Apple is definitely changing the smartwatch game, and this claim is now backed by a research from Juniper Research.
Advertising spend on smartwatches will reach $68.6 million (£46.77 million) by 2019, up from an estimated $1.5 million (£1.02 million) this year it says, saying that Apple’s new product will give the market a huge boost.
“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 says in the press release.
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.
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.
But the limited real estate is not the only problem, as people will not *look* at smartwatches – they will rather glance, giving advertisers less time to engage their audience.
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.