This post is a follow-up to yesterday’s.
As we know, the auto industry is in the midst of a major technological revolution. Although self-driving vehicles have garnered a huge amount of attention, “connected” vehicles will also have an enormous impact on marketing. Why? From the consumer’s point of view, connectivity means better Bluetooth interactivity, GPS systems, entertainment systems, roadside assistance, diagnostics, and more. From the seller’s point of view, connectivity means access to lots of big data.
Consider these observations from Felix Richter, writing for Statista:
“Modern cars are equipped with more than 100 sensors that create a constant stream of data. Measuring things like location, performance, physical parameters, and driving behavior, often several times per second, the amount of data generated by these sensors is immense. According to a McKinsey estimate, connected cars create up to 25 gigabytes of data per hour. That’s the equivalent of nearly 30 hours of HD video playback and more than a month’s worth of 24-hour music streaming.”
“According to the analysts in charge of our Digital Market Outlook, the data created by connected cars have a lot of potential in terms of monetization. Think insurance companies for example, who would likely be willing to pay good money to find out more about our driving habits. For more information about this exciting new market, please download our free market report Connected Car: Vehicle Services.”
Take a look at this chart to see how big the data collected from connected vehicles really are.
Automotive News regularly runs an EY Automotive & Transportation Insights page from the EY consulting firm, “featuring videos, insights, opinions, thought leadership, stories, and better questions from EY to help automotive leaders in business build a better working world.”
Below is a six-minute video seminar — featuring Julia Steyn, General Motors head of urban mobility and Dr. Chris Borroni-Bird, Qualcomm vice-president of strategic development). They focus on the factors causing disruption in the auto industry and how automakers can evolve given the trend toward mobility.
We have written about self-driving — also known as autonomous — cars several times before (see, for example, 1, 2, 3). And for all of the positive attributes of these vehicles, there are also several negative factors.
One negative aspect of self-driving cars (and traditional vehicles equipped with advanced communications systems) has not been discussed much until recently. And, that is the possibility of hackers affecting how these cars drive.
According to an FBI March 2016 news release:
“As previously reported by the media in and after July 2015, security researchers evaluating automotive cybersecurity were able to demonstrate remote exploits of motor vehicles. The analysis demonstrated the researchers could gain significant control over vehicle functions remotely by exploiting wireless communications vulnerabilities. While the identified vulnerabilities have been addressed, it is important that consumers and manufacturers are aware of the possible threats and how an attacker may seek to remotely exploit vulnerabilities in the future. Third party aftermarket devices with Internet or cellular access plugged into diagnostics ports could also introduce wireless vulnerabilities.”
“Vehicle hacking occurs when someone with a computer seeks to gain unauthorized access to vehicle systems for the purposes of retrieving driver data or manipulating vehicle functionality. While not all hacking incidents may result in a risk to safety – such as an attacker taking control of a vehicle – it is important that consumers take appropriate steps to minimize risk. Therefore, the FBI and NHTSA are warning the general public and manufacturers – of vehicles, vehicle components, and aftermarket devices – to maintain awareness of potential issues and cybersecurity threats related to connected vehicle technologies in modern vehicles.”
Click the image to see Advertising Age’s view of the situation.
A Google self-driving car (human at the wheel) at company headquarters in Mountain View, Calif. Credit: David Paul Morris/Bloomberg
Over the last few years, manufacturer interest in self-driving cars has intensified. Some models seem ready to launch relatively soon. Others seem to be much farther in the future (such as an Apple self-driving car).
With the growing fascination and media coverage of self-driving cars, we thought we’d highlight a few YouTube videos on this technology.
Question for YOU: Will self-driving cars be more popular than electric cars in the long run?
There are many different reasons why consumers buy specific car types and models — even in the United States. But, how different are purchase motivations around the world?
To answer this question, Nielsen recently conducted a large-scale online survey in 60 countries:
“’Linking global automotive demand with consumer sentiments and media habits is vital to developing marketing strategies that connect the right consumers with the right automotive brands,’ said Pat Gardiner, president of Nielsen Automotive. ‘The Asia-Pacific and Latin American regions, as expected, represent large areas of growth opportunity for the industry, but capturing this opportunity hinges on marketers successfully identifying, understanding’ and effectively connecting with the needs and desires of these buyers.’”
“One key to unlocking the demand drivers is discerning what role a car plays in the consumer’s life. Is it for utility — simply a mode of transportation to get you from one place to another? Is it to express status — a symbol of the success you’ve achieved in life? Or is it more purely emotional — you just love to drive? While each of these sentiments may play a role in the car-buying decision process, connecting with the emotions that pull at the heartstrings draws consumers more powerfully along the path to purchase.”
Click the image to read more.
These days, we’re pretty familiar with J.D. Power, the global marketing information services company founded in 1968. As the firm notes at its Web site: “J.D. Power has been listening to consumers and business customers; analyzing their opinions and perceptions; and refining research techniques and study methodologies to offer some of the most advanced product quality, customer satisfaction, and tracking research available today. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power is a business unit of McGraw Hill Financial. J.D. Power conducts work for a wide spectrum of industries including automotive, financial services, insurance, energy, telecommunications, travel and leisure, and healthcare to name a few.”
Recently, Wharton professor of management John Paul MacDuffie sat down for an interview with the company founder J.D. Power III. They discussed Power’s long and distinguished career.
Take a look at the interview. There are lots of insights here.