Taking into consideration that people spend 6.5 hours in their cars every week and that digital platforms have become an integrated part of car dashboards, this means an opening of a whole new market for carmakers – the digital media companies and marketers. By 2020, revenue from connected services is expected to reach more than $152 billion.
Customers are offered nowadays a selection of features in their cars, especially entertainment apps and safety-management features. A Business Insider Intelligence report has recently analyzed and revealed information regarding the revenue from connected-car internet services, consumer attitudes to these services, payment methods (including getting ads in return for free content), and the potential of self-driving cars.
The report concluded that safety related features bring the biggest profits with $13 billion, but that they will lose their top spot to driver-assistance as early as 2017. By 2020, connected-safety features are predicted to bring in 44 billion dollars worth of income, including road conditions alerts, weather hazards and collision-avoidance.
Although entertainment is one of the most popular features, it does not bring the most revenue for car sellers. The report predicts that in 2020, this category will bring $13 billion. Entertainment includes apps that let you connect to your Pandora, Yelp, and Facebook accounts.
Information from the report also showed that consumers do not really understand how they can benefit from connected cars and that 80% of them do not know or have not heard anything about connected cars. About 50% of the consumers that use connected car services show high levels of satisfaction with them.
On the other hand, consumers have different opinions on the payment of the services, as 25% of global clients are willing to accept advertising in their cars in exchange of free services, which also means a great opportunity for marketers to approach this market.