Move over George Jetson. You're not the only one able to
transition from favorite at-home or in-office technology to the car, where a
'personal assistant' makes dinner plans, reads messages, converts verbal
replies into emails and Facebook posts, and re-routes the commute to avoid
congestion on the road. Owners of so-called "Connected Cars" can do
all that today and automakers are betting new car buyers will begin requesting
these and similar features soon. Move over George Jetson. You're not the only one able to
transition from favorite at-home or in-office technology to the car, where a
'personal assistant' makes dinner plans, reads messages, converts verbal
replies into emails and Facebook posts, and re-routes the commute to avoid
congestion on the road. Owners of so-called "Connected Cars" can do
all that today and automakers are betting new car buyers will begin requesting
these and similar features soon. The future may not be here soon enough because 42% of car
owners (those with a 2009 model or later, who are also in the market for a new
vehicle), have heard of Connected Cars but don't really know what they do.
Additionally, with cyber crimes and data breaches dominating the news,
two-thirds (65%) of car owners say they fear owning a Connected Car could
compromise their privacy. These are findings from the recently released 2014
Harris Poll AutoTECHCAST(SM) study, an annual study of consumer awareness and adoption
of advanced and emerging automotive technologies. (Full findings, including
data tables, available here) What's a Vehicle Manufacturer to Do? A Case for Marketing With Connected Car
familiarity and understanding low and privacy concerns high, it makes sense
that for 2014, only 15% of car owners say they are very/extremely interested in
owning a Connected Car, while another 31% say they are not at all interested.
Owners of three makes in the Luxury car segment show the most interest in
owning a Connected Car: BMW (40%), Acura (37%) and Audi (34%). "Given America's reverence for technology, and the
fact 10 million Connected Vehicles were sold in 2013, representing more than
half of all cars sold in the US, it is surprising so little is known about Connected
Car technology," said Ian Beavis, Executive Vice President, Global
Automotive, Nielsen. "These
findings are a sobering report card on how much more groundwork must be laid
before automakers can successfully monetize Connected Car services and ensure
that Connected Car adoption keeps pace with development efforts. All of this uncertainty points to a need for
original equipment manufacturers (OEMs) to shift their energies from solely
engineering to marketing, where they can build awareness and educate
consumers." Silver Lining While overall awareness and familiarity with Connected
Car technologies is low, familiarity and purchase interest with specific
features is higher. For example, features already available on some cars such
as Voice Activated Controls - voice commands that control vehicle systems -
have a familiarity of 41%, although desire to install one in the next vehicle
is only at 28%. Other, newer technologies such as Vehicle Mobile Applications -
car apps, e.g. personal networking, Internet radio, movie/restaurant
reservations, etc. - have an overall familiarity of 23% and next-vehicle
interest at 17%. If Connected Car technologies follow the path of other
new technology introductions tracked in AutoTECHCAST over the last ten years, building
awareness and familiarity can help drive adoption. Historically in the AutoTECHCAST study, as
car owners better understand benefits, feature adoption follows. "The
back-up camera is one example of this phenomenon; familiarity and interest have
tripled in the last 10 years," added Beavis. "The question for
automakers is, how to design, market and engage auto buyers in order to drive
interest, while at the same time calming concerns over privacy issues." The Data Plan Dilemma Connected Car design is moving in multiple directions:
built-in, where capabilities reside with the vehicle; brought-in, where car
owners plug their Smartphones into the car to access phone apps and data plans,
or some combination of both. According to the AutoTECHCAST findings, nearly
two-thirds of car owners (65%) say they want built-in connectivity, compared to
slightly more than one third (35%) who prefer brought-in connectivity using
their smart phone. However, this poses a logistical issue, as more than half of
car owners say they are less likely to buy a vehicle that uses a data
plan/carrier different from their own, and 31% say they are "much less
likely" to purchase the vehicle. Solving this vehicle/data plan puzzle is
essential for OEMs to move forward with Connected Car design. Moreover, less than 20% of car owners are willing to
share aggregated data about their activities or agree to advertising in
exchange for more or lower-cost data. One bright spot in the findings: younger
vehicle owners are more open to both strategies. Brand Awareness - The Opportunity While only 14% of car owners say they know what a
Connected Car is, 78% are aware of the Onstar brand and 33% are aware of Sync,
awareness of other vehicle make systems remains relatively low. This suggests the job of educating the
marketplace and branding the benefits of Connected Car features is far from
complete. For OEMs, Connected Cars represent a unique opportunity
to develop a better understanding of their customers by gaining improved
insight into consumer behavior in the vehicle. "Overall, the data shows a
strong disconnect with current Connected Car strategies and consumer
demand," said Beavis. "These systems add significant cost to a
vehicle and many involve an ongoing monthly fee. Until there is a more compelling value
proposition for the consumer, these strategies spell risk." Harris Poll AutoTECHCAST(SM) Methodology The Harris Poll AutoTECHCAST(SM)study provides the
automotive industry with in-depth U.S. consumer research on over 70 advanced
automotive technologies covering Entertainment, Exterior & Interior Comfort
and Convenience, Intelligent Sensing, Lighting, Powertrain and Alternative
Fuels, Safety, and Telematics. The 2014 Harris Poll AutoTECHCAST(SM)study was
conducted online within the United States between April 1, 2014 - May 14, 2014
among 13,962 U.S. adults ages 18 and over and who own or lease a vehicle model
year 2009 or newer, have a valid driver's license, intend to buy or lease a new
vehicle at any point in the future, and anticipate being at least 50 percent
involved in the decision to buy or lease their next household vehicle. Results
were weighted as needed for age, gender, education, region and income and to
properly represent U.S. vehicle segment owners. Propensity score weighting also
was used to adjust for respondents' propensity to be online These statements conform to the principles of disclosure
of the National Council on Public Polls. Harris Poll AutoTECHCAST(SM) study results disclosed in
this release may not be used for advertising, marketing or promotional purposes
without the prior written consent of Harris Poll. Product and brand names are trademarks or registered
trademarks of their respective owners. About Nielsen & The Harris Poll On February 3, 2014, Nielsen acquired Harris Interactive
and The Harris Poll. Nielsen Holdings
N.V. (NYSE: NLSN) is a global information and measurement company with leading
market positions in marketing and consumer information, television and other
media measurement, online intelligence and mobile measurement. Nielsen has a
presence in approximately 100 countries, with headquarters in New York, USA and
Diemen, the Netherlands. For more information, visit www.nielsen.com.
Issue: Jul 2014
Study: Connected Car High-Tech Features Popular, but More Marketing Muscle Needed to Spur Demand
Lack of consumer education also allowing Connected Car privacy concerns to persist
by
Tony Davidson