Online advertising has been a huge success over the past few years and it has reached smartphones from computers. Companies such as Google Inc (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL) and Facebook Inc (NASDAQ:FB) have been ruling the markets of online advertising. Though there are other players today, these might be the companies holding an advantage in the next level of advertising, the wearable advertising business.
James McQuivey, Principal Analyst at Forrester Research and Brian Womack of Bloomberg explained how the future of advertising would be and what it could mean to the big players such as Google Inc (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL) and Facebook Inc (NASDAQ:FB).
Womack said that the next frontier of advertising would take time and that the advertising companies are actually waiting see the mood of the market about the wearable industry. He also said how the whole wearable industry has moved ahead and is not just about fitness anymore. He mentioned about the smart watches launched by various companies with Google Inc (NASDAQ:GOOGL)’s Android OS and about the rumored iWatch that is expected this fall. Though he said that the companies are heating up the market, he feels that we can never be sure if the consumers will adopt the wearables in the projected numbers.
McQuivey explained how the % of people who want to adopt a wearable, particularly the ones on the wrist, has been increasing year on year. He said that around 40% of people are interested in using a wearable. He also said that there has to be an iPhone like moment for this industry to kick off which was not seen in the recently developer conference of Google Inc (NASDAQ:GOOGL) and we would need to see if Apple Inc. (NASDAQ:AAPL) can pull off something magical. Another factor according to him is developers creating applications for wearables and increasing revenue is the only factor that would motivate them to create more apps.
“I think that advertisers are going to have to be really careful though. This is a much smaller screen and they are going to have to be much more sort of thoughtful on the creep factor at times because wearables are even more personal in some ways than a smartphone,” Womack said about the adaption of advertising for wearable industry.
McQuivey explained how the devices would share additional data to get more relevant ads and ultimately it would be up to the user to share the data. However until and unless a user share’s the data, the ads would be meaningless. So if the wearable industry does become big, it is going to add another source of advertising for the companies like Google Inc (NASDAQ:GOOGL), Apple Inc. (NASDAQ:AAPL) and Facebook Inc (NASDAQ:FB).