Insight Presentation: "What Wearables Mean For Marketers"

What Wearables Mean For Marketers Sarah Rotman Epps, Senior Analyst Forrester Research October 22, 2013

@srepps

• What's hype and what's reality when it comes to wearables?

• Where are wearables going next?

• What do wearables mean for marketers?

“WEARABLES ARE MAINSTREAM NOW.”

MYTH #1:

Reality: Wearables are still niche

Base: 4,657 US online adults. Source: Forrester’s North American Technographics Consumer Technology Survey, Q1 2013

Track daily

activity:

5%

Track

performance

in a specific

sport: 6%

US online adults that currently wear a device to:

Track

sleep

quality:

5%

Get

feedback

on

posture:

3%

Base: 4,673 US online adults 18+ Source: Forrester’s North American Technographics Consumer Technology Survey, 2013

Percentage of US online adults willing to wear a

sensor device from a brand they trust,

offering a service that interests them:

“WEARABLES ARE GREAT FOR HEALTH TRACKING, BUT NOT MUCH ELSE.”

MYTH #2:

Reality: Consumers are interested in varied sensor scenarios

Base: 4,657 US online adults. Source: Forrester’s North American Technographics Consumer Technology Survey, Q1 2013

Unlock your car or house

so you don’t have to carry

keys: 44%

US online adults that are interested in using a sensor device to:

Get media

recommendations based

on your mood: 30%

Track your child’s

activity: 29%

“SMARTWATCHES WILL BE THE NEXT BIG THING.”

MYTH #3:

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Reality: Smartwatches are over-hyped › Smartwatches have been around for more than a

decade

› Watches are a declining form factor, and smart ones do too much and too little at the same time

› Pebble shows the flaws of associating Kickstarter success with broader appeal

› Samsung’s Galaxy Gear will have few takers

› But…a solid product from Apple could sell tens of millions

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Where wearables go wrong

Not a need-to-have

Aesthetic inflexibility

Chart fatigue

Limited battery; faulty hardware

Hierarchy of needs for wearables

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As we solve these problems, wearable adoption will grow—how much is disputed

WHERE WILL WEARABLES GO NEXT?

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More form factors

Jennifer Darmour (@electricfoxy)

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More use cases

• Identity validation

•Payments

•Personal safety

• Insurance

•Productivity

•Media interaction

•Social networking

•Navigation

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More integration

Jawbone UP app partners

WHAT DOES IT MEAN FOR YOU?

For marketers, wearables mean:

• Data

• Intimacy

• Responsibility

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Consumers want to interact with brands on (some) wearables, but they want utility, not advertising

What marketers should do now

• Educate

• Experiment

• Partner

THANK YOU

Sarah Rotman Epps

srotman@forrester.com

www.linkedin.com/in/srotman

@srepps www.forrester.com