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 and Wearables 2014-2019, found that growth will be fueled by the entrance of high profile brands such as Apple into the smartwatch arena.
The emergence of an additional consumer screen, says the report, will stimulate interest among advertisers, although until a critical user base is reached most ad-spend is likely to take the form of ad hoc campaigns.
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, 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.
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.
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N.B. Editor’s Correction
The chart displayed in the Research Brief posted on June 1, Out-Of-Home Advertising Sets Up Mobile Search And Shopping, was incorrectly shown. The corrected format is included here.
Smartphone User Media Exposure In The Hour Before Mobile Activity
Exposure Before Mobile Social Activity
Exposure Before Mobile Search Activity
Exposure Before Mobile Shopping Activity
Any OOH media
Billboards,transit, street furniture
Source: OAAA/RealityMine, May 2015