Dive Brief:
- The Interactive Advertising Bureau released a study called “The Internet of Things” that found 65% of respondents who own an IoT device are willing to receive ads on those devices' screens, as reported in an organization press release.
- Almost two-thirds (62%) of U.S. consumers now own an IoT device such as a connected car, connected/smart TV, fitness tracker, home control system or some sort of wearable. The most popular devices were smart TVs and streaming devices at 47% each followed by wearable health trackers (24%) and internet-enabled home control devices (17%).
- Looking at all U.S. adults — both IoT device owners and not — 55% say they would be willing to view ads on IoT devices in exchange for offers such as a coupon (44%), extra features (30%) or access to exclusive games (19%).
Dive Insight:
IAB's latest findings are good news for marketers as IoT integrations have the potential to open up entirely new avenues of reaching and engaging with an audience in the home. The space could become a valuable source of third-party data and information, with insights into consumer behavior that stretch far beyond online activity and transactions.
With IoT one of the areas Forrester highlights as having the potential to change the world over the next five years, many marketers are already taking advantage of IoT screens. Per the IAB, 62% of device owners reporting having already seen an ad on a connected device.
One area of IoT — smart home devices and digital assistants — is experiencing a growing turf war to win over consumers' attention. Amazon’s Alexa-enabled Echo devices already own a strong foothold being one of the first offerings to hit the mainstream market, but Google’s ecosystem, including its new Home digital assistant and Alphabet properties like Nest, is making for some strong competition. Apple is also developing its own smart home technology and Microsoft recently announced a digital assistant enabled by Cortana tech.
Other IoT spaces like wearables, and smart watches in particular, have waned of late after an initial round of hype a few years ago.
