Introduction

What is the technology?

Arm wearables are one of the biggest and newest innovations in technology since the smartphone. In short, they are "wearable tech" like smartwatches, fitness trackers, Disney Magic Bands and other connected devices.

How does it work?

Arm wearables are loaded with smart sensors and usually connect wirelessly to a smartphone using Bluetooth. They use these sensors to connect to a person with the goal of helping them stay organized or achieve goals like staying active, losing weight, or getting on a ride at Disney World without waiting in line or printing out a Fast Pass. 1 

Fitness trackers can record a person's heart rate, body fat composition, perspiration, health, temperature and muscle activity all by just touching their skin. They can also record movement, distance and speed using GPS, accelerometers and gyroscopes. 2

Smartwatches, like the Apple Watch and Android Wear models, are like mini computers that people wear on their wrists. They can do a lot of the same things fitness trackers can do (recording heart rate, vital signs, etc.), but they also display messages and notifications from smartphones, support a variety of apps (such as Uber, so people can hail a cab from their wrist, and airline apps, so they can use their watch as a digital boarding pass). Some smartwatches can also reply to text messages by voice. 3   

Disney's Magic Bands  can be used for park admission, as Fast Pass tickets, as hotel room keys, and even for making purchases at shops and restaurants on Disney properties. 4

Statistics/data that support the legitimacy of this technology

Arm wearables are definitely a legitimate technology, and are probably here to stay -- at least until the next big thing (retinal scanning? microchip implants?) comes along.

Smartwatches are now being manufactured by Apple, Sony, Samsung, and Motorola, and 15 percent of tech consumers report using wearable technologies. 5

FitBit, which was founded in 2007 and started the fitness tracker craze, has grown rapidly. From 2010 to 2015, the company's revenue increased from just over $5 million to more than $1.8 billion. In 2014, 14 million fitness trackers were sold worldwide. By 2016, that number was projected to increase to almost 40 million. 6

As for Disney, it introduced Magic Bands in 2013 and has made continuous improvements to them since then. In 2016, the company's biggest competitor, Universal Orlando, started using similar technology, called TapuTapu bracelets, at its new Volcano Bay waterpark. The bracelets allow customers to pay for merchandise, food, and drinks, and to interact with environmental features, set off water springs, and illuminate lights. 7

Carnival Corporation also emulated Disney's Magic Bands with its own arm wearable, called the Ocean Medallion, in 2017. 8

Who is using it and who owns it?

Who's using arm wearables? It depends on the type of wearable. Fitness trackers have a large mainstream following, with 10 percent of adults in the U.S. wearing one. Broken down demographically, 36 percent of fitness tracker users are between the ages of 35 and 54, 41 percent of users have an average income of more than $100,000 and 54 percent of users are female. 9

Smartwatches, on the other hand, have not caught on as quickly or as widely. Only 2 percent of Americans have a smartwatch today. About 69 percent of users are in the 18-34-year-old age category, 71 percent of them are male, and 48 percent had an income below $45,000. 10

Disney Magic Bands and similar wearables are used for a limited time period by people who visit the specific theme parks and cruises that offer the technology, so their demographics would obviously mirror that population.

Assessments/reviews of the technology

Do fitness trackers and smartwatches live up to their hype? It depends who you ask.

Researchers from the University of Pennsylvania found that smartphone apps that counted steps were actually slightly more accurate than fitness trackers. But several people interviewed in a CBS News story about the research said they preferred wearing a tracker on their wrist when they're running or working out vs. having to carry a smartphone in their pocket. 11

Tech writer Rohan Navarane, who offered his review of smartwatches in "MUO" ("Making Use Of") magazine, argued that it was time for people to buy a smartwatch if they didn't have one yet. Why? Because smartwatches are great for performing mundane activities like setting reminders, replying to instant messages, and checking notifications without having to pull your phone out of your pocket. Navarane also thinks smartwatches make people more active by making them aware of how many steps they've taken during a day. Despite his overall endorsement of smartwatches, Navarane argued that the average price for a smartwatch ($250) was still a little high for what is actually just an accessory to a smartphone. He would like to see tech companies sell them as such instead of marketing them as luxury goods. 12

