Harris Poll AutoTECHCASTSM Study:
Connected Car High-Tech Features Popular, but More Marketing Muscle Needed to Spur Demand, Adoption
Lack of consumer education also allowing Connected Car privacy concerns to persist
NEW YORK - July 29, 2014 - 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 AutoTECHCASTSM study, an annual study of consumer awareness and adoption of advanced and emerging automotive technologies.
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."
TABLE 1
"Connected Cars include a blend of various technologies and features, some of which you may have evaluated earlier in the study. Please only focus on the questions being asked in this section, and not things you may have answered previously in the survey.
Please indicate how familiar you are with "Connected Cars", as described above."
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
TOTAL
|
|
| |
|
I have heard of them, and am familiar with what they are/can do.
|
%
|
14
|
|
|
I have heard of them, but am not familiar with what they are/can do.
|
%
|
42
|
|
|
I have never heard of them.
|
%
|
44
|
|
TABLE 2
"Thinking about "Connected Cars", how much do you agree or disagree with each of the following statements?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
Agree (NET)
|
Strongly agree
|
Somewhat agree
|
Disagree (NET)
|
Somewhat disagree
|
Strongly disagree
|
Neither agree nor disagree
|
|
I am concerned that owning a "Connected Car" would compromise my privacy.
|
%
|
65
|
32
|
34
|
13
|
8
|
4
|
22
|
|
"Connected Cars" provide more connection to the outside world than people need.
|
%
|
56
|
26
|
30
|
13
|
8
|
5
|
31
|
|
I would not consider a future vehicle purchase if it was not a "Connected Car".
|
%
|
16
|
6
|
10
|
55
|
18
|
37
|
29
|
Note: Percentages may not add to 100% due to rounding
TABLE 3
"How interested are you in owning a "Connected Car" in the future?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
Interested (Top 2 Box)
|
Extremely interested
|
Very interested
|
Interested
|
Somewhat interested
|
Not at all interested
|
|
%
|
15
|
6
|
9
|
16
|
37
|
31
|
TABLE 4
"Connected Cars" include a variety of individual technologies and features. How familiar are you with each of the following technologies and features that can be included in a car?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
I have heard of it, and am familiar with it.
|
I have heard of it, but am not familiar with it.
|
I have never heard of it
|
|
Voice Activated Controls and Features - Allows the driver of the vehicle to use voice commands to control a variety of vehicle systems and features such as cellular phones, audio system, navigation system, climate control, and other electronic systems.
|
%
|
41
|
44
|
16
|
|
Vehicle to Driver Communication - The vehicle notifies the driver of relevant information, such as the need for maintenance/repair (low fuel, oil change, etc.), current driving statistics (speed management, MPG tracking, etc.), and safety alerts (attempted theft, towing, etc.).
|
%
|
34
|
41
|
25
|
|
Personal Assistant Service - Allows the driver to automatically communicate with a customer service representative to get assistance with driving directions, points of interest, and/or in the event of an accident or other safety or convenience-related issue (such as locking the keys in the vehicle).
|
%
|
34
|
41
|
24
|
|
Internet-Enabled Navigation - A navigation system that is always connected to the Internet to provide real-time traffic updates, turn-by-turn navigation to avoid potential delays, and etc.
|
%
|
34
|
45
|
21
|
|
Vehicle Internet Connectivity - Provides access to the Internet through an interface in the vehicle, or provides "hot spot" access for a Wi-Fi enabled device (i.e., laptop, smartphone, etc.).
|
%
|
26
|
47
|
27
|
|
Vehicle Mobile Applications - Apps that are modified to be used in your car for things such as personal networking, Internet radio, movie/restaurant reservations, and etc. These Apps can be "built-in" to your vehicle, or accessed by connecting your smartphone to the vehicle, and can be controlled through a vehicle display and/or steering wheel controls.
|
%
|
23
|
44
|
33
|
TABLE 5
"How interested are you in having the following technologies/features included in the next vehicle you purchase?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
Interested (Top 2 Box)
|
Extremely interested
|
Very interested
|
Interested
|
Somewhat interested
|
Not at all interested
|
|
Vehicle to Driver Communication - The vehicle notifies the driver of relevant information, such as the need for maintenance/repair (low fuel, oil change, etc.), current driving statistics (speed management, MPG tracking, etc.), and safety alerts (attempted theft, towing, etc.).
|
%
|
30
|
11
|
19
|
27
|
23
|
20
|
|
Voice Activated Controls and Features - Allows the driver of the vehicle to use voice commands to control a variety of vehicle systems and features such as cellular phones, audio system, navigation system, climate control, and other electronic systems.
