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IDC Unveils Worldwide Forecast on IoT Spending by Vertical Market

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International Data Corporation (IDC), on Monday, announced a new report, “Worldwide Internet of Things Spending by Vertical Market 2014-2017 Forecast,” which defines the IT opportunity for all vertical markets that comprise the burgeoning Internet of Things (IoT) market.

The new report segments the IoT market as well as provides a forecast that illustrates which vertical industries show the greatest market opportunity over the next several years.

The market and forecast is based on internal IDC models, analysis, and survey information, which was used to create segmentation models around the 18 vertical markets that IDC tracks

As the Internet of Things (IoT) market starts to coalesce in both concept and solution offering, IDC recommends vendors take the next step and look at this huge IT opportunity in a more realistic and valuable framework.

As exciting as the overall opportunity for the IoT market currently exists, understanding the vertical ramifications is paramount.

All of the greatest IoT IT opportunities, from the connected home, smart meters, the connected car, and smart grid to personal wellness and connected health, are driven from a vertical market perspective.

“The Internet of Things market must be understood in terms of vertical markets because the value of IoT is based on individual use cases across all markets,” said Scott Tiazkun, senior research analyst, IDC’s Global Technology and Industry Research Organization.

“Successful sales and marketing efforts by vendors will be based on understanding the most lucrative verticals that offer current growth and future potential and then creating solutions for specific use cases that address industry-specific business processes.”

In a press statement made available to Nigeria CommunicationsWeek, IDC defined the Internet of Things concept as a wired or wireless network connecting devices, or “things,” that is characterized by autonomous provisioning, management, and monitoring. IoT already impacts our everyday life down to the smallest processes.

The vertical opportunity that arises from IoT is already in play, but only if the need for vertical expertise is recognized and offered.

Realizing the existence of vertical opportunity is the first step to understanding the impact, and therefore market opportunity that exists, for IT vendors.

 In addition, IDC has looked at the components, processes, and IT support for IoT and expects the technology and services revenue to expand from $4.8 trillion in 2012 to $7.3 trillion by 2017 at an 8.8% CAGR, with the greatest opportunity initially in the consumer, discrete manufacturing, and government vertical industries.

The IoT/M2M market is growing quickly, but the development of this market will not be consistent across all vertical markets. Industries that already “understand” IoT will see the most immediate growth, such as industrial production/automotive, transportation, and energy/utilities. However, all verticals will reflect great opportunity.

 IoT is a derivative market containing many elements, including horizontal IT components as well as vertical and industry-specific IT elements. It is these vertical components where IT vendors will have to distinguish themselves to address industry-specific IoT needs.

IoT opens up many IT vendors to the consumer market, providing B2B2C services to connect and run homes and automobiles — all the places that electronic devices will have a networking capability.

According to the report, the first step to understand how vendors can position themselves will be to understand the components of the IoT/M2M IT ecosphere.

Because this is a derivative market, there are many opportunities for vendors to offer parts or product suites that cover the needed IoT IT set.

And vendors will have incentive to do so due to rapid growth which will occur as industries see the convenience, productivity, and efficiency that IoT brings to business processes.

Accordingly, while horizontal-focused IT vendors will look to offer IoT solutions that appeal to many industries, there will also be impetus to offer vertical-focused solutions that make IoT tangible for both industries applications (M2M) and consumer needs (B2B2C).

Tiazkun continued, “The IoT market will greatly impact and offer the potential for vertical-aligned businesses to improve both performance and profitability.

The IoT solutions space will expand exponentially and will offer every business endless IoT-focused solutions. The initial strategy of businesses should be to avoid choosing IoT-based solutions that will solve only immediate concerns and lack ‘staying power’.”


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E-Business

Meta to Charge Location Fees on Ads to Six Countries from July 1, 2026

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Meta, a multinational technology company, has informed advertisers that it will begin applying new location-based fees to certain advertisements delivered in six selected jurisdictions starting July 1, 2026, as the company moves to offset costs linked to digital services taxes and other regulatory charges.

Meta to Charge Location Fees on Ads to Six Countries from July 1, 2026

In an email sent to advertisers, the company explained that the new charges will apply to ad impressions delivered to audiences in specific countries, regardless of where the advertiser’s business is based.

“Meta will soon apply new location fees to ads delivered in specific jurisdictions to cover digital service taxes (DST) and other location-based fees imposed on Meta in those jurisdictions,” the company said in the mail.

According to the notice, the fees will be applied to ads delivered in Austria (5%), France (3%), Italy (3%), Spain (3%), Türkiye (5%), and the United Kingdom (2%).

The company added that these rates and jurisdictions could change over time.

