Facebook is developing a connected watch
Global Digital Marketing Director Andrea Diaz brings us the latest international marketing news, new smartwatches buy now, pay later. Read more.
International marketing news: facebook is developing a smartwatch
In this week’s International Marketing News Round-Up, there is an overview of Facebook’s smartwatch development, a potential luxury boom in India, the continuation of post-Brexit trade deals and more.
Facebook is developing a connected watch that could be powered by Google
For 2022, Facebook is developing a connected watch based on its messaging services, with a focus on health and fitness.
- It will run on a “open source version of Google’s Android software”, which can be Wear OS or a fork of Android.
- The Facebook smartwatch should also have a cellular connection, which makes sense given the company’s messaging focus.
- Its messaging features are intended to focus on brief contacts with people who would normally be handled by a smartphone.
- There are rumors that Facebook is planning to use its influence on social media to create a health and fitness platform to compete with Strava. This would make the next smartwatch an important part of the company’s fitness push – but it could also make it a platform for users to compete against each other, whether through staged challenges or challenges. more difficult fitness.
It’s obvious that Facebook wants to draw as many people as possible from the Google and Apple ecosystems, and hardware seems to be their method.
MOST BUY NOW, PAY LATER USERS ARE GEN Z OR MILLENNIALS IN THE UNITED STATES
According to early user forecasts for these financing choices, more than 45 million people in the United States aged 14 and over will use Buy Now, Pay Later (BNPL) services this year. This is an increase of 81.2% compared to 2020, and the age range of BNPL customers will also widen in the years to come.
Over 80% of BNPL users were Millennials or Gen Zs (14+) in 2018, while major companies today like Affirm, Afterpay, and Klarna were still asserting themselves as respectable payment providers. . This year the figure will drop to 73.2%, however, younger customers are still more likely to experiment with alternative payment methods than the general public.
- The financial flexibility of BNPL’s services is a big lure, especially for the younger generations. These solutions offer younger customers, who sometimes have limited cash flow, greater payment flexibility, especially for larger shipments.
- Generation X and baby boomers are increasingly targeted by BNPL’s services. Forever 21, H&M, The RealReal, and other young-customer traders have long-standing relationships with top vendors.
According to the 2025 forecast, Generation X and Baby Boomers will account for around 30% of BNPL service subscribers. Users aged 45 and over will make up roughly the same percentage of total users. This year, 2.4% of internet users aged 65 and over will use these financial services, rising to 8.2% by the end of 2025.
Is India’s luxury boom mimicking that of China?
India’s wealthy and aspiring classes are growing rapidly, and their insatiable need for luxury is reminiscent of that of China.
According to Credit Suisse’s Global Wealth Report, India had 4,593 very wealthy people in 2019, ranking fourth behind the United States, China and Germany.
Approximately 912,000 millionaires live in India, or 2% of the 51.9 million millionaires in the world. India will overtake the UK to become the world’s fifth-largest economy by 2025 and the world’s third-largest economy by 2030, according to the Center for Economic and Business Research (CEBR).
According to India Retailing, the luxury market in India will be worth more than $ 200 billion by 2030. As India emerges as a global luxury hotspot, international companies are increasingly optimistic about the expansion of their footprint and their brand awareness in the country. However, in one of the largest and most populous countries in the world, marketers just have to be careful with their customers. A “one size fits all” approach will not work as consumer trends and behaviors vary across regions, cities and social groups.
This year, CTV’s initial advertising spend in the United States will exceed $ 4 billion
Advertisers will spend about half as much on initial video ads on CTV this year than last year, for a total of $ 4.51 billion.
This figure takes into account all upfront CTV video ad spend, such as spending on TV Upfronts, Interactive Advertising Bureau (IAB) Digital Content NewFronts, and other events and meetings throughout the year. year.
It has become common for a TV network to spend billions of dollars developing its own streaming service, so it’s no surprise that networks are emphasizing their own streaming services during initial launches, asking advertisers to commit 20% to 30% of their initial budgets for their streaming. services, according to MediaPost in April.
Because digital inventory becomes increasingly prominent in initial deals, advertisers are changing their approach this year, arguing for more flexible media placement options and a shorter negotiation period.
UK NEGOTIATION WITH SINGAPORE OF AN UNPRECEDENTED DIGITAL TRADE AGREEMENT
The UK and Singapore have started talks on an innovative Digital Economy Agreement (DEA) that will allow UK businesses to expand their service offerings.
Both countries are leaders in the digital economy, and in 2019, 70% of UK services exports to Singapore, worth £ 3.2 billion, were delivered digitally, ranging from banking and legal services music streaming and e-books. How to strengthen cooperation in growth sectors such as fintech and lawtech are the topics covered.
Other issues to be discussed are ensuring accessible digital markets for exporters, enabling cross-border data flows, reducing bureaucracy and protecting intellectual property rights.
The goal, according to Truss, is to make the UK a global center for digital commerce and services.
And that brings us to the end of this week’s International Marketing News. If you would like to discuss any of the news covered, please do not hesitate to contact us.