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The Internet of Things in Marketing: 7 Ways to Grow a Startup

The Internet of Things in Marketing: 7 Ways to Grow a Startup

Businesses of any size can benefit from a well-organised marketing plan, regardless of age. Advertising is crucial when starting a business. If you want your company to succeed, you have to get the word out.

Create a marketing strategy to accelerate your business's expansion. Both your income and standing in the industry will rise. Communication with your target audience is more accessible with a good advertising strategy.

You can use an Internet of Things strategy to grow your business or need help promoting it.

What is The Internet of Things (IoT)?

The Internet of Things (IoT) is a game-changer in marketing. It has changed how we do business and will continue to change how we do business in the future. The world has become more connected than ever before, and the Internet of Things will help us bridge those gaps by connecting our devices, homes, and offices.

The Internet of Things is a network of embedded computing systems, sensors, and other technologies in everyday objects. It allows them to communicate and exchange data with other networked computing systems and devices over the Internet.

Connected machines, computers, and other devices comprise the Internet of Things. The network sends and receives data without intermediate humans or computers.

What is Marketing?

Marketing is promoting, selling, or distributing goods or services to consumers. Marketing encompasses all aspects of the process and is often carried out by internal and external parties, such as advertisers, social media specialists, salespersons, and marketers.

Marketing is a crucial business activity that helps firms create customer value and build strong customer relationships. It focuses on developing strategies to help companies generate more sales revenue from their products and services to achieve a more outstanding market share.

Marketing management is responsible for strategy development, policy formation, implementation, and control for implementing marketing activities. Marketing management aims to deliver value for money by ensuring that the organisation's resources are appropriately utilised so that its customers benefit from its products and services.

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How Does IoT Affect New Businesses

Understanding how IoT can help startups grow their businesses is one of their main challenges. Startups can improve their services and increase their customer base by using IoT marketing strategies.

In a startup, the focus is more on solving problems than making money. It is transforming mental concepts known as “ideas” into reality. Making money is vital for any business, but a marketing agency for a startup can help to solve problems. With marketing agencies, IoT can be integrated into your strategy effectively. In addition, they can help you integrate IoT products into your marketing strategies and select the right approach.

Investing in sensors could force many new businesses to reconsider their operations. Since the Internet of Things can be interpreted in many ways, startups have found it fertile ground. With IoT application development, startups can create more efficient, intelligent, and responsive systems.

How Does IoT Work?

How The Internet Of Things Works


Internet of Things devices, IoT or smart sensors, are essentially miniature computers. These computers have an embedded processor, limited memory, and network connectivity. The device then transmits this data over an IP network like the Internet. This is after it has been gathered from various types of physical data. The sensor also has built-in amplifiers, filters, and converters, but that depends on its work. The Internet of Things relies on battery-powered devices connected to wireless networks using individual IP addresses. Individually or in groups, Internet of Things devices can be configured.


Internet of Things devices collect and transmit data. This second layer of the Internet of Things includes a vast network and a network-back-end processing interface. Like the Internet and Ethernet LANs, the network is IP-based. Every IoT device has a unique IP address and identifier. The item transmits data to the network via Wi-Fi or 4G or 5G cellular networks.

Any network device generates data packets with an IP address for the destination. This network data exchange is identical to that between standard computers. An Internet of Things hub or gateway receives most raw sensor data. IoT gateways often normalise and filter data. The IoT gateway usually collects and organises raw sensor data.

Back End

The massive amount of real-time data generated by the Internet of Things sensors and collected at an Internet of Things gateway needs to be analysed in depth to gain deeper insights, such as identifying business opportunities. Using the IoT gateway, the sensors filter, encrypt, and send data to a back end for analysis and processing.

As part of the analysis, massive computing clusters are used to perform the examination. The back end could be in a commercial data centre, a colocation facility, or a cloud computing environment. There are multiple layers of data processing, modelling, and analysis.

How Does the Internet of Things in Marketing Work?

The Internet of Things connects everyday objects, such as cars, alarm clocks, and lighting, to computers. By sharing data, marketers can learn more about how their products are used in reality.

Businesses can send more relevant messages, which boosts engagement. The Internet of Things in marketing connects various everyday items to the web. With this interoperability, marketers can interact with customers at every stage of the buying process.

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For instance, an AWS IOT solution can significantly enhance customer engagement by providing real-time data and analytics, allowing for more personalised marketing strategies.

How to Develop an IoT Strategy for Your Business

Internet Of Things In Marketing Example
Source: Big Nerd Ranch

Define the Business's Goals and Objectives

Getting the project's stakeholders together for a kickoff meeting is crucial for discussing the business's goals and how IoT can help. It's the same as any other major undertaking a company might make.

First, it's critical to figure out the current goals of the company and how the Internet of Things can speed up the processes to achieve those goals. This is rather than planning how the Internet of Things will transform the company from the top down. Successful adoption of this new platform requires collaboration between IT and people. It also requires awareness of and respect local customs, values, and norms.

