The Future of In-Vehicle Media Consumption
The transformation of in-car media will happen in content format, consumption mode, and the vehicle interface
Last week, we laid out a future-forward path towards the Mobility as a Service (MaaS) concept and the roles that various mobility services will play in the process. But before we get to that MaaS future, a major transformation is already underway in the mobility experience, and that is the changes in in-vehicle media access and consumption.
Although no one today is buying a car primarily for the infotainment system, in the near future, as the dashboard interface becomes more integral to the in-car experience, it may start to move up on the list of consideration for car buyers. Already, data from a McKinsey survey show that 37% of consumers say they’re eager to switch to cars with increased connectivity and nearly half of premium auto consumers express an interest in exploring the digital capabilities of their new cars. This translates to expected shipments of connected cars to approach 76 million units by 2023.
As connected cars start to take over the roads, radio’s dominance of in-car media time is rapidly waning as consumers increasingly choose digital mediums that are now easily accessible in cars. Additionally, as EVs start to reach an inflection point for mainstream adoption, more cars will become connected cars over the next few years, which will massively increase the audience reach of digital media in cars, opening new opportunities for brands to engage with consumers in cars.
Taken together, these emerging trends will push more consumers to reconfigure their in-car media habits and trigger further developments in content format, consumption mode, and the vehicle interface, which may ultimately turn connected cars into the next platform war where legacy auto OEMs, new auto startups, and tech companies entering the mobility space all jostling for control over the in-vehicle platform and the data connected cars will generate.
Let’s look at these three aspects of in-vehicle media transformation one by one, both in terms of their current and future state, and what they mean for brand marketers.
Content Format Evolution: From Audio to Multimedia
Today, the dominant format of in-vehicle media is still undoubtedly audio. Whether it’s good ol’ fashioned radio, or listening to streaming music or podcasts off mobile devices, or even audiobooks, audio media has been a default choice for in-car media consumption, especially for drivers who need to keep their eyes on the road. However, the story has been rewritten for passengers, as most now simply choose to access all forms of media via their mobile devices, especially video and social content, rather than being beholden to the dashboard media of choice. While there are potentially motion sickness-related issues that may dissuade some people from watching long-form video content in cars, for most people, the future of multimedia consumption on the road will certainly include video content.
With the emergence of video consumption in cars, it is perhaps no surprise to see that for many new connected car and EV makers, the in-vehicle displays are getting bigger and better. Mercedes−Benz previewed the MBUX Hyperscreen at the 2021 CES — a massive, 56-Inch-long infotainment display that spans the entire dashboard and offers driver and passenger their own separate infotainment screens. Set to make its first appearance in its 2022 EQS flagship EV, this sprawling display will likely spread to other Mercedes models in the future.
Besides video content, cars could also become a place to play video games as well. As one of the industry leaders in reimagining the in-car experiences, Tesla recently unveiled that, for the refreshed versions of its Model X and Model S cars, both will come equipped with gaming hardware supporting “up to 10 teraflops of processing power,” theoretically putting them within the ballpark of a new generation gaming console. Promotional materials for these cars showed popular game The Witcher 3 displayed on a 17” central display.
As the dashboard screens in cars are getting bigger and better, setting the stage for more video consumption and even gaming in cars, the future of in-vehicle media consumption will include a diverse set of media formats that opens up new channels and creative possibilities for brands to reach consumers on the road. Of course, this development is also closely tied to the development and eventual mass adoption of AVs, which will help free driver’s eyes off the road.
Moreover, since in-car media is being digitized, it also opens up new opportunities for brands to customize their brand messages, both in-terms of length and timing, via dynamic ad insertion solutions based on contextual data provided by the vehicle. News and sports content could also benefit from the contextual data, such as estimated time to destination, to tailor the length of their content for the passengers. Thus, there is a strong case to be made for auto OEMs to integrate multimedia options into the car’s infotainment system itself, rather than letting drivers and passengers export their media experience from mobile devices, so as to create a differentiated in-vehicle experience.
Media Consumption Mode: Shared Experience vs. Individual Consumption
Of course, video displays will also be served to the backseat passengers; but in addition to being an extension of the vehicles’ central infotainment system, they could function more like individual iPads offering individualized media experience to each backseat passenger (with headphones, of course). The backseat experience could become a bit more like the entertainment experience on commercial flights. For instance, the self-driving cars that Google-owned Waymo has been testing features two screens built into the back of the front seats for backseat passengers to enjoy.
This shift opens up another question in terms of the media consumption mode for in-vehicle audiences. In-car media experience used to be a group experience shared by everyone in the car, front and back, and remains a bonding experience for many families and friends. However, as more and more passengers start to focus on their own mobile devices while in cars, the in-vehicle experience started to fragment. As the aforementioned Waymo example shows, each individual vehicle may soon cease to be the unit for in-vehicle media measurement. Instead, each passenger could be consuming different types of media content across different channels while riding in the same car. This suggests that, in the near future, in-car ad targeting may need to move down from the vehicle level to the individual screens and devices.
