A sneaker ad for completing 1L steps! Time for brands to walk into world of wearable tech?

While conversations around AI continue to dominate media and advertising meets and symposia, as in every other industry, talk around another technology is also doing the rounds as tech titans and upstart startups alike continue their chase for the Holy Grail that is an AI hardware device.

And while Apple’s Vision Pro AI-powered headset may cost close to an eye-watering three lakh rupees per unit, several other more affordable devices are making inroads into the market. Fitness trackers have become nearly ubiquitous, while other devices including smart rings, AI-assistant pins, and more reasonably priced headsets are here to stay.

According to the EY-FICCI M&E Segment Report, in gaming, “AR and VR are the most popular tech that gamers want to experience, followed by wearable gaming, which use smart glasses and similar immersive devices.”

These devices provide a 360-degree world for gamers to dive into and enhance their experiences. The report notes, “For instance, Apple’s Vision Pro analyzes personal data such as facial expressions or gestures to enhance user experience. Similarly, metaverse platforms often collect a significant amount of personal data from users to immerse themselves in the virtual world.”

And it is this consumer data generated by these wearable devices that is of so much interest for advertisers, as they provide among the most personal data sets, apart from what they browse and watch. From the amount of exercise a person does (or doesn’t) in a day, to the hours they sleep, to the calories they consume, to other data points, brands will have an unparalleled amount of data.

Kunal Luhar, Co-Founder and Chief Business Officer, 5W1H, agrees that businesses can utilize wearable technology in various ways, capitalizing on the abundance of data points generated by these devices. “These data points, such as step counts, sleep tracking, food intake, ECG levels, and oxygen levels, enable advertisers to implement more targeted and contextual advertising strategies. By leveraging this data, advertisers can effectively reach consumers with relevant ads across different sectors such as FMCG, F&B, Pharma, and BFSI.”

“Brands that are into healthcare, fitness, fashion, and technology can benefit sooner than the others, by hyper personalising their ads, basis the kind of data these wearables currently provide,” agrees Sudarshan Sudevan, ECD, Saatchi & Saatchi Propagate, saying that since these devices are a rich source of customer data, advertisers are able to create more personalised and relevant experiences for customers.

“Imagine getting an ad for a new sneaker, on completion of 1 lakh steps or an ad on a vacation trip basis your week full of high heart rate, less sleep. A delicate balance is what has to be kept in mind by advertisers, to not make the experience negative for the customer by turning ‘invasive’ in any way, in their newfound immersive space,” he adds.

Most of the wearables are paired to smart phones. A ring, watch, band etc can prove helpful for brands to hyper personalise ads basis the data received on the respective apps, eg. fitness products, diet plan etc.

“Though I haven’t yet seen any specific ads on these glasses yet, assuming the visual area is very small and would constrain the use of image or text. But if ads are integrated only in specific locations like malls for example where the conversion chances are high, it can generate a rich seamless experience through notifications, discounts, product experiences which cannot go unnoticed,” says Sudevan.

Raghav Upadhyay, Head- Performance Marketing, Team Pumpkin, notes that navigating this space requires a delicate touch. Consumers are rightly concerned about privacy breach. The key lies in striking a balance by delivering relevant and useful information that seamlessly integrates with the user experience.  This subtle, personalized marketing approach could amplify the chances of increased trust and avoids the perception of being overly promotional.

“The future of wearables isn't about bombarding users with intrusive ads. It's about whispering suggestions in their ear at the perfect moment. Think micro-interactions on your smartwatch that take you towards healthy choices based on your fitness tracker data, or gamified challenges that reward you for reaching your goals. Such ad formats can be seamlessly integrated while staying in sync with the device functionality,” he says.

This involves tailoring ad formats to suit the specific capabilities and user experiences of each wearable device. “By understanding the unique features and limitations of each device, brands can craft ad experiences that seamlessly integrate with the user's interaction patterns, maximizing engagement and effectiveness,” says Luhar.