In-vehicle ads to impact automotive infotainment market
Research and Markets (www.researchandmarkets.com) says in-vehicle advertising will affect the North American auto 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, and the transition to the next largest audience (automotive) is promising, according to Research and Markets. The research group's study found:
° While mobile advertising has seen lucrative growth, Frost & Sullivan expects the industry to continue to grow, making in-vehicle advertising more attractive.
° 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.
° 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.
° Given the losses original equipment manufacturers (OEMs) are facing with one-time hardware costs, analysts believe the future automakers will force an implementation of in-vehicle ad revenue sharing.