The $500 Billion Global Ad Industry is Entering VehiclesThis 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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Impact Analysis of In-vehicle Advertising in the North American Automotive Infotainment Market
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Impact Analysis of In-vehicle Advertising in the North American
Automotive Infotainment Market
Published on July 2014
Report Summary
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.
Table of Content
1. EXECUTIVE SUMMARY
Executive Summary
Key Findings and Predictions
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Digital Advertising: An Introduction with Industry Trends
Digital Advertising by the Numbers
Who is Leading in Mobile Advertising'
Mobile Advertising: the Ecosystem and Structure
Connected Infotainment Comparative Analysis in North America
Telematic and Infotainment Customer Feedback
Internet Radio Penetration
Internet Radio: Advertising Challenges and Future Trends
Connected Vehicles'A Global Perspective
Conclusions and Predictions
2. RESEARCH SCOPE, OBJECTIVES, BACKGROUND, AND METHODOLOGY
Research Scope, Objectives, Background, and Methodology
Research Scope
Research Aims and Objectives
Key Questions this Study Will Answer
Research Background
Research Methodology
3. DIGITAL AND MOBILE ADVERTISING: AN INDUSTRY OVERVIEW
Digital and Mobile Advertising: An Industry Overview
Digital Advertising: Ads are Everywhere
Digital Advertising: Ad Medium Revenue Performance
Mobile Advertising'Marketing Optimism
Facebook Case Study
Mobile Phones and their Owners
Change is Imminent
Smartphone Usage
Conclusions
4. MOBILE ADVERTISING IN THE VEHICLE
Mobile Advertising in the Vehicle
North American Automotive App Store Recap
App Development'From Phone to Vehicle
Telematic Services Business Model Comparison
OnStar Telematic Case Study
Telematic Revenue Analysis
Internet Radio'An Introduction
Internet Radio and Partnerships
In-vehicle Advertising and App Development
Pandora Case Study
Aha by Harman Featuring Placecast
Placecast'The Power of Location-based Advertising
Competition
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5. CONCLUSIONS AND FUTURE OUTLOOK
Conclusions and Future Outlook
Captivating the Driver
Location-based Advertising'The Way of the Future
In-vehicle Ads and their Future on the Road
Connectivity in the Car'Do Ads Fit In'
The Last Word'3 Big Predictions
Legal Disclaimer
6. APPENDIX
Appendix
Learn More'Next Steps
Abbreviations and Acronyms Used
Market Engineering Methodology
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