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BizReport : Internet : August 21, 2014

Study: Privacy concerns high for wearable tech

According to new data out from Accenture and Acquity Group more than two-thirds (69%) of American adults will own an in-home Internet of Things (IoT) device by 2019; only 13% are expected to own a device by the end of 2015, showing a significant jump in adoption for IoT. However, privacy concerns top the list of reasons many won't adopt soon.

by Kristina Knight

Internet of Things devices can include anything from wearable tech to connected thermostats.

"Our data reveals a gap in consumers' fears of data privacy and their actual purchasing behavior," said Jay Dettling, president of Acquity Group. "To capitalize on these opportunities, companies should focus on specific benefits that sharing data will deliver to consumers."Some interesting takeaways from the report include:

• 80% say they're concerned about the privacy of wearable tech
• Half say they'd share personal data via IoT devices for coupons/discounts
• 53% said they would share data with doctors
• Just over one-third said they wouldn't share data with anyone
• 83% say they would 'pay a premium' for connected smoke alarms/devices
• 59% would pay a premium for smart refrigerators

The features most consumers are looking for from IoT devices include location based coupons/offers for frequently purchased goods or even recipes. And, about one-third say they would watch heavily targeted commercials in their home for additional coupons/deals.

"As the connected technology opportunities within the market continue to grow, it's important for businesses to understand ways to overcome barriers to adoption and create digital device strategies," added Dettling. "Our study demonstrates the importance of a value-added user experience. Brands that do not evolve strategies to mirror consumer expectations will fall short and miss major revenue opportunities moving forward. While incentives are part of the answer, companies must create an understanding among consumers that their devices and personal data are well-protected from security threats - this is where firms can most effectively differentiate their business models."

Image via Shutterstock

Tags: Accenture, Acquity Group, internet of things, smart device trends, wearable technology

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