Analyse Current Hardware and Devices

Identify assets that can be connected to the asset information relay system with sensors and other devices. IoT systems heavily depend on the tools and assets used to transmit data to the cloud for analysis with organisational goals. A system that connects assets that don't matter for the company's most important decisions is pointless (at least at the beginning, though with time, the system can provide deeper insight).

Network Edge Devices and Gateways

Devices and sensors must be implemented to send data to operations and facilitate better decision-making. Real-time analytics and fast communication are necessary for this to happen. Edge computing is an approach to network design that places data processing closer to endpoints to improve latency and efficiency. Edge computing describes this network design pattern.

Provide Connectivity and Data Formats for Devices

These electronic devices are indispensable for keeping in constant touch with one another. For devices to interact with legacy assets, raw datasets generated by the assets and tools, how devices send data and communicate with the edge, and the protocols required between devices and the gateway all need to be developed (the security software program or physical device that acts as the connection point between the cloud and controllers).

Developing a Secure IoT Platform

To keep the system's highest security level, datasets must be encrypted and compressed before being uploaded to the cloud for processing. Governance models must be developed and implemented to prevent unauthorised access from external systems and limit the number of devices that can view the data. Organisational policies outline an organisation's authorities and accountability structures in an incident. Every IoT strategy must put security first, especially now that the General Data Protection Regulation (GDPR) and other federal policies are being enforced.

Utilise the Data to Draw Conclusions

An IoT strategy includes the collection and organisation of data. Still, the system is only helpful if used to make business decisions or answer critical questions. Data must be stored safely and efficiently accessible when needed. To diagnose and track problems in the business, it is crucial to create dashboards that present metrics and KPIs.IoT decisions based on machine learning algorithms and analytics will set your company apart.

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How IoT Marketing Can Grow Your Startup

Iot Market Size 2019 2027
Source: IoT Analytics

Every business is looking to grow. Many companies have improved their marketing strategies using the Internet of Things (IoT). IoT offers companies many opportunities to expand their customer base and revenue. Here are some ways IoT can be used to market your business.

Effective Brand Promotion

Nowadays, nearly everyone has a smartphone and an online social media profile. IoT branding for startups is another low-cost but highly efficient application. Using social media and advertising websites, consumers can learn more about products.

Social media users will share product photos with their followers. Branding allows food bloggers to promote your company.

Marketers use IoT devices to highlight the features that set their products apart. To differentiate the brand from the competition, they highlight the features that make its products unique.

Businesses may communicate with their customers about promotions they find interesting. This is accomplished by sending personalised and automated text messages about sales and discounts to existing customers.

Targeted Marketing Strategy

Marketers can tailor their services to each shopper based on their shopping habits and other activities. Social media retargeting and email marketing are examples.

Customers who only shop in one area of your store could be targeted with products tailored to their interests based on previous purchases. You can customise your website's front page to suit your customers' tastes. The modern website builder offers more customisation options. Build a homepage that adapts to each user's preferences.

Customer Experience and Engagement

IoT offers new avenues for long-term, ongoing customer engagement and product enhancement. Businesses can quickly identify and fix problems, gather insights, and boost profits with connected Internet of Things devices.

With the IoT, businesses can prioritise four areas that all contribute to a better customer experience:

  • Offers that are relevant at the appropriate time.
  • Store interactions that live up to expectations.
  • Provides resolution of problems quickly and painlessly.
  • Increasing customer loyalty starts with enticing options.

Reduce Operating Costs

Using sensors, IoT can help monitor usage patterns in real time so that companies can optimise their resources accordingly. For example, if your company manufactures products at different locations across the country or the world, you could use connected sensors to monitor inventory levels in each area and order more items when necessary (or less when demand falls). This will allow you to reduce costs by ordering inventory only when needed while ensuring all customers receive their orders on time.

Increase Customer Satisfaction

One of the best ways to increase customer satisfaction is by improving communication between your business and customers. Your customers want to know they're valued and appreciated β€” especially if they've spent money with you. You can use the Internet of Things to inform them about upcoming products or services or even send them automated messages thanking them for their loyalty or offering special deals when they return to the store.

Utilise Content Marketing

Among the most common promotional approaches is content marketing. Target audiences receive valuable content on online properties like blogs and social media profiles.

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Customer loyalty and trust are increased through content marketing. Marketers can better serve their ideal customers with insights from these exchanges.

IoT companies will differentiate themselves if they tailor their approaches to customers' needs. The interaction between a business and its customers changes. Organisations can increase their overall sales volumes as a result.

SEO and keywords play a crucial role in integrating IoT into content marketing. So, you can improve your leads' quality and increase the number of them entering your sales funnel.

Better Buying Experience

The path to purchase for the customer needs to be as painless as possible. As a result, businesses are obligated to address this issue.

The Internet of Things lets buyers order products tailored to their tastes and preferences. They can quickly adjust specific IoT settings following their preferences while automation handles the remaining tasks.