While the jury might be out on the value on fitness trackers and smartwatches, there seems to be no doubt that Disney's Magic Bands have been a good investment. They have been credited with revolutionizing the park's operating model, reducing bottlenecks and shortening ride wait times and are clearly a win for both the park -- which wants to keep people moving and spending money -- and visitors -- who just want to enjoy their day without wasting time standing in line. 13


1 Dan Sung, "What is Wearable Tech? Everything You Need to Know Explained," August 3, 2015, www.wareable.com (accessed April 22, 2018).
2 Sung, www.wareable.com.
3 Sarah Silbert, "What is a Smartwatch?" April 15, 2018, www.wareable.com/wearable-tech/what-is-wearable-tech-753 (accessed April 22, 2018).
4 "Understanding Disney Magic Bands -- How it Works & Benefits," November 24, 2015, www.youtube.com/watch?v=__yY8M4TZoAwww.youtube.com/watch?v=__yY8M4TZoA (accessed April 22, 2018).
5 Todd Wasserman, "The Fourth Screen: How Smartwatches Could be Used for Ads," March 23, 2014, www.mashable.com/2014/03/23/smartwatches-ads/#Ap.hkVsLHkqD (accessed April 22, 2018).
6 "Fitbit -- Statistics & Facts," n.d., www.statista.com/topics/2595/fitbit/ (accessed April 22, 2018).
7 "TapuTapu at Universal's Volcano Bay," n.d., www.orlandoinformer.com/universal/taputapu-volcano-bay (accessed April 22, 2018)
8 Cliff Kuang, "Carnival's Ocean Medallion Opens a Sea of Possibilities," October 19, 2017,
https://www.fastcompany.com/40474549/carnival-cruise-lines-ocean-medallion-opens-a-sea-of-possibilities (accessed April 22, 2018).
9 "The Demographic Divide: Fitness Trackers and Smartwatches Attracting Very Different Segments of the Market," n.d., www.npd.com/wps/portal/npd/us/news/press-releases/2015/the-demographic-divide-fitness-trackers-and-smartwatches-attracting-very-different-segments-of-the-market-according-to-the-npd-group (accessed April 22, 2018).
10 "The Demographic Divide: Fitness Trackers and Smartwatches Attracting Very Different Segments of the Market.
11 U-Jinn Lee, "Are Fitness Trackers Worth the Money?" February 19, 2015, www.cbsnews.com/news/are-fitness-trackers-worth-the-money (accessed April 22, 2018)
12 Rohan Naravane, "Should You Buy a Wearable? 4 Reasons You Need a Smartwatch," June 28, 2017, www.makeuseof.com/tag/buy-wearable-4-reasons-need-smartwatch (accessed April 22, 2018)
13 Caroline Hanamarian, "Magic Bands: Disney Parks Go Digital," November 17, 2016, https://rctom.hbs.org/submission/magic-bands-disney-parks-go-digital (accessed April 22, 2018)

How Can Marketers Use This Technology?

Pros and cons of the technology

From a marketing perspective, there are lots of benefits to arm wearables, including:

• You’re able to track people’s data and use it to improve their experience and cater to their specific interests.

• You’re able to reduce long lines and wait times.

• You can get a large crowd into a venue quicker and easier.

• You can reduce bottlenecks.

• You can reduce friction and eliminate the “pain points” that customers complain about when they interact with a brand.

The "cons" of arm wearables include:

• Not everyone has a smartphone, which is a necessity for many arm wearables to work.

• People can be creeped out by the idea that they are being tracked.

• Wearables like FitBits can potentially expose locations and identities of individuals working at sensitive military sites and reveal the movements of troops, international aid workers and intelligence operatives. 14

• Arm wearables are expensive. 

Ways marketers are using (or could use) this technology

Walt Disney World has been using arm wearables called Magic Bands to improve guests' experiences and reduce friction at its parks. Watch the video below to see how Magic Bands work. 

Carnival Corporation also has been using arm wearables to allow their passengers to have more fun and spend less time in lines. Watch the video below for more about Carnival's "Ocean Medallion."

Other ways marketers could use the technology include:

• Insurance companies could offer incentives to clients who lower their resting heart rate, based on data collected from fitness trackers.
• Retailers could monitor a person's pulse as he or she walks through a store, and if their heart rate increases as they walk past a particular product, they could send that person a coupon or special offer.
• Marketers could start advertising on smartwatches.

