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The $500 Billion Global Ad Industry is Entering Vehicles
This strategic insight covers the in-vehicle advertising in the North American automotive infotainment market. There is an influx of connected vehicles in the United States. The success of mobile advertisements delivered through handheld devices is due, in large part, to social media. The transition to the next largest audience (automotive) is promising. This research study outlines the timeframe of implementation of ads in vehicles. Beginning in 2014, select streaming services have already begun rolling out advertising inside cars and trucks. Given all the elements that factor into connected cars, companies must make calculated decisions based on concerns about driver distraction.
Key Findings and Predictions Companies looking to advertise in vehicles will need time and more connected cars/trucks on the road.
1 While mobile advertising has seen lucrative growth, Frost & Sullivan expects the industry to continue to grow, making in-vehicle advertising more attractive.
2 Streaming services in vehicles do not have the same traction as mobile offerings, so in-vehicle ads will almost make up for high-development costs to the service provider.
3 Frost & Sullivan analysts believe that by 2020 nearly % of vehicles will be connected, allowing for more ad penetration; meanwhile, compared to handhelds these figures are nominal.
4 Location-based services will be the leading method for ad delivery, but first marketers must use the driver’s habits and patterns to distribute the most relevant advertisement.
5 Given the losses original equipment manufacturers (OEMs) are facing with one-time hardware costs, Frost & Sullivan analysts believe the future automakers will force an implementation of in-vehicle ad revenue sharing.
Who is Leading in Mobile Advertising?
Social media giant Facebook is leading the way in mobile revenue earning.
-The companies above are making shifts within their digital advertising models. Currently, mobile ad spend accounts for roughly% of all US digital ad spend, compared to a mere % in 2010.
-Customers are shifting time spent on desktop devices to handhelds, such as tablets and smartphones; and companies are taking quick action.
-Roughly % of Americans own cell phones, and the automotive industry is making every effort to connect drivers to their smartphones. It is estimated that nearly% of drivers use their mobile device at any time while driving—this compared to a personal music device being used% of the time.
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