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Purchases Via Smart Speakers Are Not Taking Off

eMarketer lowers US forecast amid security concerns and competition from smartphones 

February 4, 2020 (New York, NY) — While some US consumers are warming to the idea of making voice-based purchases via smart speakers, the number of those doing so is smaller than initially estimated. In our latest forecast on smart speaker users, we lowered our outlook for the number of smart speaker buyers (people making a purchase via a smart speaker) as well as the number of smart speaker users (people who use smart speakers for any purpose).

 

By the end of 2020, we expect that 21.6 million people will have made a purchase using a smart speaker. This is lower than our Q2 2019 forecast, in which we expected the number to reach 23.6 million. Still, the activity is growing and will pass a milestone this year when 10.8% of all digital buyers in the US will make a purchase using a smart speaker.

 

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A key reason for the revised forecast is that device-makers haven’t fully gained users’ trust.  Potential buyers are still concerned about it comes to secure payments and privacy. The absence of screens on many smart speaker models is an added aspect of this problem – people often want to see products before a purchase. As a result, some voice buyers are instead opting to make purchases with other voice-controlled devices that have screens, such as smartphones and tablets.

 

“There’s a good deal of friction in the voice-based buying process because people can’t see what they’ll actually be purchasing unless they have a screen on their smart speaker,” eMarketer principal analyst Victoria Petrock said. “So, most of the purchases made today are reorders and things that don’t need to be inspected.”

 

The downward revision in the number of smart speaker buyers is also due in part to readjusted estimates for the types of activities users conduct on the devices. In our Q2 2019 forecast, we expected 27.9% of smart speaker users to make purchases with their device in 2020. We have now lowered this percentage to 26.0%.

 

In contrast, we made an upward revision to the percentage of smart speaker users listening to audio (81.1%) and making inquiries (77.8%). This shows that users are going back to the basics, using their devices for simple and straightforward tasks. (Please note that our “inquiries” number does not include inquiries about the weather, news or traffic.)

 

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“Though there are thousands of smart speaker apps that do everything from let you order takeout to find recipes or play games, many consumers don’t realize that they need to take extra and more specific steps to utilize all capabilities,” Petrock said. “Instead, they stick with direct commands to play music, ask about the weather or ask questions, because those are basic to the device.”

 

Overall, smart speaker usage is not performing as expected.  In our Q2 2019 forecast, we predicted the number of US smart speaker users to reach 84.5 million. We have now revised our 2020 estimate down to 83.1 million—representing one-quarter of the population.

 

Methodology

eMarketer’s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

 

About eMarketer
Founded in 1996, eMarketer is the first place to look for research about marketing in a digital world.  eMarketer enables thousands of companies worldwide to understand marketing trends, consumer behavior and get the data needed to succeed in the competitive and fast-changing digital economy.  eMarketer’s flagship product, eMarketer PRO, is home to all of eMarketer’s research, including forecasts, analyst reports, aggregated data from 3,000+ sources, interviews with industry leaders, articles, charts and comparative market data. eMarketer’s free daily newsletters span the US, EMEA and APAC and are read by more than 200,000 readers globally.  In 2016 eMarketer, Inc. was acquired by European media giant Axel Springer S.E.

 

For more information, contact:

Douglas Clark
Global Director of Public Relations
646-863-8807
dclark@emarketer.com

Corinne Weir
Public Relations Coordinator
646-863-8814
cweir@emarketer.com

Posted on February 5, 2020.