Technology will soon allow advertisers to target only the hungry, happy, or sleepy viewers, as wearable technology and hyper-personalised advertising combine in the digital world. However, it will be a fine balancing act between exploiting the opportunities and scaring consumers.
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And while Australians love to adopt technology as soon as it arrives, the majority of us – across all age groups – still watch free to air television more than legal and illegal streaming, according to consulting firm Ernst & Young.
The firm's latest Internet of Things report predicts a time when consumers put so much personal information online that advertisers can choose what mood they want to target in consumers.
"If smart devices provide useful data ... that is perceived as non-intrusive and the resulting content experience correctly interprets consumers' current readings (mood, need, intention) ... the implications for improved brand loyalty could be vast," the report notes.
Technology could recognise what kind of words consumers were sending in text messages or in online messages, the emoticons they used, and whether they had a resting or active heart rate, according to EY's Oceania digital partner, Tom Kennedy. And the haptic technology embedded in gaming equipment could monitor when players were most excited. Sweaty palms could lead to soft drink advertisements, perhaps?
However, a lot would depend on how comfortable consumers were with sharing that information.
EY's Oceania technology, media and entertainment and telecommunications leader, David McGregor, said a "phenomenal" amount of data about each person could be available.
"The [flip side] of that is that you have to trust it. The first time advertisers abuse that, that's going to be a real issue for the brand," he told BusinessDay.
As for traditional media, EY's digital habits report found that 82 per cent of Australians still watch free to air television, despite all the streaming options now available. About half still go to the cinema and 35 per cent still buy DVDs or Blu-ray discs in stores.
Netflix was the most popular streaming option with 30 per cent of respondents using it, but nearly two-thirds still chose Foxtel subscriptions. Telstra's TBox, Stan, and Presto accounted for 7, 6 and 5 per cent of users respectively. Quikflix and Fetch TV have similar subscription rates.
However, there were distinct differences when these results were broken into age groups, with younger people much more likely to use streaming services and piracy. About 20 per cent of people aged 18 to 34 admitted to unauthorised downloads, a figure that dropped to 16 per cent for 35 to 44 year-olds. About 6 per cent of Australians aged over 55 download content illegally.
The EY report, based on research by YE Sweeny, interviewed 1500 Australians aged 18-69.
