Editor’s note: Jay Rampuria is EVP, global business development, at research firm Toluna, Dallas.
Where humans end and machines begin is becoming an increasingly difficult line to distinguish. Now more than ever, technology is encroaching on every corner of our lives. It is impacting how we behave in our homes, how we drive and even the accessories we wear.
What’s more, smart technologies are present 24/7, offering round-the-clock services. Some are rapidly gaining popularity, while others are not readily accepted.
The key to understanding why some tech takes off is in the functionality and the age group to which it is marketed. In fact, two distinct categories of technology can be mapped to two distinct target demographics – health and safety. Entertainment is not even a factor.
New research from Toluna and Harris Interactive looks at how U.S. consumers feel about new smart technology, asking more than 1,000 consumers about the latest devices and capabilities on the market.
The results indicate that younger people, aged 18 to 34, have one clear priority when it comes to tech buying: health and fitness.
Technologies designed to improve sports performance or sleep quality are being enthusiastically embraced by young respondents – and their dollars are following. More than half (53%) of younger people use or have purchased smart devices to track and monitor health/fitness activities, while less than 15% of the older age group utilize technology for health reasons. In fact, 97% of those 55 years of age and older have never purchased sports or sleep tech.
To grab the attention of this demographic, personal and home safety must be a key function of the technology.
As the older age group purchases technology to keep themselves safe, their focus on security extends to the perceived privacy of new technologies. They will not purchase if they don’t feel as though technologies maintain their privacy.
Targeted advertising also proves unpopular with consumers in the older age bracket. While 58% of those between 18 and 34 years of age would be more inclined to use smart speakers with targeted ads, 68% of the 55+ population would be less inclined to use them. For the older group, a perceived lack of privacy from personalized advertising makes them feel as though their security is at risk, and therefore significantly less likely to purchase, in this case, the smart speakers.
Connected home devices are one type of technology that bridges the gap between older and younger demographics, holding steady interest across both age groups. Indeed, 64% of all respondents are likely to embrace smart home products. Here again, age group priorities are a factor. For the 55+ age group, the primary reason for purchasing smart home devices was security or safety, while 58% of those in the 18-34 age group were interested in connected home fitness.
Focus on demographics
By and large, when predicting the success rate of a new technology, marketers must keep a close focus on demographics and their corresponding purchasing habits. Younger people are easily adapting new technologies, looking at the added benefits offered and opting tech innovations that are very personal (i.e., fitness benefits, targeted advertising, etc.). The older demographic are motivated to purchase and explore new technology for the practical benefits it can offer, opting for technology that brings peace of mind and a sense of security.