Legal implication/ethical issues for a company to consider

There are a lot of legal and ethical issues for a company to consider as arm wearables become more common. Among them:

• People don’t like being tracked or having their data harvested, so marketers will have to be transparent about what kind of data they are collecting and be careful about how they are using it. 

• Marketers will have to make sure people opt in before they send them any kind of messages via their wearables. 

• People are especially sensitive about their health information, so tapping into that data to try to sell something to consumers seems particularly fraught.

Does this technology add value to the consumer?

Today’s millennials leave the house with their phone, debit card and ID. As the proliferation of wearables increases, they won’t leave the house with any of these things. Wearable tech can be used to track blood pressure, heart rate, the number of steps taken per day and other health-related indicators. 60% of patients think that wearables will improve their health, and 30% use wearables to assist them in disease management, according to a study by Philadelphia-based marketing agency Digitas Health. Wearables give you context and the ability to scale data, which equals a higher level of engagement in healthcare. Wearables will help marketers in industries from finance to healthcare to CPG collect data and enhance customer relationships. 15

When will this technology become mainstream? 

Over the last year or so wearable tech has gone mainstream, and the hottest devices on the planet are now ones you can place on your wrists, arms and faces. So far, it's largely the smaller companies that are making the better name for themselves in the wearable tech space.

Fitbit, Jawbone, Misfit and Withings have had huge successes with fitness trackers for the masses. TomTom, Garmin, Polar and Suunto make some of the very best sports watches for running, swimming, cycling, hiking and even skiing and golf. 16

Advice for marketing executives

The tourism industry is just beginning to grasp the value of this technology, thanks to Disney's pioneering work with Magic Bands. Marketers at other similar businesses should follow Disney's lead. Wearable tech could be used not just at theme parks and on cruises, but also at all-inclusive resorts, fairs, living history museums, conferences, festivals, multi-day concerts, and more. Basically marketers should consider implementing wearable tech devices anywhere a large number of guests are moving through an event or venue where they need to pay, use a key, check in, stand in line, etc. 

Meanwhile, smartwatches and fitness trackers are revolutionizing healthcare, personal well-being, and workplace productivity, and marketers should look for opportunities to take advantage of the new technology. 

According to research by Dr. James Levine of the Mayo Clinic, sitting is the new smoking, with hours spent being sedentary leading to everything from obesity to cancer. Thankfully, wearable motion-tracking devices are great at reminding us to stand up, stretch and take a walk. For example, when the wristband detects that you’ve had a poor night’s sleep, the device’s accompanying Android and iOS app may know based on past, similar instances that you tend to be less active the next day. So it will recommend a high-protein breakfast instead of a meal of harder-to-digest carbohydrates and sugars. While that may sound complex, it’s all served up simply and clearly through the smartphone app, resulting in an expert-fueled simplification of your diet and lifestyle that can lead to fewer inches on your waistline.

The most exploited benefit of wearable tech has to be the health implications. Not only physical health, but devices have been shown to improve the health of teams in the office. Again, fitness and health are the primary driving force to wearable tech (for now). Although, it’s not just about FitBits anymore. Clothing, footwear, and even underpants are being connected to help you become the best you can be. 17

The potential for wearable tech

Perhaps the most intriguing part of wearable technology is its potential. The benefits from current uses will only improve and give way to even better uses in the future. The only problem is they haven’t been created, yet. New apps are bound to come, but will heavily rely on sound ideas and available open data.




14 Liz Sly, Dan Lamothe and Craig Timberg, January 29, 2018, www.washingtonpost.com/world/the-us-military-reviews-its-rules-as-new-details-of-us-soldiers-and-bases-emerge/2018/01/29/6310d518-050f-11e8-aa61-f3391373867e_story.html?utm_term=.c4c3294c6804 (accessed May 6, 2018).
15 Sung, www.wareable.com.
16 Sung, www.wareable.com.
17 Kevin Ackerman, "Beyond the Fitbit, How Wearable Technology Can Help You," www.staples.com/sbd/cre/tech-services/explore-tips-and-advice/tech-articles/how-wearable-technology-can-help-you.html (accessed May 5, 2018).