 These driving directions provided by . . . GM CEO Dan Akerson recently blew up the headlines in automotive circles after an interview he gave to Automotive News seemed to indicate the company was looking to place advertising in cars. It turns out Akerson was speaking hypothetically about possible ways GM could increase its subscription-based OnStar service's revenue stream, and a GM rep tells us the company isn't talking about any such plans right now. Still, the interview raises legitimate questions about the future of the connected car and what it could mean for potential ad opportunities for GM and other automakers. First, it's worth placing Akerson's comments in context before we delve into its repercussions The CEO, apparently responding to Automotive News's question of the possibilities of serving digital in-car advertising, responded with the comment: "For example, what happens if when the logo shows on your screen, it says 'brought to you by Allstate'? . . . How many times is that going to pop? And how much can you get from Allstate?" A GM representative told us that the CEO was speaking hypothetically and intended only to give an example of what could be possible when GM vehicles begin to inherit 4G LTE connectivity next year. The ad possibility came into play because, theoretically, an internet-connected car (the 4G link will be a part of GM's OnStar telematics system) could have advertising beamed straight into it, giving GM another revenue outlet for OnStar besides annual subscription fees. Akerson's "hypothetical" response wasn't exactly portrayed as such by a number of outlets. Pretending for a moment that GM is thinking about placing ads against either its OnStar system or its architecturally similar MyLink (Chevrolet), CUE (Cadillac), and IntelliLink (GMC and Buick) infotainment systems, the potential scope of when and where ads appear likely is more restrained. After all, a vehicle's infotainment screen isn't the only spot advertising could pop up, were they to display while the car is in motion in the first place. GM's 4G LTE announcement, which included a few examples of OnStar's future internet-enabled capabilities, offers a peek at potential avenues for ad deployment. Rear-seat passengers streaming video and internet to their entertainment screens or mobile devices, for example, are well positioned to receive ads. Future 4G LTE connectivity also opens more possibilities for GM-specific auto apps—especially given the automaker recently revealed it was opening up its infotainment API to developers to encourage app creation for MyLink, CUE, and IntelliLink. We originally noted that developers could be slow to get on board with GM-specific apps given their seemingly limited market, but app creators might see more motivation if they're promised either a higher up-front cut on app sales in exchange for GM placing ads on the apps, or a cut of the ad sales themselves.
From a dollars and cents issue, then, the whole idea makes sense considering it would provide every advertiser's dream of a captive audience. Outside of the accountants' perspective, running ads—especially for the driver—makes slightly less sense and raises a host of privacy and safety concerns. (This was the very fuel behind the media flare-up over the Automotive News story.) When it comes to any technology, whether it be in-car or on a mobile device, we're strongly against anything that takes a driver's eyes off of the road any longer than necessary. We're not alone, of course—the NHTSA's distracted driving guidelines are setting the stage for a closer industry-wide look at how to keep drivers' focus on driving. Perhaps this is why GM is so adamant that Akerson's comments were hypothetical—because whether or not GM is considering in-car ads, a ton of thought and consideration needs to go into implementing any platform for delivering such marketing. We have no doubt GM—and other automakers with connected cars—have at least thought about such advertising possibilities, but we're fairly confident that visual marketing ultimately will be restricted solely to passengers—if they make it to cars at all.  from Car and Driver Blog http://blog.caranddriver.com | |||
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