The IoT Impact on Human Behavior

Lauren Moores, VP-Strategy, Dstillery
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Lauren Moores, VP-Strategy, Dstillery

The way humans interact with each other and with technology influences the way physical space is created for us and around us. The expected growth of connected objects as part of the Internet of Things (IoT) will be the biggest influence on our global and urban design and impact all industries in next few years and decades.

“This continuation of the digital transformation, particularly mobility data (the physical signals of consumer behavior) has changed our data landscape”

Turning otherwise ‘dumb', and often stationary things into devices which communicate with each other and with us is not something new. The IoT movement started way before the phrase ‘Internet of Things’ was adopted. Think machine-to-machine (M2M) prior to Iot and the grandmamma of the concept, the telegraphy - the ability to transmit messages over a system of communication. The newer IoT movement is already global, beginning in the industrial space for operational efficiency with Asia and Latin America leading the way with an emphasis on defense, schools, police, agriculture, energy optimization and more. Harnessing the power of connected objects provides insight into the ‘needs and wants’ of objects previously mute (watches, refrigerators, cars, washing machines, lights, etc). For the business to consumer (B2C) space, particularly in Media and Entertainment, our use of smartphones and increasingly, wearables, already make us a thing, a human sensor, transmitting information no matter where we are, providing signal on our desires and our state.

This continuation of the digital transformation, particularly mobility data (the physical signals of consumer behavior) has changed our data landscape. It has changed our ability to get data access to create information products, find audiences, create content, and measure transactions. It has changed our reliance on proxies for content proclivities or purchase intent allowing us to use physical and digital behavior signals instead of gross generalizations of demographics and ethnicity.

The Internet of Things pushes the consumer experience further, particularly in content and engagement with brands.

Here are three expected changes in the Media and Entertainment area:

More Data: It is already difficult to integrate the data we have now from the existing digital screens and connected devices (e.g., smartphone, desktop, tablet, DOOH, TV). The more smart devices as a result of connecting objects means more fragmentation in data due to system silos and with non-standard protocols, combining data signals becomes harder and reliant on more science. With an application of a beacon or a sensor, CPG, OOH, or any object can easily start transmitting data to the cloud. However, smart objects do not mean smart data. This puts an emphasis on us understanding data collection, reliability, speed, volume and also ensuring that our systems and technology infrastructure can handle the information.

Technology Advances: A recent Cisco white paper indicates that overall global mobile data (which includes IoT) will increase over 7x by 2020, reaching 30.6 exabytes per month. Thank you Bitcoin. Why? The creation of the block chain, a secure, unrevisable, distributed data system where each block of data is connected to the previous block in a chain has led to innovation that can accommodate the data volumes of IoT. This application of a distributed system away from central storage is edge/fog computing where computing, storage, control and networking power exists across system architecture, including edges (e.g., routers, machines, sensors). This system allows for massive scale and ultimately should make it easier to handle the data interaction. Big Data and correct sampling is not an issue if our technology allows us to move data filtering as close to the edge as possible.

More Personalization: We are already using consumer IoT data in various ways:

  • To provide proximity signals to make payments easier or authenticate manufactured goods
  • To provide place based metrics and media optimization (e.g., retail, OOH)
  • To provide event based metrics and optimization (e.g., venues)
  • To provide further signal for closed loop measurement of the consumer path to purchase
  • To purchase CPG goods with a click of a button

We will continue to heighten the consumer experience and personalize content and messaging and experience as our access to IoT data expands. With consumer-connected objects, we will begin to receive information in a dimension of quantitative context or self-data that previously has not been available. This new data includes motion, sleep cycles, physiological signals, and emotions. For advertising, content and entertainment, it adds a dimension to ‘right person, right time and right device’, specifically ‘right messaging based on mood/context’. As an example, for a gaming publisher, the ability to detect highs and lows for the gamer could increase real time purchasing if done correctly. This is true for any brand and any media engagement.

For consumer experience in media and entertainment, the Internet of Things offers providers a solution for providing consumer the promise of more “me” time due to less manual connecting and logistical machinations and it offers brands a huge shift in the landscape for consumer engagement. The caveat: be prepared to handle this data and use it correctly and don’t wait to figure it out or you will be disrupted.

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