A new study from Juniper Research has found that advertising spend on smartwatches will reach $68.6 million by 2019, up from an estimated $1.5 million this year.
The research – Digital Advertising: Online, Mobile & Wearables 2014-2019 – found that growth will be fuelled by the entrance of high profile brands such as Apple into the smartwatch arena, allied to increased consumer affinity with and acceptance of wearable technology. It argued that the emergence of an additional consumer screen would stimulate interest amongst advertisers, although until a critical user base is reached most ad-spend is likely to take the form of ad hoc campaigns.
New advertising formats for smartwatches
However, the research notes that brands will need to devise and implement new advertising formats designed to cater for the limited real estate on a smartwatch screen.
Additionally, it observed that behavioral differences between smartphone and smartwatch usage are likely to provide a further challenge. With consumers viewing smartwatch screens for seconds rather than minutes, advertisers will have markedly less time to engage their audience.
Programmatic Advertising to Lead
Meanwhile, the report also suggests that programmatic (real-time bidding) advertising is one of the main drivers within the wider digital advertising sphere. Programmatic advertising has evolved over the last couple of years from low levels of implementation to becoming an integral cog in the system.
All types of advertising formats are now being traded between advertisers and publishers in the ad exchange markets, where it used to be a place where only the excess or remnant publisher inventory was sold.
Other findings from the report include:
• Native advertising formats are becoming popular due to their ability to mimic the look and feel of the webpage.
• An evolving array of entities are involved in the digital advertising value network and the complexity is increasing as more technological advances come into the fore.
• Rich Media advertisements are becoming increasingly prevalent, particularly with regards to in-app advertising.
The whitepaper, Digital Advertising Gets Personal, is available to download from the Juniper Research website together with further details of the full report.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.
Source: Juniper Research
MacDailyNews Take: There are currently no ads on Apple Watch, as the current WatchKit framework does not allow for it.
So, in effect: “Advertisers plot stupidtwatch invasion.”
That’s all I need is having Ads on my $700 watch! I want OUT!
I, however, do want ads on my Apple Watch. I want ads for the products and services I use that are nearby when I am in the market for them. I want a piece of software that I can load my lifestyle and preferences into and get ONLY the ads that are pertinent to me when they are pertinent to me.
I also want retailers and wholesalers who sell those items to know that when I buy it, they can restock it in a timely manner.
Ads should be opt-in only, period. IMHO, Apple should clearly mark all the apps in its stores that are ad-supported.
But no, now we see Apple behaving like Google with its #$%%^& iAds. There is no option for users to have an ad-free trial of software on the iOS platform. The majority of us strongly detest annoying ads, because as we all know, no advertisements displayed on a tiny screen is informative or education — all they do is say “buy me” “buy me” “buy me” based on something than you researched and bought already last month.
We agree that it should be opt-in only. If you carefully read my post, you will notice that I think it should be totally user controlled. Everyone hates stuff shoved in their face even when they want it.
What a well-trained little consumer you are!
I rarely buy anything but when I do, I want to research it before I buy. If a well written app knew my preferences and presented me with a notice that what I wanted was on sale and near me and also presented me with a web page on my iPhone with the details of the product or service, I could make an informed choice to pursue it.
You’ve just articulated MARKETING vs ADVERTISING.
I’ll accept NO ads on my Apple Watch. Any app that attempts to show me ads will be deleted.
That said, I would be open to iBeacons notifications as I walk through a store, as long as it’s opt-in.
Does anybody else smell the desperation of a society that is incessantly screaming “BUY”! Especially when you consider the most valuable company in the world doesn’t advertise very much, and most of us would still rather own its products than any others.
“…the most valuable company in the world doesn’t advertise very much…”
Apple Inc Annual Advertising Spending:
2006: $338 million
2007: $467 million
2008: $486 million
2009: $501 million
2010: $691 million
2011: $933 million
2012: $1 billion
2013: $1.1 billion
2014: $1.2 billion
Source: Apple annual reports (Form 10-K)
wow.
I just want to go through their couches and collect the change.
Higher than I expected; Apple must overpay tremendously. The ads appear few and far between. It just seems a small amount compared to Samsung’s $14 billion advertising budget, or even Microsoft’s $2.5 billion.
Apple doesn’t run a lot of commercials but you do see a lot of billboards around. A couple of good ones are on the 101 freeway into San Francisco. They are huge and everyone driving in or out of the city can’t miss them.
Piss on the advertisers! I didn’t shell out all that money for an Apple Watch, and iPhone, MacBook Pro, and Mac mini for these leeches to infiltrate my devices with ads. They have no right to force their crap on me and I will refuse to load any apps that try to push things on me without my consent.
Did you say iPhone?
http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Daps&field-keywords=iphone
Apple Watch? Did you say Apple Watch?
http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Daps&field-keywords=apple+watch&rh=i%3Aaps%2Ck%3Aapple+watch
Oh, be still my beating heart. 😵
I hope advertising is is something only Android garbage will support. Keep it off our Apple Watches, Apple.
Ads via notification?
It will happen. But let’s keep it opt-in.
The minute that I get any ad, from anyone, on my watch, and I cant find a way to totally disable it forever not just for that moment, the second that watch goes either back to Apple or for sale.