Article

Mike Owen
Mike Owen 31 August 2015
Categories Data & Analytics

The Connected Home: The New Black?

Making the most of the IoT opportunity isn't just about gathering data, it's about connecting and contextualising disparate data to build a useful picture of your audience.

British Gas owners Centrica have announced that they will invest £500m in the brand’s connected home division.

This comes after the UK government promised to invest £40m in the internet of things (IoT). But just how much of an impact will the connected home really have on marketing?

Growing Market

Business Insider estimates that the IoT will become the largest device market in the world by 2019. It seems like a bold prediction, but British Gas have already sold more than 200,000 smart thermostats through its subsidiary, Hive, since its foundation in 2012, and active heating represents just a small part of the IoT.

51% of senior marketers surveyed by the Economist Intelligence Unit said that the IoT will have the biggest technology impact on marketing, trumping even real-time mobile transactions. Why? Because of the quality and availability of the data it will produce.

Data Dream

Let’s start with quality. On a micro level, the IoT presents the opportunity to receive feedback on products near-instantaneously. If, for example, a customer switches a device on and off several times, it could mean they’re having problems: opening a window of opportunity for customer service teams to engage.

On a macro level, even basic products like Gooee’s LED light ‘engines’ can provide useful customer data. They incorporate motion and CO2 detectors, which can harvest valuable information for energy or security businesses, for example. Connected fridges on the other hand, can capture reams of information about shopping habits.

The most significant development in the IoT, however, is that it relies on communication between devices. This requires an open data ecosystem, a stark contrast to the strict protection and containment usually associated with online service providers. Such openness presents marketers with the opportunity to creatively exploit the collected data.

Delivering

Making the most of the IoT opportunity isn’t just about gathering data, it’s about connecting and contextualising disparate data to build a useful picture of your audience.

Adopting, or even creating, useful data management and interpretation tools will be vital to using this data effectively. Harvesting data from the myriad mix of movement sensors, shopping habits and personal preferences is one thing, but using it to present effective solutions to customers’ everyday problems may be the greater challenge.

Original Article

Find out more on the future of Technology at our DLUK - Trends Briefing on the 24th September 2015

 

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
Top 10 Digital Branding & Marketing Trends for 2017

Top 10 Digital Branding & Marketing Trends for 2017

It’s time to re-evaluate and rebalance the digital approach for your company. Here are the Top Digital Branding & Marketing Trends for 2017 to watch for. The probing minds at the Borenstein Group, a Top Washington DC Digital Marketing and Branding Agency, have done the homework for you. Use it or lose it.

Gal Borenstein
Gal Borenstein 7 December 2016
Read more
Life of a Twitter Influencer [Infographic]

Life of a Twitter Influencer [Infographic]

The following infographic Illustrates the life of a Twitter Influencer and includes everything from earnings, cheatsheets and social movements started on Twitter. While Twitter may not be the most popular social channel it is still one of the most powerful channels to spark online conversation. If you're a Twitter influencer, this infographic is the ultimate guideline to your future tweets.

Chiara Di Rago
Chiara Di Rago 30 November 2016
Read more
What Mobile App Design Looks like in 2017

What Mobile App Design Looks like in 2017

They say ‘move with the time or the time will leave you behind’. Being a startup it is important for you that you understand the trends, and amalgamate them in your business in order to attain the targets.

Nasrullah Patel
Nasrullah Patel 6 December 2016
Read more