of everyday life - using objects as media platforms. Secondly, IoT can strengthen the relationship between brand and consumer by continuously connecting online interaction and real product experiences. Nevertheless: Connected does not equal intelligent. Only the leverage effect of big data analytics will bring the big bang for context-sensitive and non-invasive communication. In the near future, IoT data will be interpreted by intelligent algorithms and merged into an informed picture of the respective person. For agencies of the future, extensive analytics skills are a matter of course. Take this scenario, for example: as a hobby guitarist, I like to play certain chord progressions, need a lot of distortion and have a typical way of strumming. My Fender amplifier could send this data to many companies with my consent. Fender could then make me offers for new equipment, Amazon offers for e-books to improve my guitar playing. Kitag would recommend a documentary about the band Joy Division and Starticket the reunion tour of The Police. Whether the communication is successful in all these cases is one thing. What is certain, however, is what Eduard O. Wilson (social biologist) noted: "We have created a Star Wars civilization, with Stone Age emotions, medieval institutions, and godlike technology."
Maurizio Rugghia, Managing Director Serranegta:
"A lot has already happened in 2014: Bluetooth Low Energy has become very popular and many devices have arrived on the market or at least on Kickstarter. Over the next few years, solutions that simplify life and are intuitive to use will prevail. Household appliances are just as predestined for this as fitness or mobility tools. It will certainly be another five to ten years before an intelligent "Internet of Things" emerges. First, a universal standard must be established that networks all devices - regardless of provider - in one system. The additional touchpoints offered by the Internet of Things will result in even more individual usage data being collected. This opens up completely new possibilities for more targeted targeting. I'm convinced Coca-Cola would pay more money for advertising if it was shown in a Pepsi household. At Serranetga, we are already seeing a shift towards user-centered marketing communication. In future, this will be data-supported, automated and played out in real time and will no longer be purely manual. Personally, I have an on/off relationship with my Jawbone Up24. It reminds me that I should move more."
"A lot has already happened in 2014: Bluetooth Low Energy has become very popular and many devices have arrived on the market or at least on Kickstarter. Over the next few years, solutions that simplify life and are intuitive to use will prevail. Household appliances are just as predestined for this as fitness or mobility tools. It will certainly be another five to ten years before an intelligent "Internet of Things" emerges. First, a universal standard must be established that networks all devices - regardless of provider - in one system. The additional touchpoints offered by the Internet of Things will result in even more individual usage data being collected. This opens up completely new possibilities for more targeted targeting. I'm convinced Coca-Cola would pay more money for advertising if it was shown in a Pepsi household. At Serranetga, we are already seeing a shift towards user-centered marketing communication. In future, this will be data-supported, automated and played out in real time and will no longer be purely manual. Personally, I have an on/off relationship with my Jawbone Up24. It reminds me that I should move more."
Andreas Widmer, CEO Futurecom interactive:
"We use various smart devices in our home, mostly in the audiovisual area. We are very enthusiastic about using the Sonos audio system throughout the house, but the TV, telephone and surround system receiver are also connected to the internet. The entire home network accesses a media server that stores photos, videos and documents centrally. Less smart, but still very helpful, are the robot lawnmower in the garden and its colleague in the house, the robot vacuum cleaner. Strictly speaking, neither of these are yet part of the Internet of Things, but they are following the major trend of making everyday objects smarter and are doing their job perfectly. I'm also currently experimenting with smart light bulbs to use them as time-dependent alarm clocks. In general, my aim is to control as many devices that are connected to the power grid as possible via smartphone - even if it's just to make sure that they are no longer in use. The smart home trend is at least as significant as the wearables trend: according to Gartner Group estimates, there will be around 26 billion smart devices in 2020. IP-based smart home components will increasingly replace proprietary systems and make home automation, which was previously very expensive (e.g. bus systems for lighting control), much more cost-effective. In addition, objects that were previously not intelligent will become intelligent. For example, I am delighted about the toothbrushes that are now available with a smartphone connection. These motivate kids to brush their teeth and also help them to check that they are doing it properly. What will be new for us as consumers and advertisers is that objects such as coffee machines will constantly provide information about their use to the manufacturer. This means that the habits of coffee drinkers, for example, can be understood much more precisely in future. The knowledge gained in this way can and will of course be used for marketing purposes. Offers will become much more refined in terms of personalization and timing, making them more useful for the consumer and therefore more effective for the supplier. In future, for example, the coffee machine will tell you that it is time to order new capsules of your favorite variety - and if you wish, it will place the order itself. Of course, it is also conceivable that the coffee machine of tomorrow will upsell by pointing out new varieties. Such recommendations will have high success rates because they are based on big data, i.e. a great deal of data from other customers with similar consumer behavior. However, we must also be aware that manufacturers of such intelligent coffee machines will know, for example, when a single household has had visitors overnight. Google's acquisition of Nest for 3.2 billion dollars shows that the Internet of Things will be of central importance for the marketing of the future. Thanks to Nest's networked thermostats and smoke detectors, Google will be able to create even more detailed consumer behavior profiles. In a world where data is the new oil, this will help Google remain successful and relevant as the largest advertising network."
"We use various smart devices in our home, mostly in the audiovisual area. We are very enthusiastic about using the Sonos audio system throughout the house, but the TV, telephone and surround system receiver are also connected to the internet. The entire home network accesses a media server that stores photos, videos and documents centrally. Less smart, but still very helpful, are the robot lawnmower in the garden and its colleague in the house, the robot vacuum cleaner. Strictly speaking, neither of these are yet part of the Internet of Things, but they are following the major trend of making everyday objects smarter and are doing their job perfectly. I'm also currently experimenting with smart light bulbs to use them as time-dependent alarm clocks. In general, my aim is to control as many devices that are connected to the power grid as possible via smartphone - even if it's just to make sure that they are no longer in use. The smart home trend is at least as significant as the wearables trend: according to Gartner Group estimates, there will be around 26 billion smart devices in 2020. IP-based smart home components will increasingly replace proprietary systems and make home automation, which was previously very expensive (e.g. bus systems for lighting control), much more cost-effective. In addition, objects that were previously not intelligent will become intelligent. For example, I am delighted about the toothbrushes that are now available with a smartphone connection. These motivate kids to brush their teeth and also help them to check that they are doing it properly. What will be new for us as consumers and advertisers is that objects such as coffee machines will constantly provide information about their use to the manufacturer. This means that the habits of coffee drinkers, for example, can be understood much more precisely in future. The knowledge gained in this way can and will of course be used for marketing purposes. Offers will become much more refined in terms of personalization and timing, making them more useful for the consumer and therefore more effective for the supplier. In future, for example, the coffee machine will tell you that it is time to order new capsules of your favorite variety - and if you wish, it will place the order itself. Of course, it is also conceivable that the coffee machine of tomorrow will upsell by pointing out new varieties. Such recommendations will have high success rates because they are based on big data, i.e. a great deal of data from other customers with similar consumer behavior. However, we must also be aware that manufacturers of such intelligent coffee machines will know, for example, when a single household has had visitors overnight. Google's acquisition of Nest for 3.2 billion dollars shows that the Internet of Things will be of central importance for the marketing of the future. Thanks to Nest's networked thermostats and smoke detectors, Google will be able to create even more detailed consumer behavior profiles. In a world where data is the new oil, this will help Google remain successful and relevant as the largest advertising network."
Survey: Simone Isliker
