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Harris Poll AutoTECHCAST(SM) 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


News provided by

Harris Poll

Jul 29, 2014, 09:00 ET

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NEW YORK, July 29, 2014 /PRNewswire/ -- 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.

Harris Poll (PRNewsFoto/Harris Poll) (PRNewsFoto/Harris Poll)
Harris Poll (PRNewsFoto/Harris Poll) (PRNewsFoto/Harris Poll)

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. (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 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.

Press Contact:
Corporate Communications
The Harris Poll
212-539-9600
[email protected]

Logo - http://photos.prnewswire.com/prnh/20140718/128665

SOURCE Harris Poll

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