Meta described location fees as additional charges tied to where ads are delivered rather than where the advertiser operates.

“Location fees are additional charges that may apply to ads delivered in selected jurisdictions to cover part of the costs associated with doing business in those jurisdictions,” the company said.

The company noted that the charges will be calculated after ads are delivered and will not be deducted from campaign budgets.

Meta gave an example in the email: if an advertiser spends $100 on ads delivered in Italy, where the location fee is 3%, the final cost would be $103, excluding any applicable value-added tax.

Explaining the reason for the change, the company pointed to regulatory developments affecting technology platforms.

“The cost of delivering ads in specific jurisdictions is changing due to the evolving regulatory landscape, including digital services tax legislation. Until now, Meta has covered these additional costs,” the company said.

The company added that the move aligns with broader industry practices, noting that other digital platforms may introduce similar charges linked to digital service taxes.

Meta said the location fees will apply to all ad formats, including image and video ads, as well as campaigns such as WhatsApp click-to-message ads that are billed together with advertising.

The fees will appear on invoices with clear descriptions by jurisdiction, such as “Italy digital services,” the company said, adding that taxes like VAT will still be applied on top of the total amount.

Advertisers were advised to review the affected ad accounts and share the update with their finance, procurement and marketing teams to prepare for the changes.


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Tizeti Tests Ad-Funded Internet Access Model in Nigeria and Ghana

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Tizeti Network Limited, West African broadband provider, has launched an advertising-supported internet platform across its hotspot network in Nigeria and Ghana, allowing users to watch short video adverts in exchange for data access.

Tizeti Tests Ad-Funded Internet Access Model in Nigeria and Ghana

The system converts advertising engagement into internet connectivity, offering users the option to view a short video advertisement to unlock data without paying upfront.

Tizeti said the platform is now active across all its hotspot locations in the two countries, covering residential areas, campuses, commercial districts and other high-traffic urban locations.

The service runs on Google Ad Manager’s rewarded web advertising technology, which allows users to voluntarily watch advertisements and receive data rewards once the video is completed.

At a hotspot location, users connect to the network as usual but are given the option to watch a short advert in exchange for a defined amount of data. Those who choose to participate can repeat the process to earn additional internet access.

The company said the approach creates a value exchange between users, advertisers and network providers.

Users gain internet access without immediate payment, while advertisers reach audiences who have actively chosen to view their messages.

“Internet access is a fundamental driver of opportunity,” said Nsikak Asuquo, West Africa manager at Tizeti Network Limited.

“By rolling out reward-based internet access across Nigeria and Ghana, we are expanding connectivity without financial barriers while offering brands a high-engagement platform to reach more than 2.5 million active users,” he added.

Tizeti said participation in the advertising programme is voluntary and operates under its privacy policies, with data handled in compliance with the Nigeria Data Protection Act and Ghana’s Data Protection Act.

The launch comes as Africa’s digital advertising market expands rapidly. Industry projections suggest programmatic advertising spending could exceed $5 billion on the continent by 2028 as brands increasingly shift marketing budgets online.

By integrating Google’s advertising infrastructure directly into its hotspot network, Tizeti aims to turn public Wi-Fi locations into scalable digital advertising channels while widening access to the internet.

Advertisers will be able to buy ad placements through Google Ad Manager’s ecosystem, including open auctions, private deals and programmatic guaranteed campaigns.

Tizeti said its hotspot network serves more than 2.5 million active users across Nigeria and Ghana.

The company provides broadband services using a mix of fibre infrastructure and public Wi-Fi networks, targeting communities, schools and businesses across the region.


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NITDA, Nkenne AI Seek to Localise AI for Nigerians

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National Information Technology Development Agency (NITDA) is partnering with Nkenne AI, a local artificial intelligence (AI) company, to develop language translation technologies tailored to the country’s diverse linguistic landscape.

There are more than 500 languages spoken nationwide, however many digital systems in Nigeria still operate primarily in English, leaving millions underserved.

NITDA and Nkenne AI have partnered with the ambition to improve accessibility and inclusion across Nigeria’s digital economy.

Nkenne AI’s chief executive, Michael Odokara-Okigbo, said the company is building localised AI translation tools designed for critical sectors, including healthcare, financial services and public administration.

According to him, these tools should enable users to interact with digital platforms in indigenous languages, thus improving accessibility and trust.

It’s not just a Nigerian challenge however, language barriers remain one of the biggest obstacles to technology adoption across Africa.

Beyond translation, the partnership between NITDA and Nkenne AI also seeks to strengthen Nigeria’s startup ecosystem by promoting responsible data practices and supporting emerging AI ventures.


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