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BizReport : Mobile Marketing : March 13, 2015

How the Apple Watch may change advertising

This week Apple announced their new product lines - including the much-anticipated Apple Watch. While Apple's explanations were quite clear on what consumers can expect from the smart device, one expert says there are also opportunities for advertisers.

by Kristina Knight

Kristina: What effect will the new iWatch apps and location-based technology have on brands and advertisers:

John Haake, CMO, Verve: Apple is never the first to enter a new category, but when they do launch a brand new product it's because they see untapped potential. Their track record is pretty good with mp3 players and smartphones. Apple is also good at creating an entire ecosystem around their offerings. I'd expect a range of their wearables to fit right into their iAd advertising platform, and with a bevy of new apps and context/location-sensitive technology, it will have a big effect on mobile advertising.
I think consumers (especially early adopters) are ahead on context/location-sensitive technology. No one is going to be surprised by advertising on these devices, I think it is expected by the average consumer at this point in the game. The key is for advertisers to understand consumer preferences on frequency and relevancy. There is a high degree of difficulty here. The value exchange will need to favor the consumer in the short term.

Kristina: Which unique features of the Apple Watch advertisers will try to utilize?

John: I believe QSRs and the brands like Starbucks will experiment early with foot traffic incentives. It's unclear to me how branding or awareness campaigns would manifest themselves on the small screens of watches, but you never know.

Kristina: What is the "value exchange" of data for utility for consumers? And will this be more important than ever?

John: If advertising is linked to better functionality, consumers will gradually accept the value exchange. The public has shown tremendous growth on this front. It's when marketers overstep and don't bring value that consumers get wary about providing their PII.

Image via Shutterstock

Tags: app advertising, Apple Watch, appvertising, mobile marketing, Verve

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