8 January, 2021
For the nostalgic among us, cruising down Route 66 evokes memories of old, with vintage signage dotting the horizon and interesting novelties of a bygone era at every turn. Back then, billboards broke up the large stretches between towns and cities, catering to captive consumers as they motored whimsically along. Fast-forward to 2021, and you’ll notice that these billboards survive, but the products and services they promote are being joined by their digital counterparts looking up at you from within your car.
Advertising is a proven business model, and with entrants like the new Ram Limited sporting a massive 12-inch infotainment screen, businesses are about to gain valuable new real estate to sell products and services. A recent report states that “the global revenue pool from car data monetization could be as high as $750 billion by 2030,” while also noting that drivers prefer free in-car tools supported by ads like navigation and music streaming, rather than being forced to pay outright for a service. With numbers like that, in-car advertising is poised to become a significant sales driver for organizations within the automotive ecosystem. Granted, nobody wants to feel like they’re being forced to view ads, which is why it’s imperative that these be targeted so consumers feel they’re reaping benefit.
This emerging market opens the door to both automotive manufacturers and supporting automotive businesses to pinpoint their potential customers with a level of precision billboards could only dream of. “Of course the aftermarket industry is going digital. We will see many new products and services that will emerge in the near future, giving rise to new business models. But it will be a challenge to stay ahead of the game.” Michael Soeding, Schaeffler. The core relationship between today’s consumers and the repair shops and dealerships they frequent is a relatively simple one: a vehicle breaks down or requires maintenance so they contact a shop and brings it in. With advanced infotainment systems and application integration, connected cars will soon be able to “talk” directly with vehicle manufacturers, parts distributors, service centers and dealerships. Should a vehicle warning light brighten one’s dashboard on the morning commute, the vehicle itself will have already sent the data behind fault to the ecosystem, prompting the driver to select an appointment for repair based on their availability and that of the part needed. Situations like this are ripe for innovation; perhaps a local quick lube chain is running a promotion that fits the needs of a specific driver? With in-car advertisements they could directly reach out and direct them in for the fix – what could be more convenient?
In fact, a study found that 73 percent of consumers globally are willing to pay for predictive maintenance services, which bring up another aspect: connected services are also important safety tools. “Auto executives emphasize that data-crunching will allow them to build a better driving experience — enabling cars to predict flat tires, find a parking space or charging station, or alert city managers to dangerous intersections where there are frequent accidents. Data collection could even help shield drivers from crime, Ford’s chief executive officer said in January at the CES technology trade show.” From emergency assistance and learned parts failure rates to directions to the nearest gas station with the best prices when low on fuel, digital integration offers significant benefits for both drivers and businesses.
As traditional commerce models continue to be felled by e-commerce giants and modern vehicles transform into smart devices, there should be no doubt that the in-car experience will transform as well – the industry only needs a platform able to bridge the gap between driver and ecosystem, adapt to evolving technologies, and sophisticated enough to be future proof, regardless of what comes next. SHIFTMobility is the answer for this mile and the next.
Learn more about SHIFTMobility’s vision for the future of automotive technology here.