slide deck for connecting the dots - senior thesis
TRANSCRIPT
CONNECTING THE DOTS:How IoT Revolutionizes the Next Generation’s Digital Marketing Landscape
By Chloe Spilotro
If you like it, tweet it! Use #ConnectedDots
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
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
BRIEF IoT TIMELINE
1999Term “IoT” first
coined by Kevin Ashton
2016What’s Next?
2007iPhone
introduced
Apple Watch Released
2015
2009Amsterdam
launches first Smart City initiative
Smart Thermostat
Nest and IFTTT (If This, Then
That) Founded
2010
2003Camera phones
become popular
First iPod released
2001
SmartThings funded by Kickstarter
(later acquired by Samsung)
2012
Twitter launches for public use
2006
IoT Milestone
Tech Milestone
1999Term “IoT” first
coined by Kevin Ashton
2016What’s Next?
2007iPhone
introduced
Apple Watch Released
2015
2009Amsterdam
launches first Smart City initiative
Smart Thermostat
Nest and IFTTT (If This, Then
That) Founded
2010
2003Camera phones
become popular
First iPod released
2001
SmartThings funded by Kickstarter
(later acquired by Samsung)
2012
Twitter launches for public use
2006
IoT Milestone
Tech Milestone
1999Term “IoT” first
coined by Kevin Ashton
2016What’s Next?
2007iPhone
introduced
Apple Watch Released
2015
2009Amsterdam
launches first Smart City initiative
Smart Thermostat
Nest and IFTTT (If This, Then
That) Founded
2010
2003Camera phones
become popular
First iPod released
2001
SmartThings funded by Kickstarter
(later acquired by Samsung)
2012
Twitter launches for public use
2006
IoT Milestone
Tech Milestone
1999Term “IoT” first
coined by Kevin Ashton
2016What’s Next?
2007iPhone
introduced
Apple Watch Released
2015
2009Amsterdam
launches first Smart City initiative
Smart Thermostat
Nest and IFTTT (If This, Then
That) Founded
2010
2003Camera phones
become popular
First iPod released
2001
SmartThings funded by Kickstarter
(later acquired by Samsung)
2012
Twitter launches for public use
2006
IoT Milestone
Tech Milestone
IoT Milestone
Tech Milestone
IoT Milestone
Tech Milestone
1999Term “IoT” first
coined by Kevin Ashton
2016What’s next?
First iPod released
2001
2003Camera phones become popular
Twitter launches for public use
2006
2007iPhone
introduced
Amsterdam launches first
Smart City initiative
2009
2010Smart Thermostat Nest and IFTTT (If This, Then That)
Founded
Apple Watch released
2015
2014Amazon Echo
released
SmartThings funded by Kickstarter
(later acquired by Samsung)
2012
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/
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
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.”
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/
RESEARCH QUESTION:
How will an increase IoT connected devices change the marketing landscape to
target millennials?
Product PromotionPlacement PriceHighly 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
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.
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.
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.
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.
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
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/
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
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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