Connected lives 

In 2020 Deloitte estimated that people in the UK typically owned 6 devices each, up 50% in just 5 years, and in the US Parks Associates estimate that those who own smart home devices like connected doorbells and door locks on average own eight connected devices.

It is now getting quite hard to buy a TV that is not smart.  Connected TVs mean that ‘traditional’ linear broadcasting is not the default option the way that it was on traditional TVs; Netflix and the streamers are just as easy to be chosen for viewing as channels with decades of heritage.  In the UK the most recent IPA Touchpoints survey reports that 56% of the population watch streaming services for an average of one hour twenty minutes a day (!), a big increase on the previous figures (37% watching for one hour six minutes in 2018), and that Netflix now has 44% reach into homes.

Smart speakers – including Amazon Echo and Google Home – have now dropped in price and can almost qualify as ‘stocking fillers'.  Capabilities are also increasing; Amazon has just unveiled a feature to let its devices use sound to determine whether a room is empty or not, potentially making them cheap and easy to install security devices on top of their other skills.

Lockdowns saw the emergence of a new category of smart device: home fitness.  Peloton was one of the ‘poster’ companies of the pandemic, with its connected bikes cutting through into the public imagination.   Zwift, the service that lets users connect their own static bikes to screens to virtual race against friends, even became part of this year’s Olympics, with virtual events taking place for amateurs (arguably following the original Olympic ideal), before the games started in Japan.  VR has also entered the fitness space, with apps like FitXR allowing users to get fit through simulated virtual activities like climbing and sword fighting, needing less equipment than Peloton.

We have also seen increased interest in wearables like watches, activity bands, ear buds, and even smart glasses and sleep-tracking rings.  Facebook (now trading as Meta) was one of several companies to launch glasses, with its partnership with Ray-Ban.  Technological advances and miniaturisation are starting to make these devices both cheap and useful enough for more people; arguably smart glasses work not only for their visual elements like cameras, but also because they incorporate headphones.

While the move to more connected lives now feels inevitable, relaxation of lockdown has had an impact on devices like Peloton.  This year has not been as profitable as last, and it is possible to find pre-owned models on eBay.  Despite this, it seems that many at-home smart devices are going to become big parts of our lives.

Brands need to understand that these devices give consumers even more options for entertainment and attention at home. CTV is here for many; Netflix has pushed adoption, and brands need to find ways to target this audience both on the TV screen and on second screens (for example searches related to programming).  YouTube is also a major player in connected TV, but ad funded, and it is now possible to buy ads targeting CTV users in the US that give the option to send details about the ads to the users' phone, making buying products seen on TV much more seamless.

Brands also need to find a way to target within other devices or their connected apps, but also to think about what sorts of behaviours and lifestyle use of these apps is likely to drive. The future of business reside in ecosystem, it's time for brands to examine how they can use connectivity to drive new innovations and offerings and broaden value creation for their customers.