|
%
|
28
|
11
|
17
|
24
|
23
|
24
|
|
Internet-Enabled Navigation - A navigation system that is always connected to the Internet to provide real-time traffic updates, turn-by-turn navigation to avoid potential delays, and etc.
|
%
|
27
|
10
|
17
|
26
|
23
|
24
|
|
Vehicle Internet Connectivity - Provides access to the Internet through an interface in the vehicle, or provides "hot spot" access for a Wi-Fi enabled device (i.e., laptop, smartphone, etc.).
|
%
|
20
|
7
|
13
|
22
|
23
|
35
|
|
Personal Assistant Service - Allows the driver to automatically communicate with a customer service representative to get assistance with driving directions, points of interest, and/or in the event of an accident or other safety or convenience-related issue (such as locking the keys in the vehicle).
|
%
|
19
|
8
|
11
|
21
|
26
|
33
|
|
Vehicle Mobile Applications - Apps that are modified to be used in your car for things such as personal networking, Internet radio, movie/restaurant reservations, and etc. These Apps can be "built-in" to your vehicle, or accessed by connecting your smartphone to the vehicle, and can be controlled through a vehicle display and/or steering wheel controls.
|
%
|
17
|
7
|
10
|
21
|
23
|
40
|
Note: Percentages may not add to 100% due to rounding
TABLE 6
"Connected Car" technologies/features can be "built-in" to the vehicle or "brought-in" by tethering your smartphone. Which of the following "Connected Car" systems do you prefer?
Base: At least somewhat interested in owning a Connected Car
|
|
TOTAL
|
|
"Built-in" system - A fully integrated system with the full capability of the Bluetooth connected smartphone via the vehicle's built in screen and controls. It also has additional features exclusive to the particular auto brand available either as standard or via subscription. This system would require a data plan from a wireless provider.
|
%
|
65
|
|
"Brought-in" system - Tethers your smartphone via a USB cable or Bluetooth to the vehicle. It provides specific functions such as contacts and playlists via the head unit screen. This system uses your smartphone's current data plan.
|
%
|
35
|
TABLE 7
"All else being equal, if you were considering purchasing a vehicle with a "built-in" "Connected Car" system that uses a different data plan than your smartphone, how much more or less likely would you be to purchase the vehicle?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
More likely (NET)
|
Much more likely
|
Somewhat more likely
|
Less likely (NET)
|
Somewhat less likely
|
Much less likely
|
No more or less likely
|
|
%
|
15
|
5
|
10
|
51
|
20
|
31
|
34
|
Note: Percentages may not add to 100% due to rounding
TABLE 8
"For the ability to advertise and/or collect information via your "Connected Car" system, companies may offer to either reduce the cost of data services or give you more data for the same price. Which of the following would you allow in return for lower costs or more data?"
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
| |
Total
|
Age
|
|
(18-34)
|
(35-44)
|
(55+)
|
|
%
|
%
|
%
|
%
|
|
Collection of data about how I use my Connected Car System that would be combined with data from thousands of other drivers.
|
17
|
22
|
19
|
11
|
|
A 15 second audio advertisement that would run before I start listening to a streaming audio service in my vehicle.
|
15
|
25
|
17
|
8
|
|
Collection of data about how I drive that would be combined with data from thousands of other drivers.
|
14
|
21
|
16
|
9
|
|
Collection of data about where I drive that would be combined with data from thousands of other drivers.
|
13
|
19
|
15
|
8
|
|
Occasional visual advertisements (static, without distracting video) that would appear on the vehicle's screen in the center of the dash.
|
11
|
17
|
12
|
6
|
|
Collection of data about how I use my Connected Car System in order to send ads that are tailored to my specific interests.
|
10
|
16
|
13
|
6
|
|
Collection of data about where I drive in order to send ads for businesses located in the area where I am driving.
|
10
|
16
|
11
|
6
|
|
None - I would not allow advertising or information to be collected.
|
56
|
34
|
51
|
71
|
TABLE 9
"Some vehicle manufacturers have a brand associated with the "Connected Car" technologies/features in their vehicles. Please select each of the following systems you are aware of."
Base: U.S. car owners with a 2009 model or later and are a decision maker for a new car purchase
|
|
TOTAL
|
|
OnStar
|
%
|
78
|
|
SYNC
|
%
|
33
|
|
MyLink
|
%
|
11
|
|
U Connect
|
%
|
10
|
|
Blue Link
|
%
|
8
|
|
Connected Drive
|
%
|
4
|
|
Entune
|
%
|
4
|
|
CUE
|
%
|
3
|
|
Mbrace2
|
%
|
2
|
|
None of these
|
%
|
13
|
# # #
Harris Poll AutoTECHCASTSM Methodology
The Harris Poll AutoTECHCASTSM 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 AutoTECHCASTSM 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 AutoTECHCASTSM 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.