by Guest Contributor: Cameron Johnson

The Internet of Things (IoT) is finally here, and with it has come major changes to the way people do business—from the way they market products to the way they make repeat sales. The old way of marketing relied on customers to be actively engaged with advertising, but the IoT allows businesses to reach out to customers as they brush their teeth or brew a pot of coffee. Not only does the IoT put advertisements more intimately into the lives of consumers, but it also allows businesses to cross-promote products and make automatic repeat sales. A pacemaker that automatically makes an appointment with a cardiologist or an inkjet printer that automatically orders new ink cartridges could be just a year or two away.

More Engaging, Trusted Advertising

Businesses will have access to a more personal part of their customers’ lives, and in these private moments, they can have a greater influence than when they rely on TV, radio, and Web ads. The whole way marketing is sold will change as product makers sell advertising space on their appliances. It remains to be seen whether this ad real estate will cost more or less than traditional ad space, but considering the difficulties marketers had translating TV commercials to the Internet, a more intimate setting could be a huge benefit.

Receive Important Customer Data

With the IoT, businesses will soon have a wealth of data about their customers that they would otherwise need to spend tens of thousands of dollars on research to acquire. For example, a coffee maker could send data to its manufacturer to reveal how often the customer refills her coffee maker. This detail is even more important for online businesses because they have the best ability to act quickly on the information they receive. They can incorporate it into their email newsletters and blog posts.

Get Free Product Research

Having connected devices in customers’ homes gives businesses an unprecedented opportunity to research their new products. Instead of spending as much on consumer research as it costs to develop a new product, businesses can conduct that research in their customers’ homes while they wash dishes and bake cookies. For online businesses, this research is vital because it allows them to design their websites’ product catalogs based on actual, honest customer feedback.

Automatically Repeat Sales

If customers don’t opt out of an agreement to automatically replenish consumable products, such as printer ink, motor oil and dish-washing detergent, then businesses can make repeat sales without spending a dime on customer retention or marketing outreach. Of course, it would probably be unwise to stop marketing through other channels, but with interactive ads built into products, traditional marketing budgets don’t have to eat into profits nearly as much.

Save Marketing Costs

When a business owns the channels to its own marketing campaign, it saves all the money it would have spent on buying ad space. However, there are still opportunity costs to consider. For example, a frozen-food company could spend money developing a toaster oven that advertises its products, or it could collect revenue by selling ad space to other companies. By determining which course would yield the greater overall return on investment and focusing their efforts on that area, the businesses would be able to more efficiently spend its time and money.

More Interactive Suggestions

Devices connected to the IoT will constantly be sending data back to their manufacturers, and this stream of information gives businesses an opportunity to receive suggestions from customers about the products they want to hear about and the ads that resonate most with them. This constant access to customer reactions is something businesses have never had before, but something that they’ve always needed.

Leveling of the Playing Field

Small businesses will be able to compete with huge corporations as they never have before. Of course, the giant companies will still be able to outspend their smaller competitors, but small online businesses will have a position just as close to their customers as their more established counterparts. The difference is that customers are more likely to trust a small business in such close quarters.

About the author: Cameron Johnson is a business consultant and social media expert. Over the course of his career he has conducted case studies on both social media optimization and non-profit marketing. Cameron has also had the opportunity to speak at international marketing conferences and was recently recognized as one of the world’s top 100 advertising experts to follow on social media.