1. THE Connected Home Opportunity
Jean-Pierre (JP) Abello
Director, Research & Development
Nielsen Global Engineering
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of Nielsen

2. MAKing my home smart
HOW DO I CONNECT MY HOME?

3. Shopping for Smart products
Source: Home Depot

4. REGULAR (non connected)
PRICES
SMART
(connected)
vs.
REGULAR (non connected)

5. Thermostats , Door Locks SMART REGULAR
Source:

6. Wall Switches , Outlets , LED BULBS (60W) SMART REGULAR
Source:

7. Smart Bridges
Sources:

8. Monthly fees
NO Monthly fees

9. Smart Thermostats can Save 10-15% on Energy costs
but many Smart Home products don’t pay for themselves in cost savings
Sources:

10. Consumer benefits tend to be primarily Convenience and Security
Sources:

11. High prices and Long lifespans means market growth will Likely be slow
Source:

12. Another issue is the limited interoperability and lack of a universal IoT standard
Sources:

13. Consumers are increasingly Concerned about Privacy Risks and protection of their personal data
Sources:

14. EMERGING TECHNOLOGY STILL IN ITS INFANCY
Source: Gartner August

15. Product SALEs and Consumer interest are already slowing down
Sources:

16. What could be done to re-ignite growth?

17. One key factor is that smart homes generate lots of data about their users
Source:

18. “ ” The data rush: information about you is 21st century gold
CNN - Nov 13, 2014
Source:

19. “ ” The Internet of Things is really an Internet of Data.
Tech Radar- Sep 10, 2015
Source:

20. That data can be cross-referenced and analyzed to generate valuable insights about consumer lifestyles
Source:

21. Lifestyle Data could Produce more accurate audience segmentation
Source:

22. And audience segmentation is used to target advertising to consumers
Source:

23. Could better ad targeting be One way to extract more value from The Connected Home?

24. That captured value could be used to subsidize the product costs consumers have to bear today

25. A lower Price barrier would likely appeal more to The mainstream consumer and accelerate Adoption

26. And pave the way for an Ad-supported Connected Home ecosystem

27. This has happened before with tElevision then the Web and now mobile

28. This is already starting to happen with some Connected HOME products

29. Amazon LAUNCHED “special offers” to subsidize Part of the COST of Kindle
Source:

30. Insurance companies ARE Starting TO offer Free Nest Protect Smoke detectors AND monthly discounts
Sources:

31. Device Manufacturers could offer Similar pricing options “supported by ads” THAT leverage personal lifestyle data

32. different types of subsidies might emerge depending on device Use cases and types of collected data

33. example: Connected Coffee Machine

34. example: Connected toothbrush

35. example: Connected Washer & Dryer

36. example: Face Recognition Camera

37. There are opportunities to further explore AND INNOVATe AROUND ad-supported models for the connected home Market

38. Comments
&
Questions