Looking ahead, it seems reasonable to assume that shared in-vehicle media experience may make a comeback with the arrival of both autonomous vehicles and more on-demand mobility services. Currently, the predominant concept for designing the ride experiences of AVs is “rooms on wheels” — providing a functional space to cater to different needs, be it a living room, a TV room, a study, or even a bedroom. If this concept holds, then we may expect the eventual arrival of autonomous vehicles to revitalize shared in-vehicle experiences. In a way, differently outfitted AVs could function as different marketing contexts for brands to reach varying sets of consumers based on their “AV room” of choice. Of course, they won’t fully replace the individualized in-car experience — there’s no putting that genie back in the bottle — but they will offer future consumers the options to choose how they want to engage with in-vehicle media.
Vehicle Interface Evolution: From Touchscreens and Voice Command to AI-Powered Predictive UI
Finally, the underlying factor that will power the changes in content formats and consumption modes of in-vehicle media is the continuing evolution of the dashboard interface. The fact that some people are now calling connected cars “computers on wheels” is a testimony to just how important the infotainment system, and its user interface, has become in determining a large part of the in-vehicle experience.
At the moment, most connected cars utilize touchscreens popularized by smartphones. They are a step-up from the analog dials and buttons on the dashboard of yore, but that is far from the final form for the vehicle interface. For one, voice-enabled interfaces are starting to become popular, thanks to the fact that they provide the kind of hands-free interactions that allow drivers to keep their eyes on the road and their hands on the steering wheel. Therefore, it’s no surprise that many new models now come with built-in integrations with voice assistants, especially models made by challenger EV makers, who tend to design in-vehicle interfaces as a tech company from the get-go. This week, Ford announced it will start rolling out OTA updates to its vehicles at scale, including adding Alexa later this year to 700,000 eligible vehicles.
With the average age of vehicles on the road approaching 12 years, it will likely take another decade or so before connected cars completely take over. That said, after-market devices that make “dumb” cars smart, often times through the addition of voice-enabled services, are becoming common accessories. These devices offer an easy way for car owners to jerry rigging older vehicles without built-in infotainment systems or internet connections to easily access digital media. Amazon’s Echo Auto is a good example of a tech company providing a voice-based UI for connected cars. Spotify’s Car Thing, which recently rolled out to select US customers who subscribe to Spotify Premium, is another recent example.
Looking ahead, the vehicle interface will further evolve from today’s voice-enhanced touchscreen UI to one that is more intuitive, and perhaps even predictive. As “computers on wheels,” connected cars generate a lot of data about our daily trips and mobility habits. Coupled with individual biometrics data sensors that could be built into the seats, as Mercedes’s Avatar-inspired concept vehicle intends to do, these contextual data could be utilized to create AI-powered interfaces and anticipate our needs during our rides. So instead of asking Siri to play your road trip playlist, the future vehicle UI may just attentively suggest playing that playlist for you once you put in your road trip routes. In a sense, the vehicle interface would become part of the in-car ambience and only pops up when it asks for permission.
Of course, not all players in the mobility space today will have the expertise to develop the type of sophisticated vehicle interfaces by themselves; most legacy car OEMs don’t have that much experience in creating digital UIs, especially compared to newer EV makers like Tesla or Ravian. And while those tech-savvy newcomers may have a leg up over the legacy OEMs, their technological expertise pales in comparison to the likes of Apple and Google, as more tech companies aim to stake a claim in the future of mobility.
Tug Of War Over Dashboard Control And Data
Naturally, as connected cars become mainstream, they themselves will become a key consumer touchpoint, and there will be a tug of war for controlling the platform of connected cars, as well as the data they generate, between auto makers and tech companies. The winner will not only have a chance to directly build a long-term customer relationship, but also get to dictate the brand opportunities in connected cars.
OEMs may band together for joint development: For instance, three German OEMs formed a consortium to acquire a mapping business, then worked together to improve the system for automotive use. Each company occasionally added proprietary mapping features, such as improved user interfaces, to its own cars to provide a competitive advantage.
New entrants may take a software-based approach to car design. This approach would also reduce overall system complexity and development costs, with suppliers providing native compatibility with the architecture base across each component they provide.
On the tech side, Apple and Google are already leveraging their duopoly dominance in mobile into in-vehicle interface. But as the Spotify Car Thing and Amazon Echo Auto prove, other tech companies are trying to make inroads as well.
Apple, in particular, has a chance to do for in-vehicle media what it did for the smartphone market. The long-rumored Apple Car is about 2 to 3 years away from being unveiled, and about 4 to 6 years from coming to market. Like any other Apple product, we expect it to be fully integrated with Apple’s ecosystem and offer a seamless user experience with other Apple devices and services, which no auto OEMs can compete with. So if you’re already a locked-in Apple household, then switching to an Apple Car would have a lot of benefits thanks to its native cross-device interoperability.
In conclusion, the future of in-vehicle media consumption will be an integral part of the mobility experience and its evolution will have major implications for brands looking to explore connected cars as an emerging media channel. For auto and mobility brands, how to compete against tech companies on the in-vehicle experience will also become a key point of contention, which may result in interesting acquisitions and partnerships.
We here at the Lab are closely monitoring the various moving pieces in the mobility industry and charting the development of in-vehicle media consumption. To start a conversation around the numerous trends shaping the future of consumer attention in cars, and discuss how your brand can leverage these opportunities, reach out to Josh Mallalieu at josh@ipglab.com.
