Various initiatives are carried out towards developing Smart cities that aim to make cities more sustainable. The Internet of Things (IoT) is a key aspect, where sensors are integrated in various „things‟, creating devices that are aware of, and respond to their environment. Bus shelters are among the facilities that are highly used by people in the city while commuting. Despite this high usage, they have remained the same technologically over the years. However, with new IoT technologies, bus shelters have the potential to be improved, providing a better experience to commuters, as well as creating value for businesses and public transport providers. This paper proposes a novel method that integrates IoT in bus shelters, enhancing the way information is displayed to the public through display screens. The information in focus involves digital signage advertising, public announcements or other information concerning the happenings nearby. The location and the time that the information is displayed are key factors considered, to effectively communicate the relevant information to the target audience. Furthermore, through the use of sensors, data analytics can be generated that describe the commuter traffic flow, thus providing useful information for public transport providers. Various use case scenarios are considered whereby smart bus shelters can be useful and a small scale prototype is developed to illustrate a proof of concept for the proposed solution. From the prototype, we demonstrate dynamic advertising through social media and show the potential of machine learning in predicting commuter flow from sensor data. We evaluate our work using questionnaires for the business and commuters, in order to find out the value created through implementing such a system. Additionally, we conduct functional testing of the prototype to evaluate its functionality. Other benefits are considered, such as reducing energy consumption by appliances such as lights, screens and smart heating systems for bus shelters. With our work, we hope to inspire further research into more suitable and innovative ways, in which bus shelters can be technologically enhanced. Furthermore, we believe that enhancements in bus shelters to provide a better experience for commuters while waiting for the bus, is a factor that could encourage more use of public transportation, providing value to public transport providers and local municipalities.