Smartwatches: Past, Present and Future

Smartwatches: Past, Present and Future

September 8, 2014

@gregswan

SVP @ Weber Shandwick

Brand Innovation

Consumer Marketing

Digital/Mobile Strategy

Strategic Partnerships

Why do we have such an obsession with smartwatch tech?

Drawn by Nick O’Brien

1942 1979

1982

Future Cities. Home & Living into the 21st Century

1983

1963

..to this

…but actually this?

3 –pronged approach to understanding where we’re at in the smart watch adoption cycle

Ubiquity of Mobile

Quantified Self

Smartwatches Today

Ubiquity of Mobile

Smartphones Have Revolutionized Consumer Behavior, Disrupted Countless Industries

North America

South America

Europe Asia Africa Oceania Global0

5

10

15

20

25

30

35

40

45 13-May14-May

MOBILE USAGE AS % OF WEB USAGE BY REGION, 5/14

11%

19%

6%

17%

8%

16%

23%

37%38%

18%

12%

17%

14%

25%

Source: Mary Meeker, Internet Trends, May 2014

Mobile accounts for 25% of all web usage

Internet Ad=$43B

Mobile Ad=$7.1B

% OF TIME SPENT IN MEDIA VS. % ADVERTISING SPENDING, USA, 2013

% O

F TO

TAL

MO

BIL

E C

ON

SU

MPTIO

N

TIM

E O

F A

DV

ERTIS

ING

SPEN

DIN

G

~$30B+Opportunity in USA


Smartphones are the Primary Screen in U.S. & ChinaThe eyeballs, and money are following.

“VISUAL WEB” SOCIAL NETWORKS: UNIQUE TREND, USA, 3/11-2/14

US

A U

NIQ

UE V

ISIT

OR

S (

MM

) DESKTOP ONLY MULTI-PLATFORM


Rich Content & its Sharing is Rising Rapidly

TOP FACEBOOK NEWS PUBLISHERS, 4/14 TOP TWITTER NEWS PUBLISHERS, 4/14

# OF INTERACTIONS (MM) # OF SHARES (MM)

Facebook SharesFacebook LikesFacebook Comments


Facebook & Twitter are Still King (and Queen)

Surfing the web

Shopping

Checking sports scores

Looking up info on actors, plots, athletes etc.

Emailing/texting friends about program

Reading discussion about TV program on social media sites

Buying a product/service being advertised

Voting or sending comments to a Live program

Watching certain TV programs because of something read on Social Media

0% 10% 20% 30% 40% 50% 60% 70%

TabletSmartphone

WHAT CONNECTED DEVICE OWNERS ARE DOING WHILE WATCHING TV, USA


84% of mobile owners use devices during TV Time

132 117 181 110

Indonesia

Philippines

China

Brazil

Vietnam

USA

Nigeria

Colombia

Thailand

Saudi Arabia

South Africa

Czech Republic

Russia

Argentina

UK

Kenya

Australia

Spain

Turkey

Mexico

India

Poland

South Korea

Germany

Canada

Slovakia

Hungary

Japan

France

Italy

0 100 200 300 400 500 600

TVSmartphoneLaptop + PCTV2

SCREEN MINUTES

DAILY DISTRIBUTION OF SCREEN MINUTES ACROSS COUNTRIES (MINS)

132 117 181 110

99 143 174 115

89 161 170 59

113 146 149 66

69 160 168 69

147 103 151 43

131 80 193 39

114 123 165 35

78 96 167 95

102 99 189 43

115 126 127 63

111 122 119 70

98 158 98 66

104 114 106 30

148 97 111 55

132 65 174 33

125 102 132 37

124 97 122 53

111 109 132 39

93 103 163 32

96 95 162 31

95 132 90 61

127 94 144 14

129 77 137 36

104 97 124 51

95 106 98 52

98 112 90 48

125 68 135 15

134 83 79 30

89 85 109 34

Smartphones = Most Viewed Medium Globally


if you can measure it, someone will, and that somebody should

be you.— chris dancy

Quantified Self

history of self-tracking

"quantified self” coined in 2007 by Wired Magazine

editors

“a collaboration of users and tool makers who share an interest in self knowledge

through self-tracking.”

