Creative agency glossaryTechnology and Innovation

Internet of Things (IoT)

The Internet of Things (IoT) is the network of everyday physical objects, from speakers and watches to cars and store shelves, that carry sensors and connect to the internet to send and receive data.

What is the Internet of Things (IoT)?

The Internet of Things is everything online that is not a computer or a phone. A thermostat that learns your schedule, a watch that counts your steps, a speaker that answers questions, a shelf sensor that knows when a product has sold out. Each device collects data from the physical world, sends it somewhere to be processed and can be told to act in return.

The term was coined in 1999, but the idea only took off once sensors, chips and connectivity became cheap enough to put in almost anything. Connected devices now outnumber the people on the planet, and most of them work quietly without anyone thinking of them as computers at all.

Why it matters

Why IoT matters

For marketers, IoT moves the brand relationship off the screen and into the product and the space around it. A connected device can tell a brand how its product is actually used, prompt a reorder at the right moment, personalize an experience in a store, or keep a customer engaged long after the sale. A fitness tracker is not just a product; it is a daily conversation with its owner, renewed every time it is worn.

It also brings a heavy responsibility. Connected devices see intimate things: when people are home, how they sleep, where they go. Brands that use that data carelessly, or secure it badly, lose trust far faster than they gained it.

In practice

How IoT works in practice

  1. 01

    An IoT system has four layers: the device and its sensors, the connection (Wi-Fi, Bluetooth, cellular), a cloud platform that stores and analyzes the data, and an app or service that turns it into something useful for the customer. Marketing usually lives in that last layer, deciding which moments justify a message and which data is worth asking for. Security belongs in every layer, designed in from the start rather than bolted on at the end.

  2. 02

    In retail and events the work looks different. Beacons, smart displays and connected fixtures respond to people in the space, changing what a screen shows or unlocking an experience on a visitor's phone. The best of these feel like hospitality rather than tracking, because the customer chose to take part and got something worthwhile for it.

Watch out

What people get wrong about IoT

Connecting a product because it can be connected. An app that adds friction to a kettle is not innovation, and customers notice when a device demands an account and a data agreement to do what it did perfectly well offline. The other mistake we see is collecting everything. Every data point gathered is one to secure, disclose and justify, so collect what improves the product and nothing more.

The third is forgetting the end of life. Connected products depend on servers, apps and updates, and when a company stops supporting them, customers are left with a device that no longer does what they paid for. Plan how long a product will be supported, and say so up front, because a brand that switches off its customers' devices is remembered for it.

Questions

People also ask

What are examples of IoT devices?

Smart speakers, fitness trackers and smartwatches, connected thermostats and lights, and connected cars, plus, in business, sensors on shelves, machines and shipping containers. Anything that senses something, connects to the internet and shares data counts.

How do brands use IoT in marketing?

Through connected products that keep a relationship going after the sale, in-store technology that responds to shoppers, and voice assistants that answer questions and take orders. The value comes from timing and relevance, not from the volume of messages.

Is IoT data private?

It depends on the device and the company behind it. Many connected products collect sensitive data about homes, health and movement, and privacy laws increasingly require clear consent and limits on use. Brands should collect only what they need and say plainly what it is for.

Next to it in the glossary

  1. IntegrationIntegration is the connection of separate software systems so they share data and trigger each other automatically, instead of people copying information between them.
  2. Interactive AR FiltersInteractive AR filters are camera effects that add digital objects, makeup, games or scenery to a live image, which people play with and share on social platforms.
  3. Interactive InstallationsAn interactive installation is a physical piece in a store, a lobby, an event or a public space that responds to the people who approach it, blending technology, art and brand storytelling.
  4. Location ServicesLocation services are the technologies that let a phone, app or website work out where a user is, using GPS, Wi-Fi, cell towers and Bluetooth, so it can show maps, local results and location-based content.
  5. Machine Learning in MarketingMachine learning in marketing is the use of algorithms that learn from data to predict customer behavior and make decisions automatically, such as who sees an ad, what it costs and which offer to show.
  6. Marketing Software For AgenciesMarketing software for agencies is the stack of tools an agency uses to run client work and its own business, covering project management, CRM, automation, analytics, reporting and collaboration.

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