Customers can also receive notifications of the availability of products via IoT systems. When the product is out of stock, you can give your information early on, and the IoT system will buy it for the customer when it becomes available again.

Challenges Companies Face When Implementing IoT

The potential benefits of the IoT are huge β€” especially when you consider what it could do for your business. But there are also many challenges ahead as companies work to adopt this new technology.

Here are three key challenges that companies face when implementing an IoT strategy:

Data Breach

A hacker can access sensitive user data such as social security numbers, health records, or credit card information. The damage from a data breach could include public relations nightmares, fines from regulators, and lawsuits from customers whose private information was compromised.

Denial of Service (DoS) Attack

An attacker takes down an application by flooding it with too much traffic or by taking down an entire server with a barrage of requests for information. This kind of attack can cause severe disruption to businesses that rely on their applications being available 24/7.

Malware Infection

Malware refers to any software designed to cause harm or gain unauthorised access to resources on your computer or another device connected to the Internet. Malware infections often result in someone stealing personal information like passwords or credit card numbers or installing spyware on your computer so they can monitor your every move.

Management of Devices

Many people ignore the ever-increasing number of connected devices. It takes time and effort to purchase, prepare, install, connect, configure, manage, maintain, and eventually replace every IoT device. A few servers may have to deal with this issue regularly, but it is an entirely different issue for hundreds, thousands, or even tens of thousands of IoT devices.

Network Support

Data from IoT devices have to travel over an IP network, which could be a local area network (LAN) or the Internet itself. Consider how the Internet of Things data will affect the network's bandwidth and ensure sufficient and dependable bandwidth is available. IoT data transmission can be slowed down by congested networks with dropped packets and high latency. The network may need some structural adjustments as well as dedicated networks.

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How Marketing Agency Can Help Startups to Use IoT

Face To Face Marketing

Proven Marketing Expertise

Entrepreneurs face unique challenges in the marketplace, but a marketing agency for startups that understands how the Internet of Things works can help.

A marketing agency has proven expertise in finding new ways to market a product or service to reach customers who might not know it yet. They can help you find ways to use IoT technology in your business model to get more people who may benefit from what you offer. This is ideal for companies that want to expand their client base without spending too much money on advertising campaigns or other forms of marketing.

Provide a Network of Experts

Startup marketing agencies can connect clients with IoT experts to integrate operations. These experts include data scientists, technologists, analysts, programmers, and many others who can help startups make the right decisions regarding the technology used for their products.

A marketing agency will also help startup businesses design exemplary product architecture to smooth and automate the entire business process. They will also help analyse data from various sources like sensors present in your product and other business data related to your business model.

Provide Customised Solutions

IoT solutions are constantly evolving as new technologies are introduced. Consumers want more from their devices, whether it's entertainment or security. Customised customer solutions from marketing agencies can keep your business competitive.

Expertise in Data Management

IoT is all about collecting data from different devices and using it to improve your business model or make sales pitches to potential customers. A good marketing agency will have experience managing large amounts of data so that you can use it effectively in your campaigns. They will also be able to help you analyse the data once it has been collected so that you know what types of messages resonate with consumers and what does not work well for them.

Build an IoT Ecosystem

A startup needs a plan for creating an ecosystem around its product or service, which requires planning and execution across all channels β€” including digital channels like social media and email marketing and physical channels like retail stores. An agency can help with both sides of this equation by developing strategies to build relationships with consumers and retailers while identifying which media will drive sales most effectively.


IoT adoption for startup businesses is challenging. Before implementing the necessary information for the Internet of Things, you should learn about it. Many startups fail to capitalise on IoT opportunities because their leaders need to take the time to formulate an effective strategy for doing so. Collaborating with an expert marketing agency is the most popular way to use IoT effectively.

Marketing agencies can help marketers with their Internet of Things in marketing strategies by giving them access to the right resources, knowledge, and information.

FAQs on the Internet of Things in Marketing

Can you provide an example of IoT in marketing?

Marketing applications of the Internet of Things include vending machines that log the number of purchases and peak times. These data could be used to determine when to restock certain products or raise or lower prices. A drone can also capture still images or videos during an ad campaign and transmit them to the company's main office for further analysis.

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How did the Internet of Things get started?

An insignificant cola machine inspired the connected future idea. Our modern, interconnected society didn't exist then. A computer scientist at Carnegie Mellon University developed the technology to see if Coke was left in the vending machine in 1982. Having this information helped them decide whether a Coke break was worth it. It was not until this breakthrough that the concept of “The Internet of Things” emerged.

How does IoT influence the business process?

The Internet of Things in marketing devices speeds up the tracking, monitoring, and analysing of business customer data. Companies can foresee changes or trends in consumer behaviour. With the advanced technology of the Internet of Things, providing a more tailored experience for each customer may be possible.

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Stuart Crawford

Stuart Crawford is an award-winning creative director and brand strategist with over 15 years of experience building memorable and influential brands. As Creative Director at Inkbot Design, a leading branding agency, Stuart oversees all creative projects and ensures each client receives a customised brand strategy and visual identity.

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