By Alex Samuely
April 17, 2015
There is untapped advertising potential for wearables
Marketers advertising spend on smartwatches is
expected to reach a total of $68.6 million in four years as the wearables
sector becomes permeated by top technology brands such as Apple, as well as
more fashion-friendly retail brands, according a report from Juniper Research.
Consumers excitement about the rise of wearables will
certainly contribute to this projected amount, which is significantly increased
from this years estimate of $1.5 million. Brands and marketers will need to
create compelling new advertising formats to successfully see return on
investment, due to the narrow time frame that these mobile devices offer for
grabbing user interest.
On a smartwatch, there is very limited time for any
advertisement to be displayed on the screen and to engage the user, said James
Moar, research analyst at Juniper Research, Basingstoke, Hampshire, Britain. This
means that advertisements on a smartwatch need to have an instant impact on the
However, this could be extremely difficult on a small
screen, so brands and advertisers would need to formulate a creative and
compelling experience for the users.
time for banner ads has come to an end, instead paving the way for more
engaging forms of advertising such as interactive social media posts,
programmatic and mobile video. Video may offer the greatest potential for marketers
who seek to advertise on wearables, as short clips of several seconds each will
likely capture users attention as they glance at their wrists.
Consumers have also been proven to retain more
information from video advertising, thanks to the combination of visual and
Retailers such as Kenneth Cole are entering the wearables space
There is also large opportunity to advertise on fashion
brands smartwatches, as those devices may offer more visual features. Kenneth
Cole hopes to grab some of the excitement around wearables for itself by
rolling out a smartwatch collection that arrives in twelve styles and enables
users to take selfies, suggesting that more fashion brands will begin to
permeate the wearables space (see story).
However, those marketers must ensure that their devices
are just as technology-savvy as they are fashion-friendly, which prompts them
to turn to a vendor for expertise.
We expect fashion brands to show some interest in the
wearables sector, although their lack of expertise regarding the technology
will necessitate that they take a partner for their devices, either a vendor or
a third party consultancy company, Mr. Moar said.
the biggest challenges for advertisers will be the limited real estate that
wearable screens offer, as well as the need to market to consumers in several
seconds or less. Consumers usage behaviors will vary extensively from those of
smartphones, as mobile users typically spend several minutes at a time on their
smartphones or tablets.
Juniper posits that most ad spend will likely come from
ad hoc campaigns, until a user base is established. A large portion of
advertising spend is set to come from the Far East region, with North America
taking second place.
Smartwatches offer little real estate for ads, meaning brands must get creative
Apple consumers are very brand loyal, and the more
closed off nature of the iOS system limits their options in comparison to an
Android user, Mr. Moar said. Both of these will dampen the ability of
consumers to move beyond the Apple Watch itself, although the existence of
Pebble shows that there is room for cross-platform watches.
However, without the brand appeal and connections of a
vendor like Apple, such watches wont grab consumers attention in the same
Alex Samuely is an editorial assistant on Mobile Marketer, New York
Article source: http://feeds.mobilemarketer.com/~r/homepage-news/~3/HNbKYtH3at4/20246.html