Internet of Things is a term coined in the late nineties by Kevin Ashton, a technology pioneer from the Massachusetts Institute of Technology. This term describes a system where the Internet is connected to the real world through ubiquitous sensors. Through such a system, communication would be possible with any object equipped with a sensor - similar to how we connect to a URL through the Internet.

This scenario is becoming reality right before our eyes.
Thanks to companies like the Krakow startup Estimote, which is currently conquering Silicon Valley, we can obtain small sensors - beacons that can communicate with our smartphone. They send micro radio signals that smartphones can receive and interpret. With the appropriate app, the smartphone can recognize and interpret signals sent by sensors equipped with motion and temperature detectors. Beacons can be attached to various objects or items, and through mobile applications, connect the real world of objects and items around us with the virtual world.

Interestingly, Estimote sensors, using Bluetooth Low Energy technology, can be powered by small batteries that - according to the manufacturer - ensure device operation for 3-5 years and a signal range of up to 70 meters. This is significantly more than the previously used NFC (Near Field Communication) technology in outdoor advertising, which enables wireless data exchange at a distance of 20 cm. With Estimote beacons, we don't need to place our phone anywhere - we just need to appear in a specific location, such as a store or near a billboard, and have the app installed on our phone to receive information like shopping list reminders, discount coupons for products or services, or other types of messages.

How can this change the outdoor advertising market? For now, the topic is quite fresh and there are few examples of using such sensors in outdoor or indoor advertising. Mass use of sensors also raises considerable controversy. Especially in the United States, where after Snowden's revelation of the scale of society's surveillance, people are very sensitive to privacy issues.

In New York, city authorities demanded that outdoor advertising company Titan remove sensors placed in phone booths across Manhattan. The scandal erupted after the BuzzFeed website revealed that these beacons could track smartphone users' movements and send them advertising content. Despite Titan's spokesperson explaining that the sensors don't collect data or information from smartphone users, don't track people, and don't send advertising messages, and that data exchange can only occur when users have installed the appropriate app and consented to this type of communication with sensors, Titan decided to comply with New York authorities' request
and remove all sensors.

Despite some controversy, marketers are beginning to test beacon usage.
In the United Kingdom, Cadbury brand owner Mondelez is testing beacons to stimulate impulse purchases. Coca-Cola plans to use beacons to dynamize in-store promotions.
Exterion Media (formerly CBS Outdoor) plans to implement sensors in outdoor advertising as a more user-friendly technology than NFC.

The topic is new and both advertising companies and marketers are learning about this technology.
One thing is certain - people don't like being bombarded with advertising messages, don't like receiving spam, and are increasingly sensitive about their privacy.
They will choose those who can deliver interesting content, new functionalities, specific benefits through a mobile app while ensuring their privacy.