The introduction of the Smart Watch and disruption to follow



To date marketing has been a great lever to ensure technology is at a price point which everyone can afford i.e. either products are packaged with “bloatware” (sponsored software you did not ask for that subsidises the unit price) or freemium models where pop up marketing subsidises a “lite” product with reduced functionality e.g. Spotify. These levers however generally require screen real estate to exist. With the introduction of the smartwatch form factor interesting disruptions will occur; either Smartwatch Apps will need to be a loss leader for the developer as the screen is too small to incorporate banner ads (unless of course they take evolve to take over the whole screen) or the apps will need to be functionally rich enough for them to be charged for.   This change will unfortunately be a limiter of Innovation as only the developers or enterprises large enough to offer quality products or subsidised free ones will exist, albeit this should drive a welcomed increase in quality. The smartwatch however will offer interesting disruptions based on its underlying technology. If we think, today most marketing is based on profile or behavioural interactions however with the smartwatch its GPS and health functions will allow marketing to be based on your actual location or health i.e. if it knows you run, running products could be offered, health products could be devised based on your actual activity and heart beat, travel insurance could be offered based on your actual location, security products could be developed based on your heartbeat and perspiration. Its still early days for smartwatch technology however personalisation and disruption will certainly emerge over next few years.


Author: Steve Wakefield

Steve Wakefield is an experienced Innovator presently based in London.

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