This week, MMW caught up with Sephi Shapira, CEO of MassiveImpact to discuss many things – with things, of course, being the operative word.
According to Shapira, the growing prevalence and popularity of the “Internet of Things” is opening up a world of opportunities for mobile advertising.
“We have all enjoyed free digital goods and understand that this is possible thanks to advertising,” Shapira tells MMW. “Most consumers appreciate benefits of online and mobile ads which fund-free content that they would otherwise have to pay for. ”
“As The Internet of Things (IoT) connects tangible products in the same manner apps or Web pages are linked, the stage will soon be set for ‘tangible goods’ to be free, supported by business models focused on a premium-based or advertising services,” he says.
And Shapira makes a valid argument.
“The price of a refrigerator is only a fraction of the price of the goods stored in it,” the respected industry veteran continues. “Imagine getting a Costco branded free refrigerator with a front panel screen configured to automatically order and replenish groceries and other goods based on consumption. In the near future, Amazon tablets and other similar items will be given away for free with content subscriptions as the primary source of revenue for the company.”
So what will the coming transformation look like?
“The transformation will be that consumers will no longer pay for ‘things’ rather services associated with those ‘things,’” Shapira proposes. “In the end, the approach of smaller increments of income over longer periods of time will prove profitable for companies – it will keep a long lasting relationship with consumers rather than a one-time purchase.”