• The movement to incorporate wearable technology as a means to collect and track data related to personal inputs and outputs

• Utilize quantifiable data to better understand oneself, one’s health and one’s limitations

• Growth driven by affordability and widespread implementation of sensors

• Popularized recently by fitness-related products Nike FuelBand, FitBit, Jawbone Up and more

• Also called Body-Hacking, or Lifelogging

The Quantified Self

sousveillance

inverse surveillance, by recording an activity by way of portable, personal

technologies

a form of volunteer autoethnography

“QSers” don’t just self-track; they also

interrogate the experiences, methods and meanings of their

self-tracking practices, and of self-

tracking practices generally.

-Whitney Erin Boesel, Cyberology

“Dancy is connected to at least three sensors all day, every day. Sometimes, it’s as much as five. They measure his pulse, his REM sleep, his skin temperature and more. He also has sensors all over his house. There’s even one on his toilet so he can look for correlations between his bathroom habits and his sleep patterns.” (Wired Magazine)

the extreme…

the adoption of quantified self

In total, 7 in 10 U.S. adults track an indicator of health for themselves or a loved one, and report that the activity changes their overall approach to health

• 60% of U.S. adults say they track their weight, diet or exercise routine.

• 33% of U.S. adults track health indicators or symptoms, like blood pressure, blood sugar, headaches or sleep patterns.

• 12% of U.S. adults track health indicators or symptoms for a loved one.

• 21% of Americans are tracking themselves using technology -- more than active Twitter users (Pew, Feb. 13)

• Apple Stores sell more than 20 self-tracking products.

• There will be an estimated 485 million wearable computing devices shipped by 2018 (ABI Research, Feb. 2013). For reference, 700 million smartphones were shipped in 2012. Source: Pew Research, “Tracking Health”

http://pewinternet.org/Reports/2013/Tracking-for-Health.aspx

"We are moving towards a time when the ability to track and understand data is deeply woven into our daily lives. Sensors are becoming cheaper and connectivity is more ubiquitous by the day.“

-Ernesto Ramirez, community organizer for Quantified Self

how does it work?

Tracking inputs and aggregating data around:

1. Performance

2. Health

3. Environment

Then:

• Aggregate and quantify data

• Sync via web and apps

• Compete against friends

• Share24

Quantified Self TodayOne-off wearables

UnattractiveLittle integration

Practically no data ownership

(via Sonny Vu, Misfit Wearables)



Quantified Self TomorrowIntegrated into clothing/techUnnoticeable

Cross- device integrationIncreased data ownership

centralized dashboards

limitations

• No common platform: every device tracks differently.

• Medical limitations: measuring activity or sleep or food or blood pressure only tells part of the story.

• Sharing: Only 34% of trackers share their data with someone else – which means that the other 66% are not as motivated as they could be.

• Data ownership: users rarely have access to their raw data.

• Privacy: emerging technology requires emerging regulations.

1. Sits and Spikes2. Data ownership and portability

is extremely limiting3. Smart devices are smarter than

dumb devices, but not much more

4. My primary doctor doesn’t care about all of this “health” data I’ve stored up

5. Gamification inspires action6. Warm months = more activity

Smartwatches Today – And Tomorrow (literally)

2013 SmartWatch Industry

• 40 Companies had smartwatches on the market in 2013, expected to grow to 200 by the end of 2014

• A total of 3.1 million units were sold compared to 0.3 million in 2012, expected to grow to 15 million in 2014

• The average price for a smartwatch sold in 2013 was USD $225

• Market Value in 2013 was $700 million USD

• In 2014 the Industry is expected to grow to $2.5 billion USD

2013 Market Share for SmartWatch Industry

Consumer Insights/Primary Uses

Personal assistance

Health & Fitness Personal safety

Communication Smart home access

Near Field Communication

(NFC)

Corporations + Startups

Brands + Consumers

Employees + Markets

Machines + Media + The

PublicMultiple stakeholders

impacting smartwatch adoption

Apple’s impact on entering the industry

Where are we headed? Let’s discuss…

• Utility/Social Stigma

• Price

• Battery Life

• Privacy (e.g., GPS and cameras)

• Data Ownership

• Fashion

• App Store

• Standalone vs Slave

• Special Uses vs. Mainstream Uses (e.g., kids, seniors)

• Apple (e.g., iPad utility post-launch)

• Geeky toys becoming mainstream (e.g., phones, fax, computers, drones)

thank you.

Smartwatches: Past, Present and Future

Devices & Hardware

data ownership

blood pressure

internet trends

sonny vu

misfit wearables

mary meeker

sensors

tracking