Cross-Device Tracking and IoT
Traditionally, marketers would create a buyer persona for their target market. A buyer persona is a set of common traits and demographics grouped together to create the target market. This can be anywhere from age, gender, income, location, education, device used and special interests. A marketer will take all of this information of their target market and create ads on Facebook, Google, and the like. Companies like these use this information and filter their aggregated data about their users to show specific ad you created to the specific person you want to target, your buyer persona. The key word is aggregated. Aggregated data is compiling many users into specific categories such as age, gender, income, or location.
Aggregated data in traditional advertising has great benefits. Marketers can target a very specific set of users with specific features for their ads. This is leaps and bounds above the old school advertising before the data era where marketers would have to 'spray and pray'. This refers to the act of advertising to any and all people and hoping your target market, the very specific set of people, sees your ads.
THE PROBLEM
If it is soo great, why is there a problem? Great question! In the last couple of years, we have seen a tipping point where consumers are using their mobile devices more than they are using their desktop computers. Also, millenials are using an average of 4.5 devices daily. That being said, let's use an example to showcase the problem. Let's say you are on your iPhone and you search for Chuck Taylor shoes on online. You browse a little bit but don't purchase anything. Then later that night you get on your tablet and search some more information about your those shoes. The next day you decide to get on your laptop and finally make the purchase you have been eyeing for the past couple of days.
Here's the problem. Since you have used three different devices to do your research and purchase of your shoes, there was no way to identify you across all of those devices. Going back to the example, when you first used your iPhone to search for the shoes, it would have been nice for marketers to show ads on your tablet and desktop computer that is relevant to what you were searching for, the shoes. Remember the aggregated data Google has; they could only target demographics and psychographics of the users, not individual users.
MAKING PROGRESS
There is progress in cross-device tracking however. There are two primary methods used to establish identity across devices:
- Deterministic - matching taps into known user data to make a match, generally an email address used to log into multiple devices. (Think Facebook, Google, Amazon, Twitter, AOL)
- Probabilistic - draws on a variety of anonymized data signals like IP address, device type, browser type, location and operating system to create likely statistical connections between devices. (Think Drawbridge, the recently acquired Tapad, Crosswise, Adelphic, Adbrain)
First, deterministic can be self explanatory. Users login to Facebook, Twitter, and Google across different devices and once you search for something via google search on your mobile device, say Chuck Taylor shoes, ads can been shown on your tablet and/or desktop when you interact with Google and its products. It is much easier to see this in Amazon.com. As long as you are logged into Amazon across your devices, and you search for a product, you will see the same ads and recommendations across the devices.
Second, probabilistic is much more difficult to explain. By using anonyumized data signals, companies such as Drawbridge.com can create a 360-degree anonymous consumer view that is 97.3% accurate. Since these guys are pretty smart on this stuff, I'll just quote what they have to say about this, "It is built using probabilistic, or predictive, technology that observes user predictions about consumers and their device ownership." Basically they partner up with advertising firms to access anonymized data at large scale. Then they process that data finding similarities and connections. With that they can build an anonymized user data to identify consumers.
There are two main issues when companies attempt cross-device targeting. First, consumer privacy is a huge concern. Yes, companies filter our aggregated data into funnels such as age and gender, but they do not associate our name and address with that. It would be kind of creepy if advertisements would start using our names in their ads they are showing us. Second, there isn't a great way to associate individual people across all devices. Desktop computers use cookies to track consumers but cookies can't reach across other devices. They are stuck with the only desktop computer in which you used. And people can clear their cookies from their computer making it an unreliable way to track consumers.
IoT: MORE CLUTTER IN THE FUTURE
As we continue to find new ways to connect electronics to the internet, cross-device targeting will continue to progress. Internet of Things is defined as:
The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data
The Internet of Things (IoT) will continue to explode in the coming years. Currently, I can be away from home and, by use of my mobile device, turn on lights in my living room, look at the internet connected camera to see what is happening, close my garage doors (because I forgot), check to see if my front door is locked, and check to see what the temperature of my house is so I can have it the correct temperature when I get home. Oh man I forgot, I can also record the newest Walking Dead episode on my DVR at home from my phone!
We are truly in a time where people are connecting anything and everything to the internet. As long as it can be plugged in, it has a wifi connection and you can access from anywhere in the world. Side note: did you know you can control your motorized blinds from you phone! Because walking ALL THE WAY ACROSS THE ROOM IS EXHAUSTING!!! Anyways, how cool is that! Bring it on Wall-E.
There are great benefits by connecting things together. The model below of a Smart World explains how you can use IoT to help solve environmental issues and create a more eco-friendly world. Libelium Smart World:
- Examples include Forest Fire Detection to monitor combustion gases and alerting the fire department
- Selective golf course dry zones to water greens where needed
- Underground water leakage detection
- Smart lighting that senses when more or less street lights are needed to cut down on electrical costs
- Air pollution detection that controls CO2 emissions of factories and cars
BEST USES OF CROSS-DEVICE TARGETING AND IoT
Google and Amazon are in an all out war to be the first to truly master Cross-Device Targeting and IoT. Amazon got the early lead with their Amazon Echo awhile back but Google is starting to gain ground with its own Google Home. Amazon echo is a voice controlled device that is connected to the internet that allows a user to use the word "Alexa" as a wake word. Just say "Alexa" and then ask to play your favorite music, read audiobooks, provide sports score, control your Nest or Samsung SmartThings, and more. You can even order Domino's without lifting a finger! Google Home is the promising competitor to the Echo. One better quality with the Google Home is that most of us are already connected (and dependent on Google products) whereas with the Amazon Echo we will only use it for purchasing and the occasional movies, books and songs. But as Professor Love stated, "First is better than best."
CONCLUSION
Today I sat in my car and recieved an email. I was notified four times for one email. First with my phone, then my smartwatch, then my iPod, and lastly my connected car stereo (stupid car, always lagging). We are drawn mainly to the ridiculous use of IoT, such as connected mobile blinds or app friendly coffee maker, but we cannot forget the connected devices that will improve humans and our planet. Finding better ways to connect cars to the internet can help save lives but also record emissions and give necessary data to improve. Being alerted via app on your phone about an alarm sensor going off at your business can help catch intruders making a safer community for all of us. These are the things I look forward to witnessing in the coming future.