The internet of things (IoT) now reaches consumers at dozens of daily touchpoints beyond phones and computers. IoT devices like connected cars, wearables, and smart home speakers generate behavioral data and create moments where marketing messages can reach engaged audiences. For marketers, understanding where IoT devices fit into consumer routines, and what opportunities they create, is essential for planning media and commerce strategies in 2026.

What is IoT in marketing?

The internet of things (IoT) refers to internet-enabled hardware beyond traditional screens (smartphones, computers, tablets) that create marketing touchpoints through apps, voice interfaces, or embedded systems. The three IoT categories most relevant to marketers are:

• Connected cars. Vehicles with internet access that enable in-car commerce, audio advertising, and contextual promotions through infotainment systems.
• Wearables. Smartwatches and fitness trackers that deliver notifications, enable mobile payments, and collect health and activity data.
• Smart home devices. Smart speakers, displays, TVs, and appliances that respond to voice commands and can surface sponsored content or facilitate purchases.

These IoT devices share a common thread: they collect first-party behavioral data and reach consumers during daily routines, creating opportunities for contextual, moment-based marketing.

How many consumers use IoT devices daily?

IoT adoption has reached critical mass across device categories. Connected cars gained 9.1 million drivers between 2024 and 2025, with US connected drivers reaching 179.1 million users in 2026, according to EMARKETER's December 2025 forecast. That audience is both captive and on the move.

Smart home IoT penetration continues to climb. Forty-eight percent of American homes now have at least one smart home device, per Horowitz Research. US households have, on average, 17.6 connected devices, up from 8.4 in 2015, according to Parks Associates. IoT devices are becoming the default interface for connected homes.

What marketing opportunities exist in connected cars?

Connected cars represent the largest IoT advertising opportunity by audience scale:

• In-car audio. Digital audio ads through streaming services like Spotify reach drivers during commutes. Apps running through Apple CarPlay and Android Auto create addressable ad inventory.
• AI-powered navigation. Automakers are integrating generative AI that can steer drivers to commercial destinations. GM will roll out Google Gemini to OnStar-equipped vehicles in 2026, enabling contextual recommendations for restaurants, coffee shops, and charging stations.
• In-car commerce. Mercedes-Benz and BMW have deployed in-car payment systems for fuel, parking, and charging. Tesla opened its first diner and Supercharger destination in West Hollywood in July 2025, allowing drivers to order food from vehicle touchscreens while charging.

Marketers should prioritize audio and app-based placements over dashboard interruptions, which raise safety and user experience concerns.

What marketing opportunities exist on IoT wearables?

IoT wearables offer a smaller but growing marketing surface:

• Mobile payments. 34% of US smartwatch owners use mobile payments weekly in 2025, creating transaction data that informs targeting and attribution, according to SQ Magazine.
• App notifications. Brands can reach consumers through watch-optimized push notifications for time-sensitive offers, appointment reminders, or location-triggered messages.
• Health and fitness sponsorships. With EMARKETER forecasting 27.6% of US internet users wearing smart devices for health and fitness tracking in 2026, health and wellness brands have natural integration points through fitness apps and challenges.

Wearable screens are small, so interruption-based advertising is limited. The primary marketing value of IoT wearables lies in data collection, payment enablement, and contextual notifications rather than display ads.

How are smart home IoT devices used for commerce and marketing?

Smart home IoT devices are evolving from voice-command tools to AI-powered commerce platforms:

• Voice commerce. Users can reorder products, add items to shopping lists, and complete purchases through Alexa and Google Assistant. Amazon's Alexa+ Store, launched in 2025, integrates services, subscriptions, and commerce into its ecosystem.
• Conversational AI. 66% of Gen Zers and 58% of millennials consider AI assistants on smart devices at least somewhat valuable, compared with 45% of baby boomers, per a March 2025 YouGov survey.
• Screen-based promotions. Smart displays like Amazon Echo Show and Google Nest Hub can surface visual ads, product recommendations, and shoppable content.

Google plans to upgrade more than 800 million existing devices with Gemini-powered capabilities. This installed base of IoT devices creates scale for conversational commerce experimentation.

What first-party data do IoT devices generate for marketers?

IoT devices generate behavioral signals that inform targeting, personalization, and measurement:

• Connected cars. Location patterns, destination types, driving routines, in-car search queries, and payment transactions at gas stations, parking, and charging.
• Wearables. Activity levels, sleep patterns, heart rate trends, location history, and transaction data from mobile payments.
• Smart home. Voice queries, product reorders, media preferences, appliance usage patterns, and presence detection (who's home and when).

This first-party data from IoT devices becomes more valuable as third-party cookies and mobile identifiers face restrictions. Automakers and device manufacturers are increasingly positioning themselves as data partners for advertisers, though fragmentation across IoT platforms complicates activation.

What privacy and regulatory considerations apply to IoT marketing?

IoT marketing operates in an evolving regulatory environment:

• FTC scrutiny. The FTC and DOJ fined Amazon $25 million in 2023 for privacy violations related to data gathered by Alexa voice assistants and Ring cameras. Marketers should expect continued enforcement around consent and data minimization.
• Cybersecurity labels. The US Cyber Trust Mark program by the FCC labels IoT devices meeting federal cybersecurity standards. Devices that earn this certification signal trustworthiness to privacy-conscious consumers.
• Data fragmentation. Each IoT ecosystem (Apple, Google, Amazon, automakers) maintains separate data policies and consent frameworks. Cross-device targeting requires platform-specific compliance.

Marketers should prioritize opt-in personalization and transparent data practices. Trust signals matter: 70% of surveyed Waymo riders prefer driverless vehicles over traditional ride-sharing, but 74% cite safety as their biggest concern, per Obi research cited by EMARKETER.

How should marketers prioritize IoT opportunities in 2026?

Evaluate IoT investments based on scale, data access, and integration maturity:

1. Start with connected cars. With 179.1 million US connected car users in 2026, AI navigation partnerships, and in-car commerce integrations make this the most developed IoT opportunity. Focus on audio ads through CarPlay and Android Auto apps and test contextual promotions through AI navigation partners.
2. Experiment with smart home voice commerce. The 800 million device upgrade from Google and Amazon's Alexa+ subscription push signal platform commitment. Test conversational ads and commerce integrations on both IoT ecosystems.
3. Use wearables for data, not ads. IoT wearables excel at payment enablement and behavioral data collection, not display advertising. Integrate smartwatch payment data into attribution models and use fitness app partnerships for health-adjacent brands.
4. Build for fragmentation. Each IoT ecosystem operates independently. Design flexible creative and measurement frameworks that work across platforms rather than betting on a single winner.

We prepared this article with the assistance of generative AI tools and stand behind its accuracy, quality, and originality.

EMARKETER forecast data was current at publication and may have changed. EMARKETER clients have access to up-to-date forecast data. To explore EMARKETER solutions, click here.