Retailers expected to spend $2.5 billion on IoT by 2020
While it’s pretty obvious that the Internet of Things (IoT) offers huge opportunities for marketers, new data from Juniper Research suggests that retailers are set to spend around $2.5 billlion on the technology by 2020. The figure would mean a four-fold increase in spend in the technology within five years from this year’s estimated $670 million investment.
Retailers are set to invest in both hardware and installation of IoT enabled technology which can include anything from Bluetooth Beacons which are being used to enable location-based offers for example, to RFID (radio frequency ID) tags which allow better tracking and management of stock throughout the supply chain and onshelf.
The study, The Internet of Things: Consumer, Industrial & Public Services 2015-2020, concludes that those that are using the IoT are creating an ecosystem that will allow them to step ahead of their peers. The combination of IoT elements with other devices such as wearables offers huge opportunities which when also combined with software analytics is essentially a killer combination.
Retailers are already using beacons both to prompt customers with relevant offers when instore but also to provide them with better, more relevant information – thereby improving the customer experience and their likelihood of purchase. RFID tracking meanwhile is allowing for improved efficiences in retailer operations.
“Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking,” said Steffen Sorrell, author of the report. “Meanwhile the beacon industry is expanding rapidly; used as a method to provide consumers with contextually relevant information in conjunction with their smartphone or wearable will enormously enhance the in-store experience,” he added.
Digital Marketing World Forum (#DMWF) brings together the worldwide digital marketing community to tackle the challenges that the digital future presents. To find out more visit #DMWF today.
- » Trends, tribes and tolerance: The factors governing audience digital behaviour in 2020
- » The Domino’s effect: New personalised advertising campaign sees tenfold return
- » The CMO’s blurred lines: Power without influence means innovation is needed to secure value
- » Sisca Margaretta, CMO, Experian APAC: On increasing customer expectation – for insight and privacy
- » The great data trade-off: Why consumers will still share details – but only for a true value exchange