By Danny Goodwin from A recent survey of more than 2,000 U.S. consumers showed that the majority isn’t aware that certain “Internet of Things” (IoT) devices like smart refrigerators or wearable technology even exists. This research dives into the perceptions that are creating a barrier to entry to these products, and how brands can incentivize the consumer to use an IoT device.
Houston, we have a problem. If you’re in the business of marketing tech devices to the masses that fall under the “Internet of Things” (IoT) category, you may have your work cut out for you.
According to a study published by Acquity Group, 64 percent of consumers have not purchased an in-home IoT device like a “smart” refrigerator or smoke detector because they didn’t know they were available.
The research report, dubbed the “2014 Internet of Things Study,” is based on more than 2,000 consumer surveys across the U.S., and found the following:
- Eighty-seven percent of those surveyed had not heard of the term “Internet of Things.”
- Forty percent of consumers did not know wearable technology like smart watches were available in the marketplace.
Of those who were aware of in-home IoT devices and wearable technology, participants cited concerns with privacy and lack of perceived value as reasons they hadn’t bought yet:
- For in-home IoT devices, 36 percent cited lack of perceived value and 23 percent cited privacy concerns.
- For wearable devices, 30 percent cited lack of perceived value and 19 percent cited privacy concerns.
In fact, 57 percent said they were less likely to purchase wearable IoT technology due to potential hacking and data breaches.
Adoption Rate For Wearable Technology To Double in 2015
Despite the concerns expressed today, the report forecasts a healthy growth for IoT devices, and highlights those that have the most promise for adoption.
Seven percent of consumers own a wearable IoT device today, and 4 percent of consumers own an in-home IoT device. While it may seem like a small percentage now, the five-year adoption rate growth looks promising across the board, according to the study.
Data show the adoption of wearable technology will increase from 7 percent in 2014 to 14 percent in 2015. When it comes to the devices most primed for growth in the short term, 13 percent of consumers said they would purchase wearable fitness applications and technology within the next year, and 33 percent said they would in the next five years.
Demographics And Incentives Also Impact IoT Adoption
Demographics also played a role in the decision-making process for IoT devices. For example:
- Parents are most likely to purchase in-home IoT technology and wearable devices.
- Men were slightly more likely (16 percent) than women (10 percent) to own or plan to purchase an IoT in-home device in the next year.
The research also showed that despite concerns the consumer has around privacy, when incentivized with coupons or useful information, consumers are more open to sharing data with retailers, manufacturers and so on.
In one question, survey participants were asked in what situation they’d be willing to share data with third parties from their smart car; top answers included:
- Obtaining one free maintenance appointment.
- Receiving vehicle health reports on their smartphone along with reminders for maintenance.
- Knowing the best place to get the least expensive gas.
As IoT technology trickles into every facet of our lives, very soon, smart devices could be norm in consumer products. A brand’s opportunity lies in not only the technology, but also the marketing of that technology in a way that addresses key concerns and perceptions the consumer holds that could be creating that barrier to entry.
Is your brand ready to reach consumers via smart devices and the Internet of Things?
By 
By