How the Internet of Things will transform the future of Digital Marketing

Hiren Panchal
4 min readJun 29, 2021
How the Internet of Things will transform the future of Digital Marketing

What is IoT (Internet of Things)?

IoT is actually a collection of technologies that enable objects to receive and transmit data so that processes can be executed with little or no human intervention. Imagine a mine where earlier humans went in to dig out gold, metal, coal or stone. Bots — which are nothing but computerized objects — can now do the same thing with much more efficiency and zero risks of life. Or consider an assembly line that automatically records inventory of everything from raw material to finished goods and transmits it to the stakeholders.

Such automation is possible with IoT and obviously, it is disrupting every business from manufacturing to marketing. Talking of marketing, IoT has had a strong impact and the industry — that is still evolving — is already experiencing a radical change.

How will Marketers use IoT?

From tracking buying behaviour to instant and personalized sales pitches and offering prompt solutions to consumers’ needs, IoT makes almost everything possible. Digital marketing agencies believe that perhaps the biggest impact will be on targeting — which is likely to narrow down — making consumer experience personalized like never before. Data derived through IoT devices will shape the future of digital marketing services in India and elsewhere. How?

It makes 100% Click Through (CTR) possible

According to SmartInsights, “In Q1 2020, median CTR for ads on Google Search decreased from 2.5% to 1.55%. CTR remains lower than we observed in 2019, down 44% year over year.” Imagine the cost of placing 100 ads and you only get clicks on 1 or 2 of them with no guarantee of conversion. This happens because, despite all your efforts, your advertising is still not perfectly aligned with individual demand. Now imagine a scenario where the compressor of a smart refrigerator fails and the consumer is presented — through his smartphone — with a list of service providers to call without even realizing that he needs a replacement. IoT can not only make this possible but has the capability of computing the average time any device or appliance will function seamlessly and suggest repairs and replacements ahead of time. You can therefore channel your marketing in a way that will present your product to the consumer well in time for him to place the order — ensuring instant conversion.

Personalized SMM (Social Media Marketing)

There are no two opinions that social media has proved an effective marketing tool. The biggest challenge on this front is improving your targeted or personalized reach thus improving your CTR. This will become possible with data generated by IoT. As described above, smart devices will be capable of predicting demand and this data can be leveraged for the laser-sharp focus of your creative digital marketing efforts and driving personalized engagement and targeting through social media. This type of marketing effort can escalate your conversion rate several times. Besides, as IoT penetrates automation of SMM is likely to improve and become more cost-effective. This means lower marketing costs — ergo higher CTR and Conversions.

SEO — Search Engine Optimization

Digital marketing agencies have sung high praises of SEO for more than a decade only to have IoT along with NLP (Natural Language Processing) — which enables verbal communication with devices — disrupt their flow. These two technologies together have the potential to target content based on intent rather than SEO. Unlike the present-day keyword ranking, search engines of the future are likely to rank on intention rather than mere search terms. For instance, trapping what a homemaker says to Siri or Alexa can generate insightful data, not just about the needs but the intent of the user — the reason behind the need. Content marketing may therefore experience a shift from SEO it Intent Optimization.

Behaviour tracking to need tracking

Traditionally, consumer buying behaviour is tracked through telling machines and social media to name just 2 channels. With IoT, it will now become possible to track consumer needs rather than buying behaviour. As more and more smart devices penetrate homes, tracking and anticipating consumer needs will become possible. These insights will enable predictive marketing through apps and social media. Recognizing buying patterns through these channels will further improve the focus of targeted and personalized marketing efforts.

Need-based Production will reduce Marketing costs

With the advent of Lean Manufacturing, many businesses experience a drastic reduction in cost across the supply chain, right from procurement to sales. Still, a good part of the production and product development is based on linear feedback and the reverse flow of information. It is somewhat hard to adapt such feedback into design iterations. IoT makes this possible for the simple reason that consumer feedback can be gathered and fed to the designers in real-time. This will not only reduce iterations but also make targeted manufacturing possible. In turn, this means a reduction in marketing efforts and cost.

Personalized Advertisement

There’s nary a person who has not found advertisements irksome at some point. This would not happen if the advertisements were relevant to the consumers watching them. With IoT enabled devices it would be possible to discern the needs of the consumers and display only those ads that are relevant to the consumer. This type of advertising has the potential for a better experience, engagement, higher CTR and faster conversions — eventually driving higher sales.

IoT is poised to disrupt businesses and personal lives bringing about radical changes in both. For marketers, this means more sharply focused digital marketing on the one hand and better automation on the other. Together these can help reduce marketing costs and increase ROI. Tech-savvy businesses are already embracing IoT. What are you waiting for? Contact Litmus Branding your digital marketing company in India now to transform your digital marketing.



Hiren Panchal

Founder and Promoter of Litmus Branding. Designer at the core. 20+ years in Advertising. Branding insights on fingertips. A man with wise marketing words.