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APIs as the future of product placement






Show me the money

By Stacey Higginbotham

For gigaom.com

 

A world where computing is embedded in everyday devices will cause a huge shift in how we advertise to people. Commercials and banner ads don’t make sense with wearables and the internet of things. So what does?

As we connect more devices to the internet and invest in wearables that have limited screen space or no screen space at all, big brands accustomed to grabbing our attention on phones and social media are pondering what connected devices mean for their ad efforts. There are two options they need to consider: The incredibly intimate data they can glean from connected devices (a scale that knows you’re on a diet, for example) and how to use these platforms to put their brands front and center.

What models might we see as the connected world becomes a reality? I’m actually hugely optimistic about the chance for brands to reach consumers in innovative ways that feel less intrusive and offer value. Below are a few examples that seem to offer a way to marry advertising and connectivity without alienating users.

 

The automatic delivery model

Already my dishwasher asks me for Jet-Dry, which I actually am completely oblivious to since I have no idea what the product is supposed to do and my dishes seem clean enough. But with a connected dishwasher, it could track how many cycles it has run and automatically offer to order the detergent of my choice — or even offer me a coupon for a competing option. Same thing with a connected fridge and water filter, or a connected washing machine and detergent.

Want to take it even further? Starbucks is putting connected coffee machines in more of its stores. That will allow the company to remember your coffee preference, which means that instead of offering you $1 off a latte when you get within 100 feet of a Starbucks (a favorite cliché of the location-based ad world) you might instead get a notification that the store will stop selling pumpkin spice lattes this week and have the chance to order one from your phone to be ready when you drive by the next morning.

 

APIs as the future of product placement

Do you track your food? The food industry spends billions annually marketing its products, but as consumers spend more time looking for recipes and inspiration online, and quantifying their fitness (including calorie intake), the food industry is missing a huge opportunity to put their products in front of consumers.

One example is super fun. There’s a Kickstarter project for a robotic bartender called Monsieur. The machine mixes cocktails from an assortment of eight mixers that the consumer fills. In talking to the founders, they are excited about letting big name liquor companies send recipes to the machine, effectively publicizing new drinks to the folks who own the machine. But even restaurants or bars can get in on this action, offering a signature cocktail. And if you enjoy it at home, the next time you’re in the neighborhood of that bar, you might recognize the name and stop on in.

It’s not just drinks or kitchen robots, either. Something as simple as food logging is an opportunity. Big name brands should open up an API to their nutritional databases. I spend roughly five to ten minutes a day tracking what I eat and the unwillingness to put in new nutritional information for foods acts as a kind of vendor-lock in on products like my yogurt and breakfast cereals. But if my food-tracking app had access to a database of existing foods, it’s not only going to promote new products and options as I scroll through the list, that company could have data on what I’m eating.

 


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