the age of the omni-channel shopper

The Age of the Omni-channel

Shopper: The Internet of Things &

the Future of Advertising

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“The Internet of Things (IOT), [is] a network of physical objects that are embedded with electronics, software, sensors and connectivity that enable objects to “talk” to each other, [it] is closer than most people think.” -Joseph Coughlin [1]

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BIGDATA’sVolumeVelocityVariety

advantages over analytics:

[2] Photo designed by Freepik

$187 billion was spent on advertising in the U.S in 2015Digital advertising accounts for 28%, or $52.8 billion and remains the fastest-growing of

any category [3]

TV42%

PRINT15%

DIGITAL28%

% of money spent in

different advertising sectors 2015 [3]

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“Digital interactions influenced 36¢ of every U.S. dollar spent in a retail store—or approximately $1.1

trillion in 2013,”- Deloitte 2014 [4]

How important is digital’s impact on buying?


What does this mean for the

future of advertising?

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No longer is advertising as a one-way, interruptive, broadcast-style form of messaging and delivery[6]

● Integrated marketing

● Targeted content

● Audience-based marketing[5]

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Wearables & the Internet of Things

Create opportunities to aggregate and determine

real-time, brand, product, or content engagement.[7]


IOT encourages Implicit inviting:and has been found to be more

effective than paid advertisements-Ki Khang[8]


Loyalty through community engagement [9]

+Ubiquitous Ad-experiences[10]

Nike+,

ecosystem of

fitness training

and tracking

devices and

apps.


A wearable device senses when you wake up.

Internet of Things connected devices are connecting themselves to other devices and exchanging data[11]

Diagram featured by http://slidemodel.com

It communicates with your coffee machine to turn on.

A message from the coffee maker arrives with an ad that says “buy more coffee.”

Notifies other communication channels,

such as tablets, phones etc..

One coffee unit can be subtracted from the personal

coffee inventory...

[5]

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http://slidemodel.com

Making advertising more "emotional" and "immersive,”-

a personalized experience.[12]

“Media on Demand”[10]


Owned Media

Create value for people beyond the products being sold.

Use data not just as a way to target a message, but as a way to create a useful service.

Treat people not as a passive consumers but active co-creators. [13]

SO, what about the future?


Living in an “Omni-channel world.”

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“What is still needed is the ability to link online and offline exposure across all platforms to in-store and ecommerce buying.” -Gian M. Fulgoni

PrivacyThere are 3 main area of concerns. . .

AdoptabilitySecurity

we may forget about privacy...

“Our surveillance society feels oppressive, not liberating” -

Jerry Michalski, founder of REX, the Relationship Economy eXpedition.


“The lack of security standards for some parts of IoT landscape”. -Andrei Klubnikin

In lieu of recent news events Hackers used 'internet of things' devices to cause Friday October 21st’s massive DDoS cyberattack [15]

However, 27% of enterprises that use IoT data in digital marketing campaigns manage to reach their

goals and generate quantifiable ROI.[14]


“[IOT] blends sales, marketing and advertising into an omnichannel,

platform,”-Ryan Begley[5]

The Causality Determination


“The huge advance that isn’t discussed is what the Internet of Things enables, which is the data-driven identification of marketing-to-sales causality, or figuring

out true cost of revenue—which is the true Holy Grail of marketing.”[5]


“Most of our devices will be communicating on our behalf—

they will be interacting with the physical and virtual worlds more than interacting with us”-Paul Saffo


Works Cited

Class Sources:

Bonchek, Mark. "Making Sense Of Owned Media". Harvard Business Review October 2014 (2014): n. pag. Web. 16 Oct. 2016. [13]

Campbell, Colin and Lawrence J. Marks. "Good Native Advertising Isn’T A Secret". Business Horizons 58.6 (2015): 599-606. Web. [8]

Fulgoni, Gian M. "“Omni-Channel” Retail Insights And The Consumer’S Path-To-Purchase How Digital Has Transformed The Way People Make Purchasing Decisions". Journal of Advertising Research December 2014 (2014): 1-4. Web. 15 Oct. 2016. [4]

Gustke, Constance. "Technology, While Not A Fountain Of Youth, Can Make Aging Safer".Nytimes.com. N.p., 2015. Web. 16 Oct. 2016. [1]

Matrix, Sidneyeve. “Media Convergence”. 2016. Presentation [10]

Vranica, Suzanne and Jack Marshall. "Business News: In Cannes, Advertisers Try On Digital". Wall Street Journal 27 June (2015): n. pag. Web. 15 Oct. 2016. [12]

External Sources:

Ambasna-Jones, Marc. "Five Ways To Bring Advertising To Life In The Internet Of Things". the Guardian. N.p., 2015. Web. 22 Oct. 2016. [9]

Amyx, Scott. "Amyx+ Publishes Internet Of Things Case Studies". Amyx + Internet of Things. N.p., 2016. Web. 22 Oct. 2016.[7]

"Attacks That Disrupted Twitter, Paypal, Spotify Were Just A Dry Run, Hackers Say". CBC News. N.p., 2016. Web. 22 Oct. 2016.[15]

Begley, Ryan. "How The Internet Of Things Is Transforming Digital Marketing". IBM: Big Data & Analytics Hub. N.p., 2016. Web. 22 Oct. 2016.[5]

Klubnikin, Andrei. "The Internet Of Things: Security Challenges, Solutions And Trends". http://r-stylelab.com/. N.p., 2016. Web. 22 Oct. 2016.[14]

Lunden, Ingrid. "2015 Ad Spend Rises To $187B, Digital Inches Closer To One Third Of It".TechCrunch. N.p., 2015. Web. 23 Oct. 2016. [3]

McAfee, Andrew and Erik Brynjolfsson. "Big Data: The Management Revolution". Harvard Business Review October 2012 (2012): n. pag. Web. 16 Oct. 2016. [2]

Plus, Andrei. "The Internet Of Things Is The Future Of Advertising". Business 2 Community. N.p., 2016. Web. 16 Oct. 2016. [11]

Rayport, Jeffrey F. "Advertising And The Internet Of Things". Harvard Business Review March 2013 (2013): n. pag. Web. 22 Oct. 2016. [6]Photo designed by Freepik