Commerce predicted to change with the rise of smart speakers
OC&C Strategy surveyed 1 500 smart speaker owners and found that almost ‘half of UK households are forecast to own a smart speaker by 2022’. Currently around 10 per cent of UK households own a smart speaker.
The increase in smart speakers are thought to change how people shop. Currently, shopping using voice technology is a £0.2 billion industry, which is predicted to increase to £3.5 billion by 2022.
In their report, they reference the start of the smart speaker when ‘Amazon launched its first product to market’ in 2014. The use of smart speakers has taken off; OC&C’s research found that 44 per cent of owners made a purchase with their smart speaker.
According to the research report, Amazon Echo leads the smart speaker market ‘outselling Google Home 4 to 1’. OC&C considers Amazon’s ‘choice’ function being one of the main reasons for its top position in the market. They analysed product sale rates for 2000 products on Amazon to understand the impact of the ‘choice’ function on sales.
The choice function works by recommending a specific product when the user gives a generic item like face wash.
Will Hayllar (OC&C’s Global Head of Consumer Goods) stated that shopping using voice technology will reduce ‘the need for customers to ‘research’ product’.
The rise in smart speakers for commerce will mean it is another channel for advertisers to utilise. Will this be the new cost- per-click, but instead you bid on Alexa (for example) recommending your product?