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IoT device users are open to ads

News, 19 December 2016
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NEW YORK: Almost two-thirds (62%) of US consumers own at least one Internet of Things device, such as a smart TV or fitness tracker, and a similar proportion (65%) say they're willing to receive ads on IoT screens, a new survey has revealed.

According to the Interactive Advertising Bureau (IAB), another 62% report that they have actually seen an ad on such devices, while significant numbers – whether IoT device owners or not – are receptive to ads in exchange for offers.

For example, more than half (55%) of these consumers say they would be open to ads on smart devices if marketers offered incentives, such as coupons (44%), extra features (30%) or access to exclusive games (19%).

These findings are based on an online survey of 1,200 US adults, aged 18 to 74, that was conducted by MARU/VCR&C in August.

The survey further revealed that an overwhelming majority (97%) have heard of connected devices, while two-thirds (65%) of those who have yet to buy one are interested in doing so.

Connected TV (39%) is the top choice for consumers considering whether to buy an IoT device, although MediaPost pointed out that, being most like conventional TV, smart TV represents a type of gateway device for older consumers before they try out other gadgets.

According to the findings, consumers also give consideration to buying a connected car (37%), wearable health trackers (32%), home control devices and internet-enabled voice command systems (31% each), internet-enabled appliances (30%), VR headsets (30%), smartwatches (27%) and smart glasses (21%).

Patrick Dolan, IAB's Executive Vice President and Chief Operating Officer, said consumers are becoming more interested in IoT devices as they get more familiar with them, and that brands should pay attention to the development.

"To access the coveted IoT audience that is already open to receiving ads on their devices, advertisers need to consider 'added incentives' for their messages," he said.

"As adoption continues and marketers learn to weave the Internet of Things into their strategies, tomorrow's prospects for IoT as a marketing platform will be very bright."

Data sourced from IAB, MediaPost; additional content by Warc staff

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