Advertising In Autonomous Cars Will Be A Multi-Billion-Dollar Business
Advertising In Autonomous Cars Will Be A Multi-Billion-Dollar Business
The introduction of autonomous vehicles doesn't just offer traditional carmakers the chance to diversify and grow, they will also allow products and services to be sold to drivers.
Research from UBS suggests that revenue related to autonomous vehicles will top out at $2.3 trillion by 2030 and that a huge 70 per cent of this will come from selling things to people that used to drive but no longer do.
UBS predicts that self-driving taxi services will be worth $1.2 trillion annually. UBS expects online travel agencies to account for a significant proportion of trips which will be spread out across a plethora of robo-taxi services, QZ reports.
The second, and must more attractive to companies, opportunity created by autonomous vehicles will be in-car monetization.
It is predicted that $472 billion worth of ads and services could be sold to consumers when an autonomous vehicle is driving itself. Google parent company Alphabet could profit the most from these new advertising opportunities, capturing up to 60 per cent of all in-car monetization revenue.
According to UBS, Google's Waymo self-driving division is worth $75 billion when its opportunities in services and software are considered.
As it is, consumers are flooded with hundreds, if not thousands, of advertisements on a daily basis. It only makes sense for companies to explore the brand new opportunity that presents itself to them, namely autonomous cars. We guess that you will be able to disable them in your own vehicle, but would you be comfortable being bombarded with ads when riding on a self-riding taxi?
Canadian drivers lack knowledge about tire inflation
Dealers may need to educate customers about the importance of proper tire inflation this Spring as Canadian drivers are expected to waste approximately 500 million litres of fuel in 2018 due to under inflated tires.
The data, based on a tire maintenance attitudinal survey conducted by Leger on behalf of the Tire and Rubber Association of Canada, serves as a wake-up call for drivers and a potential marketing opportunity for dealers to connect with their customers about the issue.
According to Glenn Maidment, president of the Tire and Rubber Association of Canada (TRAC), even though Canadian drivers understand the benefits of proper tire inflation, the survey reveals an "urgent requirement for broader driver knowledge and education on tire inflation facts and procedures."
"The need is particularly acute among younger drivers who are significantly less likely to know inflation pressures should be measured monthly and when tires are cold," said Maidment. "Learning a few simple facts and procedures advances safety, maximizes fuel efficiency and protects the environment."
According to the research, a mere 30 per cent of Canadian drivers measure their tires' inflation pressures on a monthly basis, which is considered to be a practice that is essential to fuel economy, road safety and protecting the environment. The survey also reveals that:
65 per cent of drivers are unaware that inflation pressures should only be measured when tires are cold.
37 per cent refer to the air pressure stamped on the tire's sidewall when identifying the correct pressure for their tires.
22 per cent of drivers rely on visual inspections to help determine if their tires are inflated properly.
61 per cent use a personal air pressure gauge when measuring tire pressures.
86 per cent of drivers have reportedly rotated their tires in the past year, and 66 per cent had their vehicle's tire alignment checked in the past 12 months.
81 per cent are unfamiliar with low rolling resistance (LRR) tires.
Proper tire inflation and pressure can help drivers improve their gas mileage by 0.6 per cent on average or up to three per cent, depending on the situation. But "under-inflated tires can lower gas mileage by about 0.2 per cent for every one psi drop in the average pressure of all tires," according to a news release.
Several automakers have announced plans to add hybrid or all-electric variants of every car they make, but PSA Peugeot Citroën's DS brand plans to phase out standalone gasoline and diesel powertrains altogether within the next few years.
"Starting in 2025, each new DS will be launched exclusively with electrified powertrains," CEO Yves Bonnefont said in a statement. The French automaker joins Volvo, which announced last year that every new car it sells from 2019 on will have some degree of electrification. Other automakers have said they will offer electrified variants of every model in their lineups.
DS is kicking off its electrification push with the DS 7 Crossback E-Tense 4x4, a hybrid version of its new crossover. Sporting a 300-horsepower gasoline-electric powertrain, it launches in Fall 2019. The automaker plans to unveil its first all-electric production model at the 2018 Paris Motor Show this fall.
Formula E will serve as a proving ground for future electric powertrains, a DS press release said. However, given the series' many restrictions on technical development, it's unclear how much racing will actually benefit road cars. DS has been involved with Formula E since the series launched in 2014, which also happened to be DS' first year as an independent brand. The automaker currently partners with Richard Branson's Virgin Racing.
Total electrification of DS may be just the start for parent PSA Peugeot Citroën. Earlier this year, CEO Carlos Tavares said the French company "will be 100 percent electrified" by 2025, offering hybrid or all-electric versions of every model but possibly keeping some standalone gasoline or diesel powertrains in production as well. Some of these French hybrids and electric cars may even make it to the United States, as PSA is plotting a return to this market.
New cars sold in the U.S. must have backup cameras to help drivers avoid accidents under a federal regulation that took effect Wednesday.
The regulation requires rearview cameras and video displays on new models, a move aimed at preventing accidents in which pedestrians - often children - are run over because a driver can't see them as they back their vehicles.
Congress passed a law in 2008 requiring regulators to enact measures requiring the adoption of technology to greatly improve rear view visibility.
After years of delays, the Department of Transportation announced the camera requirement in 2014, giving automakers several years to prepare.
Many higher-end models and mainstream vehicles with extra safety packages already have rearview cameras. But the technology will now be standard in even the cheapest of new cars.
"The regulation is a monumental advancement of safety for children, pedestrians, bicyclists and other vulnerable road users," Cathy Chase, president of Advocates for Highway and Auto Safety, said in a statement.
Backover crashes kill more than 200 people annually and injure more than 12,000.